Are you planning to buy a house on your own? With so many available schemes, such as PR1MA, buying a house is no longer a far fetched dream. This article will tell you how home ownership is more expensive thn you think. First of all, the cost of owning a home is more than its selling price. Think about the costs that you have to bear after paying the huge amount for down payment: 1. Renovation cost After getting the keys to your home, the first thing that comes to your mind will be home renovation. And home renovation might cost more than what you expect, even if it is only a basic simple renovation. There are lots of renovation items that will cost you a lot after you itemize them, such as the lighting fixtures, curtains, air conditioners units, bathroom accessories, electrical works, window grills, cement screeding, painting, haulage fee and more micellaneous fee that will add up to a huge amount after you are done with the renovation. Sure you are allowed to take those articles with title “renovating your home with less than RM10,000” for reference, but do read article like this with a pinch of salt as most of them do not include furnishing costs such as the beautiful furniturethat you see from the article. In addition, simple fixutre such as the lighting is not included in their renovation costs as well. 2. Opportunity cost Bear in mind that the moment you buy a house or a condominium, you are actually letting go some good opportunity that might be even better than owning a home. This is one of the few options that people will ever consider when they purchase a property. Most Malaysians have failed to realize that the huge amount of money they spent in buying a property could have been used to generate returns if they were to invest in other investing channels. Do bear in mind that you the cost of buying a house is not as cheap as there is also renovation cost to take into account. Therefore, it would be a huge sum of money and that would be the actual cost of buying a house, not including maintenance fee. That being said, the home buyer should not be too happy when he is able to sell the house for say, RM600,000. Think of the opportunity cost that he has missed out on when buying a house. Of course, if the home buyer bought the house for investment purpose, meaning to say, renting it out, that will then be a valid reason in arguing that it will have a higher return as compared to investing in risk free assets. In conclusion, owning a property is still considered a great financial decision, especially to young working adults in Malaysia. However, do bear in mind that owning a house is actually more expensive than what most people expect.
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