When renting in Singapore is the smarter move – and buying can wait

There is a certain taboo on renting in Singapore, although much of that is self-inflicted. I’ve actually never heard anyone use the term tenant or tenant as an insult, but the Singaporeans who Are under that arrangement could find themselves in an inadequate housing situation. While home ownership is the norm for most Singaporeans, with home ownership rates above 90 percent, there are good reasons for some Singaporeans and PRs to opt for renting, and none of these reasons are necessarily embarrassing. Here’s where it’s best to avoid social pressure to buy:

1. You’re at the stage where you might be settling down in a few years, but you can only afford a smaller house

This is one of the most common regrets I’ve encountered among homebuyers who made their move too early. Typically, this occurs when someone buys the only condominium unit they can currently afford, such as a single room, because they have not yet turned 35 and cannot buy an HDB flat. But they still plan to settle down and start a family in the coming years. HDB regulations mean you cannot vote for a new flat while owning a private home, such as a single room. The apartment must therefore be sold first. Even if sold, there is a 15-month waiting period after the sale before you can move on to buying a resale flat, and there is a 30-month waiting period to vote for a BTO flat. This generally limits this group of buyers to the relatively more expensive flat resale market….