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Should I Rent a House or Buy Property?

The longest way round is the shortest way home. It's just hard to tell which way is longer: buying or renting.

As a first time homebuyer, you are probably very excited to buy a property. But take a moment to think about your options. You're in no rush to make a decision. Renting a house may be a better option for you. Yet there are a lot of benefits of buying a home. Here are six factors to consider before purchasing.

No money, no honey, sweetheart. (Source:

1. Upfront Payments

Whether you buy or rent, you must pay an amount upfront. To buy a house, you will need a down payment, which is usually 20 per cent of your home's value. You can get a loan to help reduce your costs. We at Seri Pajam offer solutions for upfront payment, including special rebates and 0% instalment schemes. You will be expected to pay two months of rent upfront. This payment may be less expensive than a down payment, but you should compare your rates.

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2. Insurance

Whether you buy or rent, you will need insurance. Homeowners insurance provides comprehensive services, including coverage for fire and water damage. In exchange for those services, you may have to pay high rates.

Renters insurance is cheaper than homeowners insurance. But renters insurance is more individualized. You will have less protection in the event of an accident, and you will have fewer services overall.

"It all comes tumbling down, tumbling down, tumbling down..."

3. Ongoing Payments

Besides insurance and utilities, you have other ongoing payments to make. After a down payment for a home, you will need a mortgage. Plans usually last thirty years, with monthly payments expected. This keeps costs down, though you should calculate your interest rates for exact figures. Rent payments are roughly the same cost as mortgage payments. But your rent payments fall under your landlord's purview. They can change the rates at their whim, and they can force you to pay your rent sooner.

It's all about that grind and hustle (Source: AMC)

4. Making Money

Buying or renting a property is not just about paying money. You can make money through your home.

The more mortgages you pay on your home, the more credit you acquire. When it comes time to sell your home, you can sell it for more money than you paid for. Many people make money off of selling their home.

You do not get credit for renting your home. Your landlord will make money by selling it, but you won't.

Those who rented a room outside can confirm it sucks to live with strangers

5. Landlord

You have no landlord if you own a house. You have to follow housing regulations, but you are otherwise free to live as you please. If you rent, whether you live in a house or an apartment, you have to submit to your landlord. They can require you to move, even if you don't want to. They can sell off your building, and they can make renovations to the building that you don't want.

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6. Home Improvement

As a homeowner, you are responsible for repairs on your property. But you also have total flexibility to renovate. Many renovations increase the value of your home. If you are renting, you are not responsible for repairs. Your landlord is. But you will have to run any improvements you want through them.

How to Buy Property

Make yourself at home. Just decide if you want to buy a property or rent first. If you have less money upfront, you should rent. But buying is a smart option if you have enough money. You will make your investment back, and you will have the flexibility to renovate. Go to someone who can help you as a first time homebuyer. Seri Pajam Development is Malaysia's leading real estate development firm. Contact us on our website or social media today.

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