Young people often debate whether renting is wasted money or buying ties them down. In 2018 condos were oversupplied, so owners competed for tenants, while buying was still seen as a hedge against inflation and, among some Chinese families, a sign a man is ready for marriage.
Is it better to rent or to buy a home?
“why not do both”
Do both. Rent the home you live in for flexibility and value, and buy property as an investment that earns rent. Your home need not be the property you own; there is no rush to buy a home, but there is a rush to start investing.
Why
Renting keeps you flexible
Early in a career you may move between Johor, Seremban and Kuala Lumpur. Renting lets you live near work without tying up capital in one place.
Tenants have the upper hand
With oversupply, owners struggling with instalments will negotiate and add furnishing such as aircon and water heaters. About RM3,000 can rent a home worth RM2 million that would cost about RM10,000 a month to own.
Buying protects against inflation
Money buys less each year, while property tends to rise with demand, depending on location and the economy. An investment property works for you through other people's money and time.
Investors often rent their own homes
Many investors Sean knows own several units that earn rent, yet rent a luxurious apartment for themselves at a fraction of its ownership cost.
What to do
- Rent close to your work while your career is still settling.
- Negotiate rent and furnishing at each renewal.
- Start learning how rental investment works, including the hidden costs.
- Buy an investment unit whose rent covers its costs, separate from where you live.
- Compare today's prices with those of five years ago to judge the cost of waiting.
Editorial Note: Summarised from Sean Tan's full episode. The quoted answer is in his own words; the rest is our paraphrase. Figures reflect the recording date, so check current rates and rules before acting on them.
BUY OR RENT?! WHY NOT BOTH??
Sources & Verification Data
Summarised from Sean's full English captions for this October 2018 video. The quoted line is verbatim; everything else is paraphrased.
