Updated: Dec 20, 2021
In the recent Budget 2022, the government announced that RM2 billion has been set aside under the home credit guarantee plan to help gig workers and small businesses who don't have a consistent source of income apply for a housing loan. In addition, SST exemption has been extended till June 30, 2022 for car purchases. With these attractive goodies on offer, many of us are spoilt for choice. So, should you buy a house or a car first? For fresh graduates and those who are looking to shift their careers, which is more important, house or car?
Here are the reasons why you should buy a house first
1. More appreciation in value
The value of a house increases with time. If the house is in a strategic location, its value will increase even more. If you plan to sell your house in the future, you will surely earn a handsome profit, because the house will have a higher resale value. However, the value of a car depreciates with time. The moment it is out of the showroom, its value depreciates by 50%. It swiftly and dramatically loses value as it ages. In addition, a car used for personal transportation has an extremely slim probability of increasing in value. There’s no chance anyone would pay you more than your initial buying price. Is it ok to buy a car before a house? The answer is no.
2. Passive income
Do you know that owning a house can provide you with side income too? Passive income is an approach that enables investors to earn money without having to work hard all of the time. To earn this passive income, you can be a landlord and collect rent monthly. Otherwise, you can also turn your house into a vacation spot and rent it out to holidaymakers, which you will also collect fees. All these are achieved with you doing nothing at all. Is it smarter to buy a car or house first? The choice is clear. Grow your wealth through property investing.
3. Work life balance
Can a college graduate buy a house? Yes, you can. By having a house, you will most likely live long in it. You will soon grow and create memories with your loved ones, in this place called home. It is a safe space for you to relax and distress from the outside world. On the other hand, having a car means you will be stuck in traffic jams, which waste your time and petrol. A recent report showed that about 90% of Malaysians experience a significant amount of stress as a result of prolonged hours spent in traffic jams. Having a car would not give you work life balance, but a house can.
New house vs new car. Which should you buy first? As you can see from the above, there are more advantages to buying a house than buying a car. Start looking for your dream house today by clicking here https://www.seripajam.com.my/onlinesale