Property Investment 101: Do You Enjoy More as a Home Owner or a Tenant?

Property Investment 101: Do You Enjoy More as a Home Owner or a Tenant?

When I wrote the original article, I asked a rather simple question:

Who enjoys life more — the homeowner or the tenant?

The obvious answer seems to be the homeowner. After all, the homeowner owns the property.

The tenant doesn’t. But after being both a homeowner and a tenant myself — from my college days through my working years — I don’t think the answer is that simple.

In fact, I once told my wife that perhaps we could become tenants again when we retire.

Why? Because when we are 60, 65 or older, do we really need to stay in one house forever?

Maybe we want to move closer to our children, occasionally?

Maybe we want to spend a few years in another city, who knows?

Maybe we want a smaller home, this is definitely true because I hate housekeeping.

Maybe we want to travel more, yes this is the dream.

So let’s look at this again.

#1 – WHO carries the bigger risk?

Let’s say a tenant pays RM2,000 a month. The tenant’s main obligation is the rental.

The homeowner, meanwhile, could be holding a RM500,000 property with a substantial mortgage.

If the property stays vacant for six months, the tenant doesn’t have a problem.

The homeowner still has the mortgage. This is something I think people sometimes forget.

Owning a property creates wealth-building opportunities, but it also creates financial obligations.

And the latest property data shows that the average Malaysian house price is now around RM502,922, according to NAPIC’s 2025 preliminary data. House prices still increased, although growth slowed to 2.6% for the year. 

So yes, the homeowner owns an asset.

But the homeowner also carries the financing, maintenance, insurance, taxes and vacancy risk if the property is an investment. With a home loan, it’s still a liability and not yet an asset.

The tenant? He or she can walk away when the tenancy ends. That is actually a form of freedom. Choices are also aplenty.

#2 – WHO has more flexibility?

This one goes to the tenant. A tenant can say:

“I don’t like this place anymore. Let’s move.”

Perhaps the job changes. Perhaps the children move to another school. Perhaps the neighbourhood becomes too crowded.

Perhaps the rent becomes too expensive. The tenant can change.

The homeowner? Not so easy. Selling a property takes time.

There are transaction costs. There may be a loan to settle.

There may be renovation costs that cannot be recovered.

And if the market isn’t good, the owner may have to wait.

I have moved around and experienced different properties myself.

So I understand why some people like the flexibility of renting.

Sometimes not owning something is actually an advantage.

#3 – But WHO has more long-term security?

Now the story changes.

Imagine you are 30 and you buy a home with a 30-year mortgage.

If you keep paying the loan, by around 60 the mortgage may be fully settled.

You now have a home.

The tenant who rented for 30 years? He still needs somewhere to live.

And that’s the big advantage of ownership.

The mortgage has an end date. Rental normally doesn’t.

This is especially important when we retire and our income falls.

A homeowner with a fully paid property may still need to pay maintenance fees, quit rent, assessment and other expenses.

But there is no longer a large monthly mortgage.

A tenant may still be paying market rental. And rental can change over time.

So when we talk about retirement planning, owning a home can provide a form of housing security.

#4 – But don’t assume property prices will always save you

This is where I disagree with some property-investment narratives.

Some people buy a property and immediately think:

“This property will make me rich.”

Not necessarily.

The latest NAPIC data actually shows that property price growth has moderated.

Malaysia’s average house price increased from RM490,313 in 2024 to RM502,922 in 2025, or about 2.6%. 

That’s positive. But it isn’t some magical double-your-money-every-five-years story.

There are also huge differences between locations. And some rental markets are much stronger than others.

NAPIC’s latest market report found landed-property rental increases of roughly 2.3% to 17.3% in selected cities such as George Town, Ipoh, Alor Setar and Kangar, depending on property type and location. High-rise rentals were generally more stable. 

So if you are buying for investment, don’t just ask:

“Will property prices go up?”

Ask:

“Who will rent this property?”

“How much will they pay?”

“What happens if it stays vacant?”

That’s property investment. If you do not have the answers to all the above, perhaps you need to read more, first.

#5 – WHO has more negotiation power?

This depends on the market. When there are plenty of vacant units, the tenant has more power.

I have experienced this myself.

If there are 20 similar units available and 10 landlords are desperately looking for tenants, why should the tenant pay the highest rental?

He can negotiate. Maybe ask for RM100 less. Maybe ask for extra furniture.

Maybe ask for a better tenancy term.

But when a property is in a fantastic location with strong demand, the landlord has the power.

Think about properties near established universities. The rental is pretty “amazing” for the owners and pretty gloomy for the tenants; their parents.

Students need to live somewhere. If the unit is close to campus, convenient and properly furnished, demand can be strong.

So there is no permanent winner.

The market decides.

#6 – And what about the money?

This is probably the most important part. Suppose renting costs RM2,000 a month.

Buying a RM500,000 property might require a 10% down payment of RM50,000, plus legal fees, stamp duty, renovation, furniture and other costs.

The tenant can keep that RM50,000 invested elsewhere.

The homeowner puts it into the property. Who is better off?

We don’t know.

It depends on the property price appreciation, rental value, investment returns, loan interest, maintenance costs, taxes and how long each person stays.

That’s why I don’t like simplistic statements like:

“Renting is throwing money away.”

No.

You are paying for housing. The homeowner is also paying for housing — just through mortgage interest, maintenance and opportunity cost, while also building equity.

Both sides are paying for somewhere to live. The difference is what happens to the asset.

#7 – I have seen tenants become homeowners

This is actually one of my favourite parts of the original article.

I have had tenants who eventually moved out because they bought their own properties.

One became a successful corporate lawyer.

Another told me he was buying a landed property after renting from me for several years.

I was happy for them.

Why?

Because they didn’t force themselves to buy something simply because society said:

“You must own a property.”

They rented. They saved. They progressed in their careers.

And when they found the right property, they bought. That is perfectly fine.

Renting can be a strategy.

The problem is when renting becomes a permanent lifestyle without any plan to build assets.

SO, WHO ENJOYS MORE?

Honestly?

There is no universal answer. You should know better based on your situation and preference.

A homeowner may enjoy:

• Long-term security
• Potential capital appreciation
• The freedom to renovate
• No landlord deciding whether to renew
• A fully paid home in retirement

A tenant may enjoy:

• Flexibility
• Lower upfront commitment
• Easier relocation
• Less exposure to property-market risk
• The ability to invest their capital elsewhere

I have enjoyed being both.

And perhaps that is the biggest lesson.

You don’t have to become a homeowner just because everyone else is buying.

Today, with Malaysian house prices averaging just above RM500,000, buying a home is a significant financial decision. 

So ask yourself a different question.

Not:

“Should I rent or should I buy?”

But:

“Which choice gives me more of what I prefer for the next 5, 10 or 20 years?”

For some people, the answer will be buy.

For others, it will be rent.

And perhaps, like me, the answer will change at different stages of life.

I am a homeowner. I have been a tenant. And who knows?

Maybe one day, when the children have grown up and retirement arrives, I will become a tenant again.

Haha.

Because at 60-plus, perhaps I don’t want to worry about maintaining five bedrooms anymore.

Maybe I just want a nice place, good coffee nearby, good food, and the freedom to move when I feel like it.

Homeownership is great.

Renting is also great.

The important thing is to understand what you are giving up and what you are getting in return.

Happy understanding.

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Sources

• NAPIC — Malaysian House Price Index 2025 — official 2025 house-price data and national average price.
• NAPIC — Malaysia Property Market Report 2025 — rental-market trends and property-market data.
• Original Kopiandproperty article — the original article and personal experiences used as the basis for this refresh.