Buying a house is an important goal many strive towards. But as the standard of living increases, so do housing prices. Many Malaysians are left wondering if they’ll ever be able to afford a property of their own.
This is especially worrying in urban areas like Kuala Lumpur (KL) and Selangor, where the starting salary sits around RM2,000 to RM3,000, despite the steep price tags of properties in the area.
One can’t help but wonder: “Where am I going to find a property that fits my budget?”
Median Salary And House Prices In Malaysia For 2020
According to the 2020 Salaries & Wages Survey Report by the Department of Statistics Malaysia (DOSM), the median salary of Malaysians in KL and Selangor sit at just RM3,037 and RM2,725 respectively.
In contrast, the 2020 median price for terraced houses in KL was RM756,500, and RM538,000 for high-rise homes, according to the National Property Information Centre (NAPIC).
In Selangor, the median price for terraced houses and high-rise homes were RM521,550 and RM300,000 respectively.
Median Salary And House Prices In Malaysia For 2020
Source: DOSM and NAPIC
How Much Home Loan Can I Get With A Monthly Salary Of RM3000 In Malaysia?
Suppose you want to buy a house in KL or Selangor (major hotspots, we know!), but your monthly salary is only around RM3,000.
What options do you have, and how much loan can you borrow from the bank? To find out the answers to these questions, we first assume:
- Your gross monthly income is RM3,000
- Your monthly living expenses are 30% of your net income
- You don’t have any financial burdens such as car loans, rent, or credit card debts
- You plan to use 70% of your net income for the repayment
- You want to borrow 90% from the bank, and you can afford the 10% down payment
- The interest on the mortgage you applied for is 3.5% and the repayment period is 35 years
We’ll use the following formula to calculate it for you:
RM3,000 (gross income) – 20% (EPF, SOCSO and PCB) = RM2,400 (net income)
RM2,400 (net income) – 30% (living expenses) = RM1,680 (property budget)
RM2,400 (net income) – 30% (living expenses) = RM1,680 (property budget)
After deducting 20% for EPF, SOCSO and PCB from your gross monthly income of M3,000, you’re left with a net income of RM2,400.
Say you need 30% of your net income for living expenses, that will leave you with 70%, or RM1,680 for your new home. So, how much loan can RM1,680 get you?
According to PropertyGuru’s Home Loan Calculator, a RM400,000 total loan amount with 3.5% interest rate and repayment period of 35 years will put your monthly repayments at RM1,653.
So there you have it: With your budget of RM1,680 for the property, a home loan worth RM400,000 is just what you can afford!
Assuming that the down payment is 10% (RM40,000), that would mean you can afford a property priced around RM440,000 with your RM3,000 salary.
What kind of property can be bought in KL and Selangor with a budget of just RM440,000? Let’s use the property search function on our website to find something suitable at this price.
What Properties Can I Buy In Kuala Lumpur With A Monthly Salary Of RM3,000?
According to the PropertyGuru website as of 9th April 2022, RM440,000 allows a buyer to purchase these 15 high-rise projects below.
Many of these are new projects, situated in prime hotspots such as Sentul and Bangsar South close to KLCC. Others are situated in mature areas like Cheras, Setapak, and Kepong.
Owing to the fact that there are all these new properties, buyers can also enjoy additional benefits from the developers, which potentially includes free stamp duty, free SPA legal fees and cash rebates.
It’s worth noting that the high-rise projects in KL below are all within 1,000 sq ft, which may make them more suitable for singles, couples, and small families.
If you’ve just started working and are looking for a place to call your own, these projects might be right up your alley!
15 high-rise projects under RM440,000* in Kuala Lumpur
*Note: Data and prices as of 9th April 2022
What Properties Can I Buy In Selangor With A Monthly Salary Of RM3,000?
The good news is that Selangor has more land and is less congested than KL, so you’ve got more options in terms of what properties you can afford!
As of 9th April 2022, our website shows that a RM3,000 income earner with a budget of RM440,000 can choose from 9 new townhouses/terraced houses and 29 new high-rise projects!
Like the 15 high-rise projects in KL above, these are all brand-new projects.
In terms of location, most of the landed projects are located in Puncak Alam, Bangi and Dengkil. The high-rise projects on the other hand, are located in more diverse areas, distributed in Cheras, Kajang, Puchong and Shah Alam.
9 new landed projects priced below RM440,000* in Selangor
Telok Panglima Garang
Double-storey terraced house
1,913 sq ft
Malay Reserved Land
RM438,170
*Note: Data and prices as of 9th April 2022
29 new high-rise projects priced below RM440,000* in Selangor
*Note: Data and prices as of 9th April 2022
Never Buy A House Outside Of Your Financial Affordability
Using 70% of your net income for your home loan repayments alone is something we at PropertyGuru certainly advise against.
This is because it’s important to set aside some of your income every month for your emergency fund too.
Buying a property also comes with a whole host of other hidden costs, which can really add up:
If your income barely covers the home loan repayments alone, it’s likely you won’t be able to afford all the other associated expenses. You may be able to buy the house, but not afford it!
Below are three disadvantages why using a significantly high portion of your income for your property purchase may not be such a good idea:
1) Inability to save for your emergency fund
When a crisis hits or you find yourself suddenly retrenched, you won’t have sufficient funds set aside to continue paying off your home loan. Your house may get auctioned off, or worst – you’ll be facing bankruptcy.
2) Forced to sacrifice quality of life
Allocating such a big cut of your salary to your home loan means you severely restrict other areas in your life. Starting a business or getting a new car are all off the table. You might also have to give up travel and other leisurely activities.
3) May affect your future career development
In the event that you switch jobs in the future, you might want to find a place near your job to cut down on commute time. Having your money locked up in your home loan may affect your career development by limiting your opportunities.
So, What Properties Can I Afford With A RM3,000 Salary In Malaysia?
In general, it’s advisable that your home loan repayments don’t exceed 30 to 40% of your net income.
From the example above where we used a salary of RM3,000, 40% of your net income (RM1,680) minus all living expenses is RM672.
Based on this RM672 budget, it’s advisable that you buy a property around RM180,000. This is assuming that your home loan has:
- An interest rate of 3.5%
- Repayment period of 35 years
- 10% down payment at RM18,000
- Total home loan of RM162,000
We get it. RM180,000 is barely enough to buy a property, let alone in KL or Selangor. But it’s not impossible! With a little digging, you’ll be able to hunt down small apartment units priced at RM180,000 or below.
To help you afford a home of your own, there are also various government initiatives for keen homebuyers that bring home a salary of RM3,000 or below:
The properties under these affordable housing initiatives offer projects much lower than market rates, with some even offering attractive Rent-To-Own (RTO) schemes.
Don’t Rush Into Your Home Buying Journey!
Buying a property is often mentioned as a method for accumulating wealth, and being able to realise your dream of becoming a homeowner is no doubt an exciting achievement.
Despite that, stretching beyond your means will only leave you in financial difficulties for decades to come. So, if you can’t afford one, consider temporarily putting your home buying plans on hold!
Instead, focus your efforts on building up your income and purchasing power so you can be better prepared to buy your first home.
In the meantime, you can also work on enriching your property knowledge, getting familiar with your Debt Service Ratio (DSR), CCRIS and CTOS scores, as well as saving up for your down payment.
Remember, there’s no deadline to home ownership!
Relevant Guides:
-
Townhouse Malaysia: 5 Pros And Cons Of Choosing To Live In One
-
Freehold vs Leasehold: Which is Better?
-
Understanding Housing Development Act Malaysia (HDA) And Defect Liability
Keep Track of New Launches
Visit our new launches page to find the new launch project of your dreams and submit an enquiry today.

Disclaimer: The information is provided for general information only. PropertyGuru International (Malaysia) Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.