{"id":51058,"date":"2021-12-07T18:12:14","date_gmt":"2021-12-07T10:12:14","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=51058"},"modified":"2024-01-31T16:11:08","modified_gmt":"2024-01-31T08:11:08","slug":"cost-tiny-homes","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/cost-tiny-homes","title":{"rendered":"What Are Tiny Homes, And How Much Do They Cost?"},"content":{"rendered":"

Let\u2019s say you\u2019re shopping around for your first home. You earn RM5,209 a month (the median household income last year), and you\u2019re looking to get a home valued at RM320,000 (the median home price in Malaysia).<\/p>\n

If you put aside 10% of your income, or RM520, every month towards your new home, you just might save up for an RM32,000 down payment in about five years. Plus, don\u2019t forget other upfront costs<\/a> – this home could cost around RM13,000 in legal fees and stamp duties. That\u2019s another two years of savings.<\/p>\n

Assuming a 4% annual interest rate on a 30-year loan, you\u2019d be paying RM1,375 every month. Over the course of the loan, you\u2019d end up paying RM288,000 in interest.<\/p>\n

How much does an RM320,000 home cost?<\/strong>
\n\n\n\n\n\t\n\t\n\t\n\t
Down payment<\/td>RM32,000<\/td>\n<\/tr>\n
Upfront fees (legal fees, stamp duties)<\/td>RM13,000<\/td>\n<\/tr>\n
Monthly repayment<\/td>RM1,375<\/td>\n<\/tr>\n
Total interest payments<\/td>RM288,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nAssuming a 4% annual interest rate on a 30-year mortgage; figures are for illustration purposes only<\/em><\/span>\n<\/p>\n

And these estimations are on the optimistic side – about 25% of Malaysians<\/a> reside in Selangor and Kuala Lumpur, which have median prices of RM405,000 and RM495,000 respectively, which are higher than the national median. On top of that, home prices are outpacing our incomes<\/a>.<\/p>\n

In other words, buying a home is expensive.<\/em><\/p>\n

<\/span>The solution: cost-effective tiny homes<\/span><\/h2>\n

To spend less on a home purchase, you could:<\/p>\n