If you are looking to fly the nest, it can be difficult to decide between renting and buying in Malaysia. But by weighing up the pros and cons and assessing your current lifestyle and budget, you can make an informed decision. Continue reading to find out how to decide between renting and buying in Malaysia and make a decision that will serve you and your loved ones now and into the future.
Determine how much you can afford
During the process of deciding between renting and buying, cost can play a fundamental role. It is not necessarily the final cost of renting or buying but the way in which these costs are paid that can determine which option is better suited to your individual lifestyle and budget. For example, if you are looking for long-term stability, have been in full-time employment for a number of years, or are in the process of expanding your family, it may benefit you to purchase a property. If you are not looking to settle down, are in part-time employment, or have recently graduated from university of college, on the other hand, renting may be a suitable option. It is also worth remembering that if you can afford monthly rental payments, you may not necessarily be able to afford monthly mortgage payments on top of the wide range of costs associated with owning a property in Malaysia including taxes, insurance, and regular maintenance and upkeep.
Decide whether you are looking for long-term or short-term accommodation
If you are torn between renting and buying, you must decide whether you are looking for long-term or short-term accommodation. This is largely down to personal preference and your individual circumstances as a single dweller, couple, or growing family. For example, if you are looking to settle down, purchasing a property is a long-term commitment. If you are still considering your options when it comes to choosing where to live, on the other hand, you should find a rumah untuk disewa on a short-term basis until you have made an informed decision. When it comes to deciding whether you are looking for long-term or short-term accommodation, you must also consider whether you are likely to stay in your current position or would accept a promotion overseas or outside of Malaysia in the coming years. This is one of the main reasons why young professionals tend to rent until they have established their career within their chosen industry or sector.
Prioritise flexibility or stability
When it comes to making a decision as to buy or rent, you must prioritise flexibility or stability. To do so, assess which is more important to you as of right now as well as which is likely to be important to you in the coming years. If you have rented for a number of years and feel as if you are ready to settle down, purchasing your next property can be a great way to achieve stability. If you have yet to experience renting or are undecided on where you will prefer to live for the foreseeable future, renting can provide you with the flexibility to make decisions on an ongoing basis. There is no universal guide but renting tends to, generally, benefit those that are yet to accumulate enough savings for a deposit, are in the process of getting married or starting a family or are planning to fly the nest. If you are married or in a committed relationship and are in the position to apply for a mortgage, however, you should put plans in place to purchase a property if and when you can. By considering these factors, you should be able to weigh up the pros and cons of both renting and buying and make an informed decision.
Consider the risks involved
As with any major milestone, you must consider the risks involved. It may benefit you to know that moving is no different with a number of dangers associated with both renting and buying in Malaysia. If you decide to purchase a property, you should be aware of the financial risks involved. This includes a downturn in the local real estate market, selling your home to the first available bidder, and the ongoing cost of maintenance and repairs. If you like to travel a number of times per year or are planning a once-in-a-lifetime trip in the coming months, you may be forced to reprioritise your spending habits. If you decide to rent a property, however, there is no option to build equity, your rent may be increased at a moment’s notice, and you may be required to pay for maintenance and repairs.
If you are torn between renting and buying in Malaysia, there are several factors you must consider. For example, it may benefit you to determine how much you can afford, decide whether you are looking for short-term or long-term accommodation, prioritise flexibility or stability, and consider the risks involved.