I recently met up with my polytechnic friends as well as my university friends.
In those 2 group, there were individuals who have applied for a BTO unit with their significant other.
One of them have even successfully gotten a BTO unit.
When I first heard about their plans, I was like wow.....we are all getting old now. And that they are really planning for their future.
I mean I met my polytechnic mates when we were all just 17 years old so every time I meet them there is that impression that we are all still young.
But right now, we are already 24 years old and some of them have signed on to the army or are starting to work like me.
BTO was the next thing for them after getting a job.
Of course, my friends who have applied or gotten a BTO unit have already dated for number of years and are more or less gonna get married to their girlfriend or boyfriend.
The process is pretty long, from choosing where you want your future house to be to balloting and then to wait for the flat to be build.
One of my friends who has already a unit mentioned that they were actually the last few queue numbers to get a unit hence they were not expecting to get a good unit.
However, when they went in to choose their unit, they realized that there were actually quite a number of empty units meaning that the couples either did not want to follow through or that they could have broken up.
She feels pretty rushed after getting the unit as she has to be engaged before the flat is ready and her boyfriend is currently planning a wedding photo shoot before having the actual wedding.
No matter what, I think it is great that young couples are able to get their own flat even though balloting for a unit is not that easy but it at least is an avenue for couples.
For me, if I continue to be single, I would need to wait till when I am 35 years old before getting a resale HDB flat as I don't think I would be getting a private property.
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Showing posts with label property. Show all posts
Showing posts with label property. Show all posts
Thursday, 7 February 2019
Friday, 22 June 2018
Renting VS buying a property?
A few weeks ago, I came across an article by Ryan Goh who mentioned about the younger generation purchasing flats with a low tenure left. This means that they would need to pay the loans back and the flat might not even allow them to extract equity from it due to the limited time left.
I find this really relatable as I am entering my mid-20s, buying a property has always been on my mind. With land space in Singapore decreasing, property prices would definitely react to that especially when properties in them prime areas.
I stay in the East side and prices here are on the high side according to this image that I have taken from DrWealth which shows that if I were to get a property (HDB) near the MRT stations in the East, it would be at least more than half a million.
I have been thinking about buying a property because recently I have realised that after being an adult, I have started wanting my own space so that I can have the freedom of inviting friends over or to have time and space to myself to unwind. Of course, I find it a blessing to be able to stay with my mum and brother but sometimes some alone time would be nice.
Properties around our areas are flats with around 64 years left including ours. So, with me being 23 years old right now, adding 64 years to that would mean that the land would be taken back when I am around 87 years old. Rental at my area is around $2900 for a 3-room flat and $2000 for a 2-room.
This means that it would be more safe for me to get another flat that has a 99-year lease to be able to live in it without worrying. Of course, many factors can change it for example enbloc. So to the main question, is it more worth to rent or to buy?
RENTING VS BUYING A PROPERTY
One advantage is that renting could be cheaper in the long run because the rent usually tend to be lower than the payment of loans for a property. This is also one big point on why people would rather rent than to buy as they predict that the total amount that they will pay for renting would be lower than purchasing a property.
This also brings us to the next advantage of renting, since you will not need to have a down payment being made where rents usually require a deposit which is a much lower sum. This means that you are able to free up a sum of money and can place that money into investments or on your businesses if you do require.
However one disadvantage is that your rent will most likely grow over time and you are subjected to the price increase if you are aiming to stay at somewhere with accessibility to transports and good locations.
BUYING
Buying has an advantage of providing a greater privacy as you can call it yours with no one coming up to check or take things and you are able to do what you want. This is also a huge reason why so many people want to own a property.
After you have purchase a property, to lessen the load of repayments, there is always the option of option of renting out a room. This means that you can become a landlord as well and at the same time be in the process of owning your own property.
Long-term commitment is one disadvantage of buying a property is that you need to be prepared to pay for your property over a substantial period. Due to the prices of our flats, most of us would be paying for it over a long time and this can lead to lack of flexibility in terms of our cash flows.
Conclusion
All in all, I find that people nowadays do not see a property as an asset as lesser are forming families therefore a house is not so much the priority but instead experiences like traveling is something that should be fulfilled first. However, a place to call your own is what everyone aims for in later life and that means purchasing a property is to allow comfortable retirement. Both have its pros and cons and depends really on what the individual wants.
I find this really relatable as I am entering my mid-20s, buying a property has always been on my mind. With land space in Singapore decreasing, property prices would definitely react to that especially when properties in them prime areas.
I stay in the East side and prices here are on the high side according to this image that I have taken from DrWealth which shows that if I were to get a property (HDB) near the MRT stations in the East, it would be at least more than half a million.
 |
| Taken from: https://www.drwealth.com/singapore-property-prices-along-mrt-lines/ |
I have been thinking about buying a property because recently I have realised that after being an adult, I have started wanting my own space so that I can have the freedom of inviting friends over or to have time and space to myself to unwind. Of course, I find it a blessing to be able to stay with my mum and brother but sometimes some alone time would be nice.
Properties around our areas are flats with around 64 years left including ours. So, with me being 23 years old right now, adding 64 years to that would mean that the land would be taken back when I am around 87 years old. Rental at my area is around $2900 for a 3-room flat and $2000 for a 2-room.
This means that it would be more safe for me to get another flat that has a 99-year lease to be able to live in it without worrying. Of course, many factors can change it for example enbloc. So to the main question, is it more worth to rent or to buy?
RENTING VS BUYING A PROPERTY
One advantage is that renting could be cheaper in the long run because the rent usually tend to be lower than the payment of loans for a property. This is also one big point on why people would rather rent than to buy as they predict that the total amount that they will pay for renting would be lower than purchasing a property.
This also brings us to the next advantage of renting, since you will not need to have a down payment being made where rents usually require a deposit which is a much lower sum. This means that you are able to free up a sum of money and can place that money into investments or on your businesses if you do require.
However one disadvantage is that your rent will most likely grow over time and you are subjected to the price increase if you are aiming to stay at somewhere with accessibility to transports and good locations.
BUYING
Buying has an advantage of providing a greater privacy as you can call it yours with no one coming up to check or take things and you are able to do what you want. This is also a huge reason why so many people want to own a property.
After you have purchase a property, to lessen the load of repayments, there is always the option of option of renting out a room. This means that you can become a landlord as well and at the same time be in the process of owning your own property.
Long-term commitment is one disadvantage of buying a property is that you need to be prepared to pay for your property over a substantial period. Due to the prices of our flats, most of us would be paying for it over a long time and this can lead to lack of flexibility in terms of our cash flows.
Conclusion
All in all, I find that people nowadays do not see a property as an asset as lesser are forming families therefore a house is not so much the priority but instead experiences like traveling is something that should be fulfilled first. However, a place to call your own is what everyone aims for in later life and that means purchasing a property is to allow comfortable retirement. Both have its pros and cons and depends really on what the individual wants.
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