Benefits of Buying Property Vs Property Rentals In Singapore

What you will do?

  • Buy a house
  • Rent a house
See results without voting

According to a few of my Indian friends (expatriates) living in Singapore, property rentals in Singapore have sky rocketed over the last few years. The rentals in most of the condos in the East Coast Singapore have almost doubled. Rentals for a decent 3-unit apartment have gone from 2,500 SGD in 2007 to 5,250 SGD in 2011. Even, a whole unit condominium/apartment in Astor Green, Pine Grove has a rent of 4300 Singapore dollars whereas an HDB/HUDC with 1 room whole unit in Jurong/Boon Lay can be rented out for 2000 SGD. Property in Singapore is getting hot on a yearly basis and we don’t know how long this trend will continue. For this reason, most Indians in Singapore are opting to buy a property in Singapore for a long-term loan rather than going for property rentals because benefits of buying real estate outweigh renting property in SG.

Benefits of Buying Property vs Renting Property in Singapore for Expatriates

  • Either you can stay in Singapore, as the monthly installment will still be lower than the monthly property rental in Singapore for a similar property. Moreover, after paying for a term like 20 to 30 years, the house will be yours.
  • After buying house in Singapore, you can also give it on rent and you will still earn some good money from your rent after paying out the installments of property loan.
  • Even if you want to go back to India, you can still give your property for rent and earn some money for retirement or simply keep it as your investment property income.
  • Or if you really want to sell, you can do that and since the property prices are going up, especially for private properties, you can make huge profits.
  • According to the current economy and property demand, it is estimated that property prices will increase by 30% by 2013.

Source
  • And with the current trend of en bloc sales for condominiums in Singapore (selling of a whole condo), you might be offered two to three times of your property value.
  • So it is better to recommend all your friends in Singapore to buy property if they are rather than getting caught in the rising property rental tragedy, as rent is money, which is lost.
  • Many banks in Singapore are offering a lot of promotions on interest rates and things like 90% loan, so it is a good time to buy a property in Singapore.
  • Also, buying property in SG is good if you are using your CPF money to pay EMI, and also you plan to stay or keep the property at least for 5 years.
  • Buying HDB over Condo is a better option now. The fluctuation in HDB is not so high as compared with Condo.
  • Also the condo prices in Singapore are shooting rocket high and if you were to buy a condo in near future, it is better buy now. The upward trend will continue at least for 2-3 years.

So to buy a condo or HDB in Singapore, banks give the loan of up to 90% of the valuation. Loan of 80% of the valuation is most common practice. The remaining 20% or 10% needs to be paid as a down payment by the buyer. Of that 4% needs to be paid from you (not CPF) and the balance could be from your CPF account, so according to my friends, buying property in Singapore is a better option that renting property for Indians in Singapore keeping in mind the above-mentioned benefits.

Still don't agree: read this book: Buying or Renting a Home in Switzerland: A Survival Handbook (Buying a Home)

Source

More by this Author


3 comments

Trsmd profile image

Trsmd 5 years ago from India

I agree. Buying property will also provide you capital gains in long run and also you can beat the inflation cost..


soni2006 profile image

soni2006 5 years ago from New Delhi, India Author

You got my point right Trsmd. I always give advice to people to buy property if possible instead of renting one, as I have on my own wasted a lot of money on property rentals before I started hunting for my first home.


SummitTechnology 2 years ago

I am going through this post and thinking of it’s theme and trying to understand what is this post about. At last I can have found something from this post which feels pretty good.

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working