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.

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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. 

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@admin_ps good sharing