5 Reasons Why Renting Could Be Better Than Buying
Although owning a home is a lifelong goal of many Malaysians, renting has advantages too. Home ownership isn’t for everyone. Renting can be considered better than buying for some since rates of home ownership are currently high in Malaysia. Historically, families either needed to build their own homes or rent a home from someone else.
For some people renting might make more sense for their financial circumstances. Below are 5 advantages of renting, instead of buying, a home.
One of the benefits of renting a home is that there are no maintenance costs or repair bills. When you rent a property, your landlord is responsible for all maintenance, improvement, and repairs. If an appliance stops working or your roof starts to leak, you call the landlord, who is required to fix or replace it.
Homeowners, on the other hand, are responsible for all home repair, maintenance, and renovation costs. Depending on the nature of the task, it can get quite pricey.
2) Access to Amenities is usually a concern making renting more appropriate
Another financial benefit of renting is having access to amenities that would otherwise be an enormous expense. Luxuries such as an in-ground pool or a fitness center come standard at many middle scale to upscale apartment complexes with no additional charge to tenants.
If a homeowner wanted to have access to these amenities, it would likely cost thousands of ringgits for installation and maintenance. Condo owners would need to pay monthly fees for access to them.
3) No Down Payment can make Renting more suitable
When purchasing a home with a mortgage, you’re required to have a sizable down payment—typically around 20% of the property’s value. Of course, that down payment results in having equity in the home, which only increases as the mortgage is gradually paid off. And once you own a home free and clear, you have a valuable investment that renters never attain.
Another area where renters have a better financial deal is the up-front cost. Renters generally have to pay a security deposit equal to one month’s rent, a deposit that that will theoretically be returned to them when they move out, provided they haven’t damaged the rental property.
And also with the RentGuard system, RentGuard rental solution provides a hassle free on rental collection with credit card and debit card to deduct the tenants rent money and deposit it to landlord bank account. Receipts and invoices are automatically sent via email and our support teams are here to assist you step by step.
4) More Flexibility as to Where to Live
Renters can live practically anywhere, while homeowners are restricted to areas where they can afford to buy. Living in an expensive city such as Kuala Lumpur might be out of reach for most home buyers, but it might be possible for renters. Although rents can be high in areas where home values are also high, renters can more readily find an affordable monthly payment than home buyers.
5) Few Concerns About Decreasing Property Value
Property values go up and down, and while this may affect homeowners in a big way, it affects renters substantially less, if at all. Your home value can impact the amount of property taxes you pay and the amount of your mortgage. In a rocky housing market, renters may not be as adversely affected as homeowners.
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