IS IT better to rent than buy a house? Choosing between buying a house and renting one is among the biggest financial decisions that many adults make in their lifetime.
If you ask experts, they will tell you that renting or buying is not fundamentally good or bad.
For most people, buying a house is a measure of financial success. But the house is totally yours only after you have fully paid the mortgage.
If the price of the house appreciates more than you’ve paid in mortgage, interest, taxes, and maintenance over time, you’ve earned a return.
Do note that for the price to appreciate, the property should firstly be in a good location such as near public transport and should at least be close to a shopping mall, a hospitals and schools with access to major roads and highways.
The amenities within the development should be fit for you and your family for a wholesome living experience.
The developer should be a reputable one whose property prices have appreciated within months of buying or in less than three years.
If the prices have remained stagnant from the time you bought until one to two years have passed, never go back to buying from the same developers no matter what incentives or freebies they offer.
So, choose the developer, the location and the product wisely.
There are people who have made up their minds to never buy a house. They do not want to go through all the hassle and paperwork to own a property, and prefer to rent.
While renting a property does seem easier, there are a few things to consider — from spending days and weeks to meet different agents and potential landlords, to deciding on the best property.
The good part is that you don’t have to pay for repairs, maintenance, or other issues that come up.
MALAYSIANS LIKE THEIR OWN PROPERTY
PropertyGuru Malaysia country manager Sheldon Fernandez said for most people, owning a home represents stability and security.
Real estate is also a key asset class for wealth accumulation via capital appreciation and rental yields, he said.
According to Fernandez, despite rising perception that more Malaysians would choose to rent than buy a home, statistics from the recent PropertyGuru Consumer Sentiment Survey shows that 92 per cent of those polled would rather own the roof over their heads.
Among those polled, about 33 per cent were presently renting with 67 per cent residing in their “own homes”. Own homes refer to houses that are owned by the dwellers or by their family — staying with siblings or relatives and other non-renting residences.
The survey show that the traditional aspiration of owning a home remains largely unchanged despite evolving property market trends and demographics.
Fernandez said for those who prefer renting, most of them (71 per cent) prefer a location that is close to their office or workplace, followed by family considerations (55 per cent) and public transportation accessibility (52 per cent).
They also prefer high-rise homes with condominiums and serviced apartments being the top choice.
Renters would pay between RM501 and RM800 a month to rent a room while those looking to rent a house would ideally pay RM801 to RM1100 monthly.
The rental rates differ based on location, property type, unit size and other factors.
“It appears that despite rising living costs, higher loan rejection rates and price unaffordability, Malaysians, including the younger generation, would still make homeownership a key lifestyle aspiration. The desire is very strong perhaps due to family or peer pressure or due to the prevalence of traditional perceptions of owning a home as being a sound foundation for one’s future,” Fernandez said.
He added that the PropertyGuru survey also shows that many who are currently renting are looking at options to buy a home that is within their budget.
“We will continue to track rental data going forward. There may be changes as unaffordability, loan rejections and other factors influence buying sentiments. Our tracking of the rental market will provide further insights into the overall property market to help develop a more comprehensive perspective going forward,” said Fernandez.