Property in Singapore is expensive and property price in Singapore has been falling for the past few years. Therefore you are stuck in between whether to buy a property in Singapore or opt for house rental in Singapore as you do not know which is a wise decision – to buy or to rent a house.
However, this is still a big decision to make in your life as there will be different milestones that you achieve in life. Although most Singaporeans already have a house on their own, there will still be reasons that they have to move out from the current house as they reach another milestone in life:
- Child attending school the following year and you prefer staying nearer to school
- Just changed a job and do not wish to spend hours communting to work
- An upgrade from your current HDB flat to a condominium unit and need a place to stay for transition period
- Prefer staying nearer to parents
Either way, there still comes a question – to buy or to rent? Before deciding, take some time to ask yourself these 5 questions to find out the best option for you.
Private properties are overpriced in Singapore. Not only it takes all your money out from your Cash savings and CPF, you are also creating a long term commitment for yourself too. Furthermore, buying a property for your own stay is a liability instead of an asset because there is no cash flow from it as you are not renting it out. If buying a house will cause you financial burden or even falling into a debt, you might want to ask yourself again if buying a house is a wise choice or not and whether you can afford it or not is another crucial question to ask yourself.
The momentyou buy a house, you are commiting into a new commitment in life. Bear in mind that this commitment does not stop and it is an ongoing commitment. Think about:
- the repairing costs that you will be spending on whenever there is any problem with the house such as, wall cracking, water leaking or even painting.
- the replacement of furniture when they become old after a decade
- the maintenance fees if you are buying a condominium unit
- property taxes that you have to pay
If you think you can afford all these and can commit to all these expenses, then purchasing a property is alright. However, if you are already struggling with your finances, or loathe the hassle when it comes to taking care your own home, or prefer having someone or the landlord to be in charge of the upkeep, then you should definitely consider renting a house instead. In addition, you will only need to pay approximately $200 for minor repairing cost on your own and the rest will be borne by the landlord.
- Living arrangement
Aree you the kind of person who wants to be in charge of everything at your home? From the interior design to the choice of furniture used. If you are, then buying a house is suitable for you. You are allowed to do anything even when it comes to knocking down the walls to create a new face lift for your house. However, if you just need the convenience of staying near to your workplace or your child’s school, and all you need is a place for you to stay, then renting is a great choice for you.
Wanting to buy a property but you are not sure if you will like this neighbourhood. You can always choose to rent a place in that particular area first before deciding to buy a property so you do not regret in the future. Think of the possible scenario where you could not fit in to the community in that area but have no choice because you just bought a property there. You definitely do not want this to happen. Therefore, you can choose to rent a place first and decide if you like the estate before making such big ddecision of buying a property in that neighbourhood. After all, if you do not like it, you can always end the lease contract and search for another new neighbourhood. Make sure you like the location before you buy a property there.
- Financial goals
Do you have any life goals or financial goals that you would like to achieve, such as:
- Traveling around the world
- Spending some time with your children before they grow up therefore you might want to stop working
- Chasing your personal passion
- Early retirement
Be clear with what your life goals or financial goals. As buying a house is going to be a huge liability, you might need to postpone your life goals especially if it involves money.
In conclusion, buying or renting a house in Singapore is a big decision that requires a lot of considerations. Consider the above factors thoroughly. Do not rush into any decision to prevent getting yourself into a financial debt.