I run this BIG group on Facebook and WhatsApp for Expats and Locals and often there are discussions about rentals and buying house in Singapore. Read on this article that will give you some pointers in decision making process.
Thinking of buying or renting a house in Singapore? You might want to consider your choice wisely based on how long you plan to stay in this city country. Majority of unmarried Singaporeans would rather choose to stay with their parents as they usually decide to move out once they tied the knot. If you are non-Singaporean and plan to stay in Singapore for work purposes, it is possible, but it totally depends on your term of staying on whether you should rent or buy a house here.
Both owning and renting a house in Singapore can be quite lavish, so proper and thorough planning is needed so that you will be able to cover yourself up financially. According to statistics reported by the government, house ownership rate in Singapore marks at the highest point worldwide which was 90.7%. This percentage is a combination of both Permanent Residents (PR) and foreign workers who live in the city.
Singapore Citizens have the benefit to purchase government-built or HDB flats where subsidies will be given to the qualified party. The eligibility conditions to purchase HDB flat includes local citizenship or permanent resident and must be 21 years of age with a family. Those who are below 35 years old and single are not applicable to purchase new HDB flats. These flats are purchased on a 99-year lease.
Buy or Rent?
The cost of buying and renting a home in Singapore differ one another. Typically, if you have a long-term plan living in the country, it is best for you to establish ownership for a house. In contrary, if you only plan to live for a few years, you can consider leasing. Like any place in the world, the cost of buying and renting a house varies depending on the location. One area can marks up an expensive range of price while the other area can only charge you a minimal cost.
There are many pros and cons of whether to purchase or rent a house in Singapore. Your financial stability is a major concern since living in Singapore itself is not cheap. But if you know how to plan well, benefits can befall on your side. Renting a house will offer you few maintenance responsibilities, mobility and small financial commitment. As for buying a house, you will be able to generate income as the property values can appreciate, eligible for government grants, monthly instalments turn into house ownership, ability to modify the house and more.
Renting a House in Singapore
Pros of buying a home seem to stand out more than renting. But if you still want to rent a house in Singapore, there are a few considerable matters you should think before making your decision:
- Your term of staying
- Your location choice
- Number of bedrooms needed
- Type of property
- Fully-furnished or unfurnished home
The rough cost for monthly rent falls within the range of $600 up to $3,500. Of course, the price differs on the type of property. By renting a house, you are able to strategize your financial planning. If you plan to move to another location, then renting is a good option because you are not tied to ownership status.
Owning a House in Singapore
If you are a non-citizen, buying a house sounds more beneficial if you plan to live in Singapore for a longer period of time. When planning to own a house in the country, you have to consider the location and whether it is a private or public type of property. As mentioned, the pros of purchasing a house are off-balance compared to renting.
With house ownership, you will able to make a property investment planning, your money is invested in owning a house, the use of CPF funds, tax deductible, property inheritance as well as ability to do modifications on the property. Below is the list of the type of house from the cheapest to the most expensive you can find in Singapore:
- HDB flats
- Executive condos
- Resale HDB flats
- Newly-launched condos
- Resale condos
- Cluster houses
- Landed houses
You can compare whether it is more worth to buy or rent a home in Singapore based on the information given above. Ease your decision-making action by listing down your thorough judgements since both buying a house and rental option has pros and cons of its own.
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