Stuck in a dilemma between renting or buying a home? You are not alone, as it is a common thought among many fellow Singaporeans. For most of us, we have been influenced by both our upbringing and society that purchasing a home is the ultimate proof of success as an adult. It might make you feel like you have made it in life once you have settled down and purchased your first home.
However, the truth is that purchasing a home might not be the ideal option for some individuals. Purchasing a home is more than just getting your own place. As prices of houses are increasing exponentially, so are key financial commitments that go into maintenance, renovations, property taxes, and mortgage. Hence, if you are considering moving, here are 5 reasons why renting a serviced apartment with ST Residences is not necessarily a bad decision, and instead could be a sounder decision than purchasing one.
1. Renting offers better cash flow
Purchasing a home comes with significant financial commitments. Depending on the type of property you are going for, the down payment can easily start at a minimum of $50,000 in cash. Not factoring in the cost of renovations and home essentials, such as electronics and furniture, which are getting higher due to inflation, the final cost at the end will be exponential.
When you rent a serviced apartment with ST Residences, you enjoy a flexible lease. Additionally, you just need to put in a rental deposit of one month’s worth of rent, leaving you with more money on hand to invest in other areas of your life. Furthermore, with ST Residences, you do not need to worry about furnishing the place. All our serviced apartment rental is fully furnished; all you need to do is come and stay.
2. Renting is financially less straining
Once your down payment, furnishing, and renovation costs are out of the way, ongoing costs, such as home maintenance, monthly mortgage, and property taxes, are generally manageable. However, it is crucial to note that these ongoing costs last for the following 20 to 30 years, depending on the duration of your mortgage.
Even if you choose to rent out your home as passive income, there are many economic climate-related factors that you need to consider, too, such as imposed cooling measures like the higher interest rates floor and lowering of loan-to-value limit.
Renting is financially less straining as all you need to remember is to pay the rent. When you rent with ST Residences, our apartment units come fully furnished and equipped. Housekeeping and other essentials such as WIFI is provided and complimentary. Additionally, we provide a fixed monthly utility allowance, depending on the type of apartment, which typically is enough to cover the monthly usage. You will only be charged the excess when you use more than the given allowance.
3. Renting offers flexibility
When buying a home, your location is restricted to your affordability, resulting in some of the potential houses being located further from family, entertainment spots, religious communities, and workplaces. Additionally, once you have purchased your home, depending on the type of property purchased, you are locked in for a minimum of three to five years.
With rental, especially with ST Residences, you are given many different choices of locations, from CBD and Novena to Paya Lebar and Jurong, depending on your monthly budget and lifestyle. Additionally, with a flexible lease, it is also highly suitable for digital nomads or ex-pats who need to travel often.
4. Toxic neighbours? Renting makes it easier to move places
While it is not a key priority to most Singaporeans when buying or renting a home, it is something you should consider as it can be a significant enough issue to impact your quality of life.
Should you purchase a house and meet toxic neighbours, you would not be able to move out as straightforwardly as you think. Renting, on the other hand, offers the flexibility to move out from toxic living conditions to a community that offers peace of mind. To ensure all our tenants a comfortable stay with us, ST Residences has a team of experienced and dedicated service professionals who will assist with any issues and enquiries.
5. Renting does not come with any worry of home depreciation
Purchasing a home is an ideal investment, and hence, there are many Singaporeans who look into buying real estate for that purpose. However, after the 2008 financial crisis and the recent pandemic, your home’s value might not be as high as you think. It could also be the case that your home’s value might not be as much as your existing financial obligations because of the current inflation.
While purchasing a home might offer a sense of home ownership, if you really need financial flexibility and freedom in your life, then renting a home allows you to reach your desired goals. Renting does not tie you down to the property for a long period of time, and with ST Residences, you not only enjoy flexibility and freedom, but you also get to live in your dream location.
Who is renting for?
If you are a:
- Someone with work commitment that requires you to travel often
- Single individual looking to live independently
- Couple ready to take your relationship to the next level
- Looking for a short-term lease
- Single individual looking to move into a fully functioning and ready apartment as soon as possible
While this does not imply that purchasing a home is not recommended, the point we want to put across is to make an accommodation decision that best fits your budget and lifestyle, as well as emphasise that buying a property is not the only way to own an independent life.
So, if renting an apartment sounds like a great option, then look no further than ST Residences. From short-term to long-term serviced apartments, we have many property types, such as studio serviced apartments up to 3-bedroom serviced apartments, all of which are conveniently located and fully equipped with everything you need. Contact us at https://stresidences.com/ to speak to our team today!