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08 Mac 2018

Buying vs Renting Property In Singapore


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. Furthermore there are many houses for sale and rent in Singapore, such as HDB in Clementi , therefore, it is even harder to decide on whether to buy or rent a house. This article will guide you through the important factors to consider before deciding on whether to buy or rent a house in Singapore.

1. How long do you intend to stay in the property?
Are you planning to stay long term or short term in the property? Are you planning to upgrade to a bigger house in the future after you have children? Are you planning to move to an area nearer to the Central Business District (CBD)? All these questions should be taken into consideration when it comes to deciding whether to buy a house or rent a house.  

The longer you stay in the property, the better it would be for your bank account if you own a house, as you do not need to pay for monthly rental. Let us say if you intend to sell off your property after one year or two, it will be hard to make a profit after taking the costs of buying and renovating the house into consideration. If you are a newlywed couple who plan to move to  bigger house after you have children, renting a house is definitely a better choice as of now. Furthermore, renting is more simple than buying a property as you do not have to maintain the property yourself. 

2. How stable are you? 
How stable are you in terms of your financial situation? Will you be able to afford buying a house? Even if you can afford to pay for the down payment, can you afford the monthly mortgage repayment? Will you still be able to pay for mortgage loan if you lose your job? These are the questions that you should ask yourself before you decide on whether to buy a house or rent a house instead. Make sure you know your financial stability before you decide on whether to buy or to rent. After all, it is a huge commitment that involves lots of money. 

That being said, if you intend to buy a bigger house or buy a dream house, renting a property sounds more of a better option for now. 

3. The importance of staying in your dream home
Everybody wants to go back to a place called home after a long day at work. After all, home is the place that you spend most of your time after working. Therefore, it is important to have a home that is comfortable. That being said, renting a house should be out of your option if you do not like sharing your house with people you do not know or if you prefer not having stranger(landlord) barging into the house unexpectedly. 

Buying a house on your own would be the right choice for you if you enjoy having your own privacy and sense of ownership. By having a property on your own, you get to do anything and everything you like without worrying about your housemates or your landlord. 

4. Affordability
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. Do also bear in mind that the maximum bank loan that you can obtain is 80% of the price of your property, therefore, you will need to consider your financial situation before you make a decision in buying a property. 

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.

5. What kind of property would you prefer?
There are 3 types of property available in Singapore: HDB flats, private condominiums or apartments, and landed properties. Be sure of the type of property that you would want to live in. If you prefer staying in a gated compound with different facilities available such as swimming pool, gymnasium, tennis court and so on, condominium would be a suitable choice for you. If you really prefer having a private space with enough privacy, renting a landed property will be a good choice for you instead. 

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.

3 ulasan:

Tanpa Nama berkata...

nice sharing

Salina Johari berkata...

Seandainya mampu, nak jugak beli rumah di negera luar tp apakan daya ..moga impian jadi kenyataan.TQ share Fir.

Hans berkata...

nak beli dekat Malaysia pun masih tak mampu apatah lagi di singapura
hehe