Trending: Malaysia has a rising number of YOUNG millionaires. Are you one of them?
Article in malaymail.com Malaysia reportedly recorded a 75 per cent increase in young millionaires in 2022, the Inland Revenue Board (IRB) was reported saying.
The New Straits Times reported IRB saying that the number of those aged under 30 declaring their income as being above RM1 million, went up from 20 in the previous year to 35.
“However, we have yet to tabulate the figures for 2023 since the e-filing process for the year is still ongoing,” it was quoted as saying.
The IRB said in the period from 2018 to 2021, 94 per cent of young millionaires have not recorded any outstanding tax balances. Article in malaymail.com
The above article are based on people using their incomes to become a millionaire. That’s why the growth is huge but the number remain small. Only 35 Malaysians have this ‘millionaire’ status for the ones under 30. Another way one could become a millionaire is through owning a property where the price went up to RM1 million or higher.
When the property price is at a median of over a million ringgit?
Not many people become a millionaire by saving their money over 30 years. However, many may have become a millionaire because they bought the right property when they were younger 30 years ago.
Before we talk about Malaysia, let’s start with two advanced property markets; Singapore and Australia. Do people become a millionaire by owning the right property? Let’s start with our southern neighbour.
If you bought a property a long time ago in Singapore, this is the typical HDB Resale Prices today. For the purchasers in Bukit Merah, they are very close to be known as a millionaire today. It’s S$895,000 based on resale price. For all the rest, actually, they are also known as half-millionaires too if they sell their properties today and they have fully paid for them earlier.
Now what about Australia?
Let’s look at the two main cities. Sydney or Melbourne, just by holding on to that property, you are now a millionaire. Look at the chart below:
If we sell the property and become a millionaire, is that enough?
Good question. What is enough and what is not enough? It’s a question only the person could answer. Below a certain salary threshold, we will struggle but there are people earning RM20,000 per month and they are struggling even more than someone earning RM5,000 per month! So, if we do sell the property after 30 years and get RM1 million, it would depend on the person how long this amount of money could last too. However, it is comforting to have RM1 million…
All the best!
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