Should You Rent or Buy in Singapore? Some Tips to Help You Decide

It has always been an accepted fact that it makes more sense to buy a home rather than rent if you have the money. But the last 24 months have turned those beliefs upside down and folks are finding a different real estate market that ‘s hard to understand.

While the super-low interest rates and plummeting housing prices seem to make a great case for buying a home, more and more consumers are looking to rent or rent-to-buy opportunities. But evaluating such a scenario can be tricky.

In general, when should you rent vs. buy or rent-to-buy in Singapore? I have discovered that there are five fundamental considerations to the decision learnt from SQFT Singapore:

1. Credit Score. If you have a less than perfect credit score, it’s now nearly impossible to get a mortgage loan. In a rent-to-own scenario, renting can give those looking to build their credit history some time to do so while building equity.

2. Cash Flow Needs. It is of particular importance in the present economic environment to make sure you maintain enough cash to satisfy your current cash needs, and many folks are finding it difficult to come up with the money required for a down payment to purchase a home. Monthly rents tend to run lower than a loan payment, and that allows many individuals to meet other monthly obligations without hurting their credit scores.

3. Employment Concerns. If this is a concern for you, not having to worry about having trouble making your mortgage payments and potential credit damage and foreclosure is a big pro for the rent or rent-to-buy in Singapore.

4. The Flea Factor. If you’ve recently relocated, or want to or need to move, locking into homeownership isn’t always ideal. Renting provides the luxury of scoping out new areas without the burden of having to sell a home in a depressed market (and avoiding a potential loss).

5. Market Unpredictability. Even in recovering real estate markets in Singapore, the experts cannot agree when the housing market will genuinely be restored. For many, renting is an attractive option while they wait to see what the market does.

6.Another aspect to consider is whether you are a good driver. Most of the rental campers saw a lot of wear and tear, and the best part is that you even if you end up scraping the vehicle or even knocking it up a bit, you just lose a bit of money – most probably a part of your deposit – and you forget all about it. If you own the vehicle, not only do you have to repair it, but live with the car unless you end up selling it – even if it has been in a collision. Therefore, unless you are an excellent driver, you should refrain from putting down the considerable amount that the vehicle would cost.

There are arguments for each choice, and the essential component is that you learn all the options to make the best decision for you. An experienced real estate professional can help you ask the questions and discover the answers for you. There are some new and unique options that folks may not have investigated in the past that might be just right in your situation.


During your search, look for an agent who knows the city extremely well. This will enable him to identify vacant rental in Singapore waiting to let. Next, the agent should be one that understands your needs and comes up with the corresponding rental in Singapore. Once you find the best agent, do not be afraid to negotiate the rates you will pay for the service.