Owning a home may be a lifelong goal for many people, but that doesn’t mean it’s for everyone. Homeownership rates are currently high, but this hasn’t always been the case. Families have historically needed to build their own homes or rent a home from someone else. Although it may not be ideal, renting also has its advantages. For some people renting a house in Singapore might make more sense for their financial circumstances and mobility.
Here are some benefits of renting a house;
No Maintenance Costs or Repair Bills
One of the benefits of renting a house in Singapore is that there are no maintenance costs or repair bills. When you rent a property, your landlord assumes full responsibility for all maintenance, improvement, and repairs. If an appliance stops working or your roof starts to leak, you call the landlord, who is required to fix or replace it.
Access to Amenities
Another financial benefit of renting is having access to amenities that would otherwise be an enormous expense. Luxuries such as an in-ground pool or a fitness centre come standard at many midscale to upscale apartment complexes with no additional charge to tenants.
No Real Estate Taxes
One of the significant benefits of renting a house in Singapore versus owning one is that renters don’t have to pay property taxes. Real estate taxes can be a hefty burden for homeowners and vary by county.
Although property tax calculations can be complex, they are determined based on the estimated property value of the house and the amount of land on which it’s built. With new constructions getting larger and larger, property taxes can be a significant financial burden to homeowners.
No Down Payment
Another area where renters have a better financial deal is the up-front cost. Renters generally have to pay a security deposit equal to one month’s rent. And that’s usually all. This deposit is theoretically returned to them when they move out, provided they haven’t damaged the rental property.
More Flexibility As to Where to Live
Renters can live practically anywhere, while homeowners are restricted to areas where they can afford to buy. Living in an expensive city may be out of reach for most home buyers, but it is entirely possible for renters. Although rents can be high in areas where home values are also high, renters are more apt to find an affordable monthly payment than home buyers.
Fixed Rent Amount
The amount you pay for rent is fixed for the span of the lease agreement. While landlords can raise the rent with notice, you can budget more efficiently because you know the amount of rent you must pay.
Lower Utility Costs
Although homes can vary in size, they are typically larger than rental apartments. As a result, they are more costly to heat and have higher electric bills. Rental properties typically have a more compact and efficient floor plan, making them more affordable to heat and power than many houses.
Owning a home can be beneficial for homeowners over the long run due to the amount of equity they acquire in their home. Renters have nothing tangible to show for years of rental payments. However, renting a house in Singapore might be a better option for those who want to avoid the hassles associated with homeownership, the costs of upkeep, and property taxes. Of course, it depends on an individual’s lifestyle, financial situation, and whether they’re working or in retirement.