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We'll show you how many years it will take to reach the breakeven horizon, where cost of buying equals cost of renting. If you stay in your home past the breakeven horizon, consider buying. If you think you will move sooner than that, renting might be a better option.

After 4 years, buying will be cheaper than renting.

Year
4
Buy
RM88k
Rent
RM48k
Buy Gain
RM28k

Cost: After 4 years, your total cost of homeownership (down payment, mortgage, taxes, etc.) for a RM535,000 home in Malaysia would be RM562,742. Renting leaves you with RM435,462 in your pocket (including the money you didn't spend on a down payment).

Gain: After 4 years, if you buy, your home will have RM531,736 in equity (available to you when you sell). However, if you instead rent and invest your down payment and the other money you save, at a 6% return rate it will earn around RM180,831 in 4 years.

Bottom line: Looking at your gross costs, equity and investment potential, it's better for you to buy than rent if you plan to live in your home more than p years.

What is your desired home price?

RM412k

How much is your down payment?

50%

What is your desired monthly rent?

RM3k/mo

ASSUMPTIONS

Below are the other factors we've taken into consideration. These are standard values, and you can adjust them to match your situation.

Growth Rate

Home appreaciation

4%

Rent appreaciation

2%

Investment rate

3%

Inflation rate

2%
Buying Expenses

Mortgage interest rate

Management fee

Monthly maintenance

Buying closing costs

Selling closing costs

Homeowner's insurance

Additional Monthly Utilities

Mortgage term

Renting Expenses

Rent Deposit

After 4 years, buying will be cheaper than renting.