It is not a secret that the cost of buying a house in Singapore or other properties is one of the highest due to many factors. One of these factors is the high demand paired with the scarcity of the supply of land due to Singapore’s limited land area. With this, the cost of renting is just as costly. Everyone is surely trying to keep up and fit in Singapore’s busy lifestyle. That is why these same people have a lingering question to be answered. With these costs continuously increasing, what is a better housing option in Singapore?
People have different wages therefore different financial and buying capacities. Therefore, the answer to this question would vary from person to person. The best arrangements for a married person might not be the best option for a single millennial. That is why in this article, we will discuss the pros and cons of renting and buying a property in Singapore.
Opting to rent a property might not be everyone’s first choice or priority. However, in a competitive economy with an expensive cost of living like Singapore, renting might be the best choice. Here are some advantages of renting a property in Singapore:
With renting, it offers flexibility as you are not tied to it for a long time. For someone who just wants to stay for a short time or for someone who would like to leave the neighborhood or even Singapore after a while renting might be the best option. You would also have lesser obligations compared to owning or buying your own property. This is why for the majority of millennials, condo for rent Singapore options are more attractive than buying a property.
#2 Low upfront and maintenance costs
Compared to the cost of buying a house in Singapore, renting would be less costly. From the initial down payment to the long-term maintenance, you would have to shell out a relatively smaller amount in a condor for rent Singapore option. For example, acquiring your own house would require a bigger down payment compared to just opting a condo for rent Singapore choices. With your own house, you will be shouldering all maintenance costs on your own. While living in a condo, for example, maintenance fees are then divided into the residents of the building.
#3 Less risk
A property is just as much as a commodity like any other product in the market. With this, it is also subjected to changes in property values. The changes in property values will affect homeowners while renters are likely to to be not affected at all. Imagine being in a condo for rent Singapore room and experiencing a recession in the market. When this happens, you would not be the one taking the hit property-wise. With this, you would not have to worry about the cost of buying a house in Singapore since you are spared from the risks it entails.
As there are pros in renting, let us also talk about its cons. One of the most obvious cons when you rent a property in Singapore is the zero return of your investment. You are paying your monthly dues without returns. As they say, you are basically paying someone’s mortgages. Renting is not considered as investment because no matter how long you rent, you do not own anything at the end of the day. Given that you do not own the place, you cannot make any major or grand changes in the property.
It is a luxury when you can afford the cost of buying a house in Singapore. The most obvious advantage of buying property is that at the end of the day it is yours. You will enjoy the sense of ownership from investing your money. Buying your own property will give you security. Compared to renting where you might get kicked out anytime, having your own property provides you with assurance.
#2 Can expect a return
By owning a property, you can expect a return on investment. If the value of your property appreciates time, then you can get back your investment. You can also open it in the market for rent. By doing this you are treating your property as an investment. By being open to have it rented, it is not a stagnant investment. And with the cost of buying a house in Singapore, renting is one popular option.
Unlike renting, when you own a property there are limitless possibilities when it comes to renovating, designing, or revamping your space. As the owner, you can do whatever you want, how often you want, and anytime you want it.
Of course, with these pros also come some cons. Financially, buying your own property would require you to release a higher upfront down payment compared to renting. Costs of buying a property goes way beyond the deposit, as you go along the process you will also have to pay for insurance, property taxes, and repairs in the long run. Even if you treat the property as an investment, sometimes they do not necessarily appreciate thus cannot guarantee the return of investment.
There would be many pros and cons tied to both renting and buying property in Singapore. The choice would depend who is looking as we all have different priorities and financial capacities. You just have to carefully weight your choices and choose what option best fits you.
As you are deciding which option is best for you, check out other articles in SRX Property. We offer a helping hand in anything real estate related. Make sure you are making a smart decision– something that you are satisfied with and is within your financial capacity.