Cost of living in 2010?

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My wife and I are tentatively planning to come down to Penang for at least a year -- probably a lot longer if this damn recession continues to erode our portfolio -- so I have been avidly reading this topic and the others on what is an invaluable site.

I think I have a handle on the cost of living in Penang but can anybody give me an indication -- a ballpark figure will do -- of the percentage difference between living on the island and, for example, Butterworth? I know it's cheaper but is it 10pc, 20pc or 30pc would you say, and is the differential worth it is terms of quality of life?

I know opinions are subjective but I'd be very interested in any of yours.

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I live in a roughly 1500 sq ft condo in Penang and my monthly electricity bill is usually just over RM200. That's for 8 hours air-con, 10 hours fan, tv, computer, washing machine (no dryer), showers, cooker, fridge and wine chiller.

I'm on the 18th floor so I often get sea breazes during the day. However I couldn't sleep without air-con.

I have heard that some new high end condos cost a fortune to run. With lots of glass, you can't avoid the build-up of heat unless you close thick curtains and/or turn on the air-con.

Bill

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Would be interested to know what sort of monthly cost of living figure you are looking at re Penang (presumably on basis of renting)?

Sorry I am not qualified to assist you re the Penang/Butterworth equation.

Cheers,

James

My wife and I are tentatively planning to come down to Penang for at least a year -- probably a lot longer if this damn recession continues to erode our portfolio -- so I have been avidly reading this topic and the others on what is an invaluable site.

I think I have a handle on the cost of living in Penang but can anybody give me an indication -- a ballpark figure will do -- of the percentage difference between living on the island and, for example, Butterworth? I know it's cheaper but is it 10pc, 20pc or 30pc would you say, and is the differential worth it is terms of quality of life?

I know opinions are subjective but I'd be very interested in any of yours.

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hi,

My wife and I are tentatively planning to come down to Penang for at least a year -- probably a lot longer if this damn recession continues to erode our portfolio -- so I have been avidly reading this topic and the others on what is an invaluable site.

I think I have a handle on the cost of living in Penang but can anybody give me an indication -- a ballpark figure will do -- of the percentage difference between living on the island and, for example, Butterworth? I know it's cheaper but is it 10pc, 20pc or 30pc would you say, and is the differential worth it is terms of quality of life?

I know opinions are subjective but I'd be very interested in any of yours.

Ok, a ballpark figure. Penang is a tourist town/island. Add 10% to cover things/general cost of living. Whenever I visit Penang I don't notice much difference in the prices of stuff than when I'm living in Perak. Supermarkets are pretty much the same. Food is a little bit more but then the choice is vastly wider. I guess that over on the mainland it's pretty much the same as Perak.

Property (purchase/rental) is obviously much cheaper in Butterworth and Semberang Prai. I don't think that Butterworth has many RM1M condos for sale.

The differential in quality of life, if any, depends on what you're looking for. Renting a cheaper condo in Butterworth because you'll be taking the train up to Hua Hin or Bangkok for regular holidays is a different matter from buying/renting in Tanjung Bungah where you never travel farther than the balcony.

Why don't you consider trying one option and see what it's like. I'd try the cheaper option, renting in Butterworth first, with trips to Penang and seeing how it all fits together. After 6 months or 1 year then decision time.

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 hi,

Would be interested to know what sort of monthly cost of living figure you are looking at re Penang (presumably on basis of renting)?

Friends of mine rent a top floor 3-bedroomed apartment for RM700 per month. It's furnished and the complex has a swimming pool. It's in the south of the island well before the airport.

Another friend rented a 2-bedroomed bungalow near Batu Ferringhi for RM1,500 per month.

My mate, the drunk that used to be my next door neighbour here in Perak, lives on an Aussie pension/benefit and reckons on about RM1200 per month. Out of this, and in this order, comes booze, rental, hand-phone, electricity/water, motorbike costs, car costs when it's going, and food. He manages Ok, and with some random odd-jobbing life's a breeze.   

The recent figures given by the Malaysian PM in the NEM state that the average per capita income in Malaysia is about RM2,200 per month. 40% of Malaysians get less than RM1,500 per month.

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James/Scott,

Many thanks for your replies. I was kind of budgeting in my mind on a condo rent of MYR2,000-2,500 a month around Tanjung Bungah and general living expenses of what I thought was the average Malaysian income of MYR2,800 a month. If in actuality it is 2,200pm, that makes my plan more feasible -- or does it?

Is that realistic or am I being too optimistic, as is my wont!

Initially at least, we would plan on doing the visa run -- three months then off to Singapore to see the grandkids, another three months then Thailand or wherever. If after a year or 18 months, we decided we likes it enough, we would join the MM2H, though I don't have Euro70,000 or so in cash washing around my bank account, which seems to be one of the stipulations.  Who on earth has that kind of money sitting in an account doing nothing? 

Anyway, we are both very excited at the prospect.   
 

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hi,

Ok, a ballpark figure. Penang is a tourist town/island. Add 10% to cover things/general cost of living. Whenever I visit Penang I don't notice much difference in the prices of stuff than when I'm living in Perak. Supermarkets are pretty much the same. Food is a little bit more but then the choice is vastly wider. I guess that over on the mainland it's pretty much the same as Perak.

Property (purchase/rental) is obviously much cheaper in Butterworth and Semberang Prai. I don't think that Butterworth has many RM1M condos for sale.

The differential in quality of life, if any, depends on what you're looking for. Renting a cheaper condo in Butterworth because you'll be taking the train up to Hua Hin or Bangkok for regular holidays is a different matter from buying/renting in Tanjung Bungah where you never travel farther than the balcony.

Why don't you consider trying one option and see what it's like. I'd try the cheaper option, renting in Butterworth first, with trips to Penang and seeing how it all fits together. After 6 months or 1 year then decision time.

Hi Scott/Torq

Can only confirm your recommendation. We were renting at Tanjung Bungah area first for a year and had a good time on the island, but at the end decided to move to Butterworth, where we bought a terrace house in a gated and guarded community with pool, fitness etc.
We enjoy condo facilities without having a troublesome neighbour on top (and that can be a trouble - imagine 3 kids playing glass marbles on a tiled flooring right on top of you... for hours daily...).
COSTS:
When we bought the 3storey link of about 2400sqft was 400K (now is above 500K). Well, the finishing depends on each individual and can be as low as 100K upto "skyhigh" - depends on your needs and requirements...
Running costs are cheap:
- monthly costs for management/security/facilities is around RM160 but will go up to around RM200 (I guess)
- my electric bill is quite high at around RM450, but that's for:
8AC (6 constant on 24/7 - the other two on demand)
2 fridge (3. on the rooftop on demand)
Baking oven, steamer, dishwasher, washing machine, dryer, 4 PC network (streaming multimedia thru the house), Home theater systems etc...
- Water Bill is around RM 30-40 (caused by back garden and rooftop garden watering systems)
- House tax is around RM500 a year
- food cost are around 10 - 30% cheaper than on the island (for eating out as well as buying at the markets for home cooking)
- booze is cheaper, too - but not that much
- shopping malls are more or less on the same price level, with some price advantage, depending on the mall
- my petrol costs are cheaper (not because of the petrol price, but everything is nearer  )

Ups... nearly forgot...
The asking rent goes from RM1500 to RM 2800 (bare unit upto fully furnished, including the Kois in the pond - really  )

Any more questions about Butterworth - just let me know (or come to see)

Ciao

Udo

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Hi Papaya,

Yes you certainly know me - I view you as a "shining light".

Yes, please PM that data if you are able.

Cheers,

James

If you can put one more posting you'll be up to 10 and PM function works on here.  Just put anything, Scott won't mind 

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I love you Papaya !

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Thanks, Udo. That's exactly the kind of info I was seeking.

I've had some good news on the pension front so it looks like all systems go.

Can't wait!

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hi, torquemada,

Udoc's electricity is around RM450 per month (6 A/C 24/7), and mine is about RM90 (1 A/C 8 hrs). That's a biggish range but like many things in Malaysia it's all pretty affordable depending on how you choose to distribute your cash, and the same with monthly rentals etc. Some more money, some less money. Some places cheaper, some not. However Malaysia is one of those countries where you can choose to live relatively cheaply, and still live well.

At Secret Recipe a piece of cake and a capucchino will set you back about RM10 ++. Or you can have an ABC or Ice Kachang and a kopi-O for RM4. There's a lot of range.

6 months ago I moved into a 4 bedroom bungalow (single storey with large garden and covered parking) and a 1-year rental. It costs RM800 per month. It will go down to RM700 after 1-year because I asked about it. Previous to this I rented a two storey terrace house for RM350 per month. I started renting in 2000 for RM600 fully furnished. I negotiated a reduction to RM450 after a few years, and finally the RM350 unfurnished. This is because over the years I had bought my own stuff so I handed the furniture back to the owner.

There's a very nice house for rent near me at RM800 asking. It's been on the market for 6 months - no takers. If it's still available when my lease runs out I move over as it has more shade. I should be able to get it for at least RM700, maybe RM650. That's if I don't move up to Penang.

If you've got rental cash available of RM2,000 - RM2,500 plus living expenses of RM2,200 - RM2,800 that's a maximum of RM4,500 to RM5,300. This is more than I have coming in, and I don't want for nothing. Ok, a few museums and English bakeries would be nice.  And I'd like a Sainsbury's with it's range of cheeses, and taramasalada. 

I don't worry about switching on the electricity, running the air-con, having to repair an old mercedes, petrol, water usage. I also don't worry about which dustbin for which rubbish as it all goes in the same one. Everyday I eat out for lunch and dinner, and in nice air-conditioned restaurants. Every now and again it's a treat to stay in a 5 star hotel.

I'm in Perak which is I think a bit cheaper than Penang but, I suppose, about the same as Butterworth. I shop in Giant, Econsave, Billion, and sometimes drive up to Ipoh for Tesco.  A new T-shirt costs RM10 and shorts about RM20. Flip flops are RM3. What else is there? The Sun newspaper is free and the comment much better than the Star/NST. The articles are also shorter and they give the same info as the other papers.

I can afford to live well here. In the UK it would be managing only. I'd like to live in Italy but it ain't gonna happen so, for me, Malaysia is the first alternative for a 2nd home. And I enjoy it. 

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I know it's about Thailand, but they compare with Malaysia ...


Thailand Used to Be a Cheap Place for a Great Holiday. Not Any More

Thailand used to be a great place to come for an inexpensive holiday. Hotels were cheap, travel was cheap and food was dirt cheap. Now, unfortunately, it is the reverse. Now, when I want a cheap holiday, I leave TThailand and go to Malaysia. Huge increases in the cost of living have seen retired expats leave as they cannot afford to live in Thailand now on low pensions. Tourists are visiting Vietnam or Malaysia instead, and many expats who live here but are paid in US dollars are considering moving on to other places.
http://www.associatedcontent.com/article/542291/thailand_sees_huge_increases_in_the.html?cat=16

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I love you Papaya !

Mmmm don't tell Mr Papaya 

Steph, that Thailand article seems to be more than 2 years old(?) and I'm not sure it's true to be honest.  I'm in Phuket and I find, so far, costs are comparable with Penang.  Some things a bit cheaper here and some things a bit cheaper in Penang - unless I've missed something.

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Hi Guys,

Perhaps I could push my luck by raising 2 more queries:

1. What would a part time maid cost in Penang say two half day per week  & are there any associated hassles/security risks ?

2. Can anyone suggest a good private recreational club to join in Penang (i.e. to meet locals & expats & what are the costs) ?

Thanks,

James

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Great post, Scott, many thanks. That's what I wanted to hear. 

The next six months are going to crawl.