“The rich buy low-cost houses then rent them out,” M’sians Reveal Why They Don’t Buy Houses

Here we go again with the buying vs renting homes argument.

Online property news portal, Urban Hartanah (@twthartanah) took to their Twitter account to share what they think is the reason why millennials are renting their homes instead of buying houses and it’s causing one hell of a ruckus online.

They blamed instant gratification, saying all millennials would rather take trips overseas, buy expensive phones and eat luxurious meals than to save and spend on a property which can benefit them in the long run.

Kenapa Anak Muda Tidak Minat Beli Hartanah?

Anak muda lebih gemar travel, beli handphone mahal dan makan sedap berbanding komitmen pinjaman 30 tahun.

Anda mungkin bangkang tetapi kajian menunjukkan ianya benar. pic.twitter.com/ynv8Db0iWv

— Urban Hartanah (@twthartanah) November 1, 2019

They wrote, “Why are youngsters not interested in purchasing real estate? Young adults prefer to travel, buy expensive handphones and eat good food compared to committing to a 30-year loan. You may oppose but studies have shown that it’s true.”

Urban Hartanah had added in their thread that sociology experts have concluded that young adults today have to face a serious financial crisis which has become the main factor as to why millennials are no longer interested in making loan commitments.

Then they proceeded to explain that the concept of success has changed among young adults.

“What’s most important is that the concept of success amid young adults has changed into:

1. Successful people prefer to rent real estate than buy.

2. Success is when you can afford to travel, take part in extreme sports or open a startup!

What’s more surprising is that today’s youths no longer value prosperity and stability of life, but instead value financial and geographical flexibility.”

In hopes of solving the issue at hand, Urban Hartanah ended their long post by asking, “Are property prices not in line with Malaysian household incomes or are real estate deals from developers not in line with the demand from potential buyers?”

Netizens, on the other hand, were not pleased with the fact that Urban Hartanah had assumed that millennials don’t care about the long run and took to their thread to share their opinions.

This netizen said, “It’s not about interest, many aren’t even eligible.”

This comment goes, “The value of the Ringgit is rubbish. Try comparing the value of Ringgit to Dollars, you wouldn’t have to work 2 to 3 jobs while working overtime for up to 12 hours. Then when outsiders buy properties in Malaysia, you blame the local communities for not buying.”

This comment reads, “Renting houses used to be way more expensive than buying houses, but now it’s the other way around. Why do you think houses worth RM500,000 and above are left abandoned? Because the rich would buy low-cost houses to rent out to the poor.”

This one says, “I’m very interested in real estate. But it’s way too expensive. Even if there are cheaper ones, the rich would get them first. Those of us earning RM2,000 to RM5,000 salaries have no chances.”

This netizen said, “Houses are getting more and more expensive but salaries are barely increasing. Banks find it hard to approve loans. Can we buy houses with saliva?”

It’s understandable that Urban Hartanah pinpointed instant gratification as a huge problem but it was very wrong of them to assume that ALL MILLENNIALS behave as such, especially without researching further into the gap between young Malaysians’ salaries and property prices.

What do you think? Was Urban Hartanah right or are you with the netizens on this one?

Let us know in the comment sections!

 

Also read: BNM Director: Houses Prices in Malaysia Are Seriously Unaffordable By International Standards