Renting Vs Buying A Home In Singapore

As an expat you may have often found yourself wondering whether you should rent or buy a home in Singapore. Renting or buying is not just about monetary considerations, as your lifestyle and future plans also impact your decision. 

Renowned for its vibrant and diverse culture, awe-inspiring infrastructure, and high living standards, Singapore attracts expats from all around the world. However, Singapore’s property market is quite different from what expats are used to in their respective countries. This article compares buying vs renting properties and discusses their pros and cons as stated by the best financial advisor for expats in Singapore. 

Renting vs buying

In Singapore, a large chunk of one’s expenses go toward paying rent. This global financial hub’s limited land area and high housing demands further exacerbate rental prices. For expats, exacerbated by a recent surge in rents, cost of living has increased significantly. So naturally, more of them are considering buying property instead.   

However, buying is neither cheap nor easy. It necessitates a considerable upfront investment but eliminates possibilities of moving houses frequently.    

Repatriating to their home countries    

Repatriation to their home countries while owning property in Singapore poses a difficult set of challenges, liabilities, and tax considerations, which vary according to which country they are from. For instance, when compared to a British or American expat, an Australian national will be required to pay different taxes for owning property abroad. You may have to look into these taxes personally or have a financial advisor in your home country assist you.  

More challenging for short-term buyers

Seller’s stamp duty is another drawback of buying. It is imposed when properties owned by expats are sold within a stipulated time frame. This tax is levied to stabilise Singapore’s property market by discouraging short-term speculations. 

It can lower profits generated by their property’s sale, especially within a year. If an unforeseen circumstance arises wherein expats must sell their property, they will be taking on greater financial burden then when they were renting.     

Conclusion

As is now apparent, deciding in favour of buying as opposed to renting is quite difficult, even more so for expats who are unsure of their duration of expatriation. 

Even the best financial planner Singapore offers will be unable to tell you which is best for you, as you may not even live in Singapore long enough to reap every benefit of your choice.   

Bear in mind that there is no cookie cutter approach when it comes to renting vs buying in Singapore. However, we highly recommend crunching your numbers, looking at the broader picture, and considering all potential outcomes of your final decision.