Wrap Up

There are tons of decision-making required in getting a house in Malaysia. Trust me, it’s more than just having to pick which house would suit your family best, or which one had the bigger lawn. Especially for those who are on a budget, even the mode of payment is a matter of big concern when it comes to purchasing your own house.



Apart from deciding on which mortgage lender to get services from, or which payment form to take, or even which way to go with the interest rates, you will have to decide whether you buy a house in a traditional mortgage, buy it via an auction, or get it on a rent-to-own basis.

Given the recent changes as announced by PM Najib Razak in the Budget announcement, rent to own schemes may soon catch up as prices of homes become rather steep for most middle and low income Malaysians.

Reasons to Get a Rent-to-Own House In Malaysia

While some Malaysian homeowners frown at the idea of a rent-to-own house, there are tons of actual benefits to get when you purchase a house this way. And I am speaking from experience: I have got clients who rented who then purchased their respective units in  Soho Suites KLCC three to five years down the line. No joke.

If you aren’t yet convinced on this, here are 5 reasons why you should pick a rent-to-own house over a traditional home sale:

Rent to own house.

Rent to own house? That might be the only feasible thing to do for prudent Malaysians

  1. The monthly fees are almost always lower than a traditional mortgage. While it is a little more expensive than traditional rent, it is still lower than mortgage payments. This is perfect for those who are still trying to save up for the big payments, or those who are trying to get back up from a foreclosure but still making sure that they are still working their way into getting a good home even before they could be eligible again for a mortgage loan.
  2. This is the perfect time to spend your post-foreclosure years. A person who has filed bankruptcy and/or has had a home foreclosed is normally not allowed any form of mortgage until after five to seven years. This is also a perfect time to get their acts together while work towards a real home. You’re not wasting your cash on empty rents but you are actually working towards a real home without having to worry about mortgage applications and eligibility for it until at least the contract expires.
  3. It is easier to be eligible for a rent to own than an actual traditional mortgage. Freelancers and other non-traditional earners in Malaysia who could not pass up the much higher standards of mortgage lenders these days don’t need to go through the regular process for them to get a mortgage loans. The standards are lower, the process is easier. Plus, there is less paperwork involved too!
  4. Brand new homes and condos are offered in this way. If you’re longing to get a brand new house (say, a landed property in Setia Alam), or at least a unit in a brand new condo unit in the neighborhood, the rent-to-own option is almost always more easily available here. So you can easily get the brand new home of your dreams without so much a burden on you financially.
  5. You get a chance to ‘try out’ the house before tying yourself down with all the payments on mortgage. There is no room for regrets here; it is easier to bail out of a rent to own place if you’re unhappy with it, than it is when you try to bail out of it from an actual mortgage.

Still not convinced? Maybe this MSN article will persuade you somewhat. :)

NOTE: Special thanks to Say Jo, Patrick Groove and Steve Sushi for their inputs.