Why Buy When You can Rent?

What do you know? The day after I posted about the PM's My First Home Scheme, the Edge Financial Daily reported on a couple of smaller developers who are likely to benefit from building these below RM220k homes. But unfortunately, these homes are not going to be in Klang Valley but in places like Rawang and Sg Buloh area. Well, I suppose the land is probably cheaper and they can afford to build these homes for that price, and still make money. Looks like there is something for everybody - bigger developers to be benefit from their land prices going up next to the new Klang Valley MRT and now, smaller developers from My First Home scheme. What about you and me? well, if you are below 35 years old and have not bought a home, you should take advantage of the government's election year generosity - see my previous blog on how.

As some of you know I believe in renting vs buying. And can't figure why I should pay a premium to own when renting is cheaper in comparison. For example, I heard that you can rent a house in Bdr Utama for less than 2k per month while in Desa Park City, the super links are also going for the same price. I am tempted to live in Desa Park for the facilities and amenities but would never pay the RM1.3m asking price even if I could afford it. By the way I heard that the maintenance fee is around RM800 per month! yes, it costs a lot of money to keep the place looking so nice, and of course there is the man-made lakes and club house too to maintain. At 2k a month, I think its a steal but am not so sure for the owners, though. I suppose there is the possible appreciation that will compensate them for the super low yields? One of my good friend told me about a brilliant idea his friend had - he rented out his high end condo at Mont Kiara for RM12k per month and went to rent at Desa Park for 2k. Not a bad deal if you think about it eh? An extra RM10k in the pocket each month to make the swap.

Happy investing! and have a good week ahead.

Chris
 

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