Better to Rent or Own a Property for First House

Lee, Shi Min (2023) Better to Rent or Own a Property for First House. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

Text 14. RES#Lee Shi Min#19WVR12616.pdf Restricted to Registered users only Download (14MB)

Abstract

The decision of buying or renting a house will affect an individual’s lifestyle, personal goals and financial health. According to the research, there are more Malaysians are willing to buy a home in 2020. Buying is a trend for Malaysians instead of renting a house based on the result in the survey during 2019. However, there are still young millennials who are not able to afford buying a house yet due to the high price of property. Therefore, home ownership affordability has become a main concern in Malaysia to be discussed especially for those who are living in big city like Kuala Lumpur. The important factors that determine the house prices in Malaysia are interest rate and inflation. In this research, we are able to discover the advantages and disadvantages of renting and owning a house. Besides that, we can also investigate the millennials’ preference to rent or to own a house throughout the research. Primary data collection such as questionnaire survey and secondary data collection are carried out to gather the data in this study. The method to be adopted to analyze the data collected for objective 1, 2 and 3 is descriptive method. In objective 1, the best advantage for buying a house is capital appreciation while for renting a house is free from property taxes. Besides that, the results in objective 2 proved that majority of the millennials will take consideration into developers’ reputation before purchasing a house. In objective 3, the most important factor to be considered by a house purchaser is the location of the property while the factor will be considered by a renter is income level. In overall, there are more millennials prefer to own a house instead of renting nowadays.