Buying or renting, a property is still needed. Be savvy.
As a landlord, I treat my tenant well. However, the rental they pay will be used to pay the monthly mortgage payment. While my mortgage payment may end after 30 years, I will not stop taking rental payment from my tenant. So, after 30 years, the rental will help fund my living expenses. This is the relationship between paying rental as a tenant and accepting rental payment as a landlord. We know Covid-19 has wreaked havoc. Thus, uncertainties about what will be happening in the near future continue to affect property decisions.
Demand for rental property increasing
This was what PropertyGuru said in a recent report. “58% year-on-year increase in rental demand as potential home buyers await economic stability.” This was the article with all the related stats for everyone’s reading (Click here for full article) Briefly, because of the worry for uncertainty, it seems that some buyers are holding back from their property purchase and they resorted to rent instead.
This was what PropertyGuru Malaysia Country Manager Shylendra Nathan, “The increasing demand for rental properties could be indicative of shifting priorities among home seekers who face difficulties in securing home loans in the current climate, as banks continue to be conservative about loan approvals. As such, potential homebuyers are temporarily putting their purchasing plans on hold to ride out this period of economic volatility. Instead, they are opting to rent homes to satisfy their upgrading needs or pursue their desired lifestyle improvements, while rebuilding confidence towards making large property purchases.” (Click here for full article)
Buying or renting, property is still needed
We could decide that things are uncertain and thus, buying a property is a little risky. We could decide to just wait a little for things to be more stable. We could even decide that we could continue to stay with our parents in the meantime. All these decisions are fine. What we need to also do at the same time is NOT to use up all the money we needed to buy a property…
This is because if we think we want to wait but we are spending all the money we have, then it’s just an excuse to spend money and has got nothing to do with waiting till things get better. By the way, we need to also define what do we mean by things getting better too.
Buying or renting, a property is still needed
When we decided to rent, we need to be savvy to the fact that we will have to rent a property from somebody; a landlord. In other words, renting or buying, a property will always be needed. We could rent a room instead and even this would still mean it’s a room within a property. In other words, the demand for property has remained… just that it switched from people buying to people renting.
I sincerely hope everyone understands that demand for property does not go down just because people chose to rent and not to buy. This is also why landlords will most probably continue to buy more properties so that they could continue renting it out to people who say renting is better… Thank you for your understanding.
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