I bet your parents (or even your grandparents!) have lectured to you at least once that it is important to start saving so that you could someday afford your own home, along with the importance of having one. While no one denies the many advantages of owning a property over paying rentals, we in Roomz.asia observed that many are hesitating before the thought of trying themselves down with a hefty housing loan and begin the painstaking years they need to spend to pay it off – and here’s why:
Units are Not Cheap
Especially if you are living in a large city or a location currently booming with development, such as Penang and in the Klang Valley. Property prices nowadays have soared so much that as an adult who have just entered the workforce, you’ll need to spend decades paying your installments – and still worry about saving up or paying for your car, insurance, education, future wedding and your upcoming dream holiday. Renting units is far more practical and economical for young working adults for their earnings and lifestyle, as you can see on the variety of affordable rentable properties listed on Roomz.asia.
The Shrinking Ringgit
The economic downturn is no longer a joke when the Ringgit exchange rate finally fell below the RM4.50 threshold, which was worse off than the economic crash in 1997. Add in the notorious Goods and Services Tax and the extra charges in your Nasi Kandar, and you’ll also have to think about spending on Panadol tablets. As purchasing power continues to weaken, you’ll have less and less to spend on groceries and other essential necessities that you need to sustain your everyday livelihood. With the extras you can save up from renting a home instead of paying extra monthly installments, you will be able to free up more of your finances for more important things at only a fraction of the stress.
Not only that, you should also consider the current working trends in the workplace. Not just Roomz.asia, many parties and organizations have also observed that most Gen X and Y adults (you’ll probably agree to this too!) have the tendency to switch jobs every 2 to 5 years. On the other hand, businesses tend to have a higher turnover rate and reduce their staff as well whenever the economy is doing poorly. It is not advisable for you as a young working adult to buy properties during this period of life and economy, unless you are willing to settle down geographically in where you are currently living in.
Maintenance and Other Hidden Costs
Should you ever buy one, the moment you move into your home would merely be the beginning of the many struggles to come – especially when things start to wear and tear and are in need of repairs and replacements. While it is the landlord who would usually cover the costs for repairs and replacements for rented units, it is you who will be the one who would have to shoulder all these costs should the home is owned by yourself.
While some of these points may be still be open for debate for some individuals, we in Roomz.asia have come to the conclusion that these 4 are the most commonly shared factors that most young working adults like you would agree and be able to relate to, which led to our belief that it is much better for everyone to rent instead of buying their own houses or apartment.
Do you have any thoughts or other reasons for renting homes that all of us should know about? Don’t hesitate to share with us in Roomz.asia!