Why Rent Instead of Buy a Property in Malaysia? - Ana Suhana

Jul 25, 2017

Why Rent Instead of Buy a Property in Malaysia?

Why Rent Instead of Buy a Property in Malaysia?
Why Rent Instead of Buy a Property in Malaysia?

A lot of people believe that buying a property will be better for you in the long run instead of simply renting it. The main reason people have for favoring real estate purchases is because by the end of your monthly payments, you will at least have either an apartment or a house to your name. However, there may be some silver linings that they are missing, as renting or buying is not a decision that may suit every single person looking for a new place to live in. If you are on the fence about whether to buy or looking for house for rent in location like Penang, then read on to see some compelling reasons why you may want to choose to rent instead of buy.

Rent if You Have No Intention of Staying in Any One Area for Long

According to an article by Bostock, Carter, and Tse for the The New York Times, buying is usually the better option if you are planning to reside in the same location for a very long time. This is because all of the fees that you will be paying will start to be more worth it, that is, you can start dividing the total cost of the house or apartment by how many months you plan to stay in it.

Think of it this way: when you buy any gadget, the total cost of it upfront tends to be a large amount, but the longer you use it, the more you are getting value out of your purchase. Say you bought the gadget for RM 2000. If you use it for one year, and divide the total cost by the total number of months you have been using it, that means it is the equivalent of shelling out RM 160 or so every month to pay it off. If you use the same gadget for five years, then you can divide it by a larger number of months, making it the equivalent of paying only around RM 30 or so for it per month.

The same goes for any property that you buy. If you intend to live there for a long time—maybe even for the rest of your life—then the cost will pay off for itself over time.On the other hand, if you are only planning to stick around for the short-term, then the upfront costs will be too high for the amount of time that you will actually be taking advantage of it.

Rent if You Want More Flexibility When It Comes to Switching Jobs

If you buy a house or an apartment, you tend to be stuck looking for options that are nearby. This applies to education—that is, what colleges or universities you can apply to that will not be too hard to get to—as well as work. After all, it can be stressful having to commute or drive to a workplace that is an hour or more away from where you live. In this case, renting may be a better option, especially if you do not see yourself staying in the same job for more than a few years. It does not seem to be a wise decision to buy a property if you plan on looking for a new place to work. Because the job market can be tough to navigate, you cannot say for sure if you will be landing a job in the same place that you bought your property.

Even if you do stick around in your current job for a long period of time, some surprises may come your way. Depending on how large the company you work for may be, they might ask you to transfer to another branch that is located in another part of the country or, worse, to an entirely different continent or country all together. If you are still putting money down toward a mortgage loan, you may not be able to have the extra money to afford to rent another place in another location.

Rent if You Want to Have Less Fees to Pay for Every Month

If you do not have a lot of cash to spare, or are simply looking for more ways you can save some of your money, then you may want to consider renting a property instead. This is because lessors tend to divide the cost of the utilities by the number of tenants that they currently have, according to an article by Annamaria Andriotis for The Wall Street Journal. Renters, in general, do not have to pay the kinds of fees that buyers do, such as home insurance and property taxes. Renters usually do not have to pay massive down payments or closing fees as well.

Also, depending on the contract you have with your lessor, more often than not, you do not have to pay for any repairs needed in your unit or house. In most cases, it is the lessor who will shell out money for anything that breaks within your home. If you also manage to find a place that is fully furnished, then you will not have to invest that much money in buying tons of furniture, utensils, and appliances. Sure, your rent may be a little higher each month compared to an unfurnished unit, but at least you no longer have to deal with the stress of looking for and buying the perfect items for your residence.

In addition, while some renters may not end up with a piece of property that they can pass on to their children, they will have extra money because of the savings that they can gain from the smaller number of fees to pay. Though they may not have a house or apartment that they can sell later on, they can look at it another way and invest the extra cash instead. Renters may even be able to make more money than buyers, as they will not be funneling their cash into a physical asset such as a house, which a buyer would either have to buy or sell in order to make some additional income.

In Short: Rent if You Do Not Want to Commit to Buying Something You May Not Use Forever

Though we have outlined several good reasons why you may want to consider renting a property instead of buying one, it still boils down to what you personally want for yourself in the long-term. If you are the type of person who would rather put your savings toward travel expenses instead of a permanent structure to live in, renting may be the option that suits your lifestyle best. If, however, you see yourself settling down either by yourself or with a family and would like to start a new life in a nice neighborhood, and you would like some property to pass down through your family’s generations, you might lean more toward buying instead of renting a unit or house out.

Regardless of your final decision, make sure that you decide based on your own desires, needs, and goals, and do not simply base your choice on what other people think may be best for you.



23 comments:

  1. Nice sharing, pape pun terpulang kepada masing-masing

    ReplyDelete
  2. Betul tu. Kadang2 rumah yang di sewa dah boleh bayar monthly rumah sendiri.

    ReplyDelete
  3. sewa atau beli, itu bergantung kepada keperluan kita

    ReplyDelete
  4. Terima kasih perkongsian ya Sis..kita memilih..kita usaha mana yang terdaya..semua rezeki.

    ReplyDelete
  5. Apa-apa pun bergantung dengan kemampuan kita.

    ReplyDelete
  6. Bagusnya beli la kan...itu kan aset untuk kita juga nanti....nice info ana

    ReplyDelete
  7. good share Ana..its best to own a property that will turn into your asset one day..

    ReplyDelete
  8. provided u have the $$ and good return too..

    ReplyDelete
  9. Memang kena ada jugak rumah sendiri boleh buat aset kan . CR pun plan nak beli rumah tapi wat masa ni bajet tak cukup lagi. Hehe

    ReplyDelete
  10. Nice sharing.

    Semua point tu tips yang superb. Tak semestinya beli kalau sewa lebih baik kansss....

    Kalau nak beli rumah ini kenalah fikir betul-betul, jangan ikut-ikut orang lain.

    Ada kawan Mrs. A tu kahwin aje terus beli rumah kononnya memuda nak ada harta beli kat Rawang, kerja kat KL sebulan dua gigih travel pastu tak larat dah mengalah jugak sewa area KL dah membebankan.

    Walaupun berjaya sewakan rumah yang dibeli but still sewanya lebih murah dari bayar loan bank.

    Moral of the story kalau nak beli rumah fikir sehabis baik. Tapi kalau duit berkepuk-kepuk lainlah pula ceritanya

    ReplyDelete
  11. Buying is wife, renting is girlfriend. Choose either one that suits well.

    ReplyDelete
  12. Akka beli rumah 2009 until now tak permah fail bayar lagi...syukur ada bumbung untuk mak abah akak berteduh...

    ReplyDelete
  13. wow MANTOP!

    impian tu ada Insyaallah bila tiba masanya....but now saving emas dulu

    ReplyDelete
  14. Betul tu sis, orang kata buat aset bagus, tapi bagi yang tidak mampu nak beli 2,3 rumah susah nak beli kat tempat yang mungkin tidak duduk lama....

    ReplyDelete
  15. My biggest dream ni Ana.. insyaAllah ❤

    ReplyDelete
  16. InshaAllah bila sampai waktunya =)

    ReplyDelete
  17. Kalau harga bulan2 rent sama mcm beli baik beli aje

    ReplyDelete
  18. kalau uyul baik la beli dari menyewa. kalau rasa duduk lama tu kan kak. Uyul Rosli | Blonolog Blogger Picisan

    ReplyDelete
  19. Kalau boleh, mesti nak ada rumah sendiri. tapi kalau rumah yang mampu milik terletak di tempat yang tak strategik dan jauh untuk ulang alik pergi kerja hari2, baik menyewa je ;) Insyallah ada rezeki, pasti nak memiliki rumah sendiri

    ReplyDelete

Yang kurik itu kendi
Yang merah itu saga
Yang molek itu budi
Yang indah itu bahasa

Terima kasih pada yang sudi tinggalkan jejak di sini. InsyaAllah Ana akan membalas kunjungan anda semua ❤