With property prices at levels much higher than when our parents bought their homes, a mindset of “try before you buy” may just be feasible for people looking to own their own home.
Having written about the benefits of being a homeowner, I will also acknowledge friends on the other side of the fence.
There are benefits to paying rent every month to a landlord if you are hesitant to plonk down the money required to own property in Singapore. Maybe that’s why I observe these groups of people in my life that are voluntarily choosing the way of the tenant.
From married couples waiting to move in to their new home, to entrepreneurs with crazy lifestyles, and students wanting to live near campus… These are some common types of people who opt to make someone else richer by virtue of passive rental income.
Despite the obvious difference in position between landlord and tenant, here are 3 reasons why you may just grow to like renting as a passing phase in your life.
1) You Have Personal Freedom
If you can’t wait to have your own space to live a life that’s revolving solely around your lifestyle, then finding a landlord is the fastest way to do so. Imagine having no one to nag at you for leaving your soiled clothing all over the house, or coming home late at night and worrying about waking everybody up when you fail to mute impact of the sliding bolt…
By finding a landlord, you have keys to a place to call your own. The freedom to do as you wish… maybe with the exception of this.
2) You Have Location Advantage
What’s a common problem you hear people lamenting about home ownership in Singapore?
With the new BTOs that are released, the location is not near the MRT station.Especially with releases in the mature estates, chances are you will still need to take a feeder bus to reach your love nest after a long day at work…
And when the BTOs are near a MRT station, they are heavily over-subscribed. This happens in non-mature areas like Punggol.Mind you, these are serious concerns for people who will be spending the better half of their lives paying off the purchase they made. The concerns they have a valid, as they would like to buy the best location possible with their hard-earned money.
But guess what? You can circumvent those first world problems by renting a flat in any area you choose, because you are not making a life-long commitment here.
This is ideal for the freelancer who has projects with a company for a fixed period of time. You can save plenty of transport hassle and time for the duration of the project.
After the project ends, it’s time to consider shifting camp.
3) You Can Earn Money And Keep Costs Within Control
Do you have friends who teach private tuition? They may have different models of operating, starting from the freelance level, teaching students at individual homes.
Others may choose to have students come over to their place, with a limit of 3 children at a time. Doing that saves you time and the hassle of transport. It may also mean you’re enjoying a higher degree of success over tutors who run from home to home, because your clients now come to you.
What happens if you’re at the stage where you have so much students that you’d like to teach from home, but take on more than 3 students?To rent commercial property is one way, but you can quickly rack up costs that erode away your earnings in a hurry.
Tutors that have done the math and have figured it out will then start hunting for condo rentals. That way, you can continue enjoying your income from multiple students, while at the same time incur less rental costs than renting commercial property.
Depending on your phase in life, and what you’d like in the long term, there are merits to owning property and renting a place here in Singapore. If you’d like a short-term solution to owning your own space, it’s worth a try being a tenant for a time in your life.
[feature image credits: m.sztv.cutv.com]