Do Rentals Make Bet­ter Sense?

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Yes, and no, says Al­fred. “The is­sue of rent­ing ver­sus buy­ing isn’t much of a prob­lem in Sin­ga­pore, un­like in the United King­dom or Europe. If you’re a Sin­ga­porean liv­ing and work­ing here, be­ing able to use your CPF to ser­vice your home loan makes home own­er­ship more fea­si­ble.”

Hav­ing said that, he agrees that rentals have some ap­peal in times of ris­ing prop­erty prices and sub­se­quent cool­ing mea­sures. “I know peo­ple who’ve sold their prop­erty and rented it back from the buyer to en­joy cost sav­ings. Some lease out their ex­ist­ing prop­erty while rent­ing a place nearer to their of­fice or kids’ schools.”

Des­mond adds that rent­ing should only be a tem­po­rary mea­sure. “As prop­erty prices in­crease, so too will rental prices in the mid- to long-term.”

Here are some ben­e­fits and draw­backs of rent­ing.


1 It’s less ex­pen­sive than buy­ing a home, in the short-term. 2 Flex­i­bil­ity – you have the freedom to move if you don’t like the en­vi­ron­ment. 3 You’ll have fewer fi­nan­cial obli­ga­tions and you can save for your dream home.


1 De­pen­dence on your land­lord – you’ll have to ne­go­ti­ate if he de­cides to in­crease the rent or move out if he wants to sell the place. And you can’t mod­ify the prop­erty as you please.

2 You can’t use CPF to pay rent.

3 The rent will go up as prop­erty prices in­crease.

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