Renting expected to gain popularity

KUALA LUMPUR: Renting a place to stay or a house could become more mainstream among the population, moving forward, in line with developments that are seen in other parts of the world.

This could happen following several macro developments in Malaysia on falling birth rates, a present level of high home ownership, the trend towards smaller families among married individuals, increased number of adults choosing to stay single or marry later and affordability.

These recent developments were heard at the real estate forum titled “Form to Future” organised by UEM Sunrise in Kuala Lumpur yesterday.

But Knight Frank Malaysia’s executive director for research and consultancy Amy Wong said while renting can become more popular among people in the main cities such as Kuala Lumpur, she believes owning a home will still be the main choice for people in the smaller second-tier cities such as Ipoh, Kuantan or Melaka.

“Home ownership is at an all-time high at 76% but the other 24% may be waiting to inherit. But then also what is critical if it is about inheritance is to develop homes that can sustain through the generations.

“So this means developing good quality homes and not disposable homes,” Wong told StarBiz on the sidelines of the forum yesterday.

“I think the trend towards renting will be in the main cities such as Kuala Lumpur. But in the other second-tier cities, it will still be very much about home ownership.

Earlier in the forum, Urbanmetry’s founder and chief executive officer Koh Cha-Ly said this is a pertinent question to grasp following the ageing population trend society is moving towards.

“One thing about the ageing population in Malaysia is that of the 76% or so home ownership levels, what will happen to these (owned) houses when these people are not around anymore?

“We are looking at the largest generation in Malaysia that will inherit a home in the next 10 to 20 years and it is going to be the largest number of people who will be born with a house,” Koh said.

“They will either inherit it from their parents or inherit land. And honing in further, what will happen to these homes if everybody buys a new house or vice versa?

“This is one question that the industry should start thinking of. It is not unprecedented. If you look at other ageing countries such as Japan, Europe or South Korea, they all have this problem and solutions have already been found,” Koh added.

She also highlighted that the people who would inherit a home will likely refurbish or renovate it themselves and with the advent of artificial intelligence, the barriers of entry to home development in terms of knowledge of knowing what to do or where to get the approvals or source the relevant materials will be lowered.

“To a certain extent, it is no longer a competition about if I can build a house at a cheaper price per sq ft.

“This is not enough for the tech-savvy younger buyer because the generation which will inherit land or a house has a chance of outcompeting in terms of price per sq ft construction,” Koh said.

Commenting on this, executive director of Socio-Economic Research Centre and veteran economist Lee Heng Guie said with the high home ownership rates, it is likely the younger generation may already not feel a need to own a home anymore.

“They may think otherwise since they can’t afford it. So they might opt to rent a house or room instead.

“Malaysia’s population growth is 1.1% and with declining fertility rates, there are concerns that this will have an impact on productivity and labour force participation which will impact housing demand along with the ageing population. Aged-care facilities and community living will be in demand here moving forward,” Lee said.

Meanwhile, Bursa Malaysia’s director of the origination and listing division Leong See Meng suggested that given these developments, property developers should not just rely on incomes from property development as it can be quite lumpy.

“To iron out the lumpiness, perhaps for the overhang units, they can be converted to rental housing or rental housing with an exit such as rent-to-own programmes.

“There is no harm in doing this, and if you come to Bursa Malaysia you can always do a secondary issuance, rights issue or private placement to fund this to take up the overhang units,” Leong said at the forum.

“Over time, this can also be a robust business to be translated to a rental housing real estate investment trust or REIT, for example.

“And if it happens, it will be the first in the country – not only for the sponsoring developer but also for Bursa Malaysia. This can potentially be replicated and is sustainable as well, moving forward,” Leong added.

Commenting further on this, Pelaburan Hartanah Bhd’s chief investment officer Norani Mustapha said at the forum that this was a global megatrend that had not reached Malaysian shores.

In Tokyo, New York City and London, people can’t afford to buy houses or flats and they’re mostly renting.

“And institutional investors are actually going in where they actually own the block and get a property manager to let out the space to whoever is interested,” Noraini said.

https://www.thestar.com.my/business/busines...gain-popularity

This post has been edited by Jazted: Sep 5 2024, 03:39 PM

Why buy when you can rent

Tare factor in Agenda De popz?

Installment + maintennace + assessment = 3k
Rental = 1.5k

Saving 1.5k..

As a landlord , i say thank you. Yes, rent is better.

Sure boh? All landlords crying mother father these past few years.

Rental current rates cannot cover loans and expenses or repairs.

They supply to foreigner not you.

What not, if coming from a 90%+++ with cashback mortgage loan outlay and zero entry cost 'wannabe landlord'

Its a no brainer math to begin with, then pikachu 😳

This post has been edited by jojolicia: Sep 5 2024, 03:18 PM

if supply to foreign worker mostly will cause drop in rental for the unit

only expat like in mount kiara can increase the rental rate.

This post has been edited by Jazted: Sep 5 2024, 02:26 PM

They didn't factor in how fast IQ dropped in the existing population, case in point here

Actually, Malaysia's population growth is 2% for 2024. 1.1% was 2022 number and fertility rate is 1.910 which is a decline from 2023 but an increase from 2021 still (1.80) which means fertility rate went upwards despite the short recession.

I'd go further to double check the article but honestly, not very interested anymore with so many misleading points. Research what you read.

Tl;dr

Oversupply? I see the demand in Mont Kiara & DPC are still selling like hotcakes.

means still selling la n not fully 100% sold until today

Sure or not ‘all landlords’? I know plenty are still making money, myself included - it’s a matter of location.

not accurate, no worries. important is able to cherry pick "facts" to suit your narrative. just like any fictional story teller would do.

How to buy? Landed house in Klang Valley minimum RM 500k nowadays...
When housing so damn expensive, even with RM 5k salary, most can't fork out RM2k/month with emergency savings left.

A simplified calculation, haven't included those other misc. fees, from ChatGPT:

To estimate how long it would take to pay off a RM 500,000 house in Malaysia, you'd typically consider factors like the interest rate, down payment, loan term, and monthly income. Here's a basic breakdown:

Down Payment: Banks in Malaysia generally require a 10-20% down payment. For a RM 500,000 house, you'd need RM 50,000 to RM 100,000 as a down payment.

Loan Amount: After the down payment, the loan amount would range between RM 400,000 and RM 450,000.

Interest Rate: Mortgage interest rates in Malaysia vary but are often between 3% to 4.5% per annum, depending on the bank and loan tenure.

Loan Tenure: Home loans in Malaysia typically range from 10 to 35 years.

For a RM 450,000 loan over 30 years at an interest rate of 4%, your monthly repayment would be around RM 2,148.
For a RM 450,000 loan over 20 years at the same interest rate, the monthly repayment would be around RM 2,727.
Repayment Duration: If you opt for the maximum tenure of 30 years, you'll take 30 years to pay it off. You can shorten this by making larger monthly payments or choosing a shorter tenure like 20 or 15 years.

klang valley leh

is normal to be expensive

just like all other MAIN city the world.

u ingat landed in london tokyo beijing new york is cheap meh?

Best time to buy

deswai guru lugi 70M

https://forum.lowyat.net/index.php?showtopic=5480568&hl=

want to see how u rent when u are age 80 and above

We need breakdown data by state...some more oversupply than others

Klang Valley landed with that price only can get subsale (low cost type & need to reno). Landed is becoming irrelevant anyway in Klang Valley with all your views blocked by high rise condos around.

Downpayment always can kawtim with your agent & their banker for 0%, can even get cashback (if you need cash). MOT Stamp duty fees now got waive/discount, even since 2020. If you tried to buy a property you would knew all this.

built now cheaper, next few year goods increase.

Bruh.... location bro
Try Equine Park, Sierra 16, Rawang and flood affected klang area
oh yaaa and the infamous scott garden !

in mesia or maybe same shit in other cuntries, what really over supply are 'expensive'/'unaffordable' house.

in kv where got affordable house price? last 5 years iirc, average house price around 300k. dat time edi not many can buy house.

now? lagi la oof

ini bukan oversupply issue, ini affordability issue.

KL old bungalow still around 2.5m. disappointed

Rent is best, owner need to beg u to leave.

That's why. Location matters. Not simply hoot then say why highrise tak da appreciated then kaopehkaobu at /k.

Buy now if else it property will be like hong kong WOI

Should be buying now. Sell when retired to secure capital gain, then use the money to enjoy and retire continue renting. That is the way.

actually... which high rise appreciate eh?

when one location good and price going up... then another one being built next to it....

keep building until we are spoilt for choice. And being strata title and lousy management... the condition deteriorate> wonder how they up keep the price. at most just maintain as is.....

eh....the Ooak?

Why not, happens everywhere

age 70 and above renting?
move house at the age ....

got ppl want to rent to elders with age 70 and above or not ah?

i want see how u pindah rumah with such age

after contract end 2-3 years , move again

good luck la

its not exactly a foreign concept, you think everyone owns a home?

i'm more surprised such a thing can fly over your head

why inherit while you don't even know if you besar liao wanna stay there or not?

Even I bought my assets here in the yewkay is not for future can stay, its for future can sell or not. My brats wanna stay or not is not the main concern at all.

Inheriting is gone nowadays. We're already at the era of if you dun keluar, you'll rot where you're born. And if you keluar, these fuckstuff you had will be the liability and excuses that keep you holding back.

But again, the concept of having a shelter before anything else must be obeyed, else that person is really going to be a fukken useless mindless brainless and worthless faggots.

sifu kata bull coming....bhaiiiiii bhaiii bhaiiiii

u should ask ur parent age 80 and above to move house

without ur help

let see if they willing

talk is easy bro.

tula those sohai really facepalm

Move to out skirt abit... Cheaper... Unless your job is really high paid or specialise job only in the city...

dont think i can ask them

they have passed

we sendiri move house also feel damn tired

imagine elder age 80 and above still need look around rent house la ...move house la...
seriously house owner also scare to rent to elders, in case next week pass way in the house

Here’s a secret. People who are making money from something, they tend to keep quiet about it. Less competition, more profits.

u want makcik kiah like this move house?



talk cock talk big can la u
when reality hit the face...baru sesal

Again - it's not a foreign concept. People rent, that's a fact. What makes you think must move every time?

MCA cai really cannot think out of the box eh? Your brain only knows 1 way?

u keep saying not foreign concept.
but u cant even answer HOW would an old lady old man age 80 and above move house and keep renting?

talk cock la u

fark la ayam not going to do this annually or two years once

damn tiring

maybe those sohai gonna live in rumah orang tua

save the hassle

get out of your coconut shell bro.

you probably have not lived outside of Malaysia, that's why cannot think for yourself and only 1 way. That's why you're so good taking orders from UMNO only yeah?

If your only argument is need to move out, that's just dumb - people have avoided this all the time.

https://gempak.com/rojakdaily/lifestyle/120...long-life-62392

Lady in the pic was the viral age 120 year old makcik...in the pic she has to climb 100 flights because her ownstay house in at 3rd storey...and the flat she stay is without lift.

If it was a rent house...maybe can move to the ground floor unit.

This post has been edited by Jazted: Sep 5 2024, 04:50 PM

her thing who gonna pack for her to move? u?
who will find house for her ? u ?
who help her unpack ? u also?
those utility name who want change for her? u?

talk is easy bro

and how many house owner willing to rent to solo old grandma?
who knows next week pass away in the house and after 2 weeks baru found.....u want rent to such ppl?

talk so much but cant provide solution

perangai sama macam anwar rafizi....cakap besar boleh la (minyak turun , harga kereta turun)
bagi power...habuk pun tak ada

i know cause i move house this year...pack unpack ...fark tired and so many thing to do
need buy household thing lagi...wash lagi...

That’s why when you move, leave behind all the furniture and junk. Only pack your valuables and important documents.

It’s cheaper to rebuy furniture and other non valuable stuff than to waste time supervising movers to pack and label your stuff correctly.

Where got so cheap rent nowadays?

Rent often is at least 80% of your installment. At times it can goes 150% if you can sublet properly.

pack cloth and etc also cukup u die

talk is easy bro rebuy furniture

look at the above old lady...u still want her go out find and rebuy furniture?
not easy for old ppl age 80 90 100 and go ikea or whatever to buy furniture
eyes also see half blind already

To be more precise, it is an oversupply of unaffordable property

I’m just enjoying myself, can’t believe someone can be so clueless 😁

ya talk cock king

You MCA 😂😂

Property oversupply, yes, but money also oversupply. Money oversupply will counter property oversupply.

I think for those that bought their properties in the last decade really suffer

Luckily I bought my properties ages ago, I've reduced the rent but still covers more than the mortgage

From what I can see, home ownership is still a good investment.

Young generation is still talking about how buying "experiences" is so worth it lol.

They are still hoping to have their cake and eat it too. It is very unlikely.

so?

why u buy? u should rent

You are right.. I have never thought about old people how they move around and rebuy furniture

I am currently renting

.... mcm article sponsor by developers?

Just dont

But u have property

That's right

are you mindblown or something? Cannot compute that people have different ways to live?

Mobile home je, like other country can drive anywhere with ur home.

Why have? U should sell

Oversupply and over priced

🥲

Not selling because I am making good money off it.

Ayam just make sure the fire insurance is up to date and torch it

it is oversupply for decade, the issue is the price is not affordable, lelong also many ppl cannot afford

problem is these property flippers goreng those affordable home to be come unaffordable.

Adjusters no longer stupid la. Furniture shops that did that recently all got rejected claims. I think they will commit suicide soon..

Property players need not worry about the inheritance game, new props can barely last through the Defect Liability Period without something major popping up.

You say cost cutting/poor workmanship, I see planned obsolescence.

Yeah deswai ayam live in car now

But u said don’t buy

Which Lamborghini? Your green one or orange one?

Potong Wira 2002. Waifu she say kenot have Lamborghini. Not even the Lego Lamborghini.

Nevermind. Can get AC75 lego sailboat instead while we dream of buying muscle cars and exotics

Ayam dream of buying know what ayam can't think of anything to dream buying

Edit buy BKT. Yes dream buy BKT.

This post has been edited by hotdayum: Sep 5 2024, 07:36 PM

Buy cashmere and silk shirts. Linen also not bad. Cashmere is very nice and warm for trips abroad but also can wear at night in Malaysia. Silk and linen is great for Malaysian weather plus silk has a slight sheen to it that gives it a 3D effect.

It seems npl is rising in local banks, and they are tightening credit. Fewer people will be qualified for home loan and amount approved could be lower than expected.

Volume of poorperly transactions is likely suppressed in the next few quarters.

When you are above 70 and not staying with kids (alone or with spouse), can consider pay for old folks home service instead of renting condo own stay …

If you buy property, as long as rental income can cover interest+maintainenece+other services that is considered good. You paying for what you buy and when you sell you get back the money … so you dont lose anything, consider it as investment/saving.

i did say why buy when can rent

This post has been edited by Lembu Goreng: Sep 5 2024, 08:15 PM

Wait free property from parents lah free, buy for wat

then why u buy when can rent