Aug 5 2013, 10:43 AM
QUOTE(tyshu @ Aug 2 2013, 02:08 PM)
Disagree on the article above on these grounds:
1) If I rent, I'm paying the same about or slightly lower than the amount that I'll pay if I purchase a house. And also, I'm paying for someone's purchase of the house.
2) If I don't buy a house (asset), I'll most probably be buying a car (liability in disguise as an asset). I take buying a home as forced savings
3) If I rent a place for a few years, and decides to buy the place, the price may have ballooned up and capital appreciation stagnated.
4) Work place may change every now and then. Lawyers are pretty fixed, open up a firm, stay there for life or move to the shop lot next door or a lot down the street.
5) I pay RM1.8k this day is e.g. 60% of the salary, maxed out DSR. It will most probably be 30% of the salary 5 years down the line.
My opinion is that our dear lawyer should write about "Take public transport or car pool first before you buy a goddamned car"
I totally agree on this.1) If I rent, I'm paying the same about or slightly lower than the amount that I'll pay if I purchase a house. And also, I'm paying for someone's purchase of the house.
2) If I don't buy a house (asset), I'll most probably be buying a car (liability in disguise as an asset). I take buying a home as forced savings
3) If I rent a place for a few years, and decides to buy the place, the price may have ballooned up and capital appreciation stagnated.
4) Work place may change every now and then. Lawyers are pretty fixed, open up a firm, stay there for life or move to the shop lot next door or a lot down the street.
5) I pay RM1.8k this day is e.g. 60% of the salary, maxed out DSR. It will most probably be 30% of the salary 5 years down the line.
My opinion is that our dear lawyer should write about "Take public transport or car pool first before you buy a goddamned car"
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.
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this is what in my mind too.
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