Quit paying rent and achieve stability by having your own home

By Viktor Chong viktorchong@thestar.com.my

HAVING a roof over one’s head is often not enough, especially when living in a rented property. It is knowing that we own a particular property that fills us with pride and signifies we have reached a different stage in life. Satisfaction in itself is not the only highlight for potential homeowners. Here are a few more benefits of home ownership:

Goodbye to tenant politics
It is normal for housemates to have disagreements, especially when some can be eccentric or unhygienic. Other complications include unreasonable ground rules or cleaning schedules that nobody follows. Owning your own house gives you the privacy you deserve. If you are a live-in landlord, then you will also have the freedom to decide on the tenant you want to live with.

The long-term game
Few individuals relish the idea of paying rent for the rest of their lives. This is especially true if the person is reaching retirement age and there isn’t any other source of income to cover the rental cost. Landlords could raise the rent above the amount you are comfortable with or, worse, evict you on short notice. Most retirees would certainly enjoy owning a house and having a sense of stability and permanence. Unlike rent, your loan instalments (on the assumption that you are purchasing a house with a loan) are usually fixed. Besides, your home is a legacy that could be passed on to your loved ones.

Your home, your way
Unlike rented houses where you are answerable to the landlord, you can make changes to your home (with the exception of high-rise units). From the colours of the walls to the renovation of the property, much can be done to reconfigure a house to your liking. Let your creativity run wild.
Animal lovers could also enjoy the companionship of furry friends without inhibitions from pesky landlords. By the end of the day, your house is a symbol of your identity. That intrinsic value alone beats all rented property.

Saying hi to the Joneses
Home ownership provides residents with a platform to connect with their neighbours and increase their social capital. Being permanently rooted in a position inevitably turns you into a stakeholder in your community. Hence it is normal for homeowners to participate in community activities. This community spirit is rarely present among renters who live a nomadic lifestyle.

An investment opportunity
Houses make for a stable, inflation-proof investment, unlike the volatile stock market that fluctuates unpredictably in tandem with global or local conditions. As long as the population of the country is experiencing healthy growth, ceteris paribus, it is relatively safe to predict a positive capital appreciation for your property.

Population growth translates to further demand for housing and the general scarcity of land. According to the Department of Statistics Malaysia, Q4 of 2018 had an estimated worth of 32.6 million in population. Compared with 2017 at 32.02 million, that is a healthy increase of around 2%. Hence, Malaysia is conducive for property investment, unlike most European nations that are experiencing negative population growth.

If capital growth isn’t up your alley, then consider the fact that houses generate passive income through the collection of rent. With the exception of chasing after rent, serving and finding tenants, renting out is one sure way to earn money. Gather reliable tenants and watch your house transform into a money-making machine. If the loan instalment for your house has yet to be fully repaid, it is the equivalent of having your tenants pay your loan (partially) for you. Why work for money when money can do the work for you.