Many Singaporeans have been taught that purchasing a home is the best way to be successful as adults. Once you have your dream home, you might feel like you’ve achieved success in life.
However, not everyone is able to buy a home. A home purchase in Singapore can be complicated and require a lot of paperwork. It is not for everyone.
Here are some reasons renting property in Singapore is a good option if you consider making a move.
Renting Provides Better Cash Flow
A home purchase requires a lot of financial commitment. Depending on the property type, the down payment could quickly run to S$50,000. Not to mention renovations, furniture, and electronics which can soon add thousands of dollars? These are only initial payments.
That is a much better deal than a deposit for one to two months’ rent. You have more money to invest in other areas of your life. There are many options: funding your business idea, opening an investment account, or going back to school.
You should also make sure you have enough cash to cover any unexpected household expenses. Renting a fully furnished and ready-to-move-in apartment is an excellent option for those who want to save more money.
Renting Is Less Expensive Than Owning a Home
Once the initial down payment, renovation, furnishing, and mortgage payments are paid, ongoing costs such as property taxes, monthly mortgage, and home maintenance can be easier to manage. It is essential to keep in mind that this cost will continue to be borne for the next 20-30 years, depending on how long your mortgage term is.
You need to save cash, even if your space is rented out for passive income. It is possible that, depending on economic conditions, you may have to spend more than you initially budgeted by refinancing your loan amount every few years.
Renting is financially liberating because you pay only a fixed rent and utilities for the duration of your lease. That is a great way to reduce stress and make your life easier with retractable hose reel.
Renting Offers You More Flexibility in Your Choice of Location
Your location will be restricted depending on your budget. These areas may be further from your work, family, religion, or preferred entertainment spot. You can also buy a home and lock it in for three to five years, depending on the type of property. Although you have the option of selling your home and moving back with your parents or moving to your dream place, this can be tedious and costly.
Renting allows you to move around freely in Singapore, whether you choose to live in Tiong Bahru, Joo Chiat, or anywhere else that suits your budget and lifestyle. Renting would also allow you to move to wherever you want, whether you are planning to migrate or just to change cities every so often.
The Bottom Line
Although buying a house can give you the feeling of ownership, it is only possible to keep it for 99 years unless it is freehold. It applies regardless of whether it is private property or a home purchased from the Housing Development Board (HDB).Renting property in Singapore as a home is a great way to achieve your financial freedom and flexibility goals. Renting doesn’t lock you into a property over the long term. You have the freedom to move to your preferred location and enjoy the benefits of modern-day accessible living.
