Is it so hard to buy a home right now?

Home ownership has long been a significant goal for many Malaysian individuals, but its concept has been redefined due to the changing dynamics of the real estate market and evolving lifestyle preferences.

One of the primary elements driving this transition is the increased need for a flexible lifestyle. Many people prefer to rent rather than buy a home because it allows them to travel around and experience different types of living situations without being tied down to a certain location.

Another important factor influencing the decision to rent rather than buy is affordability. Rising Malaysian property prices have made it difficult for some people to buy their ideal home. Renting is a more affordable option that allows people to allocate their financial resources to other areas, such as investing.

Furthermore, co-living is becoming increasingly popular among young professionals and students who prefer shared living spaces that build a sense of community. Co-living not only saves money but also provides an opportunity to connect with like-minded individuals.

However, not everyone who prefers to rent does so due to financial concerns. Some people simply do not want the obligations that come with owning a property, such as maintenance and repairs. Renting allows them to enjoy a carefree lifestyle while still having a comfortable place to stay.

These conclusions are consistent with the findings by City & Country conducted in August 2023, which indicated that 49.5% of 103 Malaysian respondents aged 40 and under preferred not to be property owners.

While the top reason for not preferring to own a property was that they already had a family house (15.5%), 14.6% of respondents did not want to be tied down to a long-term investment, 9.7% would rather invest in something else, 6.8% said owning a property was not their priority and 2.9% preferred renting or flexible living.

Of the total respondents, 12.6% said owning a property was not a necessity and 8.7% said home ownership was a dream that was hard to achieve, with the top reason being affordability (49.5%). Other challenges to home ownership include the inability to find their dream home (26.2%) and not knowing how to start searching for one (15.5%).

Despite all the struggles of owning a home, the majority of survey respondents wanted to be home owners eventually or within the next 10 years, mainly for the security of having a home (37.9%), life satisfaction and achievement (23.3%), investment and building equity (22.3%) and better control over the cost of living (9.7%).

Takeaway

While home ownership will always be an important milestone for most people, it is crucial to understand that the desire for flexible living and freedom from long-term investment obligations has become increasingly widespread in today’s culture.