Malaysia Property Market News and Guides

Why Rent and Not Buy?

30 Jun 2015

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Owning a home of your own sounds like the Malaysian dream. Before buying a house, why not consider renting instead? There are many considerations and advantages in renting compared to purchasing. Below are three featured justifications on why renting instead of buying:

Less cost involved

When you rent a place to stay, there are less upfront charges. The security deposit in general would be about 3 months’ rental fees. The utility and security expenses are refundable if you chose to move out from the rented premise.

Compared to procuring a house in Malaysia which generally constitutes the total of the 10% down payment, stamping and legal fees, the figure would still be affordable by many. On top of that, there will be a monthly transaction when you need to service the housing loan.

For renting on the other hand, you would need to pay on a monthly basis but at a more comfortable and lower rate. This very much depends on the location and type of housing you select. Emotionally, you wouldn’t need to feel distressed with property taxes and maintenance cost. That segment will be handled by your landlord.

As an example if we chose to rent a condominium for RM 2,000/month, we need to fork out about RM 6,000 as the upfront deposit. If we chose to buy the same condominium worth RM300, 000, the 10% in advance deposit amount is RM 30,000 that needs to be settled.

Are you ready to pay RM 6,000 or RM 30,000 at this point of time? If your answer to the above example is RM 6,000, renting would be a better choice to lessen your worries.


Ask yourself these few questions:

  • Do you have a steady job with solid income?
  • Are you planning to just stay in the city you are currently residing in?
  • Are your finances strong enough that it is able to sustain you during unexpected turn of events such as loss of job or natural disasters?

If the answer to most of the questions above is ‘NO’, then renting is for you. Due to the resilience, you will be able to pack up your bags and leave depending on the tenancy agreement regarding the duration of your stay (minimum one year).

Owning a house on the other hand is not as simple as that. If you would like to leave, you need to sell off and selling has formal procedures to follow. What’s more, you are grounded to at least thirty years of commitment in paying off the loan depending on your financial capability. Hence, another wonderful key point to rent instead of purchase.

Simple to manage

When things go wrong at home, you are not entirely alone. Small things like fixing the light bulb or door knob could be handled by the tenant themselves. However situations where the plumbing does not work or the laundry machine breaks down, this is the time you may call your landlord for further action.

At least, it does not cost you migraine at the end of the day when you are no plumbing or electrical expert. As a bonus, the amount of money that will be spent for the extra service is not coming out from your cash reserves.

Renting for the rest of your life? Not necessary.

At the end of the day, you may not want to rent for the rest of your life. There may come a time when you are actually ready financially and emotionally. Renting is also a favorable step before actually purchasing the house of your dreams. You will get to explore and experience firsthand living in the location you first laid eyes on. It is an economical method for you to get the feel regarding the infrastructure, neighborhood and convenience.

The grass may be greener on the other side. At least, you will have the chance to move on to other preferred locations in comparison to acquiring the home that you just bought.

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This guide is written by ShelbyYoong. Send message to this author for further discussion on this article.