Was thinking won’t renting be a better option rather than buying?.
Just started working - rent a room.
Married and with kids - rent condo/apartment nearby work or kids schools
Retired - move to where your heart takes you; houses by the beach or foothill of some mountains. Penang or Ipoh a few years (eat to your hearts delight), Trengganu beach house to watch the sunsets or move to those small districts or town to enjoy some peace and quiet. When really too old to move, go retirement or nursing homes.
But must have discipline in setting aside the money that is meant for the house. Another extra advantage is don’t have to maintain the house. Nowadays houses are not build to last, 15+ years, need more money to repair the house. Might as well rent since abundance of condos with competitive rentals

This post has been edited by nauticat99: Sep 25 2024, 12:53 PM

You have your right to make decision, rent or buy is up to you.

It's ok not to buy property when you just started working.
Renting

Once you have a family with children and when the landlord raises the rental, you need to search a new house to rent.
You will feel the hassle of moving from house to house. See if your family will feel tired.

Suggest you to think about your wife and family.
You just need one house to raise the kids.

The gomen has schemes for fitst house owner. Suggest to try it once you are ready. Price is around RM300k at the moment.
Me not agent.

P/S
Tgnu is an east coast state to watch sunrise. Perhaps you have a way to watch sunset by that beach. Yes l understand.

This post has been edited by Jagalat: Sep 25 2024, 01:14 PM

You can rent.
You also can buy.
As long as you use your own money. You can decide what is best for you.

I believe in you.

Rent ff house no hassle just bring bag and go.

Light bulb burn also can call landlord service you.

So you want to be serviced or serviced ppl?

The key is to reduce your personal clutter by getting rid of unused junks and unwanted items.

When I moves to a rented home after MCO, I sold all the extra and unwanted junks from gadgets, cars, clothes, furniture, office equipment and even hobby collections on Carousell and raised over 200k. This 250k allowed me to survive for almost a year jobless. Since then I kept on selling junks online and eventually only left 2 cars, 2 laptops, 1 desk, 1 office chair and few IKEA racks.

It's a personal choice.

If you buy but later older don't want it, can still sell or rent out...
If you didn't buy, older time want to buy also cannot...

The choice is yours, choose wisely....ya

When the cost of owning a space is similar to the cost in Beijing or Europe, then maybe renting would be the better option.

Nothing wrong, just preference.
Some rich prefer Axia, some poor prefer BMW.

Our world has some kind a things call “yin yang” 陰陽平衡，its like a balancing tool to help this world operating smoothly by its own, its just like economy, for example:
taking grab daily vs owning a car
renting house vs owning a house
employee vs employer
landed house vs condo
ios vs android
china vs US
BTC vs USD


So there's no real correct or wrong. Everyone's background and opportunity cost is different, its depend whats your current situation to making a right choice.

This post has been edited by MalaysiaCEO: Sep 25 2024, 03:08 PM

Actually no difference, if rent below the instalment payment made by landlord, the tenant made a gain. I believe many middle range condos nowadays still rent out below their instalment amt

But the tenant must be disciplined, save the amt in lump sum. So he can have huge cash pile in future

Like me bought landed 6 years ago, when sold it made six digits of cash, that is like a equity to me. House owner can later liquidate their landed property as long the value goes up.

Both also can reach same destination, just using different way. Tenant needs high discipline, landlord facing risk of price fluctuation

This post has been edited by Jingle91: Sep 25 2024, 03:27 PM

why not do both? buy property and rent out to tenant, then you yourself go rent other place?

From early stage to mid stage, it still ok to rent, but when you 60-70 years old, i doubt you can still rent....no owner will rent to you old man.

if you buy and rent out to others, at least when you old, no one want to rent to you, you still can take back your unit and stay inside.

Feel free to re-evaluate this statement after having a family and kids.
See what your answer will be by then

if you think rent is good then you rent. if you think owning a property is good then proceed and own a property.

Because ultimately it is what you think is good, once you decided, the hassles all that doesn't matter anymore

Agree with all the opinions here. There are pros and cons in both- own a house or rent. For me as a retiree and thinking back those choices made, I just feel it’s better to rent. One of the reasons is also because kids are not here in Msia, no point keeping properties. Be as free as a bird, migrate and move around as and when we feel like it. Just like new generation way of thinking - Yolo. Must as well live life to the fullest. It’s just that we do it the later part of life

i agree

rent = freedom

can move whereever you want

once u got mortgage you are tied down, you cant quit your job easily because you have to pay your mortgage

Why need to buy a house most of the time is because we tend to keep old midset inherit from previous generation. Like our parents most of them buying a house and they expect children do the same. But when the time parents bought house 30 years ago the house price is very cheap.

Imagine buying a 500k house now after 35 years paid total we paid will be almost double. If buying a landed house maybe after 35 years can sell 700k or maybe 1m and yet we actually not earning (total paying principal + interest will be 1m). Worse for high rise because house price down after 15 years built especially for high rise built after 2015. How many of us willing to pay 500k for a second hand high rise with age more than 35?

500k high rise mean monthly instalment 2300 + 200 (maintenance fee) will be 2500. If we rent the unit at 1500 and save up the 1000 put into KWSP account. 35 years later your KWSP account will be about 1.2m (yearly 5.5% dividend). This is saving from instalment, if with our monthly salary withdrawal add on it is easily surpass 2m.

That’s exactly why I said rent is a better option than owning properties. A few of my neighbours paid 4-5 k per month for their house instalments but can only rent their units for 2-2.5 k. Imagine their losses over 30 years and vice versa your savings if you rent instead.
I forgot to add in the mandatory property maintenance charge by management plus your own wear and tear repair. That could work out and extra 500-700 per month.

This post has been edited by nauticat99: Sep 26 2024, 10:28 AM

i agree with ts, well thought.

house itself is a baggage. so many bills to pay.

Other things that need to take into account is the opportunity cost of your downpayment . Also instead of looking at repayment amount vs rental we should be looking at interest expense vs rental . In the long run interest expense would be coming down whereas rental would be going up .

**For family**
sugguest to buying a own house, so that you can be more generous to renovate the house and make it more comfortable to stay, whereas if rent, the house condition will not be that good. of course have to be apple to apple. if you want to rent a good renovate house the rental wil be high as well

***for single***
i agree to rent a house, because there is many bills to pay,

Reading thru the comments, I agree with the comment contributors that renting is a good option for you guys 👍🏻

Anyway, I still want to buy property. Otherwise, who going to rent to you guys !!!

buy house before age 30, settle in age 60. if rent until age 60, do u think any owner will rent to u while u in that age? no job and still need pay rent.

Seriously i really wished that moving forward more and more Gen Z / Alpha / beta just focus on renting.

When more ppl are keen towards renting, rents will only go up, and my properties price will appreciate and able to sell higher to investor when i exit.

Looking at the current property developments, I don’t foresee rentals going to go up anytime soon. Too many condos being built near the city or further away from the cities. I am no property expert, just based on observations past 20 years, don’t think the overhang is going to clear soon.

rent price can go up without sale price going up

like right now

also just because people rent doesnt mean they are not price sensitive

With money saved and invested could buy a small retirement home in many places e.g thailand, philippines, tuscany, etc.

This post has been edited by icemanfx: Sep 26 2024, 01:35 PM

One of the plus point- not stuck to one place forever. Can move wherever and whenever. When really too old to move, check in to the nursing home.

if installment 5k collect rent 3k actually considers as total loss already ...

cause for the first 10 year of your installment about 60% of it actually you are paying the interest ..

Aiyo.... you reveal an investent recipe already...

You will have to save and invest sufficiently, otherwise you may have problem paying rent when you're no longer working. And with inflation, rental when you're old will be much higher than today's rates. Ditto if you want to go to a nold folks home. Home ownership gives peace of mind that you'll have a roof over your head when you're old.

Rent have been stagnant for many years

No job no savings no money to pay for maintenance of your house at 60 also gg

On average, maintenance fees of flats, apartments and condos still cheaper than rent. If no money pay maintenance, just default until JMB petition for auction. I’m sure you wouldn’t outlive that

Also, gahmen released a reverse mortgage scheme for retirees, remortgage to them, u still can live on the prop till you pass then they’ll kautim it. If no asset, build what equity?

when im 60 i only pay few hundred for maintainance only, and u still need to pay few thousand for rent. which one more worth? remind : if u reach 60 do u think people still rent to u?

Ops maintenance for 30 years old house. Not maintenance fee ya.

U paid mortgage for until 60 years the difference say 1k + repair + insurance + mgmt fee + assessment etc compare u rent so saved those expenses. Those u saved not enough for you to pay rent after you're 60?

I Kasi u 6 months deposit + sharp sharp every month 1st day transfer rental to you. You don't want rent to me?

You calculation is misleading, you won't get to rent a 500k unit at the same rate for 35 years. Real life example is I bought a 22x85 unit 7 years ago net 913k, got key 4 years ago. This year my friend was "forced" to buy a nearby 22x70 unit at 10% higher net price. He said no choice. At this point, the rental can already cover my installments if I rent out because I bought earlier at better price.
I am sure 35 years later you will think 500k property is dirt cheap, and why you didn't buy when it was at 500k.
There are thousands of discussions here whether to buy or rent, won't get a conclusion. I can only say I will advise my kids to buy for many reasons.

This post has been edited by wsoon82: Sep 27 2024, 08:11 PM

I won't advise my kids to be slave to bank and tenant.

Your friend no choice meaning? Whole world only left 1 house can be bought?

Rental cover your installments? Meaning you rent 5k? You sure ppl only can rent from you? I don't eat Uncle Roger fried rice I can eat hawker stall fried rice, no?

His calculation is spot on.

This post has been edited by bryan_x00: Sep 27 2024, 08:29 PM

Landlord afraid the corpse in their unit

Can have reverse mortgage annuity in the market like HK

You don't need this if you rent instead of buy, you will have cash (savings) and still don't need to spend on repair or maintenance.

As said previously, majority of landlord only favour low risk customer in term of age

Plus, value of rm300 per month installment 40yrs ago for 1s house only can rent a small room now.
Money in rm devalue most of the time

Don't talk 40 yes ago, talk current, the house price is overpriced compared to rent have been stagnant for long time. 20 years ago a condo sold for 150k rent 800-900, it makes sense to buy. Now I buy 500k house don't know can even rent at 2k or not.

Landlord is king or tenant is king now? Either wait for your low risk customer or wait for lelong. Every month vacant is hefty cost you're incurring.

If the kids are staying in Msia, yes, good to buy cause you have the next generation staying. But what if they migrate?. But you still have the option of selling the house and moving into retirement homes. Those houses bought 30years back still have good resale value (provided great location) and were so well built (cos good materials were used) that you may not need much in fixing or repairing them during those 30 years. But nowadays, many construction projects are so poorly built that you need a lot to upkeep and maintain throughout the durations of your stay. Hence one argument about savings from maintenance (house repair & property management fees) can work out to be huge over a 30 years period.

Rental yield is 4-5%, why not buy one? Those who says rent is cheaper because they are renting one room, of course cheaper than buying a whole unit. Property cycle is about 18 years, and our last property boom started from 2009, which we will expect another boom from 2027. Last but not least, our property price is highly correlated to gdp per capita, our GDP per capita peaked at 2014 so do our property price. But for now, since Ringgit is appreciating against USD, our GDP per capita will also increase accordingly.

It's OK.
Everybody hv their own preferrance.

Yes, everybody makes decisions differently based on their circumstances during different stages of their life. But many other external factors such as changes in government policies or global economics also adds the unpredictable to the equations. Mine is based on hindsight is foresight. So truly there is no right or wrong either to rent or to own.

How much do you think the rental will increase? For high rise if the rental now is 1500 then probably after 10 years will increase to 1700 but when the unit getting old the house like 20 years condo probably rental stay at 1700 or not more than 2000 because plenty of choices. Our income won't stay forever same, our income will increase and in 10 years time our salary will get more than 20% increase (if not then it is your problem). Our income will certainty capable to pay the rental hike and I can assue most rental won't go beyond 20% hike after 10 years.

Yes, there are landed houses price increase but those are in prime area like PJ, Kepong, Subang Jaya, Damansara etc and these landed hosue price at least 800k and above for 20x70 double storey. And yet we need to spare 200k for renovation due to the house more than 20 years old and need major repair. How many people young people afford to buy 800k houses and fork out 200k cash for renovation?

For 800k landed house how much can you rent out, maybe around 2000 (e.g. bandar utama 22x75 rental RM2500 and house value RM1.3m). 800k house with 10% downpayment and 35 years loan at 4.25% the monthly instalment is RM3300. The rental did not cover the loan repayment and this has not factor in that you did not get the tenant in some period of time.

I got a landed house which I bought as new and VP 7 years ago and until now the 2nd hand value is less than SNP price. For condo around Cyberjaya and Puchong at least 20% - 40% down from SNP price in same period of time.

You are right.

Only in prime hotspots we will see appreciation in rental and property value. Everywhere else its either below SNP price or oversupply, especially if we move 10-15km away from the golden triangle. Taking Cyberjaya for instance, rental rate has been stagnant over the past 10-15yrs. Will it increase in the next 10-15yrs? I don't think so looking at the amount of new units being built, oversupply will make it worse.

This post has been edited by ds732: Sep 30 2024, 08:49 AM

u think those owner like old fag die in their house?

Very true but the renovation is definitely more than 200k. More like 300k min work, major work above 500k. A friend sold her SS2 house for 900k in deplorable conditions. New owners tearing down and rebuild from scratch. May cost another cool 600k

This post has been edited by nauticat99: Sep 30 2024, 09:47 AM

It will only cost that much if you want a whole new house. Most renovations at those price points are wants and not needs

Let's mark this comment "our last property boom started from 2009, which we will expect another boom from 2027" and lets review again in middle of 2027 and you will laugh at your own comment then.

How to boom when those property built in 2013 onward already sell "future value" at high price? Plus in this recent 10 years too many high rise condo projects aroud KV and this cause the 2nd market value stagnent and in most cases price drop. Unlike in year 2009 and before the properties price is relatively low and the room to increase is huge.

Old people especially single without partner or kids around will face difficulty to rent when getting older n older.

Owner will reluctant to rent due to below few reasons.

1) die in the house - who to clear the dead body
2) become forgetful - how to collect rental when developed Alzheimer
3) sick - who to take care once get sick

Many such cases happening now in Taiwan even the old man/woman got money but find it hard to rent.

Probably solution is check into budget hotel room if got money

One will understand better when one is the Owner

This post has been edited by Tigerr: Sep 30 2024, 12:22 PM

If no job no money. No need to do maintenance, u still got a place to live.

But if no money pay rental. One will have to find a spot under bridge to sleep

Compare rent and own the 60 years old that rented all life would have saved more than 60 years old that gave all to the bank.

Compare too many variables will be endless. Just compare normal ppl la. If at 60s you have Alzheimer, sick or dying with owning a house but no savings. You cannot get treatment. Isn't that worse off?