It is undeniable that buying a house is a milestone achieved in life and signs of adulting but not at a very young age. Till today we have the mindset where owning a house is a proud event for a big-ticket ownership and renting a unit or room is a shame of your capability. With increase of property prices over decades and depleting ratio of household income against the property prices, renting also benefits in all aspects.
Doesn’t matter if you’re renting a 2 bedroom in Woodlands’ HDB or a private condominium in Tanjong Pagar, it still brings more advantage than buying a home. Think again, what’s the difference of buying a 99 years leasehold HDB or condominium compared to renting a home with a 99 years leasehold? Well, you are buying a “99 years leasing” property with higher price compared to renting one in Singapore.
Flexibility to move
Apart from that, you don’t have to be ‘stuck’ in a neighbourhood. Moving around neighbourhood before settling down gives you a better vision of your future life that you’ll like to live, from beach life Marine Parade area to trendy neighbourhood in Tiong Bahru or even quieter place in Woodlands. Whenever you change your job, you can move nearer to your work place which allows you to save time compared to house owner who are committed to the area of their property. With the flexibility to move around, this brings out the explorer and adventurer in you to discover every neighbourhood you dream of exploring. Click here to see your list of neighbourhood exploration.
Lesser financial commitments
You’re more flexible than property owners, you’re able to move around without having to worry about your commitment. So what if you have once in a lifetime opportunity to venture overseas? You don’t have to worry what you’re going to do with your house after leaving the country. You don’t have the need to be tied to your mortgage for your HDB or condominium which you have been servicing. You don’t even have to pay hefty amount of maintenance fees, property taxes or repair works around the house, those money you save on allows you to laugh all the way to your bank.
Another hefty sum that you could have save on is the downpayment you will need to pay for purchase of the property, regardless HDB or private property. This downpayment could cost your savings up to 10% of the property price, there goes most of your Central Provident Fund (CPF), to fund your house.
Property value ups and downs
We have always heard that buying property is good to hedge against inflation. It may become a myth if the property market is spiralling down. The current market scene in Singapore is currently slowing down and higher unemployment rate could result the rising vacancy residential units in Singapore. Over the years, Singapore government has been lending a hand in the property market by implementing cooling measures with stricter requirements for house ownership. This effect has done a good job by reducing the property prices, but this effect can be feel by house owners if they intend to sell their house. However, the moving prices of property does not affect renters. In fact, it will be even good news for the renters if the property price is going downwards because renters enjoy lower rental rate.
Saving for future
With weighing in the benefits of greater saving by renting, not only you are laughing your way to bank, you are actually saving yourself a house of your own. During your renting days, you have probably saved up from paying interest fees, maintenance fees, insurance costs and repairs around the house, it’s a hefty amount by the way. With lesser commitments in life (like marriage and kids) and 35 years old and below, you probably have saved up a downpayment for your future house, regardless BTO or HDB flat or private condominium in various places. On top of that, for first time house buyers, you are given grant from Singapore government when buying HDB flat in Woodlands or BTO flats in Bidadari. That’s another portion that you saved from paying substantial amount of money in downpayment.
In conclusion, there are many reasons for being a house owner (like building or staying in your dream house) but that doesn’t necessarily brings you benefits if you are always living on fear with huge commitments and constantly worrying about living life. Hence, if the above fits your current situation, do not feel mortified with your choice of being renter till your life is stabilized and ready for commitments.