Buy or rent
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A roof above our heads is undeniably important. Owning a house is one of the reasons why many of us work so hard. However, the escalating prices of properties have reached a level where affordability has become a social issue, where owning a house seems impossible for many of us - especially if you are a fresh grad. So what about renting instead?

A recent statement issued by Bank Negara Malaysia (BNM) advised Malaysians to rent first if they really cannot afford a home.

This statement came after a recent study showed that it is 'severely unaffordable' to own a house in Kuala Lumpur and Penang, while it is 'seriously unaffordable' for the states of Selangor and Johor.

Before jumping into any conclusions, let's have a look at the pros and cons of both options:


Deciding to buy or rent purely based on emotions may lead you to financial difficulties. Who wouldn’t buy a home if they can afford to do so? Being able to own your own home is indeed a cheerful thing in life, but stretching yourself too far could land you in bankruptcy. Don’t forget that unexpected life events such as getting a baby and job loss could jeopardise your budget planning.

Be mindful that a house will only belong to you when it is fully paid off; otherwise, it belongs to the bank. Nevertheless, start planning now and with proper financial guidance, all of us are able to own a house.

This article was written by Alex Yeoh, a licensed financial planner who reckons that financial planning knowledge is one of the biggest investments every one of us should not neglect. You can reach him via email at alexyeoh@vka.com.my for further information.

Kate chew small

@vincent_wong, totally agree with you. At the end of the day, it is still better that your money goes to the bank for your loan repayment for the ownership of your own house, rather than paying the landlord to stay in a house that don't belong to you. 

J  d35400 small

for me rent is better compare to buy. Buy for investment only. 

San antonio spurs wallpaper small

For me, sure buy a house is better than rent a house. But property price is getting high and make a lot of people can't afford it, so rent a house maybe a good way for now. 

James bond craig junio2006 small

If one can afford to buy with not much of cash flow issue, I don't think rental is an option.