Author Topic: To buy or to rent a house for own stay?  (Read 7680 times)

Offline feydrax

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To buy or to rent a house for own stay?
« on: December 29, 2016, 11:53:26 AM »
For a young professional with zero backup from family.

Looking at the current market in Klang Valley now, do you think it's sensible to rent a house to start a family, or to save even longer to buy a new one?

Offline meoramri

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Re: To buy or to rent a house for own stay?
« Reply #1 on: December 29, 2016, 01:07:40 PM »
Rent first.


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Offline epsilon82

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Re: To buy or to rent a house for own stay?
« Reply #2 on: December 29, 2016, 01:45:25 PM »
If you are single, rent a room and save for down payment.


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Offline feydrax

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Re: To buy or to rent a house for own stay?
« Reply #3 on: December 29, 2016, 03:00:12 PM »
Renting sounds more sensible, but seems like a lot of people around me think that one must have a house before marriage  :Blue: given the market now, Pr1ma / WIP is the way to go for house ownership? Else, the only other option would be to get new developments that scrape off the downpayment requirement

Offline dualcarb

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Re: To buy or to rent a house for own stay?
« Reply #4 on: December 29, 2016, 04:15:30 PM »
Nothing wrong with renting first. The "I must buy a home first" before I get married thing is over rated. Why bog yourself down with a liability so early on? The market is over saturated anyways. There will be bargains down the road.

Offline meoramri

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Re: To buy or to rent a house for own stay?
« Reply #5 on: December 29, 2016, 05:50:13 PM »
I got married in 1995. Rented for 10 years before buying one in 2004 (moved in 2005). With seniority (for loan) and savings able to get a nice landed property.


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Offline feydrax

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Re: To buy or to rent a house for own stay?
« Reply #6 on: December 29, 2016, 06:24:02 PM »
wow.. that's quite inspirational! Thanks for sharing your experience with me @meoramri. I have been contemplating on renting for quite a while and you've shown me that this is indeed a reasonable option.

@dualcarb you're absolutely right. The current market is indeed over saturated. But thanks to the weak ringgit, the developers are building at a much higher cost too. No matter how bad the market is, the price can't go lower than the cost, right? I guess we can just wait and see what the excess in supply is going to do to the market.

Offline applecal

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Re: To buy or to rent a house for own stay?
« Reply #7 on: January 03, 2017, 08:20:31 PM »
Just bought a unit in bukit jalil..high rise though...few years back, ppl were saying property price will goes down but what i see is price keep hiking year by year... :thumbsdown:

Offline niaochu

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Re: To buy or to rent a house for own stay?
« Reply #8 on: January 25, 2017, 11:56:15 PM »
to me all depends on your affordability .. if u are stretching your wallet, then by all  means rent first. rent you have flexibility .. got few frens caught by the economic downturn n hold too many properties.. all gone overnight ...

Offline opp61

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Re: To buy or to rent a house for own stay?
« Reply #9 on: February 01, 2017, 08:53:15 AM »
Buy..

Get a few buddies together and get a property. Sub rent the rest of the rooms out .

Better to have something in your name now or never.

Offline weibbb12

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Re: To buy or to rent a house for own stay?
« Reply #10 on: February 13, 2017, 09:45:23 AM »
By looking at starting a family, of course it would be better if you can own a property for stability purposes. You can rent a house but if the monthly rental is almost equivalent to paying monthly housing installment, perhaps buying is really a wiser choice. Anyway, this is just my personal thought, hope you find a house soon.

Offline nightwatchman

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Re: To buy or to rent a house for own stay?
« Reply #11 on: February 27, 2017, 06:50:25 AM »
Assuming you can get your loan approved (banks have really tightened up), buy, but find a bargain (they are out there).

Offline yume

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Re: To buy or to rent a house for own stay?
« Reply #12 on: March 15, 2017, 08:54:06 AM »
rent first.

Offline dualcarb

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Re: To buy or to rent a house for own stay?
« Reply #13 on: March 22, 2017, 02:36:36 PM »
This is from an expert's point of view. And the numbers that he provides shoulb be able to paint a rather interesting story. IMHO...the banks are always the winners.

http://www.freemalaysiatoday.com/category/nation/2017/03/22/buying-a-rm500000-property-better-to-rent-says-expert/



Offline strapfreak

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Re: To buy or to rent a house for own stay?
« Reply #14 on: March 31, 2017, 07:54:04 AM »
if i were you i will look into my savings first. Rent is more affordable but that's put into expense category, you loose that money. but if you're buying, you pay and you get the house.

Offline dualcarb

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Re: To buy or to rent a house for own stay?
« Reply #15 on: March 31, 2017, 08:28:26 AM »
if i were you i will look into my savings first. Rent is more affordable but that's put into expense category, you loose that money. but if you're buying, you pay and you get the house.
You only get the house IF it's fully paid up. Otherwise it technically belongs to the bank.
Even if you wanna sell it at a "profit", the old adage still stands true. Willing buyer willing seller. You have to secure a willing buyer first.

Offline D'Andy

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Re: To buy or to rent a house for own stay?
« Reply #16 on: April 01, 2017, 06:46:57 PM »
Either the demographic here are rather young, or I am rather surprised that many suggests towards rental instead of property purchases. Yes, if you buy your first property when you are younger, you would have to make financial sacrifices but then again, the hard work would only make you tougher over time. I remembered purchasing my first house when I was in my 20s. My salary then was RM1.5k (these days, many fresh grads start off with RM3k easily); and after deductions for the house and car instalments, some monies towards my folks, I was left practically with a pittance. But take a look at it today, and the same house had appreciated by more than 4 times of its purchased price (especially after the LRT plan was announced for Mutiara Damansara)- you could never go wrong with properties located at the right (location, location, location). All my properties purchased and flipped over time were at key locations in Klang Valley, and rental income has been good.

The key is to go step by step as your disposable income improves over time; and not go for those speculative MLM-free-advice-buy-few-units-at-the-same-time-with-guaranteed-returns as any spanner thrown in the works and your financials get screwed as per one of the forummers' sharing above. If you start young and start right, you could have gained a portfolio of choice properties a few decades down the road; and that would meant that your kids would be set for an easier time (since you started with zero back-up from family as you mentioned, so you would understand what I meant).

I'm rather passionate about properties- if you are in doubt, you could drop me a PM and I could give you my 2 sen's worth if it helps. So go ahead, go get a good property that you could afford- and after things settle down over time, then you could go for other short-term gratification hobbies such as cars, bikes, and watches. And by then, you could really enjoy your hobby.

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Offline Swoosh64

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Re: To buy or to rent a house for own stay?
« Reply #17 on: April 21, 2017, 12:28:46 PM »
Good point, no sacrifice no gain... thanks for sharing!

Offline dualcarb

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Re: To buy or to rent a house for own stay?
« Reply #18 on: April 21, 2017, 01:14:34 PM »
Either the demographic here are rather young, or I am rather surprised that many suggests towards rental instead of property purchases. Yes, if you buy your first property when you are younger, you would have to make financial sacrifices but then again, the hard work would only make you tougher over time. I remembered purchasing my first house when I was in my 20s. My salary then was RM1.5k (these days, many fresh grads start off with RM3k easily); and after deductions for the house and car instalments, some monies towards my folks, I was left practically with a pittance. But take a look at it today, and the same house had appreciated by more than 4 times of its purchased price (especially after the LRT plan was announced for Mutiara Damansara)- you could never go wrong with properties located at the right (location, location, location). All my properties purchased and flipped over time were at key locations in Klang Valley, and rental income has been good.

The key is to go step by step as your disposable income improves over time; and not go for those speculative MLM-free-advice-buy-few-units-at-the-same-time-with-guaranteed-returns as any spanner thrown in the works and your financials get screwed as per one of the forummers' sharing above. If you start young and start right, you could have gained a portfolio of choice properties a few decades down the road; and that would meant that your kids would be set for an easier time (since you started with zero back-up from family as you mentioned, so you would understand what I meant).

I'm rather passionate about properties- if you are in doubt, you could drop me a PM and I could give you my 2 sen's worth if it helps. So go ahead, go get a good property that you could afford- and after things settle down over time, then you could go for other short-term gratification hobbies such as cars, bikes, and watches. And by then, you could really enjoy your hobby.



I agree with you. And similar to you, I also bought my first property in my 20s. But then again, when we were in our 20s the property prices are four times cheaper. You said this yourself. And I also started with a salary of 1.5K. You also mentioned that fresh graduates today has a starting salary of 3K. But the prices of properties have already gone up by fourfolds and prices of cars, almost more than double. Not to mention the price of fuel etc etc. You get the drift. So buying and committing to something that big and that expensive are not as easy. When inflation has only doubled our salary but put everything else three, four and five times the prices of yesterday.

Please don't get me wrong, I am a huge advocate of purchasing a place of your own. And and many of the things that you mentioned makes sense. What I am very strongly advising here is to rent first while saving and/or investing your money. Just to ensure that you are able to sustain your mortgage payments, so that when the s**t the fan, you are not that greatly burdened.

What I do is to ensure that I have 6 months worth of mortgage payments for my property sitting in my FD before I commit to buying. And to top it all off, FD rates these days are not that shabby.

Always take care of your investments first, then let your investments take care of you in your later years. I am no business man nor am I by any means rich. I am just your average salary man who has learned the tough way and similar to the OP, I have zero financial support from my family.

So there you have it...it is OK to rent first. Then buy when the time is right and when your finances are in place. Then later in life when your investments bear fruit, the time will be ripe for you to indulge in what you like and love, like watches or hi-fi or cars etc...
« Last Edit: April 21, 2017, 01:16:31 PM by dualcarb »

Offline Teikfun

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Re: To buy or to rent a house for own stay?
« Reply #19 on: January 29, 2018, 03:57:55 PM »
I would strongly recommend to buy, save hard, earn hard to get the down payment to buy a house. I am also having the same background, used to be young working guy with zero backup from family, managed to buy property in early 30's and looking back, it's a great decision as the price has been up many times since then. Those that has been renting for the last 10 years, is still renting and paying but do not own the property. At the end, those who buy is paying for the property.
You can always start with a low cost property, no matter what, it will still belong to you at the end of the day. Even if you decide to sell, you may be making a profit too.

Offline Nkssupreme

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Re: To buy or to rent a house for own stay?
« Reply #20 on: March 12, 2018, 07:12:12 AM »
rent first and survey the area that you prefer. Once you are comfortable with your saving and ready to commit for a house in long term, go for it.

Offline julietchuah

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Re: To buy or to rent a house for own stay?
« Reply #21 on: March 26, 2018, 09:46:02 PM »
 :) If the person's salary cannot afford the house for long term, where he go to find the money to pay?
It means he just give money to bank and let others buy his house through auction in more cheaper price.
People better rent a house first before buying a house except you are very very very rich!!! :Jumping:

Offline D'Andy

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Re: To buy or to rent a house for own stay?
« Reply #22 on: March 30, 2018, 02:48:34 PM »
It means he just give money to bank and let others buy his house through auction in more cheaper price.
People better rent a house first before buying a house except you are very very very rich!!! :Jumping:

And as long as there exists the above mentality that you should refrain from "buying a house except you are very very very rich", that should be good for all current property owners' portfolio and the annual contracted rental increment. 
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Offline sclai5675

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Re: To buy or to rent a house for own stay?
« Reply #23 on: May 03, 2018, 05:54:34 PM »
Buying house requires plenty of research and long term planning to see if this place would be still relevant after you got married with kids!


Offline D'Andy

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Re: To buy or to rent a house for own stay?
« Reply #24 on: May 04, 2018, 08:20:07 AM »
Buying house requires plenty of research and long term planning to see if this place would be still relevant after you got married with kids!

Buying a house should be like buying a watch. In my twenties, I liked a Sub but I could only afford a G-Shock, so I would buy the latter first. As my disposable income built up, I went for the Seikos and entry-level Swiss watches. When I have more excess funds now, I tend to collect more Subs, GMTs, Daytona and the likes. And the 5711 but the WL is stretching on.

Just like the simple watch analogy presented, you don't hanker after a high-end duplex condo in Mont Kiara (e.g. 5711) during the start of your career days- you start off with a simple apartment that could be more affordable (e.g. G-Shock). As you progressed through your career and graduated from your single life, you would looked for better accommodation in line with your disposable income. Just my 2 sen's worth.
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