To Buy or To Rent

There will come a time in your adult life when you will have to make one of your biggest financial decisions. That is, to buy a home or to rent one. There are many variables to consider when it comes to choosing between buying a home and renting one. Be it owning a home or renting a place, each has its own advantages as well as disadvantages associated with them. While having a permanent roof over your head is definitely a good idea, mortgage financing has since become difficult especially with today’s home prices. On the other hand, renting a home allows you the freedom to uproot easily should the neighbourhood is not as desired.

We have put together some factors for you to consider for both buying and renting options, breaking down the pros and cons for each option.

Top 5 considerations for buying 1st property


  • PROS
  1. Low Level of Commitment

Renting gives you the flexibility of changing your living space and environment every now and then. You can move any time, before or after your lease expires, with the former option requiring the forfeit of your deposit.

  1. Low Maintenance

Renting a home is certainly a cheaper choice, more so if you are sharing the rental with other people. Besides, property taxes and maintenance fees will be the least of your worries as it is your landlord’s responsibility, not yours.

  1. Lower cost upfront

Tenants usually pay a security deposit of two to three months’ gross rental and another half a month of rent as utility deposit. Rent is usually paid one month in advance.




  • CONS
  1. Limited Décor Flexibility

Landlords usually limit the extent to which cosmetic alterations can be done to your rental home. Landlords generally try to refrain from doing extra work into making the rental home rentable again as most turnover rate of new tenants is high.

  1. No Equity

Your rental home only provides you with a place to live hence you do not get to build equity. Your monthly rent payments are not an equitable long-term investment and thus will not provide you with an asset to sell when you are ready to move.

  1. Instability

Rental home is for you to stay on a temporary basis only and the landlord has the capacity to remove you with a 30-day notice, should he intend to sell or take back the house.



  • PROS
  1. Pride of Ownership

Perceived as the number one reason why everyone aspires to own a home, home ownership provides you and your family a sense of stability and security. It is an achievement after all. Additionally, as opposed to rental homes, you are allowed to do anything you deem fit to your home.

  1. Potential Appreciation

Although largely unpredictable, real estate has consistently appreciated over the years. Therefore owning a home is like making an investment in your future.

  1. Gain Privacy

You are the owner of your home, so no owners will come knocking on your door to check on you and the house. Thus you have nothing to worry about with your newfound independence in your own property.



  • CONS
  1. Hefty Down Payment

One of the first steps to owning a home is to pay a substantial amount of down payment, which is at least 10% in cash.

  1. Less Mobility

As a homeowner, you will most probably need to sell your current home first before being able to buy a new one, which subsequently results in a longer delay in moving homes or environment.

  1. High Maintenance

You will be responsible for all the upkeep of your home, in which maintenance works might include inexpensive repairs to costly repairs.


Pengerang terminals need RM16b more


Jun 27, 2014

To cater to future demand, Pengerang Independent Terminals Sdn Bhd (PITSB) may spend an additional RM16 billion over the next five years to further develop the terminals, said Prime Minister Datuk Seri Najib Tun Razak.

He noted that the investment will see the independent terminals expand from its current capacity of 1.3 million cubic metres to 10 million cubic metres over the next 10 years.

“What is also very important is that with every RM1 billion investment, the multiply effect will be RM20 billion,” said Najib at the opening of the PITSB’s Phase 1A at Pengerang yesterday.

Najib, who also serves as Finance Minister, said the project’s economic spin-off was enormous.

“With the rapid development taking place in the country, I hope it will encourage our young Johorians and Malaysians, in general, to get involved in the oil, gas and petrochemical industry,” said the prime minister.

One of the catalytic project under the Pengerang Integrated Petroleum Complex (PIPC), PITSB is a public-private partnership between Holland’s Royal Vopak, the Johor state government and the Dialog Group.

Najib also revealed that the investment from Phase 1 of PIPC alone was expected to contribute RM18.3 billion to the country’s Gross National Income by 2020 and create over 8,000 jobs.

“Beyond 2020, the numbers are expected to grow more than RM48 billion to the country’s GNI and create 15,000 jobs,” added Najib.


Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email

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