Which One is Better, Buying or Renting?

Buying or Renting House


Having a home essential to us as it provides us shelter, warmth and security. It is also a personal space where we spend most of our time. Are you already at that age where you should be buying a house? However, buying a house in Malaysia is unaffordable especially to young working adults. If you are not planning to buy a house yet, you could always check on on the studios for rent in Kuala Lumpur. If you are torn between buying a property or renting a property, fret not, this article will guide you through the pros and cons of buying and renting a house in Malaysia.

Buying house, Renting House

A. Buying a house


Pros

a. Greater privacy

As this is your own house, you definitely have the whole place to yourself. You do not need to worry about sharing and losing your privacy. In addition, you are able to get things done the way you like it without having people telling you off. You do not need to deal with your housemates that are messy or Obsessive Compulsive Disorder housemates. After all, this is your house and it belongs to you. 

b. Freedom 

You are allowed to buy anything you want and have them in the house. There is also no need to fight for bathroom or kitchen when you need them. You are also in charge of your comfort as you are able to deal with problems immediately instead of waiting for the landlord to fix it for you, which may take a long time before it is fixed. 

c. Good investment 

If you do your research before buying a house, you will know that having a right house is an incredible asset. Not only it helps you to save money, it also increases in the value. If you are planning to live in it, you will not need to worry about paying for rental every month. It also provides a home for your family and you. However, if you plan to sell it off in the future, you will be making a profit if the price and timing are right. 

d. Avoid unreasonable landlords 

This is one of the most tedious issues that most tenants face - unreasonable landlords. Having a house on your own will save you from the problems caused by the unreasonable landlords. While some landlords can be really friendly and responsible, some landlords could be inconsiderate, unreasonable, exploitative and rude.Therefore, having a home on your own could help you to avoid all these problems of dealing with unreasonable landlords. 


Cons

a. Upfront money + hidden charges

You will need to fork out money on your own to pay for down payment and other miscellaneous fees, which could sum up to a huge amount. Most down payment would require a 10% of the property price, subjective to the approved loan amount from the bank. 

b. Financial risk 

There is also a risk of your house value depreciating instead. Other than that, you are also responsible for all the maintenance fees. All these could be a financial burden for you if you do not plan your budget ahead.

c. Long term commitment 

Do bear in mind that buying a house is a long term commitment. A property is only a good investment after a period of time. That being said, you will have to stay in the house for some time, at least 5 years to avoid paying for the Real Property Gain Tax. 


B. Renting a house 


Pros

a. No maintenance costs

The landlord is responsible for all the maintenance costs. For example, clogged drain, water leakage or faulty electrical appliances is under the landlord’s responsibility. You do not need to bear any cost unless the damage is caused by you. 

b. Low upfront costs 

Your upfront costs will be so much lower as compared to buying a property on your own, as you do not need to pay for down payment and monthly installment for the house. 

c. Low commitment 

Renting a house also requires lower commitment as compared to buying a house. As you are only renting a house, all you need to do is find a house, contact the landlord, sign the tenancy agreement and you are done. If you do not like the house, you could always leave after the tenancy ends.


Cons

a. No return

Bear in mind that renting a house does not come with any return because the property does not belong to you. The rental that you pay monthly belongs to the landlord and you do not gain any benefit from renting the house. 

b. No tax benefits 

You will not be able to enjoy any tax benefits as well as compared to those who buy a house on their own.

c. No law to govern tenancies 

As of today, there is no legal policy that helps in protecting the tenants in Malaysia. This is due to the market inflation that caused the high maintenance fees, therefore resulting in sudden increase in rent. In addition, if your rental property is located at a prime location, your rental might increase as well. Unlike buying a house where your mortgage is fixed. 


Moreover, some landlords take ages to get problems fixed although the damages could cause danger to the tenants. Therefore, it is important to have a tenancy agreement. 

In conclusion, both buying a home and renting a home come with their own sets of pros and cons. At the end of the day, it all boils down to personal preference and how much you can afford. If you are capable of buying a house, by all means go ahead. If not, you could always choose to rent a house first before you buy a home on your own if you are tight on your budget.


{ 21 comments.. read them below or add one }

Henry Tan Henry Tan Disember 29, 2017
Well rent when the market price is overvalued where the monthly installment is even higher than the rental.
like what they always said...
Buy the house for you to rent, and rent the house for you to stay. ;)

4D3N Star Cruise 2017
Rawlins GLAM Rawlins GLAM Disember 29, 2017
I have rented for so many years now, insyaAllah next year I will be a home owner. Thanks for sharing about the pros and cons of renting and buying a house. I agree 100% with your points.
Salina Johari Salina Johari Disember 29, 2017
perkongsian yang sangat bermanfaat , atleast kita tahu buat perbandingan samada nak sewa atau beli kan .. ikut kemampuan masing-masing
Miera Nadhirah Tan Miera Nadhirah Tan Disember 29, 2017
I would dearly love to be a home owner but for the fact that my name has been blacklisted thanks to what my ex did to me
Syafiera Yamin Syafiera Yamin Disember 29, 2017
dulu I menyewa sebulan nak dekat rm800juga la tapi Alhamdulillah dah ada rumah sendiri bayar direct ke bank untuk rumah sendiri, Alhamdulillah, so far I tetap rasa beli rumah lebih berbaloi dari menyewa, tapi kena tengok pros dan cons juga, so far rumah sekarang agak strategik nak ke cheras dan ke KL, HUSBAND pula pergi kerja tak payah baayar tol..
cc kak fas cc kak fas Disember 29, 2017
Offvcourse buying is an inveatment but make aure u buy at the correct location but sometimes renting too is ok as you can eaaily move if u find the location unsuitable later...
Fadzi Razak Fadzi Razak Disember 29, 2017
I would say buying is the best because you pay every months almost the same amount with rented house but in the end its belong to you
Betty Liew Betty Liew Disember 29, 2017
If looking at long term , of course buying is more worthy. But it has to depend on your budget too and not too rush. plan properly and do survey more.
Hasif Hamsyari Hasif Hamsyari Disember 29, 2017
Betapa mengidamnya nak memiliki rumah sendiri padahal baru je mula kerja. Buat masa ni memang tak ada pilihan selain menyewa. InsyaAllah, kalau dimurahkan rezeki, harapnya dapat beli rumah sendiri setidaknya lima tahun lagi. Amin...
Mohamed Khaidir Mohamed Zaraai Mohamed Khaidir Mohamed Zaraai Disember 29, 2017
Well, of course, it's good to buy a house. You need to have a property sooner or later.
Wai Yee aka Rane Wai Yee aka Rane Disember 29, 2017
Thanks for sharing. I like buy house coz I have more ownership feel
Amanda Suria Amanda Suria Disember 29, 2017
Already bought house on 2009, now i'm renting a room as i'm working in KL, well my house i just let my parent and daughter to stay there..and my siblings will come over at certain times..now like family house...hehehe
iffah hussin iffah hussin Disember 30, 2017
Info berkaitan property memang bagus sebagai rujukan kepada mereka yang nak beli rumah. Moga menjadi info yang bermanfaat
Lia Hasty Lia Hasty Disember 30, 2017
I prefer buying a house is much better ;)
tenku butang tenku butang Disember 30, 2017
hem.. i think better buying a house sebab kalau beli rumah dan bayar bulan-bulan tidak terasa sangat keran rumah itu akan jadi milik kita akhirnya.. dan kita boleh buat apa saja dengan rumah kita.. (as above mention)
Hanny Abdullah Hanny Abdullah Disember 30, 2017
Tips yg bagus utk yg baru nak beli rumah..tq for sharing this tips
Dedaun Comel Dedaun Comel Disember 31, 2017
Bergantung juga dengan kesihatan kewangan.. Definately buying houses is a better choice.
Zayani Zulkiffli Zayani Zulkiffli Disember 31, 2017
I think it depends on the individual preferences and commitment. Not all people can buy a house and not all can commit on paying for the rent. Obviously buy a house is much more worth, for me.
yaya_flanella yaya_flanella Januari 01, 2018
Bagi Yaya better beli rumah dan duduk terus bayar bulan2 bila dah jumpa rumah idaman ni unless dapat kuaters ke kan ha boleh la sewa kan dulu atleast boleh generate income juga
penaberkala nuar penaberkala nuar Januari 02, 2018
Actually. It is good to buy our pwn house. In condition, we have sufficient down-payment and get enough money to pay for monthly installment. How I wish to buy a house. Currently, still renting and share with others
Cik Puan Ena Cik Puan Ena Januari 02, 2018
Depends pd life. Klu mcm ena suami polis. Kena standby pindah randah, so beli rumah 2nd je. Jgn beli baru. Bila pindah rumah tu disewakan. Nk dekat pencen baru planning beli rumah baru n besar terus.hehe..ikut cara org tua. Elaun rumah pusing balik bayar duit rumah..tmbah ckit je.. tapi kalau 10 thn akn dtg rumah tu naik melambung tinggi, x salah pon klu nak jual. Ikut market, untung sewa ke untung jual.

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