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Miri Housing: To Rent Or To Buy, Which Is Better?

Posted by tasan@developer on August 16, 2021
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Which sounds better to you? Renting or buying new housing in Miri? Well, it comes down to what’s best for the individual person and their circumstances. For example if you’re looking for more flexibility in Miri then renting may be preferable whereas owning can provide stability like having mortgage repayments that never change as well as some tax benefits through deductions on any interest payments made over the course of ownership during this time period. In this article, Tasan will talk about some some key factors you should consider, before you make the decision.

 

Factor 1: Your Financial Position

Renting and buying housing in Miri both require a substantial financial commitment. If you don’t do the necessary calculations or research beforehand, it is possible that your debt could quickly grow out of control.Firstly, get yourself a rough idea by asking  yourself these basic questions:

  • How much does the rental cost and will it takes up more than half your monthly salary?
  • Can you afford the 10% downpayment if you are going to buy a property?
  • Any government housing scheme that you are eligible for?

 

Factor 2: Price-to-rent Ratio

Many people have claimed that renters are on the losing end in today’s market with rising rental fees while not owning any property at all when it comes time to move out after several years as tenants. But is there an economic advantage? You can find your answer by calculating whether purchasing or renting a housing in Miri might be more economically wise given your circumstance using what we call price to rent ratios!

Price-to-rent ratio = Average cost of listed property / Annual property rental sum

For example, the housing you’re interested in buying is RM400,000 while renting is RM2,000 per month, which is an annual rental cost of RM24,000.

Price-to-rent ratio is calculated by 400,000/24,000 = 16.67, which means you would take almost 17 years of rental fees to match the price of to buy housing. Hence, if you intend to stay for more than 17 years on the housing, buying that housing would be a wiser choice.

 

Factor 3: Duration Of Your Intended Stay

Are you looking for a place to call your own? Or are you just staying in town for the next few months until life kicks off again? It might not be worth it to buy a new housing if all that’s on offer is temporary accommodation and an uncertain future. Apart from high upfront costs such as the downpayment, there are also recurring fees associated with owning any kind of rental property which can quickly add up over time.

 

Factor 4: Your Needs And Preferences

To buy or to rent is also depends on your needs and preferences. For example, you may need a place near to good schools for your future kids or perhaps you’d prefer to live in a happening hotspot that’s connected to various public transportation. Furthermore, unlike renting a property where the landlord sets all of the rules and regulations on what can be done inside their space – if it’s rented- out real estate; buying one gives its owner full ownership (do whatever they please whenever). If someone rents from another person who only allows them access because they’re paying rent every month then there are limitations like not being able get paint colors without approval first but when purchasing homes as opposed to just leasing them away through rental agreements. 

 

In a nutshell, the decision to buy or rent can be difficult, but the answer will vary from person-to-person. According to David Bach, self made millionaire and best selling author of The Automatic Millionaire Homeowner: “buying a property is considered an escalator to wealth”.

 

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