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Why Renting is the New Home Ownership in Singapore

With skyrocketing property prices and evolving lifestyles, more Singaporeans are finding renting to be a practical and often better choice. Here’s why renting is becoming the new home ownership in the Lion City.

FLEXIBILITY AND MOBILITY

Renting offers the freedom to move easily, whether for job opportunities, lifestyle changes, or personal preferences.

For instance, my friend, a marketing executive, recently secured a job in a different part of the city. As a renter, she could effortlessly relocate closer to her new workplace in Raffles Place, avoiding the hassle and cost of selling a property. This move significantly reduced her commute, giving her more time for herself and the things she cares about.

FINANCIAL CONSIDERATIONS

Owning a home in Singapore requires substantial financial commitments, from hefty down payments to long-term mortgage repayments. According to the PropertyGuru Singapore Consumer Sentiment Study H2 2022, younger Singaporeans (aged 22 to 29) are increasingly turning to renting due to insufficient savings for property purchases. This is not surprising, given that young, unmarried Singaporeans face restrictions in the HDB market. These restrictions include the need to apply as a couple or family unit, or wait until they turn 35.

Property costs can be overwhelming, but renting allows for better cash flow management. Without the need for a large initial payout, individuals can invest in their businesses, save more, or enjoy experiences that enhance their lives.

DEPRECIATION AND MAINTENANCE COSTS AVOIDANCE

Owning property involves more than just the purchase price. Maintenance, repairs, and renovations can accumulate costs over time. Moreover, property values may depreciate.

On the other hand, renters are free from these additional expenses since landlords usually handle property upkeep. This leads to significant savings and less financial stress.

ACCESS TO PRIME LOCATIONS

Renting can provide access to prime locations that might be unaffordable or unavailable to buy. Living close to the city center, with its vibrant lifestyle and convenient amenities, often comes with a high price tag for buyers. Renters, however, can enjoy these benefits without the long-term financial burden of a mortgage.

LIFESTYLE CHOICES

For many young professionals and expatriates, renting suits their lifestyle better. The flexibility to move closer to work, live in trendy neighborhoods, or enjoy various amenities often outweighs the traditional desire for home ownership. Renting supports a lifestyle that values convenience over long-term financial commitments.

For instance, my cousins, who are avid travelers, leave home once or twice a month. They can easily spend a month exploring Europe since they aren’t tied down by home ownership and its maintenance.

MARKET VOLATILITY

The property market in Singapore can be unpredictable, influenced by economic conditions, government policies, and global events. Renting provides a cushion against market volatility, as renters are not directly affected by property value fluctuations. This stability is particularly appealing in uncertain economic times.

IN A NUTSHELL

While home ownership has long been seen as a cornerstone of financial security, the trend in Singapore is shifting. Renting is increasingly recognized as a practical, flexible, and financially sound alternative.

Image Credits: unsplash.com

As the saying goes, home is where the heart is – and for many, that heart is happier and freer in a rented space.

Sources: 1,2, & 3

HDB Prices Continue Their Steady Rise in 2Q 2023

In the second quarter of 2023, HDB resale prices marked their 13th consecutive quarterly increase, rising by 1.5% quarter-on-quarter (q-o-q). This adds to the 1% q-o-q increase witnessed in the first quarter of the year, reflecting a sustained uptrend in the public housing market.

While the prices have been steadily climbing during the first half of the year, it’s worth noting that the pace of resale price growth has shown some moderation compared to the overall trend observed in 2022, where the average quarterly growth was 2.5%.

According to the latest public housing statistics, executive flats saw a significant 2.3% q-o-q increase, with prices rising from $800,000 in 1Q 2023 to $818,000 in 2Q 2023. Meanwhile, five-room flats also experienced a rise of 1.9%, with prices climbing from $638,000 to $650,000 during the same period.

Let’s take a closer look at the areas that experienced the biggest price increases for HDB estates in 2023, compared to the growth observed from 2020 to 2023:

3-Room Flats:
– Bukit Batok recorded a substantial price growth of 52.53%
– Toa Payoh followed closely with a growth of 50.35%
– Sembawang saw a rise of 43.26%
– Woodlands experienced an increase of 42.84%

4-Room Flats:
– Bukit Batok topped the list with a remarkable growth of 59.71%
– Sembawang followed with a growth of 48.82%
– Ang Mo Kio saw a rise of 43.86%
– Woodlands experienced an increase of 38.64%

5-Room Flats:
– Sembawang led the way with a substantial growth of 47.07%
– Bukit Batok closely followed with a growth of 46.03%
– Woodlands experienced an increase of 40.19%
– Choa Chu Kang saw a rise of 32.01%

The Housing Development Board (HDB) attributes the moderation in the rate of price increase to the government’s measures aimed at maintaining a stable and sustainable property market. These measures, implemented in December 2021, September 2022, and April 2023, include a 15-month wait-out period for private property owners before purchasing a non-subsidized HDB resale flat and a lowering of the loan-to-value limit for HDB housing loans.

Analysts have noted that the slower price increase observed in the second quarter is not an isolated event. Eugene Lim, key executive officer of ERA Realty Network, emphasized that 21 out of 26 HDB towns experienced price gains in the second quarter, compared to only 12 towns in the previous quarter.

Geylang stood out with the highest increase in resale flat prices at 18.7%, followed by the Central Area with 8.6% and Bedok with 4.3%, according to Mr. Lee.

It’s worth mentioning that the resale flat prices in Bukit Timah have seen a contraction for two consecutive quarters, and this could be attributed to factors such as a lack of new supply and an aging stock of resale flats.

Image Credits: unsplash.com

In conclusion, the HDB resale market continues to show strength, with prices maintaining an upward trend. While the rate of increase has slowed somewhat, the market remains dynamic, and various factors, including government measures, continue to influence price movements across different HDB towns.

Sources: 1 & 2

Camella goes the extra mile to build quality homes for Filipinos

For many Filipinos, finding their own home has always topped their priorities in life. Many seek for safe havens where they can live comfortably without breaking the bank. These days, however, a comfortable life costs too much that not every hardworking Filipino can afford. This is why Camella has built quality and secure communities all over the country to provide a decent life for hardworking individuals and their families.

The deep sense of a Filipino neighborhood culture sums up the down-to-earth nature of Camella communities. Borne out of its vision of building every Filipino’s dream wherever they choose to live, Camella has constructed over 500,000 homes in key cities and provinces nationwide for 45 years. This vision has resulted in ideal homes finely built and designed, self-contained and secure properties, and a network of systems, facilities and organizations that make for a stronger foundation of every home.

Camella offers a wide range of payment options that allow homebuyers to purchase their dream homes. Customized financing schemes also help them realize their first home investment in a safe and beautiful community.

Camella provides convenient locations where families can have access to schools, medical centers, places of worship, marketplaces, shopping malls, transportation hubs, and places of work. There are Camella communities with schools, churches and commercial centers right within the property —allowing them to be nearly self-contained.

Camella features amenities for families to spend quality time together : swimming pools, basketball courts, playgrounds, landscaped parks, and tree-lined avenues that often revolve around a Clubhouse. To make it a safer place to live in, the communities are well-secured with guarded gates, roving guards and perimeter walls.

Landscaped communities

Camella boasts of green surroundings by collaborating with a team of horticulturists — to create living communities that grow into habitats ideal for families. The group designs the landscaping and open spaces that allow residents to come home to an oasis of lush greenery.

Good business practice

Camella has tied up with top companies that help guarantee its communities are well taken care of. To ensure the group’s competence in project management and safety-conscience building practices, Camella works hand-in-hand with MGS Corporation, which provides construction expertise to customers throughout the country.

Camella likewise works with Global Land Property Management, Inc., a group with extensive experience in managing subdivisions and condominiums. They ensure that necessary preventive and corrective maintenance programs are implemented.

Quality systems and processes

Camella has instituted a number of systems designed to streamline operations and communications within the company and for its residents. Camella uses the German-devised software SAP (Systems, Applications and Products), which serves as an end-to-end application system addressing the ERP (Enterprise Resource Planning) system requirements of key departments including Sales, Administrative, Production, Customer Care, Technical Services, Purchasing, Accounting, and Finance.

Know more about Camella. Visit www.camella.com.ph and follow “@CamellaOfficial” on Facebook, Instagram, Twitter and Linkedin.

Hunt For A Roommate While Keeping Your Sanity

With the soaring property rates, shared accommodation has become more and more popular in Singapore. Living with roommates is an economical choice, which is often necessary. However, living with someone else is complicated. You need to strike a balance between different personalities and accept the differences in living habits. It may be challenging at first, but you will get the hang of it.

To help you keep your sanity, here are three “roommate hunting” tips:

THE SELECTION PROCESS

They say that prevention is better than cure. Prevent personality conflicts from brewing by choosing a roommate carefully. Get to know the person or people that you are moving in with before you make a decision. Are your living habits compatible to the other tenants? Make sure that you like the space for what it is.

Image Credits: pixabay.com

Alternatively, you may visit websites that offer information about your potential roommates. For instance, Easy Roommate lets you upload a profile of yourself and contact some possible roommates. Its search feature can easily provide you an idea of the desirable locations and its local amenities. Give it a try!

THE SHOWDOWN OF EXPECTATIONS

Whenever two or more people are interacting on a regular basis, conflicts are bound to happen. Whether you are settling with your partner or sharing a room with a friend, that is just how life goes. When this happens, remain calm and deal with the conflict in a healthy manner. Discuss the matter with him or her and reach a compromise.

Image Credits: pixabay.com

Manage your expectations by clearing everything out. If you need or want something from your roommate, you must speak up. Setting up rules and expectations earlier on is the best thing to do.

THE SERIOUS TALK

You must talk about management of space in the beginning of your relationship with the roomies. Many people assume that they can leave their items in a shared space, while others find it annoying. Others are happy to share their food in the common fridge, while most people demand permission. Some people may be okay with you walking in when the door is unlocked. However, others would appreciate a knock before opening a door. These are just of the differences that you may encounter.

Image Credits: pixabay.com

So, establish your needs and wants regarding space and encourage others to do the same. They shall reciprocate the amount of respect you give.

6 Things To Consider Before Buying The More Affordable HDB Flats

1. THE SIZE

When purchasing a flat, put the foreseen future to the equation. For instance, you must consider a bigger flat if you are moving in with your parents or planning to have kids soon. Planning in advance will help ease your stress and avoid the hassle of acquiring another home.

2. THE LOANS

Be open and honest with your credit score as your chances of getting a loan is affected by it. Consider how you can budget your income in order to support your family and pay fully for your loan through the years.

3. THE NEIGHBORHOOD

Your new HDB flat comes with a different environment – study it. You do not deserve to live next to a neighbor who throws parties every night or one who is constantly bothered by loan sharks. You deserve to live in a place where you can come home safely. As much as you can, talk to your potential neighbors and follow your guts about the place.

4. THE INSPECTION

Although you are purchasing a new flat, it does not hurt to have someone inspect it. This is not only to ensure the true value of the home but also to ensure that everything is working perfectly. This helps you save money for unwanted repairs. Look no further for an inspector as HDB provides this service for a price.

5. THE PRIORITIES

As a client, you must determine what you really want in a pad. Are the available facilities and specifications in lined with your priorities and wants? If not, are you ready to compromise? It is difficult to get everything you desire in a flat but your necessities should be on the top priority.

6. THE PRICE

Good news: HDB flats had become more affordable since 2013! According to the Housing & Development Board, the proportion of a household’s monthly income used to repay the loan installment decreased from 24% in 2013 to 19% in 2015. In fact, 8 out of 10 first-time buyers of new flats in non-mature estates were able to fully repay their monthly mortgage installments using only their CPF savings over the past 3 years. In the end of the house hunting, it truly comes down to the price.

It is best to compare the prices of the flats in the area before making a decision. This price must include other factors such as facilities in the building, quality of construction, specifications of the flat, and more. You must understand that the cheapest flat may not necessarily be the most economical option.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, & 3

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