Every time someone tells me that renting forever is a terrible financial decision, I ask them to take a hike. They’re not wrong in saying that rent goes towards someone else’s mortgage, but that doesn’t make buying a house the only smart option. For many Malaysians, renting instead of buying a home makes perfect sense.
Renting VS. Buying a House
- 1. Buying a House is Expensive—And Still Going Up
- 2. Zero Maintenance Worries as a Renter
- 3. Access to Amenities Without Extra Costs
- 4. No Property Taxes
- 5. More Freedom in Choosing Where to Live
- 6. Easy to Downsize When Needed
- 7. Stable Rent vs Rising Mortgage Payments
- What About the Long-Term Benefits of Buying a House?
- Conclusion
- FAQs: Renting vs Buying a House in Malaysia
Here’s why I’m okay with renting—forever.
1. Buying a House is Expensive—And Still Going Up
The cost of buying a house in Malaysia keeps increasing, especially in urban centres. According to the Housing and Local Government Ministry, over 35,000 unsold completed units worth RM22.45 billion were recorded in early 2022. Even with low demand, prices stay high.
Why? Experts like Datuk NK Tong from REHDA point to the rising cost of raw construction materials. Developers pass these costs to buyers. Add to that high borrowing costs—Bank Negara Malaysia’s OPR is at 3.00%—and home loans become a pricey commitment.
2. Zero Maintenance Worries as a Renter
Unlike homeowners, renters don’t worry about repair bills or home upgrades. If something breaks, the landlord handles it. Homeowners must manage all repairs, often at high costs.
3. Access to Amenities Without Extra Costs
From pools to gyms, many condos offer amenities that would be costly for homeowners. Renters get access with no installation or maintenance cost. Apartment buyers pay for these via monthly maintenance fees.
4. No Property Taxes
Renters don’t have to pay quit rent, parcel rent, or assessment rates—homeowners do. These taxes can cost thousands annually.
5. More Freedom in Choosing Where to Live
Buying a house often means compromising on location due to budget. Renting gives you freedom to live in prime areas like Kuala Lumpur or Petaling Jaya—even if just temporarily.
6. Easy to Downsize When Needed
Renters can easily switch to smaller or cheaper homes when leases end. Selling a house is more complicated and costlier with agent fees, legal costs, and real property gains tax (RPGT).
7. Stable Rent vs Rising Mortgage Payments
Rent stays fixed during the lease term. Mortgage payments, especially on adjustable-rate loans, can fluctuate. Plus, smaller rental units mean cheaper utility bills compared to landed homes.
What About the Long-Term Benefits of Buying a House?
Yes, buying a house builds equity over time and offers long-term security. But it also comes with debt and responsibility. Renting may be better for those seeking flexibility, financial control, or urban convenience.
Conclusion
Whether you rent or buy, the key is understanding your financial readiness, lifestyle goals, and future plans. Renting isn’t a failure—it’s a lifestyle choice. In today’s property climate, especially in Malaysia, renting remains a strong and viable option.
By Imoney, a Malaysian-based financial comparison platform that helps users compare and apply for various financial products and services.
FAQs: Renting vs Buying a House in Malaysia
Is renting a house in Malaysia better than buying?
It depends on your financial goals and lifestyle. Renting offers flexibility, lower upfront costs, and freedom from maintenance or property taxes, while buying builds long-term equity and security.
What are the hidden costs of buying a house in Malaysia?
Homeowners must pay for maintenance, renovations, property taxes (quit rent, parcel rent, assessment tax), legal fees, and possibly real property gains tax (RPGT) if they sell.
Do renters in Malaysia have to pay property taxes?
No, property taxes are the responsibility of the landlord. Renters are not required to pay quit rent, parcel rent, or assessment taxes.
Can you access condo facilities when renting?
Yes, most rental condos include access to facilities like pools, gyms, and lounges—without the additional cost of installing or maintaining them.
Can I switch homes easily if I’m renting?
Yes, one of the biggest advantages of renting is the flexibility to move or downsize after your lease ends without dealing with selling procedures or high exit costs.
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