As a young individual, conversations can rage around significant online sales as people brag about the latest steal they found online. But no one talks about looking around for houses. There is nothing like the sweet feeling of having your own home. With no parents to nitpick or landlords to annoy you for rent, owning your place gives you just the breathing space you need as you transition into adulthood.
If you’re under 35 and thinking about moving out, here are four options for you to explore.
Buy a Condo.
For a single person, this option is challenging, but living on private property has its perks. For example, condo regulations are way more relaxed, especially when it comes to purchasing, and people under the age of 35 can legally own a condominium. However, even if you have the legal green light, you still need to break through the enormous monetary burden. To buy a condo, even the most affordable resale condo, you need to be earning least $5,052, and with the median wage of Singaporeans being $4,400, this is not an option for many. Thus, even for the out of the way, entry-level condo, you would need to share the cost with a partner to have double the capital. The down payment isn’t cheap either. It is at least 225,000 for a non-central resale condominium at entry-level. So, either you might need a little help from your parents or have an intense saving scheme.
Here are some prices for brand new condos you can buy on a 6k income: Market segment CCR, has a median price of $2.06 million, a loan amount of $1.54 which is usually 75% of the total amount, a down payment of $514, 337, an estimated monthly payment of $6,915 and you will need a minimum Gross income of $11,525 to meet TDSR requirements. Market segment RCR has a median price of $1.37 million, a loan amount of $1.03, a down payment of $324,000, an estimated monthly payment of $4,625, and you will need a minimum Gross income of $7,709 to meet TDSR requirements. Market segment OCR has a median price of $1.10 million, a loan amount of $824,250, a down payment of $274,750, an estimated monthly payment of $3,701, and you will need a minimum Gross income of $6,169 to meet TDSR requirements. For resale, the prices relatively cheaper but not as affordable as the HDB. Market segment CCR for resale has a median price of $1.52 million, a loan amount of $1.14, a down payment of $380,000, an estimated monthly payment of $5,119, and you will need a minimum Gross income of $8,532 to meet TDSR requirements. Market segment RCR has a median price of $1.1.8 million, a loan amount of $885,000, a down payment of $295,000, an estimated monthly payment of $3,974, and you will need a minimum Gross income of $6,623 to meet TDSR requirements. Market segment OCR has a median price of $900,000, a loan amount of $675,000, a down payment of $225,000, an estimated monthly payment of $3,031, and you will need a minimum gross income of $5,052 to meet TDSR requirements.
Renting a room.
Although It is not common to hear about Singaporeans renting a place often, it is a more affordable alternative to buying a condo. People think that renting a home means it is not financially profitable enough because renting does not build equity. Although this is true for the long term, renting a place is much better than buying the wrong property. If your indecisive about purchasing the right property, renting first is a more comfortable option, rentals in Singapore are actually decently affordable, starting anywhere from $500/a bedroom or $8000 for a studio. Even if rent seems like an unattainable luxury and spending more than $2000 for one person sounds like a lot, with some smart hunting and saving, you might be able to find your ideal rent situation. If you can afford it, go big and live in style.
Renting a place in JB.
Although this is a very affordable option, it is generally physically and mentally strenuous with long hours waiting at customs, unless you want to wake up at 4 am. JB is also less secure with thugs that could destroy our very own Yishun ah bengs. Also, if you don’t have a car already, you might need one to get around JB, so that’s some additional costs there. Regardless of all these cons, the food is cheap (and tastier), the rent is cheap, and the living standards are more affordable overall. You can get a decent studio for as low as $300 to $500.
Just tolerate your parents a little bit.
Although living with your parents seems like hell, but for someone strapped for cash and thriving on instant noodles, having a little patience and enduring your parent’s dictatorial system could work. You will save heaps of money, with what you spend on rent. For example, if you are 25 and paying $1000 per month on an apartment, you’ll save $120,000 if you move out at 35. This is actually more than sufficient enough for a down payment for an HDB. If you’re lucky, with all the earnings you save additionally, there might be enough for a fresh renovation too!
The price of independence isn’t low, especially in Singapore. And if you haven’t figured it out already, Singapore isn’t the world’s most expensive city for no reason. Prices are sky high and rising and so is the cost of living. So maybe before going all out at the next 11.11, remember to be mindful and keep track of your money. A little saving won’t hurt anybody, and you’ll soon have enough to live a comfortable life in your own bed wrapped in your own sheets, in a house you bought, all by yourself.