If I followed this advice when I graduated 5 years back, I'd be seriously crying my eyes out right now.

I don't have a property yet.

My thought will be if the current market rental for that place is RM1000 then I will ask banker and myself how much loan I can get with RM1000. Example I GUESS is RM200k loan amount for monthly installment RM1000. If my current income allow me to borrow more money. Then loan amount will be more than RM200k. You can still sell Stock to fund the property you want as well to lessen the liabity or get a better property you preferable.

Don't know people will able to understand my explaination here or not.

...2000 rental is far too expensive? for single couple, just a room enough right?

the longer you wait, the price goes higher

I think this article pointed to youngster who not capable but still want to buy house.
Just because of everyone say YOU MUST BUY NOW.

Actually should be rent a 'room', save the bullet for buy house instead of buying the house without planning and spend almost all your money to pay installment.

stay with papa and mama, eventually the house will inherit to you later.

I totally agree on this.

generally malaysian salaries does not go up in tandem with the house prices. You can see house prices rise as much as 30% or more at prime areas but our salaries don't rise as fast as that.

secondly, renting is an opportunity cost. For example, Mr. A has can afford RM3000 a month to pay for house rental or loan repayment. If he put in RM2500 a month for rental, he can only save RM500. The RM2,500 is use to pay his landlord's loan and with a mere RM500 a month, he can only save RM6000 a year. to buy a RM600K house, he need to save 10 years. it's better for him to put his RM3K into his own house than into someone else's.

for fresh grads, it is better to borrow money from parents, combine income with wife or worst case senario, rent a room first and drive an economy car.

Or if he/she has the capital, buy a house and rent the rooms out to cushion the loan repayment.

wtf ?!?! the should support youngster to buy a house instead of car....rent a car buy a house leh....can't brain

Haha you were right. Let me be specific why this thread will only beneficial for investor.

1. Current new properties projects launched like a 'mushroom'. Investors will afraid whether their property can be sale/rent after property Handover to them.

2. If you are fresh graduate and this is your first job, then you have no choice just go for rent (room, not entire unit unless share among mates).

3. If you are investor that hold more than 1 unit, then should take precaution in this current overheat market. You must have sufficient holding power especially if market collapse, I mentioned IF!

4. This thread mentioned rent first - does it mean property values will drop then only buy? For instance, right now most of project unit (800-1000sft) sold rm500k during launched but will it drop less than 500k? Shall we wait for market downturn or even oversupply will helps on price drop?

So if you think you have sufficient 'bullets' or for own stay, why still WAIT? Wait durian runtuh?

very nice.

like in movies, i especially like the turning point of when the hunter becomes the hunted. kekeke.

This is the point. Especially when most kids are from outstation these days. They need to rent and get a normal car first.

Somehow this thread got easily misinterpreted.

Its always better to rent first and pay abit more later on but have a good property than to buy straight away at a cheaper price but have all sorts of problems later on.

I am so glad i rented my first condo. Found out so much nonsense in the management and so much defects here& there after 2 years renting that if i were the owner , i would be slapping myself for buying so quickly.

Lol even my papa and mama is renting....dad has properties but all rented out, and he's staying in a rented house now since it's close to his job. Ironic huh.

If there are three siblings?
One downstair, one upstair and another one in...

That's interesting.
If the economic turns bad get fire sales, then suddenly the tenants become landlords and landlords becomes tenants. kekeke.

Actually MR.A save

1. RM500
2. Renovation fee (that easily cost 50-100K nowadays) because new house generally is not "liveable", you need to spend on renovation.
While at Rm2500, mostly is fully furnished and at this rate can mean for a property that worth at least 700~800K already. While Rm3000 monthly is enough for RM 700K property?

2. Maintenance fee that easily cost about RM300 per month + sinking fund (10%)
3. Repairing cost (if).
4. Miscellaneous fee like quit rent, assessment, fire insurance, MLTA etc.
5. Don't expose to risk of hike in interest rate.
6. Don't expose to the housing market risk
7. Don't need to pay lawyer fee, stamp duty, which cost several thousand as well.
8. Can move anytime once tenant contract expired, if the property condition, environment is not good.

The money saved by A may enable A to do other thing, investment, doing business etc.
So it is not solely Rm500 gain by MR A.

Renting has its own merit as well, doesn't means 100% is bad.

Agree with your point but the thing is the RM2500 rental is not fix. it can be increase after some time by the landlord too. Eventually it will exceed the repayment.

Also, if Mr A decides to buy, the initial repayment is high but in the end the house belongs to him after 30 years of repayment with capital appreciation but after 30 years of rental, the house still belongs to the landlord. In fact, the landlord would've got his/her money back from renting it out.

Generally, rental market is weak, despite generally property price has soared so much.
There are a lot of vacant unit at mid to high end property.
Some even manage to rent out for years.

The merit of renting is free up a lot of commitment that many do not forsee.

Renovation cost (cost 50~100K), this is not recoverable generally)
Maintenance fee, a year a few thousand
lawyer fee for S&P, strata title lawyer fee, also cost a few thousand.
And housing loan monthly repayment, you can drag your landlord for a few month, but you can't drag payment for bank as bank will blacklist once miss out payment.

You take for granted house must appreciate in price, without taking into account of interest charges incurred from the loan, as well as risk of interest rate.
There are house that appreciate little in value, there are house that in abandoned project, there are shoplots that after obtained OC, that growing grass only.
Not every year house price must up like previous few year.

Despite with recent year of property price escalating, there are still houses that being left vacant, nobody want to rent, nobody want to buy, due to location issue.
Not every house situation is the same.

Only prime and strategic location property that are can enjoy both good rental income as well as capital appreciation.
But those property are not cheap and mostly out of affordable for most middle income earners.

Also collecting rent sometimes is not as easy as taught, rent it out, next month go to collect money.
Some tenant defaulted, runaway, refusing to move despite not paying rent, house being vandalised after tenant move out...

Yes, the best scenario is just like above mentioned, after 30 years repayment with capital appreciation, or landloard get it money back from renting it out.
But provided everything goes smoothly across.
While the one renting is not baring any risk to it, while free up a lot of commitment, that may enable one to do other thing else.

It is not about saying rent is better or buy is better.
Just rent has its own merit and serve its purpose which may suit to one situation, and do not need to take any risk in between.
While buy has its own merit, if everything goes smoothly, the the risk taken become a "gain" for the landlord.

One is with risk taken with lot of commitment.
One is without risk taken, while free up of cash.

So we can't say which is better, actually, it depends on situation and individual preference.

+1 well said!

this is what in my mind too.

fresh grad or new salary man shouldn't hesitate to ask $ from parent to fund the down payment
(my parent offer me that option 5 years back but i refuse to take it due to i don't wanna commit in debt)

just buy a okok house and rent out the rest of the room will do, said no to renting!