Here's a List of Affordable Klang Valley Areas for the Middle-income Earners

Every time Budget Malaysia is tabled, there’s not much perks for the middle-income group (the M40). They’re kinda in the middle; neither earning too much nor too little. On one hand, the T20 group (high-income earners) are already pretty well-off. On the other hand, the lower-income folks (also known as the B40 group) get the most financial assistance.

Now, according to the Department of Statistics Malaysia, the M40 income group had a median monthly household income of RM6,275 in 2016. While that sounds like a figure that most people would say “Wah your income not bad ah!”, it’s actually barely enough to get by nowadays, especially for families living in Klang Valley. Haven’t considered inflation and slower wage growth yet, okay!

What's covered in this article?

While it can be difficult for the M40 to purchase a home in Klang Valley – what with higher costs of living, falling purchasing power and property prices that ALWAYS seem to be climbing – all is not lost! We’ve compiled a list of 7 affordable areas in Klang Valley that may offer options worth considering, based on several simple estimates:

Gross monthly income	RM6,275
Monthly expenses (estimate)	RM4,000
Housing loan (4.5% interest rate, 30-35 year loan tenure)	RM770 (max)
Estimated home price (90% financing)	RM170,000 (max)

These following areas are all in the secondary market, which means that you must be prepared for much older buildings, and quite a bit of renovation work involved. Nevertheless, they can provide middle-income earners with a practical start to home buying before they proceed to more expensive purchases, or even as an investment option.

1) Pelangi Damansara 3, Petaling Jaya

Area: 650 sq ft/3 bedrooms
Price/monthly loan instalment: RM145,000/RM653 per month
Pros: Facilities such as swimming pool, jogging track, playground, mini market and a gymnasium. Within walking distance to popular shopping malls such as The Curve, Tesco Damansara and IKEA. Easy access via Lebuhraya Damansara-Puchong (LDP) and North-Klang Valley Expressway (NKVE) highways.
Cons: High density, traffic congestion, located near power lines.

2) Puchong Permata 2, Puchong

Area: 710 sq ft/3 bedrooms
Price/monthly loan instalment: RM170,000/RM766 per month
Pros: Located in a fast-growing residential and commercial hub. Large shopping malls such as IOI Mall and Jusco are within reach. Also within the vicinity of many schools such as SK Puchong Indah, SK Puchong Perdana, and SMK Puchong. For public transport, Rapid KL Terminal Puchong Utama is approximately 3km away.
Cons: Might be over-congested with rapid developments in and around the area.

3) Flora Damansara Apartment, Damansara Perdana

Area: 850 sq ft/3 bedrooms
Price/monthly loan instalment: RM160,000/RM721 per month
Pros: Good access roads. Located near the Damansara-Puchong highway Penchala Toll Plaza. Only 5 minutes away from major shopping centres such as The Curve, IKEA and Tesco.
Cons: Traffic congestion, lack of public transportation options, not so safe at night.

4) Bandar Bukit Tinggi 1 Apartment, Klang

Area: 713 sq ft/3 bedrooms
Price/monthly loan instalment: RM118,000/RM532 per month
Pros: An integrated township with various nearby amenities such as Tesco and Giant hypermarkets, as well as Aeon Bukit Tinggi Shopping Centre (the largest Jusco in Southeast Asia). Excellent access via Federal Highway and Shah Alam Expressway (KESAS). For public transport, only a 10-minute drive to the Kampung Raja Uda KTM Komuter Station.
Cons: Quite far from Kuala Lumpur city centre. Approximately 50km and 30km away from KL and Petaling Jaya respectively.

5) Taman Sri Sentosa, Jalan Klang Lama

Area: 620 sq ft/3 bedrooms
Price/monthly loan instalment: RM163,000/RM735 per month
Pros: Surrounded by matured developments at the Old Klang Road area such as Bukit Overseas Union Garden (OUG). Strategic location - 15 minutes away from the Kuala Lumpur city centre and Petaling Jaya. Also a few minutes away from Mid Valley Megamall, one of the busiest shopping malls in Klang Valley.
Cons: High density, traffic congestion.

6) Desa Satu, Desa Aman Puri, Kepong

Area: 655 sq ft/3 bedrooms
Price/monthly loan instalment: RM155,000/RM699 per month
Pros: Located close to Petaling Jaya and within close distance to Mutiara Damansara’s major shopping outlets such as IKEA and The Curve. Good access roads to the neighbourhood via Lebuhraya Selayang – Kepong and links to the LDP highway.
Cons: Quite far from Kuala Lumpur city centre.

7) Bukit Cheras, Taman Bukit Cheras

Area: 505 sq ft/2 bedrooms
Price/monthly loan instalment: RM165,000/RM744 per month
Pros: Thriving neighbouring areas such as Taman Len Seng, Alam Damai, Taman Bukit Anggerik, Taman Bukit Angsana at its south, Taman Seri Aman and Taman Cheras Mas. Various commercial options and facilities within its vicinity such as Jusco, Econsave as well as the popular night market at Taman Connaught.
Cons: High density, traffic congestion

So if you’re in the M40 group and still on the lookout for that dream home of yours, we hope this list comes in handy during your property hunting! In addition, if you’re still unsure about how much loan you can get, why not head on over to check out Loanstreet’s handy home loan eligibility tool? It’s not only fast and easy, it’s FREE too!