KUALA LUMPUR, Sept 18 — As Millennials and Gen Z enter their prime earning years, the decision to rent or buy a home is becoming increasingly pivotal.

With rising property prices, shifting job markets, and evolving lifestyle preferences, young adults are faced with a complex choice.

Should they embrace the flexibility of renting or invest in the long-term stability of homeownership?

This guide breaks down the pros and cons of each option to help you navigate this crucial financial decision.

Datuk Chang Kim Loong, honorary secretary-general of the National House Buyers Association of Malaysia, sheds light on the key factors to help you navigate this choice.

The choice between renting and buying a property in Malaysia depends on various factors, including financial situation, market conditions, and one’s lifestyle.

In short, renting offers flexibility and lower upfront costs, while buying provides long-term equity and stability.

As there’s no “one size fits all” answer for everyone, financial planner Felix Neoh from Finwealth Management, advises young Malaysians to always do their homework first before any transactions.

“Purchasing a property is an opportunity to purchase an asset with capital appreciation potential. However, it can also be a cause of capital loss and financial instability and hardship, regrets.

“Do your homework well so that you do not overpay for properties. Compare the price per square foot vs rental per square foot of different locations so that you know the potential of the property in question” he said.

Centre for Market Education chief executive officer Carmelo Ferlito tells youths to consider the trade-offs in terms of career opportunities before signing up for a new home.

“I think Malaysians should realise that it is perfectly normal not being able to purchase a property after graduation or in the early stages of their career.

“It is always a matter of trade-offs based on personal preferences.

“For example, if you wish to remain flexible in your work decision and you are open to accept experience abroad and move around the world, then you should avoid long-term financial commitments,” the economist said.

https://www.malaymail.com/news/malaysia/2024/09/18/rent-or-buy-the-essential-pros-and-cons-every-millennial-and-gen-z-should-know/150056