Choosing between renting and buying a condominium in Singapore is an important decision you will have to make. Property prices are increasing every day while affordable housing from the Housing Development Board comes with certain eligibility conditions. Rent rates, on the other hand, have been falling steadily across the country. This has seen many young Singaporeans moving out from their parent’s homes and renting an affordable place of their choice. While many Singaporeans turn to renting affordable condominiums, we cannot ignore the rise of modern luxury apartments such as Martin Modern that encourage more people to consider buying over renting.
Renting or purchasing a condominium is a personal choice and it requires taking into consideration your financial condition, lifestyle and your anticipated length of stay. However, you should consider looking at some of the facts about renting versus buying a condominium to make a perfect decision.
This is the number one reason why people choose renting over buying a condo. You only make monthly repayments while renting, different from buying a home where you will be paying off a mortgage for years. Renting may seem like a better option at the time, but it takes you further away from owning a home. However, the mortgage cost might seem ridiculous, but it is bringing you closer to owning your own home.
Renting allows you to move from one place to another quickly and with little hassle. Some people also choose to try out different neighborhoods before settling down permanently. Buying a condo unit at Martin Modern, for example, is like getting married as you will be live there for the rest of your life unless you decide to sell it.
You cannot make significant structural changes in a rented condo without permission from the landlord. This means you can only get used to what the property owner has to give since you cannot change it. You can do whatever you want with a house you buy without seeking permission from anyone. Sometimes a new home requires repainting or moving some items, which can be quickly done after buying.
The initial cost of buying a home can range from 20%-30% of the total price. This can be very overwhelming to a young couple or an individual yet to reach the peak of their career. Therefore, renting becomes the best alternative where you will be required to pay an upfront that is usually two months’ worth of rent. This is a better option compared to the crippling upfront fee that you will have to give while buying a house.
Buying a high-rise condo unit such as Martin Modern can be a good investment. You can choose to live in the condominium and build equity or generate profits by renting it out. Alternatively, you can choose to sell your unit after a few years for a higher price than you bought it. A rented condo is not your property meaning you cannot build equity while living there. Rent payments only drains your wallet continuously without generating any returns. This means you will have nothing show by the time you decide to buy a house.
The landlord is responsible for most maintenance and repair works if you are living in a rented condo. They are also responsible for various improvements that you require done in the condo too. When you own property, you will have to deal with home repairs whenever something breaks down. This includes the responsibility of repairing common areas that you share with other condo owners.
The decision to buy or rent a condo depends on the various factors like the one stated above. Some people who have in the past rented condos have ended up buying one such as Martin Modern while others ended up selling the property that they owned. Sometimes renting is appropriate if you are searching for a new neighborhood or if you are in the middle of a job search. Remember renting may give you a quick solution to your housing problems but buying offers a lasting outcome.