As we all know, the Malaysian property market is currently in the buyers market phase. Buyers market is a phase where there is a dumping of home sellers compared to home buyers. The public is also less confident with the current real estate market and acts just wait and see. The issue in this post, is renting better than buying real estate?
Based on the author’s observations, renting has many benefits that are no less than buying a home, and vice versa. There are 5 advantages if you decide to rent a house over buying!
The similarity of buying a house and renting a house is, you still have to pay a monthly commitment or you will be kicked out either by the bank or the landlord. As long as you are alive, you will still have to pay the cost of living in the house. You can still use the existing facilities and amenities (for high rise homes) just like the person who bought the house in the project.
1. No Seizure of Faraid Property
Did you know, a total of RM70 billion in assets have been suspended since 1957 until 2020. In fact, Amanah Raya recorded a total of RM418 million in unclaimed cash and was classified as ‘money waiting to be claimed’ (WMD).
It is common knowledge that a lot of wealth does not guarantee happiness and most family breakups start because of quarrels in the property dispute.
2. No Debt When You Reach An Old Age
Today, people are more aware of the benefits of living independently without a bank commitment. Not a small number of senior citizens are still in real estate loan debt and some have failed to make real estate loan payments and have been declared bankrupt.
The long real estate loan commitment period (20 years – 30 years) has resulted in many Malaysians being in debt until old age and having to withdraw EPF money to settle their home debts.True, there are young people who manage to buy a house before reaching the age of 30 years.
At the same time, there are also young people who go bankrupt due to real estate loans before reaching the age of 30.
3. No Annual Tax To Be Paid
Many forget that as homeowners, they are obliged to pay various taxes and surcharges on an annual basis in addition to real estate loan installment payments to the bank.
Among them are gate tax, land tax and sinking fund. By renting, you don’t have to think about paying all those taxes and costs.
4. Geographical Freedom
Today’s young people on average not only want financial freedom, but also geographical freedom. The meaning of this geographical freedom is the ability to work anywhere without feeling bound to live at home.
5. Cashflow & Calm Investing
The cost of renting a home is much lower than buying more homes – more homes in the sub sales and auction markets.
The highest deposit you have to pay is usually a 2 or 3 months rental rate. For a house with a rental rate of RM1,000, you only need to provide a cost of RM2,000 – RM3,000. Unlike buying a house, you need to provide at least 15% or RM45,000 for a house priced at RM300,000.
With the surplus money available, today’s young people are actually able to manage their finances better and are able to invest in less risky funds.
Of course, it is not a sin if you continue to rent until the end of your life if buying a house puts you at risk for bankruptcy and you can not sleep at night. Young people today are more appreciative of geographical freedom and do not like at all to sit and be tied in the same area for a period of 30 years – 40 years. For your home, get the most reliable gutter installation malaysia.