Singapore is the financial heart of Asia. Being a well-developed global city and an economic giant, it is a remarkable place for living. The well-regulated and steady economy of Singapore makes it a popular destination for global businesses and individuals who wish to make investments. Added to this, Singapore has a strategic location which gives it spectacular access to Asia and the world.
Renting an apartment or buying a property like The Florence Residences in Singapore can be quite overwhelming. Without having in mind an appropriate difference between renting an apartment and buying a property one cannot make a well informed and reasonable decision. Here is a comparison between the two to make the picture clearer.
Renting an apartment vs buying a property in Singapore
Renting or buying a property is a big decision. Many factors have to be taken into consideration when deciding. Here are a few factors that will help you with your decision.
- Cost: the choice between renting and buying to a large extent depends upon your financial situation. It is quite clear that buying a property is costly than renting an apartment. Renting can turn out to be cost-efficient only if you plan to stay in the apartment for a less time duration. If your plan is to settle down permanently then buying is the best option.
- Financial commitment: buying a property is a huge financial commitment. It can take a lifetime to pay for the mortgage. Renting, on the other hand, can resolve this issue. Being a short-term investment it lessens financial hardships.
- Capital gain: a major advantage of buying a property in Singapore is that the monthly mortgage payments will eventually move towards building equity. The bought property will become an asset. When renting you will get no return on the investment that you will make.
- Maintenance: though it depends on your rental contract, in most cases the complex is responsible for maintenance. This is not the case when it comes to buying a property. You are the one who has to take care of all the maintenance.
- Mobility: having an apartment on rent in Singapore makes it flexible for you to move to another place when the lease is over. No matter what the reason maybe you can always leave and take up a new place as well as upgrade. On the other hand, when you want to move out of an owned property you will either have to find tenants or sell the property which is a challenging task.
The final verdict
There is no one answer when it comes to renting or buying a property in Singapore. When making a decision with this regard you should consider all the possibilities as well as the disadvantages and advantages of both the options. Make sure to have a clear picture of your financial situation and life circumstances. Whatever your decision may be, you will need enough capital and would have to stick to your investment.