Buying a home VS renting a home

Buying a home VS renting a home 

Although having home ownership can be a fulfilling wish, or milestone, it requires a huge sum and is a long term commitment that not everyone can commit to. Moreover, more people are jumping into the property investment bandwagon, hoping to earn or profit from property investment. Buying a home on your own can be a really exciting milestone in your life. However, buying a home can be expensive, and unaffordable, especially for young working adults who have just started working. Make sure you use the home loan calculator Malaysia to check if your affordability before you decide on whether to buy a house or rent a house. Fret not, this article will guide you through whether to buy a home or rent a home in Malaysia. 

Buying a home

1. Greater privacy

You get to enjoy greater privacy. As the house belongs to you, you get to have the whole place to yourself without worrying about invading spaces, or privacy. You need not to worry about sharing spaces with strangers or losing your privacy. Furthermore, you get to decide how things should be done the way you prefer at your own house. There is no need to worry about other people’s preferences or having someone telling you off. Most importantly, you will not need to deal with messy or dirty housemates. Great for those who have Obsessive Compulsive Disorder as you can always clean or design your house to your preferences and timing. 

2. Avoid unreasonable landlords

One of the most frustrating problems with renting a house is dealing with unreasonable landlord. Of course, there is nice and reasonable landlord too, that is if you are lucky. However, if you are unlucky, your landlord will be your biggest nightmare throughout your tenancy. Having a house on your own will save you from dealing with unreasonable landlord. 

3. In control

You are in control of everything at home. Literally everything. From the design of the house, to cleaning schedule and so on. You do not need to find time and spare time to fit the owner’s timing on when to clean the house or renovate the house. Furthermore, you are in charge of when you want to fix the house’s problem, instead of waiting for the landlord to fix it. In addition, owning a house also means you get to decide how you want to design or decorate the house. Most importantly, there is no need to fight for the bathroom or kitchen when you need them. 

Renting a home

1. Landlord deals with maintenance and repairing costs

If you are financially tight, renting a house is definitely more suitable for you. This is because the landlord will be the one to bear all maintenance and repairing costs. For example, you will not need to fix the clogged drains, faulty electrical appliances, water leakage and so on. It is your landlord’s responsibility to fix whatever that is faulty or not functioning in the house. That being said, you get to save on maintenance and repairing costs, unless you cause the damage. 

2. Lesser commitment

Renting a house also means you have lesser commitment as compared to owning a house, as you do not need to replay the mortgage loan. Renting a house will only require you to find the right house to rent, contact the landlord, sign the tenancy agreement, pay monthly rental and that is it. You do not need to worry about down payment, stamp duties fees and monthly mortgage repayment. In addition, should you dislike the house or find better deal, you get to leave the house after the tenancy ends as this is not a long term commitment. Other than that, you do not need to worry about value depreciating for the house. 

3. Low upfront costs

Buying a house requires higher upfront costs  as you need to pay the down payment and stamp duties fees and so on. You will also need a huge amount for renovation and purchasing of house furniture. After that, you will also need to pay for monthly mortgage repayment. Therefore, renting a house is more affordable as it has lower upfront costs as compared to buying a house. As you are only renting a house, all you need to do is find the right house that suits your budget and preference. 

In a nutshell, buying a home or renting a home comes with its sets of pros and cons. Owning a house gives you a home ownership, However, if you are not looking for home ownership, and your budget is tight, renting a house would suffice. At the end of the day, it still boils down to personal preferences and also your financial situation. Make sure you stay within your budget. Buying a house and owning one can be exciting, but not when you have other commitments lining up. In addition, before diving into the decades long investment, or commitment, you will need to study the property market thoroughly before you sign the documents and buy that property. You definitely do not want to end up regretting. 

Damage Free Ways to Dress Up Your Rental

Damage Free Ways to Dress Up Your Rental

Your home can be cluttered and messy due to lack of storage space. Adding furniture or accessories which can help with storage as well as making a statement is a good idea to get rid of the messy looked house , and some example can be seen in iproperty. . Hooks are your best friend as they are perfect for hanging clothes, towels, belts, purses, necklaces, coats, and any other things you can hang. Lots of them are designed to stand heavy loads too. Other than hooks, under the bed storage can be a great choice if you use it wisely. Wall mounted shelves can help your living space to gain extra storage. They As every renter knows, the limitations of a typical rental contract can be really frustrating as you need to think twice before making over your living space. So, while paying your rent on time, it is important to make sure that your place is personalized and stylish without costing a lot of time or money. And, you will leave with your security deposit intact when it is time to move out. Here are some damage free ways to dress up your rental like you own it but without getting into any trouble. 

1. Stickers

Using stickers to jazz up the walls is one of the excellent ideas. Over the year, more and more products that are removable have been introduced to the public and most importantly it won't risk your security deposit when you move out. So, instead of sacrificing style, you can dress up your space temporarily. Washi Tape is one of the examples. The price is inexpensive and bold, and totally fun. It can be used to dress up walls, furniture, or any other things you can think up. It can easily be added and peeled off and a great way to decorate your wall without damaging the paint underneath.

2. Green living

Green is a colour that can make your living room shine. Adding plants and flowers to your kitchen and living room give an instant lift to any space. Houseplants can be very useful in dressing up your living space whether by hanging a pot from a ceiling hook or placing a plant stand in front of your bare walls. Don’t just limit your plants to the living room, they can be placed in your bathroom too as many plants such as cacti, love the climate of a warm room and bloom in bathroom spaces. 

3. Storage

can be installed easily and fit into a number of places. Importantly, good for future moves.

4. Window Covering

The dirty old curtains or depressing vertical blinds is another area where rentals always seem to be sorely lacking. It can be upgraded to fresh curtains which are inexpensive or with simple roller blinds but look great. 

5. Light Fixtures

Playing around with the lighting is a great idea to dress up a living space. Try to avoid using the overhead lights as they can be hideous and unappealing sometimes. Focus on growing your collection of trendy floor and table lamps instead. You will never go wrong by investing in some table lamps which can be placed in a hall or on a side table. These table lamps can create a homely feel and some added character and personality to your space. 

6. Artwork

Paper Taxidermy is a creative DIY way to decorate your space inexpensively and without putting your security deposit at risk. Nowadays, cheap, animal-friendly, and fun colourful paper taxidermy is a growing trend with kits increasingly available for purchase at local art suppliers. Your living space will become more attractive and interesting.  An added advantage is that they are light in weight and easily mountable. Besides that, photos are an inexpensive art features and a wonderful artwork. You can get cheap prints of your travelling photos or scenery photos and that would be perfect artwork for your rental walls. 

7. Mirrors

Mirrors are the best artwork that matches the rest of your design. You can have a framed floor mirror which can help to reflect and create light throughout your living space. Your space will be brighter and larger afterwards. Go for some metallic framed mirror in silver or gold as they will instantly add drama to any space. 

Items that you should look out for when signing your tenancy agreement

Items that you should look out for when signing your tenancy agreement

Over the years, Malaysia’s property prices have been heading towards uptrend and due to that many have chosen to rent instead of buying a place. When we talk about renting, it is not just about residential, it also applies to new business startups as renting is easier for their budgets. Even rental has it’s own agreement, it is known as Tenancy Agreement. So, here’s how it works, once the property owner and the tenant have agreed on the property’s terms and conditions, they will sign Tenancy Agreement in order to protect both parties. With the rise of rental transactions every day, the chances of tenancy disputes has also increased. This explains why the Tenancy Agreement is crucial when sealing the rental deal.

In Malaysia, there is no law put into place to govern the legal framework of tenancy currently. Thus, the tenancy agreement is the instrument that binds the relationship between landlord and tenant legally. In the tenancy agreement, there are terms and clauses can be easily negotiated and modified to suit the individual requirements for both parties. Towards the end of year 2017, there was a proposal to formulate the Residential Rent Act in order to protect landlords and tenants. However, this proposed Act is needed to regulate the relationships between homeowners and tenants in order to protect their respective interest and rights. 

While putting our hopes and waiting for Residential Rent Act comes into effect, the tenancy agreement is the only document that protects the rights of the landlords and tenants. Fret not, we still have Contract Act 1950 where the tenancy agreement can rely on. Assuming both parties have entered into the agreement at their own free will on mutually agreed terms with referencing Contract Act 1950. However, due to legal jargon terms that is widely used in during the drafting of a tenancy agreement, many would not be able to fully understand what are the terms and conditions’ meaning. What’s even worse is that some may go ahead and sign the agreement without fully understanding what they have signed up for. To make agreement understanding easier for all, we are about to share the usual major terms to discuss, negotiate, confirm and verify before signing the agreement. 

1. The details of landlord and tenant

Well, it is the tenant’s responsibility to check and verify that the legal and rightful owner of the property by sighting either a duly signed and stamped Sales and Purchase Agreement in which the landlord had fully acquired the property or a copy of the individual/strata title. This is to ensure that the landlord is the rightful registered owner of the property that you are about to rent. There will be cases that the transaction will be aborted during the process of transacting and it might jeopardize your rental transaction causing all parties (including agent) to have wasted their time and effort in sealing the deal. Thus, it is better to be safe than sorry by confirming and checking all the details of both the landlord and tenant such as full name and NRIC number. 

2. Property’s address and details

In the tenancy agreement, make sure the address of the property is accurate and specify the exact area that is being rented, if it’s applicable. For instance, floor number, room types, number of rooms and etc. 

3. Period of tenancy and renew option

Your duration of tenancy should be clearly stated whether it is one year or two years. Besides, tenancy agreements usually include and option to renew clause whereby the tenant wish to renew the contract, the tenant may do so by giving a written notice in any form to the landlord prior to the end of the tenancy period.

4. Deposit and rental amount, payment mode and payment due

There are two deposits which are security deposit and utility deposit. Both deposits shall be paid by the tenant and to be kept by the landlord and shall be refunded to the tenant free of interest at the end of the tenancy. If the tenant breaches the contract or cause damage to the property, their deposits can be forfeited. Meanwhile for rental amount, both parties must agree on the monthly rental amount, method of payment and latest date payment. As for the utility bills, if the tenant is required to pay, it should be mentioned in the agreement too.

5. Tenancy’s purpose

It is also required to state the premise’s usage. For example, commercial, residential, warehouse or etc. As such, the premise should be strictly be used for the purpose that is stated and nothing else.

6. Termination

The exit clause is also important to be included in the agreement. Parties can also include the methods to terminate the tenancy agreement prior to the end of the tenancy period. 

7. Additional requests

If the leased out property includes electrical appliances like air-conditioning unit, water heater, microwave and etc, it should be clearly stated the electrical appliances’ quantity and who will be responsible for the maintenance of the appliances.

Buying a home-Consider these costs

Buying a home-Consider these costs

Buying a home of your choice can be overwhelming, to say the least. The excitement of finally finding the one house from the vast houses for sale in Selangor to call your own is unparalleled. Nevertheless, some future homeowners disregard closing costs until the last minute, which can lead to lots of stress. Here is a quick checklist of a few of the expenses you should keep in mind during this memorable experience.

Buying a good home of your choice takes a considerable amount of personal experience making realtors with a high amount of experience precious, or even an individual who is buying more than just their first home will be in a greater boat than a first-time buyer. Even with a realtor, or personal experience, just like the hunter, a customer needs knowledge and more importantly, a plan.

Inspection

A home inspection is a vital tool for the new buyer, as it can provide you with some peace of mind regarding the status of your new home. Home inspection identifies any structural, water, and electrical damage, and allows you to know what you are getting into and budget accordingly. Furthermore, if an inspector discovers a plumbing problem or other household issue, then you can prepare financially for future maintenance. As a result, the upkeep will not come as a surprise later on.

Insurance

Insurance is necessary to protect your home in case of flood or fire damage. Insurance coverage varies depending on what type of policy you buy. There are many packages and numerous insurance companies available, so make sure to do plenty of research. Compare costs and choose the best one for your situation. One thing to remember is that insurance is an annual cost, so add it to your yearly budget.

Additionally, do not forget title insurance. Title insurance protects you from issues arising from incorrect signatures on documents, forgery, or other title defects that may result in financial loss. Furthermore, if the previous owner had any permit violations, then you will not be held responsible for them.

Appraisals

Financial institutions may require a home appraisal before approving your loan. This is a regular practice. Keep in mind that appraisers are licensed professionals by individual states, and some lenders do have an appraiser on staff. If you are not comfortable having your lender provide you with an appraiser, feel free to hire someone who does not have any ties. Appraisal costs vary depending on your state of residence - the best person to advise you on this task is your realtor.

Moving Day Costs

Expenses incurred on moving day can be some of the highest expenses you pay when moving into a new home. Some people forget to set aside finances for painters, locksmiths, and new kitchen appliance installations. How much are professional movers going to charge? Are you hiring someone to touch-up the driveway, yard, and renovate the landscaping before moving in? These are all things you need to keep in mind when reaching the closing phase of buying your new home.

Other costs include the following:

- PLC (Preferential Location Charges): If anyone has particular preferences while buying an apartment, may have to pay PLC to the developer. While not all developers ask for such charges, many do. So if you want to buy an apartment which is on the 3rd floor, for example, you may be charged extra. In most cases, it is as much as 4% of the base price of the apartment that is being bought, though this might vary with developers.

- External Development Charges (EDC): Not all, but many developers would charge extra if the complex has facilities like swimming pool, kid's play area, gymnasium, etc. Many people wouldn't have considered these while evaluating the purchase price. So it is recommended to get the details of the extra charges and then determining the asking price.

- Registration Charges: While this charge is mandatory for most states, the rates can vary according to the municipality, where the apartment or complex is located. Home buyers may also have to pay a stamp duty, so it is best to know in details about all the extra/ mandatory charges before deciding to buy a home in any residential projects.

- Maintenance Charges: The recent and upcoming housing complex is provided with all kinds of modern facilities so that charges of maintaining these are a bit high. Many developers would collect these charges for two years in advance. So home buyers should be aware of this. Everything from the generator back-up, to swimming pool, gymnasium, etc. is included within this maintenance charges.

Buying a new home is an exhilarating experience, and when you reach the closing cost phase, you are narrowing in on moving day. Finding a trustworthy and experienced agent to assist you throughout the entire process will make your transition into a new home much easier. When you find an experienced realtor who can provide ample information about your home, the neighborhood, other homes in the area, and local schools, you will be able to focus on the positive thoughts regarding buying your new home and all it entails.

These are just some expenses that you must consider before buying a house. It is important to consider these costs before the actual purchase of that next house, so you are financially prepared to cover these extra items