TO PURCHASE OR TO RENT A HOME IN MALAYSIA? A CASE STUDY IN SELANGOR

The real estate sector in Malaysia has witnessed rapid growth, especially in the residential and commercial segments. This study aims to determine the significant factors leading to the intention to either purchase or rent a house in Malaysia. Demographic factors, financial assessment and social attributes serve as independent variables for decision making concerning purchase or rental of a house. The Rational Choice Theory is applied in this study. Data collected via questionnaire to households’ in several shopping malls in Selangor. The findings reveal that educational qualification and households’ monthly income influence the intention to purchase or rent a house while marital status is not a significant determining factor. Respondents with higher educational qualification and higher household monthly income prefer to purchase a residential property rather than to rent. Financial assessment is a significant factor affecting the intention to purchase or rent a residential property. Implication of this study enables government, bankers, marketers and real-estate developers to take into consideration of demographic factors, financial assessment and social attributes for future strategies formulation toward real estates development in Malaysia.