In country like Singapore, English is the trade language, and this place is a fusion of uncountable nationalities and cultures, wherein, most of the Singapore citizen are still much more Asian at heart. Among other matters, this bring about residing with your parents until you have your own family (or you reach 35 years old, and you are capable of purchasing a flat).
Of course, you can rent at all time. But Singaporeans characteristically discharge the possibility of entering the leasing marketplace as not being price competent, with much comparing it to “putting the cash on the duct”.
Try observing at this similar situation with a different perception, though, it might have all the difference. For an instance, International Property chief executive Advisor, Mr. Ku Swee Yong, declares that since the leasing marketplace is an occupant’s marketplace today, it will “hard for property costs to interrupt their cost”. For him, it is worthy to rent for how many years, and wait for the property costs to fall.
Before screaming for property profanity, here’s an exact example to demonstrate Mr. Ku’s opinion.
As what on the result of Mr. Ku’s calculations, which are based on first quarter transactions from a condo situated in Novena, the cost of ownership is greater than that of rent payment until the fifth or fourth year. This model presumes that the leasing amount remains plane, and it uses an extremely conventional amount of proprietorship that disregards the repayment and down paying of the main loan.
The bottom most line? If you are very wealthy and partake the corresponding down payment cost that lies around in liquid cash, it may not be such a silly choice to work out your perceptions on the rental marketplace. Make sure you take into an account both the low rental costs, and the prospect cost of using your cash to finance a down payment, before you write off renting an apartment totally.
The author of the book Rich Dad Poor Dad, Mr. Robert Kiyosaki, delivers a different point of view, telling that homes can’t be considered an asset.
What’s the basis behind all of this? As stated by Kiyosaki, it is not a problem either a property rises its cost. What owners should be observing at, is whether their house runs cash flow monthly. Basically, he says that it is hard to make your money “on the buy, not the sell”, and that is because you reside in your house and you are not leasing it out, a house should not be treated an asset.
Whether you are in favor of Kiyosaki’s opinion, the sure thing is that costs have been depreciating beyond the board for both resale public segments together with private homes. Literally, we have noticed a constant fall for private residential for fourteen quarters now, so it means that we are now suffering the longest depreciation we have had in thirteen years, this is according to the Urban Redevelopment Authority’s statistics. Considering this, you will have to be a very positive personality to tell it with confidence that you will surely have an income on your property.
Are you about to change your decision on renting Singapore’s property? If you want to begin, learn on our articles on the mistakes on property renting, insurance, renters’ and what to do when you are viewing a leasing property. Now, it’s your chance to discover the bachelorette or bachelor’s pad of your dreams!