News & Articles The Pros and Cons of Renting a House
The Pros and Cons of Renting a House
4 Sep 2015
The question of how owning a house is different from renting one may seem like it has very easy answers. Knowing what suits you is important for your particular situation. There is a need to know both the pros and cons of renting a house for the long term instead of buying one.
In Malaysia, it is the ultimate aspiration of the majority of people to want to own a house. This is not the same as in some parts of the world, such as in Europe, where it is becoming a popular trend to merely rent a house throughout your life as it is seen as a lifestyle free of more responsibilities.
The pros of renting a house
1. Not being tied down to one specific home is an ideal arrangement for those who have a job that requires them to travel extensively to different places. It is also good for those who love to travel and work and don’t want to settle in one place for too long.
2. No maintenance costs as all home maintenance charges are actually borne by the owner and you don’t have to worry about fixing leaky pipes or falling roofs.
3. No long term financial commitment as you have no home loans to settle on a monthly basis.
4. No worries whether your property will appreciate or depreciate over time and how you will manage it when the time comes.
The cons of renting
1. No personal property for when you retire and you will have to factor in the cost of rental into your retirement fund.
2. No build equity, meaning you have no asset for you to sell in times of financial need or emergency.
3. Rental may increase as time goes along due to inflation and the general appreciation of properties as a whole.
4. No renovations and personal decorations on any of the property you rent, so there is a limit to how much you can personalize your living space.
There is really no solid or clear cut answer as to whether you should rent or buy a house. This depends on your personal lifestyle and personal stand on things.
Renting a house for the long term is really a trend that many people are embracing as part of a more liberal lifestyle as they support freedom from the financial control of banks and financial institutions in their lives.
(中文版请看这里:http://www.durianproperty.com.my/blog/article/258)
In Malaysia, it is the ultimate aspiration of the majority of people to want to own a house. This is not the same as in some parts of the world, such as in Europe, where it is becoming a popular trend to merely rent a house throughout your life as it is seen as a lifestyle free of more responsibilities.
The pros of renting a house
1. Not being tied down to one specific home is an ideal arrangement for those who have a job that requires them to travel extensively to different places. It is also good for those who love to travel and work and don’t want to settle in one place for too long.
2. No maintenance costs as all home maintenance charges are actually borne by the owner and you don’t have to worry about fixing leaky pipes or falling roofs.
3. No long term financial commitment as you have no home loans to settle on a monthly basis.
4. No worries whether your property will appreciate or depreciate over time and how you will manage it when the time comes.
The cons of renting
1. No personal property for when you retire and you will have to factor in the cost of rental into your retirement fund.
2. No build equity, meaning you have no asset for you to sell in times of financial need or emergency.
3. Rental may increase as time goes along due to inflation and the general appreciation of properties as a whole.
4. No renovations and personal decorations on any of the property you rent, so there is a limit to how much you can personalize your living space.
There is really no solid or clear cut answer as to whether you should rent or buy a house. This depends on your personal lifestyle and personal stand on things.
Renting a house for the long term is really a trend that many people are embracing as part of a more liberal lifestyle as they support freedom from the financial control of banks and financial institutions in their lives.
(中文版请看这里:http://www.durianproperty.com.my/blog/article/258)
Source: DurianProperty.com