market rental will keep increasing especially if you are using a 35 yr time period for cost comparison. it will be affected by inflation rate, more particularly the property market. how long do you sign your tenancy agreement for? one year? two years? three years? ten years??? next time you sign the tenancy agreement, the rent will most likely go up instead of down.
Im renting a 3BR apartment for 1600RM, for 3 years now close to KL, this apartment is very very close to MRT , when i surveyed this apartment to buy i was quoted 2600 with maintenance . this is the main reason why i stay away from getting into buying a home. buying a home and paying the bank in excessive interest doesn't make sense to me at all. that too for 30/35 years, i rather invest that money into a S&P 500 and be cash rich. rather than be asset poor lol, once i grow old i dont need to rent a home in KL , i can just rent a home far away for the similar price based on inflation.
Thanks for the analysis. Baby boomers, Gen X and Y were lucky enough to be able to buy when they could. The rent received by landlord covers their installment. Entry prices are ridiculous these days making it almost impossible to own homes.
you must also take into context which country is he talking about. different countries may have different property laws from malaysia requiring more onerous legal/financial burdens on the property owner/landlord. i just read a new article about kiyosaki. he says he also owns houses, which he finances using loans and rents out for income. therefore he claims that makes the house an asset because it generates income. your quote from kiyosaki is not a catch... 'not always'... 'might'. if you use your mind to think about it, that implies your landlord from whom you are renting your house from, is generating income from you. and if you think further, why not you emulate him by becoming a landlord and take a loan to buy a house and literally just rent to yourself so you yourself generate income for yourself, instead of generating income for other landlords. yes, it is just taking money from left pocket to put in right pocket. it's a basically a round about explanation to say it might be better to take a loan to buy a house to stay rather than just renting. do your own math, don't just rely on somebody's mantra.
Thanks to your video, now all my questions in my mind about owning or renting a house has been answered!!!
Glad it helped!!
Helpfull video, really appreciate it 😊
Indeed, Felix is a smart guy!
Thanks for the comparative analysis. So insightful. Looking forward to all your videos.
Appreciate the kind words bro 🙏
market rental will keep increasing especially if you are using a 35 yr time period for cost comparison. it will be affected by inflation rate, more particularly the property market. how long do you sign your tenancy agreement for? one year? two years? three years? ten years??? next time you sign the tenancy agreement, the rent will most likely go up instead of down.
Fair point but you could decide to change where you live if you can’t keep up with rental inflation
i knew it, renting is better!
Haha neither are inherently better, just your preference
Im renting a 3BR apartment for 1600RM, for 3 years now close to KL, this apartment is very very close to MRT , when i surveyed this apartment to buy i was quoted 2600 with maintenance . this is the main reason why i stay away from getting into buying a home. buying a home and paying the bank in excessive interest doesn't make sense to me at all. that too for 30/35 years, i rather invest that money into a S&P 500 and be cash rich. rather than be asset poor lol, once i grow old i dont need to rent a home in KL , i can just rent a home far away for the similar price based on inflation.
Similar thinking haha. That’s a good deal on your rental though, need to share where you’re at 😂
If I'm in my 20s all over again. I'll buy again in a heart beat 😂
Hahaha what do you like about owning your own place?
I don’t think RM20k for renovation is realistic even for condo / apartment. I would say Min 30k and another RM10-20k for furniture
Yeah agreed, just didn’t want ppl to say it only looks expensive bcs I put in too high of a renovation cost
Thanks for the analysis. Baby boomers, Gen X and Y were lucky enough to be able to buy when they could. The rent received by landlord covers their installment.
Entry prices are ridiculous these days making it almost impossible to own homes.
Agreed. Everything’s way too expensive now, super difficult to afford home ownership
I’d buy a house if i can provide >50% down payment, if not all cash. Otherwise, renting is the way to go.
That’s a lot to save up haha, but reasonable I guess. Minimise loan amount so you have cash flow for other stuff
My financial principle : If I can’t afford to buy it cash, then I can’t afford it. So renting for now.
Ooof you planning to buy a house in cash in the future? I know some ppl do it but man you gotta save up a big amount of cash haha
Like what Robert Kiyosaki said: "Your house is not always an asset, it might be a liability."
Wow he said that? Always thought he was an advocate for real estate 😅
you must also take into context which country is he talking about. different countries may have different property laws from malaysia requiring more onerous legal/financial burdens on the property owner/landlord. i just read a new article about kiyosaki. he says he also owns houses, which he finances using loans and rents out for income. therefore he claims that makes the house an asset because it generates income. your quote from kiyosaki is not a catch... 'not always'... 'might'. if you use your mind to think about it, that implies your landlord from whom you are renting your house from, is generating income from you. and if you think further, why not you emulate him by becoming a landlord and take a loan to buy a house and literally just rent to yourself so you yourself generate income for yourself, instead of generating income for other landlords. yes, it is just taking money from left pocket to put in right pocket. it's a basically a round about explanation to say it might be better to take a loan to buy a house to stay rather than just renting. do your own math, don't just rely on somebody's mantra.
Attention span dropping from lack of visuals in first part of the video, consider having infographics while you explain. Cheers!
Thanks for the feedback! Will let the editor know
What kind of investment gives 7% return yearly?
S&P500 has returned >10% annually in the last 10 years
@@MillennialFinanceMalaysia youre ignoring the exchange & transaction fees and also myr depreciation and US taxes