Renting A Property

With consumer confidence as low as flat, buying property is the least on the mind of most young and single working professionals. However, it is not unheard of a small family renting a single unit of landed or high-rise property. Here are some of the reasons why people prefer to rent.

To Save Money
Contrary to popular belief, renting a room can actually help you save up, especially if you are living all by yourself. By renting, you wouldn't need to worry about closing fees, mortgage interest, property taxes, private homeowners' insurance and maintenance; as all these will be the landlord's responsibility. The sum from these areas can either be invested for more return, or saved up as emergency rations or to fund your new Perodua MyVi. Besides, a recent study by Fidelity Investments indicates that stocks provided investors with nearly 4.6% higher average returns in the past 45 years than real estate; a worthy venture for the extra money.

More Options Available
While there are more incentives for house buyers now, rental rates are also seeing a slight decrease. In prime locations and popular areas, competition can be stiff, with various innovations coming up to attract potential tenants such as partial furnishing, utility fees inclusion etc. Amenities and furnishing are some of the attractions that tenants most often look for, such as built-in cabinets, fridge and other accessories of the kitchen; amenities that are sometimes not available in newly-bought homes, or are unaffordable in new homes.

More flexibility
Buying a home is a big commitment. If you have to move for any reason - say, for work - your property would need to appreciate by at least 10% for you to recover your sales costs, which typically takes about five years. Renting allows you the freedom and mobility you need to find the right job before you tie yourself to a massive home investment.

Over all, it is sort of a low-cost-less-responsibility option that satisfies most working professionals, who may expand their career elsewhere, and college/university students, who will be leaving their education institute after graduation.

However, renting is not a completely fool-proof solution to stand against the economic whirlwind now. For those who are looking to building up equity and for long term gains, or preparing for retirement, renting may not be a suitable option, and buying a property should be in serious consideration.