THE COZY SOLUTION
Not sure whether to buy or rent property? We speak to the co-founder of CozyHomes to help you decide
WE SPEAK TO Vincent Lim of CozyHomes to find out the pros and cons between renting and owning a property.
Of late, the debate about home ownership vs renting has been creating quite the buzz, with the paradigm shifting more towards renting as the better option, compared to previous years, where owning was said to be the best (or right) thing to do.
Thankfully we managed to get in touch with Vincent, who has been in the property industry for awhile now, to enlighten us on why renting is fast becoming the more popular option these days. In its essence, CozyHomes aims to help tenants looking for beautiful, fully-furnished homes for rent. Why do you think more people are now moving towards renting, instead of owning prope y?
Back then yea, a lot of people did want to own, but based on my personal opinion now there are quite a number of reasons that renting is more favourable these days.
One of the reasons is price saturation, which means there’s very little room at this point in time for capital acquisition. So for a lot of youngsters, they would think that it’s relatively cheaper to rent, rather than to buy.
Secondly, it isn’t easy to get a mortgage loan to begin with. Although the interest rate has been dropping during the MCO period, the rules and policies by the banks are still becoming more stringent, and loan approval isn’t easy to come by. One example is that banks have now started to categorise incomes as ‘essential’ and ‘non-essential,’ and a lot of industries fall under the non-essential category. This means that people within those industries have in a way lost a certain income rating, as compared to previous years.
On top of all that, not many are ready for the long-term financial commitment. Because buying a house is not a one-off payment, but it’s up till 35 years (maximum) of payments. So, instead of having to allocate a significant sum from their income to pay for the instalments, most would rather prioritise this spending on their lifestyles ‒ eg. travelling (when able to), online shopping, and such.
Plus, when we talk about current lifestyles,