“Renting is money down the drain.”
We’ve all heard it. But is it actually true?
In Malaysia, property is still treated like a badge of success, even when it means taking on 35 years of debt, maxing out EPF savings, and having no buffer for emergencies. The pressure to buy is strong. But in 2025, with inflation rising, housing prices stagnating, and flexible income becoming the norm, it’s time to challenge the old belief:
Does owning always beat renting financially?
Here’s the full breakdown, using real numbers, clear examples, and hard truths.
1. Why Malaysians Feel Pressured to Buy
- Cultural expectations: Owning = success
- Family pressure: “Bila nak beli rumah?”
- Fear of missing out: “Prices will only go up!”
- Social media comparison: New keys = soft-launch announcement
But those who rushed in during 2020- 2022 are now stuck with negative equity, vacant units, or properties they regret.
2. The Real Cost of Buying Property in 2025
Let’s say you buy a RM500,000 condo in KL:
Downpayment: RM50,000 (10%)
Stamp duty, legal fees, MRTA: RM20,000+
Monthly repayment: ~RM2,300 (at 4.25% interest over 35 years)
Maintenance + sinking fund: RM250 – 400/month
Property tax, quit rent, insurance: RM1,000+/year
You’ve already spent RM70k before moving in. Over 10 years, your actual cash outflow is over RM370,000, not counting opportunity cost of that capital.
3. What Renters Actually Save (That No One Talks About)
- No loan commitment: You’re not locked in for decades
- No repair, tax, or maintenance burden
- No sunk capital in downpayment
- More liquidity to invest
If you rent the same RM500k condo at RM1,800/month for 10 years, you pay RM216,000 total, almost half of what the buyer pays.
Now imagine you invested the RM70k downpayment + RM500/month difference in ASB or ETFs.
4. Comparing Net Worth After 10 Years: Rent vs Buy Case Study
BUYER:
- Equity after 10 years: ~RM120,000 (after interest, principal, fees)
- Property value may or may not appreciate
RENTER + INVESTOR:
- RM70k downpayment invested at 5% CAGR = RM114,000
- RM500/month invested for 10 years = RM77,000
- Total net worth = RM191,000 (and still flexible)
In many realistic cases, renters with investing discipline actually come out ahead.
5. Hidden Costs & Traps Homeowners Don’t Expect
- Vacant unit = you’re paying loan + not earning rent
- Renovation can easily cost RM20k – RM80k
- Developer defects, delays, strata issues
- Stress of selling later in a soft market
6. Who Should Buy (And When It Makes Sense)
- You plan to stay long-term (10+ years)
- You have stable income + cash buffer
- You’ve done the math, not just followed emotion
- You’re buying below market value or for rental yield
7. Who Should Rent (And Build Wealth Another Way)
- You value mobility, career flexibility
- You’re unsure where you’ll settle
- You prefer to invest in liquid assets first
- You don’t want 30+ years of debt hanging over your head
8. Final Verdict: Which Path Builds More Wealth?
Buying property can build wealth, but only if you buy smart. Renting is not financial failure. In fact, renting + investing wisely can beat homeownership in many scenarios.
The real question isn’t “should I buy?”, it’s: Will buying this property make me richer in 10 years, or poorer and stuck?
Run the numbers. Ignore the noise.
Rent vs Buy Calculator (Malaysia 2025)
Next Reads:
REIT Malaysia 2025: How to Invest in Real Estate Without Owning Property:
https://ringgitwise.my/reit-malaysia-2025-how-to-invest-in-real-estate-without-owning-property/
How to Become Rich in Malaysia 2025: A Step-by-Step Guide to Building Wealth:
https://ringgitwise.my/how-to-become-rich-in-malaysia-2025-a-step-by-step-guide-to-building-wealth/
