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Once you rent high, you may never buy

Posted in Starting Property Investing

Property Insight Malaysia asked an interesting question. Should you rent or buy? To be honest, I would buy anytime. If I could not afford the places I want, then I buy 5 minutes away from the places I like. If I still could not find, then I would buy 15 minutes away. The question today is not on whether I’d rent or buy. Today, we will talk about, if we are renting and we would like to rent at places nearby, live very comfortably; fully renovated, fully furnished, the truth is, we may never buy. Haha. Yes, it is true. Let’s see my three reasons for saying so.

Just too used to it. You come home, the guard salutes you and smiles. He knows you by name as you have been staying there for the past 6 months. You parked your car, which happened to be just 15-20 steps away from your doorstep. You unlock the door, switched on the light and your smartphone starts using the broadband connection in your home. The remote was where you left it, you switched the tv on, grab a can of kickapoo from the fridge, sat down to watch the live football match from ASTRO. All these were included into your rental of RM2,600. You think it’s worth it, because ASTRO would already be Rm150, broadband is another RM150, all the furnitures, the electrical goods etc, surely, Rm2,600 is worth every cent!

Just can’t and could not. Buying a property of your own is not something easy. The great ones may not be at places you want. The expensive ones may just be above your current rental that you are paying. The cheap ones may not offer you the same comfort, convenience and quality you expect to have. In case you are still wondering why the rental that you pay can still be lower than your mortgage payment, do note that many years ago, the price that your current landlord paid for his condo was much lower, thus he is able to cover his mortgage even with your rental today.

Why bother. Within past 16 years of my working life, I have moved house 8 times. Yes, it’s crazy. The first half was all due to rental. The second half was because I was upgrading which is a good thing. However, even after having so many experience, let me tell you that it remains tough and if you are really thinking of moving, if you have been renting and accumulating so many things in your rented property for many years, you will faint. If you do not believe in property investment and is doing very well on other types on investments, why bother. Just stick to what you feel good about.

The above is applicable only to those who are renting at a premium and have everything included. This is not aimed at those who are renting a bare unit and have to make do with the least requirements that you would expect. So, it’s easy to see clearly, why after you have been renting for a while, it will be tough for you to buy.

written on 9 June 2014

Next suggested article:  Buyers today, property fairs today and ignorant developers

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