To Rent Or To Buy A House While You Are Affordable To Own One

 Dear Readers, 

Top 3 Reasons To Buy A House While You Are Affordable To Own One Now 

The Biggest Achievement In Life - My Own "Home Sweet Home" In 2018

Everyone has their own goals in life, it can be short-term goals like career progression and promotion or long-term goals like making decisions on the marriage journey or owning a house of your own and many, many more!

 

Owning a house is one of the biggest achievements for many if not all, as this accomplishment requires a bold decision making to commit into the huge commitment that will last for a maximum of 35 years especially in Malaysia, almost the entire years of your career life. 

In recent years, the most common question among the young working adults is "To Continue Renting or To Buy A House Of Your Own?" and a lot of debates have been on-going where you can find a lot of answers to it where you can consider it as a myth or a truth to your own doubt in answering this famous question. 

 

To Rent Or To Buy Your Own House - I Choose To Buy

 

I started traveling and living abroad from my hometown in Sarawak when I was 20 to pursue my dream of completing my tertiary education and as soon as I graduated from my Degree, I received the job offer from the current company that I worked at in 2013.

 

My office is located in Kuala Lumpur and I need to rent a house as I do not have relatives staying nearby in the city. Renting a house in the bustling city of Kuala Lumpur is not cheap at all and the rental of the first house was about RM 1,000. During this period of time, I have set my own goal where I wish to own a house in the next 10 years. 

Yes, how long do you want to keep paying a rental and yet at the end, you do not own the house after all the investment that you have forked out throughout your rental years, right?

 

Cutting short, I am blessed that I was able to achieve my dream to purchase and own a house of my own during 2019, after 6 years of hard work and I managed to collect a minimum of at least the 10% down payment deposit for the house. 

 

Top 3 Reasons To Buy Your Own House

As mentioned earlier, buying a house is considered as an important milestone which has more pros that greatly outweigh the cons. Without mentioning many of the pros, I would like to share the Top 3 Reasons why I decided to buy my own house rather than continue renting a house. 

 

 

#1 House Price Tends To Rise Over Time

 

According to the property report shared by the experts, there is a significant change of about 5.6% annually over the past 20 years in the house price in Kuala Lumpur city. Can you imagine how much the house prices have risen over the years in Malaysia?

 

The percentage might be small in value but when it is converted to the house price, the value will make you have a jaw-drop moment for sure. The house that you purchased in 2000 was about RM 250,000 and the price has risen to approximately about RM 700,000 now in 2021. It is about RM 500,000 gain in value and indeed this is considered one of the best long-term investments. 

Meaning to say, we can expect the same trend in the next 20 years and this indeed the time for the young working adults to make their decision to purchase a property while we are still affordable to do so. On top of that, buying a property is generally considered as a secure long-term investment as the property market is quite immune to market volatility compared to other investments that might have potential to crash overnight. 

 

#2 Lower Mortgage Rates

 

Due to the recent pandemic, Bank Negera Malaysia (BNM) has decided to lower the Overnight Policy Rate (OPR) to the lowest in the history of 1.75% from July 2020. This OPR is an overnight interest rate set by BNM that determines the rate of interest for the financial institutions that lend each other money overnight. 

 

It is a good time for us to make a decision to make a loan to purchase our own house as home buyers will have a better chance of getting loan approved and paying at a lower interest rate. 

 

As for my case, the reduction of the OPR rate during this period of time has significantly reduced my housing loan monthly payment for almost RM 1,000 a month. Indeed in this situation, it is the best time to make this bold decision for a better chance of loan approval according to our affordability and paying at the lowest interest rate. 

Flexibility Of Own Home Over Rental

#3 It's Your Own Home

Setting a goal of owning your own house in the beginning of your career is a set of motivation and drive for ourselves to work smart to fulfill this dream. It is indeed a pride of ownership and great achievement in life when you manage to put a tick to complete this goal. 

As an owner of your own property, you have the freedom to do everything you want especially designing the space according to your "Home Sweet Home" concept including investing into the permanent fixtures. It is the privilege that you can just do as you please unless it is restricted and not acceptable by the building management. 

This is freedom that you can't enjoy when you are renting a house. 

Now, I have shared all my personal drives that made me decide to commit to this huge commitment. But of course, I do make all the necessary preparations including the financial readiness especially on the monthly commitment.

 

During the preparation journey, I use the Mortgage Calculator UK to calculate the monthly commitment for my housing loan payment. Although it is in Pound currency units, the calculation behind this calculator is similar and valid as a reference.

I Use Mortgage Calculator UK To Calculate My Monthly Commitment

Yearly Summary On The Interest Paid, Capital Paid and Mortgage Balance For Reference Purpose

This Mortgage Calculator UK is really simple to be used as all you need to do is insert the House Price, the amount of deposit, approved mortgage amount by the financial institution, the interest rate in percentage (%) and the term in number of years. 

After you input all the necessary data into the calculator, just click "Calculate" and the calculator will help to perform the calculation and display the information such as Full Monthly Payment, the interest amount you paid, the Total Interest Payable and last but not least, the Total Cost which is the Total Loan Payments at the end of the 35 years. 

Besides the above information, there is a summary of the Yearly Capital & Interest Payment Breakdown section available too. In this report, you can understand how much Interest Paid, Capital Paid and Mortgage Balance are after each year. 

Awesome tool isn't it? You can easily access this Mortgage Calculator UK tool by clicking the link below and perform the checking to assist you on the decision making. 

Mortgage Calculator UK

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That's all for today. I hope these information and the user-friendly Mortgage Calculator UK are helpful as a guide to assist you on the decision making whether or not for you to pursue your goal of buying a house rather than continue renting when you are affordable to do so! 

Good luck and all the best, guys! 

Signing Off For Now And Take Care Till We e-Meet Again On My Next Post. 

For Collaboration or Any Inquiry, Feel Free To Email Me At kitkatnelfei@gmail.com.