To live in a house in Singapore, you either need to buy or rent. This is a decision almost everyone living in Singapore has to make at one time or another. Before embarking on either you need to consider some factors e.g., lifestyle, employment, and financial situation. These elements will guide you to making a sound decision and sway the answer to one side or the other. So, is it better to buy a house or live in a rental house in Singapore? To help you let’s have a quick look at the pros and cons of both rental and buying a home.
Pros of rental house
Living in a rental means you don’t have to pay for major repairs, property taxes, maintenance or other issues that might surface during your tenancy.
Flexibility is crucial, more so for a young family who might need to move from places to places due to career, or if you need to try out neighborhoods before settling.
Change in value of property
Real estate is not immune to economic woes. If the price of property fluctuates, the owner will be affected not you. While they might try to pass the heat, this is not possible for one with a long-term renting contract.
Great for short-term options
If you are saving to buy you’re a particular house, renting is a great option. It also helps prepare one for the responsibility of paying the mortgages if you plan to take a loan for your bought house.
Cons of renting
Well, renting is all about liabilities. You will not get back anything in return for your money, just a roof over your head. You are therefore paying another person mortgage.
While renting you are not allowed to make any structural changes unless you go to the owner first.
Buying a house in Singapore
A sense of security -Once you are done with the buying process, the house becomes an ultimate provision for you and your family.
If the value of homes appreciates, you will get more for a resell.
The cost of buying a home is more stable and predictable. This is because most of the mortgages are fixed-rate.
Living in your own home gives you the freedom to renovate and redecorate to match your taste.
Disadvantages of buying
High initial payment
When buying a house, you have to part with a high initial down payment. In some agencies, the initial payment is 20% not adding all other additional payments that come, e.g., stamp duties that come with the process of buying a home.
To fully own the home you have to pay other running costs, e.g., insurance, property taxes and repairs which don’t come cheap
If paying in a variable interest rate, you are subject to inflation which significantly increases the rates.
If you decide to rent the house, it will be your responsibility to find tenants and manage them.
With that, you can now weigh both options and choose one that meets your needs.