Now that house prices are rock bottom, is this a good time to buy a house or should we still rent?
Buy or Rent?
Buying a house is good because rents can be channelled into monthly loan installments and at the end of the day, you own the place. And your house now becomes an asset in your portfolio.
But on the other hand, renting gives you mobility, especially when you’re either single or when your job moves you around all the time. There’s no point, unless its for investment purposes, to buy a place and then not be able to see it.
So which is better, rent or buy?
It all depends on YOU!
Never buy in a location where house prices have already peaked, like Mt. Kiara, Damansara, Tmn Tun Dr. Ismail – house prices in these places have stabilized over the years. But house prices in places like Kota Damansara, Kota Kemuning have risen 21% over the last two years. So, look for new housing development – these will be a wiser investment than well established townships.
But also be aware that having a house comes with additional financial commitment like repairs, maintenance and quit rents.
Renters, on the other hand, have some disposable income every month as rentals are usually lower than house installments. This allows the extra money to be channeled into other investments. Many couples, especially those who are still single and childless, go about it this way in letting their money grow at a faster rate in high yield investment tools. They then use the gains from these investment as their house down payment, thus lowering the overall loan amount and duration.
Ask yourself – are you read to commit a monthly payment for the next 25 years? Even if your purchase is for investment purposes, be cautious when buying because there is a glut of property out there and the place you buy may or may not flourish – you don’t want to end up holding an apartment worth only half its value 3 years down the road at Bandar Lagenda Nilai when the proposed university project by Dataran Mantin failed to take off and left all its buyers in a lurch!
Look into your future, especially time. If you’re on the move, its better to rent. Legal fees and paperwork can cost quite a bit, usually a few thousands.
But if you’re staying put, look a for a new township close to where you work – the prices will be lower, comparatively, and with room to grow.
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