Version: BM

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Are you: Thinking of moving out from your parents’ home? Planning to get married and own a place? Or maybe you’re a working adult who prefers to live closer to your office?

And that one question keeps circling in your head:
“With my current salary, is it better to buy or rent?”

You’re not alone. With home prices rising, interest rates fluctuating, and the cost of living going up, many Malaysians are finding it harder to make this big decision. 

This article will help you understand the real costs of buying vs renting in Malaysia using simple numbers and clear examples.

At the end of this, you will be able to decide what fits your life better! 

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Buying vs. Renting 

Let’s look at the real cost differences between buying and renting a home in Malaysia. 

Should I Buy? 

If you’re thinking of buying a home, keep in mind that it isn’t a one-way solution. There are several key costs involved that need proper planning over time.

1. Down payment: Usually 10% of the house price 

2. Loan repayment: Paid monthly, based on your loan amount, interest rate, and tenure 

3. Legal and stamp duties: One-time fees during purchase 

4. Ongoing costs: Maintenance, taxes, insurance, etc. 

Here’s a helpful chart showing monthly loan repayments based on a 4.2% interest rate and 35-year loan: 

House Price (RM)	Monthly Installment	Estimated Salary Needed
100,000	RM455	RM1,500+
300,000	RM1,365	RM4,500+
500,000	RM2,274	RM7,500+
700,000	RM3,184	RM10,500+
1,000,000	RM4,549	RM15,000+

If you earn more than RM3,500 a month, banks usually let you borrow around RM100,000 for every RM1,000 of your salary.

So if your monthly income is RM5,000, you could qualify for a RM500,000 loan. As long as you don’t have other debts.

Should I Rent?  

As for renting, it is more straightforward. You pay your monthly rent, a deposit upfront (usually 2–3 months), and that’s it. **(No other hidden costs unless stated by owner or renter).

Here’s what rental prices typically look like: 

Location	1-Bedroom Unit	3-Bedroom Unit
Kuala Lumpur City	RM1,500 – RM2,800	RM2,500 – RM4,000
PJ, Cheras, Subang	RM900 – RM1,500	RM1,500 – RM2,800
Johor Bahru	RM800 – RM1,300	RM1,300 – RM2,500
Penang	RM1,000 – RM1,800	RM1,800 – RM3,000
Ipoh, Kuantan	RM600 – RM1,000	RM1,200 – RM2,000

Rent is cheaper upfront and gives you more flexibility, especially if you’re unsure how long you’ll stay. 

When Should You Buy or Rent? 

This is all about timing. Buying a house isn’t a quick decision, and it’s not for everyone at every stage. 

You should consider buying if: 

• You have a stable job and income ✅
• You plan to live in the same area for at least 5–10 years ✅
• You’ve saved enough for a down payment and extra fees ✅
• You’re thinking about starting a family ✅
• You want to build long-term wealth and stability ✅

You should consider renting if: 

• You’re still deciding where you want to live 👍
• Your job situation is not stable 👍
• You don’t have enough savings yet 👍
• You want to try different lifestyles or cities 👍
• You prefer low commitment and high flexibility 👍

Many people feel pressure to buy a house early, but honestly speaking, there’s nothing wrong with renting until you’re financially and mentally ready. 

Where to Buy or Rent in Malaysia? 

Another important to consider is that the city or town you live in can heavily influence your decision. 

Here’s a quick guide to the best areas to rent or buy, based on your lifestyle and preferences.

Area	Better to Rent	Better to Buy
Kuala Lumpur	Job hopping, temporary stay	Long-term career, family planning
Penang Island	Digital nomads, students	Locals ready to settle down
Johor Bahru	Working in Singapore, short-term stay	Dual-country families, long-term goals
Petaling Jaya / Subang	While saving for property	Settled couples, commuting to work
Smaller towns	Less ROI from renting	More affordable property prices

So if you’re planning to stay for less than 5 years, renting makes more sense, especially in expensive cities.  

But if you plan to put down roots, buying is worth considering. 

Why Is This Decision Important? 

Choosing to rent or buy a property could affect your long-term financial health and lifestyle freedom. Both decision comes with hundreds of other sole responsibilities.  

That’s why making carefully decision is essential.

Still confused? Here’s a better way to make you understand:

Buying gives you: 

• Ownership of an asset that may increase in value 

• The chance to renovate and customize your space 

• No fear of being kicked out by landlords 

But it also comes with: 

• Long-term debt (usually 30–35 years) 

• Huge upfront costs 

• Risk if you lose your job or can’t keep up with repayments 

Renting gives you: 

• Flexibility to move anytime 

• Lower upfront commitment 

• Less financial pressure 

But it also means: 

• No ownership or investment return 

• Monthly payments that don’t build equity 

• Possible rent hikes or landlord issues 

How To Decide What’s Right for You? 

You’re almost there! To clarify further, use this simple checklist: 

Question	If YES → Consider Buying	If NO → Consider Renting
Will I stay here for 5+ years?	✅	❌
Is my monthly income above RM3,500?	✅	❌
Have I saved at least 10–15% of house price?	✅	❌
Am I ready for long-term financial commitment?	✅	❌
Do I have other large debts (car, PTPTN)?	❌ If yes, maybe wait	✅ If no, you’re safer

Buying a house is one of the biggest financial decisions you’ll ever make. So it’s okay to wait until you’re ready.

Remember that there’s no shame in renting, especially if it gives you more peace of mind. 

Conclusion 

Truth is, there’s no “one size fits all” answer. Whether you rent or buy depends on your life stage, goals, financial situation, and location. 

Only considering buying a property if you’re stable, ready, and plan to stay long. 

Otherwise, renting is the safer option if you’re still exploring, saving, or want flexibility. 

Take your time, run the numbers, and don’t rush the process.

If you want help building a Rent vs Buy calculator or budget sheet based on Malaysian salaries and property prices, I can help with that too. 

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Frequently Asked Questions (FAQ’s)

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Whether buying or renting a property, IQI offers a comprehensive solution for all your real estate needs. Get in in touch with our agents today!

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Continue Reading:

1. Why I Choose Renting Over Buying a House in Malaysia
2. A Comprehensive Guide On Buying Property In Malaysia 2025
3. Comprehensive Guide to Rent a House as a University Student