In today's environment of increasing prices in the property market in Malaysia, it is more viable to buy or rent a house?

Most people prefer their own property as you pay the bank loans are equivalent to the rent you pay, but their financial strength will play a significant role in the decision to buy or rent a house.

Real estate buyers are advised to assess your finances before buying a house, in order to ensure their ability (such as the debt ratio is too high). In particular, a first-timer, they should take into account the stability of their work to ensure that they are able to service the repayment of the loan. If a person, the debt ratio is lower than his salary is already at 50%, it is likely the banks will not approve a mortgage. If a person has a mortgage must be paid more than half the salary of the person, the bank may have doubts about a person's ability to repay and therefore require more evidence of a good financial position to approve loans.

As the supply of workers todate Fund (EDF) policy, home buyers can use their savings EDF to buy real estate. Couple with easy payment schemes offered by banks for the first time home buyers to obtain loans of up to 90%, with a house easier than ten years.

During 2011, budget, the government will implement the program, she mentioned the "Skim Rumah Pertamaku" or "My First House by Cagamas Bhd, which will provide a guarantee deposit of 10% of the homes below RM220, 000. This scheme is the first time home buyers earning less than RM3, 000 household income per month. With this, home buyers can receive 100% of the loan without paying a 10% premium. In addition, the timer will also be exempt from stamp tax and 50% transmission of documents on housing prices continue to RM350, 000. The government has also proposed that the stamp duty exemption be given on the loan contract financing arrangements, such as first-timer.

For those who rent a house in today's environment resulting from the price, he or she will never benefit from the value assessment. Moreover, even if the asset value over time is not increased, the mortgage balance decreases and equity accrued.

Many people see property as well as a way to fight inflation. With inflation creeping upward glance, but the purchase of real property will result in delays in paying more lately. With regard to the existence of gaps in the home is a lot of variable costs relating to, for example, quit rent, assessment, service or maintenance fees and insurance, and others. House for sale, and may not be as fast as, say, to realize their share of investment in the stock market. The entire process of selling can take up to a year, depending on property location. If you already are a potential home buyer, the process can be shortened to three months.

Such a scenario is a quantitative example, between buying and renting property.

A typical two-storey terrace average house in Kuala Lumpur on the outskirts of the city, can cost about RM400, 000 and RM1 for rent, 500 per month. Net profit margin came to 3.8% yield based on the real estate. Assuming that household income is about RM7, 000 per month, which means that the household income per year in real estate price ratio of 4.76 times. To purchase this house for 90% of the loan on the basis of a fixed interest rate financing for 30 years, you have to pay 5% interest, which means the monthly expense of around RM1, 900 per month. Thus, it is clearly better to rent than buy.

However, this analysis is based on what is considered typical of the type of housing. Different considerations may apply to different types of housing in different areas. Another powerful motivation for buying rather than renting is a social necessity for your home. Owning the house allows you to increase the credit as and when necessary, for all purposes in kind. Thus, it is a powerful incentive to the property.

For more information on Rent To Own Homes and Rent To Own Houses Visit our rent sites renttobuymyhome and acerenttoownhomes.