{"id":489,"date":"2019-11-06T15:30:49","date_gmt":"2019-11-06T15:30:49","guid":{"rendered":"http:\/\/7517085460"},"modified":"2026-05-02T18:46:00","modified_gmt":"2026-05-02T10:46:00","slug":"should-i-rent-or-buy-a-home-important-questions-to-ask","status":"publish","type":"post","link":"https:\/\/speedhome.com\/blog\/should-i-rent-or-buy-a-home-important-questions-to-ask\/","title":{"rendered":"Should I rent or buy a home? Important questions to ask"},"content":{"rendered":"\n<p><strong>Rent if you earn under RM5,000\/month, don\u2019t have 10\u201312% of the property price saved, or plan to relocate within 5 years. Buy if you have stable income, a full down payment plus legal fees, and you\u2019re settling in one area for 7+ years. Here are the questions that tell you which path fits your situation.<\/strong><\/p>\n\n\n\n<p>Coming to a decision on whether should, I rent or buy a home can be quite difficult. Aside from the obvious financial implications to consider, there are various factors to be taken into consideration. Here are some questions which we hope will help you come to the right decision.<\/p>\n\n\n\n<!--more-->\n\n\n\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-can-i-afford-the-upfront-payment-required-to-purchase-a-home\"><strong>Can I afford the upfront payment required to purchase a home?<\/strong><\/h2>\n\n\n\n<p>Banks will provide financing for up to 90% of the property purchase price (<em>i.e.<\/em> margin of financing of 90%). Do you have sufficient savings to pay for the 10% deposit required upfront? Some would advice that you shouldn\u2019t buy a home until you can afford a 20% down payment, but be wary of the <em>opportunity cost<\/em> (see below) involved in forking out a large down payment.<\/p>\n\n\n\n<p>You should also be aware that there are other upfront costs involved in purchasing a property such as legal fees and stamp duty, plus other fees and disbursements. We estimate that you should add an additional 2.7% (for properties priced at RM100k) to 3.8% (for properties priced at RM1.5 mil) of the property purchase price on top of your deposit, so should I rent or buy a home?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What about monthly costs?<\/strong><\/h2>\n\n\n\n<p>Do measure your disposal income against your existing debt and expenses, and see where a monthly rental\/ mortgage payment would fit in. You can compute the monthly instalment required for a mortgage using a home loan calculator. Here\u2019s a good one on Calculator.com.my. Mortgage payments aside, owning a home can cost you more because of maintenance and improvements costs. &nbsp;As a homeowner, you will have a steady stream of fairly significant financial obligations that most renters will not have.<\/p>\n\n\n\n<p>Ensure to leave a cushion for any emergency or unexpected situations. You don\u2019t want to be overburden with monthly payments and squeezed for cash at the end of each month!<\/p>\n\n\n\n<p><em>Tip: The current loan interest rate is at about 4.6%. Check out loanstreet\u2019s compilation of loan packages from various banks here.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the opportunity cost associated with renting or buying?<\/strong><\/h2>\n\n\n\n<p>You must consider the opportunity cost of each choice. Simply put:-<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>If you rent, you pay a lower fixed amount each month but are missing out on owning an asset and any capital appreciation that may come with it.<\/li><li>If you buy, the down payment and monthly instalments required could potentially be very large.<\/li><\/ul>\n\n\n\n<p>Could you have earned a better return by investing the down payment and\/or the difference between rental and mortgage payment?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How long will I stay?<\/strong><\/h2>\n\n\n\n<p>In general, the longer you plan to stay in your new home, the more it makes sense to buy. On the flip side, owning a home will require that you make a commitment to stay in one place for a while. If you like the freedom to be able to \u201cpick up and go\u201d at any time, then perhaps renting could be a better alternative for you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Can I handle the maintenance work required?<\/strong><\/h2>\n\n\n\n<p>Owning a home requires a lot more effort on maintenance than renting does. If you buy a property, you must be willing to put in the extra effort required to maintain it. If you\u2019d prefer to let someone else worry about maintenance, you may be better of renting.<\/p>\n\n\n\n<p>Monetary-wise, beyond simply making ends meet, you\u2019d want to make sure you\u2019re financially secure; don\u2019t spend a fortune on buying a home if it means you\u2019ll be living hand-to-mouth for many years. Of course, beyond the money factors, you\u2019d also want to consider your individual wants, goals and milestones. Do take some time to mull over whether renting or buying a home is the right choice for you.<\/p>\n\n\n<div style=\"gap: 20px;\" class=\"align-button-center ub-buttons orientation-button-row ub-flex-wrap wp-block-ub-button\" id=\"ub-button-23d6f9ad-18d2-4e9e-a258-9c81747f95c4\"><div class=\"ub-button-container\">\n\t\t\t\n\t\t\t\t<div class=\"ub-button-content-holder\" style=\"flex-direction: row\">\n\t\t\t\t\t<span class=\"ub-button-block-btn\"><strong>Start your SPEEDHOME journey now!<\/strong><\/span>\n\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div><\/div>\n\n\n<p>For the full financial framework \u2014 Price-to-Rent ratios, break-even horizons, and a 5-question checklist \u2014 see our <a href=\"\/blog\/rent-vs-buy-malaysia\/\">rent vs buy Malaysia 2026 guide \u2014 PTR framework, upfront costs, and 5-question decision checklist<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Should I rent or buy a home in Malaysia?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Rent if you have less than 10% of the property price saved, plan to move within 5 years, or want financial flexibility. Buy if you plan to stay long-term, have stable income, and can absorb upfront costs: 10% down payment, legal fees (1\u20132%), and stamp duty on the SPA.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How much deposit is needed to buy a home in Malaysia?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Banks typically finance up to 90% of property value, requiring a minimum 10% down payment. Additional costs include legal fees, stamp duty on the Sale and Purchase Agreement, and valuation fees \u2014 typically adding 3\u20135% more to upfront costs.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is renting cheaper than buying a home in Malaysia?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Renting is usually cheaper short-term due to zero upfront capital. Over 20\u201330 years, buying builds equity. The break-even depends on property price, rental rate, and mortgage terms for your specific area.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What financial questions should I answer before buying a home?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Key checks: (1) Can you afford the 10% down payment? (2) Is your monthly mortgage under 30% of take-home pay? (3) Do you have 3\u20136 months emergency fund? (4) Have you factored in maintenance, quit rent, and insurance costs?\"\n      }\n    }\n  ]\n}\n<\/script>\n\n\n\n<div itemscope itemtype=\"https:\/\/schema.org\/FAQPage\"><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><h3 itemprop=\"name\">How much do I need saved to buy a home in Malaysia?<\/h3><div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\"><p itemprop=\"text\">Minimum 10% down payment plus 3\u20135% for legal fees, stamp duty, and valuation. On a RM400,000 property: RM40,000 down + RM12,000\u201320,000 fees = RM52,000\u201360,000 before you move in.<\/p><\/div><\/div><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><h3 itemprop=\"name\">What monthly salary do I need to buy a house in Malaysia?<\/h3><div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\"><p itemprop=\"text\">Banks use a debt service ratio (DSR) of 60\u201370%. For a RM400,000 property, monthly installment is ~RM1,900 (4%, 30yr). You need gross income of at least RM4,500\u20135,500\/month with no major existing debts.<\/p><\/div><\/div><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><h3 itemprop=\"name\">Can a fresh graduate afford to buy a house in Malaysia?<\/h3><div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\"><p itemprop=\"text\">Rarely in KL or major cities. The median KL property price (RM650,000+) requires RM65,000+ down plus fees. Most fresh graduates need 5\u20138 years of savings before they\u2019re financially ready to buy comfortably.<\/p><\/div><\/div><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><h3 itemprop=\"name\">What is the maximum loan-to-value ratio for home loans in Malaysia?<\/h3><div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\"><p itemprop=\"text\">For your first two properties: 90% LTV (10% down payment). For the third property and above: 70% LTV (30% down payment). These limits are set by Bank Negara Malaysia.<\/p><\/div><\/div><\/div>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"headline\":\"Should You Rent or Buy a Home in Malaysia? 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KL median prices RM650,000+ require 5-8 years of savings for most graduates.\"}}]}]}<\/script>\n\n<h2 class=\"wp-block-heading\">\n\n\n\n\n\nRelated guides<\/h2>\n\n\n<ul class=\"wp-block-list\"><li>eviction laws in Malaysia<\/li><li>tenant not paying rent guide<\/li><\/ul>\n\n\n\n<div class=\"wp-block-group related-guides-block is-layout-flow wp-block-group-is-layout-flow\">\n<p style=\"font-style:normal;font-weight:600\">Related guides<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Rent vs Buy in Malaysia<\/li><li>Sewa Untuk Beli: Ketahui 4 Perkara Tentang Skim Rent-To-Own (RTO)<\/li><li>5 Valuable Insights on Buying vs Renting in Kuala Lumpur<\/li><li>Read This Before Renting Out Your Mortgaged Home<\/li><li>A Guide to Property Investment in Singapore<\/li><\/ul>\n<\/div>\n\n\n\n\n\n\n\n\n<p>   <\/p>\n\n\n\n<p><strong>Related guides:<\/strong> rent vs buy decision guide Malaysia | complete landlord guide Malaysia | how to rent out property in Malaysia<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coming to a decision on whether to rent or buy a home can be quite difficult. Aside from the obvious financial implications to consider, there are various factors to be taken into consideration. Here are some questions which we hope will help you come to the right decision.<\/p>\n","protected":false},"author":1,"featured_media":490,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[3,11],"tags":[55],"class_list":["post-489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlord","category-for-tenants","tag-tenant-guide"],"featured_image_src":"https:\/\/speedhome.com\/blog\/wp-content\/uploads\/2019\/11\/rentsale-1.png","author_info":{"display_name":"SPEEDHOME Editorial Team","author_link":"https:\/\/speedhome.com\/blog\/author\/speedhome-editorial\/"},"_links":{"self":[{"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/posts\/489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/comments?post=489"}],"version-history":[{"count":2,"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/posts\/489\/revisions"}],"predecessor-version":[{"id":56862,"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/posts\/489\/revisions\/56862"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/media\/490"}],"wp:attachment":[{"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/media?parent=489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/categories?post=489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/speedhome.com\/blog\/wp-json\/wp\/v2\/tags?post=489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}