Rent or Buy – Penang Property

My close friend asked me today. Should she buy a property if she intend to work for only a few years in Penang. I asked her, what’s her rental and she said RM800. It’s not a lot but RM800 x 12 x 5 years = RM48,000.  If I ask you to give RM48,000 away, you would almost kill me. Yet, truth is, you are giving it away. Since she decided to follow my advice to buy, she asked, what to property should she buy in Penang.
Let us focus on what to buy. This question can sometimes be hard. For example, if my friend can afford a RM500,000 mortgage, should she buy a landed property or condo? Landed in Penang? Am I joking? Let me remind you, Penang consists of an island and MAINLAND. RM500,000 allows you to still choose landed properties in Penang even if it may be a little far away. Choices in Balik Pulau would be limited at this point in time as prices has moved but for mainland, if you are willing to buy slightly further away, RM500,000 is ok.
In terms of distance, let me tell you that everything boils down to getting used to. If you currently drive 10 minutes to work and I asked you to drive 30 minutes, you may feel it is far. However, if you drive everyday, after some time, you would not even feel it. Thus, never ever put distance as a main consideration. Focus on what you really want. If you love landed tremendously, proceed to buy.
Please do not ask me when to buy your first property because if you are currently renting, then anytime is a good time to buy. However, if it is for investment instead of your first property buy, then the answer may be different.
Read on ‘Penang Property Potential’ to know more on investment.


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