Why More Singaporeans Are Dropping the Rent and Buying a Place
Since the pandemic hit, WFH has turned from a temporary perk into a permanent part of daily life. That shift has nudged a wave of newly‑wedded couples, single city‑dwellers, and fresh‑out‑of‑school grads to finally put down roots. Ready to join the club? Make sure you keep these pitfalls off the agenda so your future home doesn’t turn into a nightmare.
1. Over‑spending the budget
- Keep your finances in check. Don’t let a home‑buying spree wipe out your savings. Set a realistic budget – and stick to it.
2. Forgetting moving‑in costs
- Hidden fees can add up fast. Think about furniture, renovations, stamp duty, and the annual property taxes. A quick spreadsheet helps keep surprises at bay.
3. Underestimating maintenance hassles
- Every house needs love. Plan for regular upkeep, from plumbing checks to roof repairs. Unexpected repairs can catch you off guard.
4. Ignoring resale value
- Future-proof your choice. Pick a location and a property type that will hold or increase in value, just in case you decide to upgrade or move on.
5. Not researching the neighborhood
- It’s more than just a building. Check the vibe: nearby amenities, commute times, school quality, and future development plans. Your daily life depends on it.
With a bit of planning and a dash of skepticism, you can avoid these common mistakes and lock in a home that feels like your own. Happy house hunting!
1. Before buying a private one-bedder, consider your future needs
Why Singles Are Turning to Tiny but Trendy Shoebox Homes
Let’s cut to the chase: you’re a single, barely hit the mandatory age for those roomy HDB apartments, and your bank account’s feeling a little light. The bright idea that pops up? Snag a cheaper shoebox unit. These little spots might cost more per square foot, but the total price is still a lot lower than a full‑size flat. For many in the upper‑middle income bracket, or those getting a bit of a generous family boost, it’s a win.
What Makes a Shoebox Unit Worth the Hype?
- Price per Square Foot – A tiny space can have a high PSF, but the overall dollar amount is often undercut the larger homes.
- Accessibility – With units as small as 450‑480 sq ft, the purchase price can fall within a single person’s budget.
- Convenience – Lower costs mean fewer taxes and insurance premiums, leaving more room for that cappuccino you’re craving.
Concrete Examples from the Field
Checking recent sales gives a clear picture:
- Affinity at Serangoon
- 474 sq ft units are going for just $842,000.
- The M
- 463 sq ft units have sold for below $1.1M.
So, while the squares×price ratio might look intimidating at first glance, the total price keeps it in reach. For many singles waiting to meet the 35‑year‑old threshold, it’s a blueprint for a quick, sensible entry into home ownership.
Why a Tiny Shoebox Might Not Be Your Dream Home
Feeling the pull to snag a cozy one‑bed HDB property? Read on before you get wrapped up in the “money‑saving” hype. Here’s the scoop broken down into bite‑size truths:
1⃣ You’re Not Allowed to Own Both
Ever heard the rule that you can’t own a private house and a public flat at the same time? That’s the official line. Even if the private property is just a modest one‑bedroom shack, you’ll hit a red flag if you try to cross both paths.
2⃣ One‑Beds Won’t Keep You Long
If you’re thinking about starting a family, a one‑bedroom space is a bit like a short‑term parking spot. It may be comfy now, but as your life expands, you’ll find yourself trading your box for width and comfort.
3⃣ Less Market Appeal
These tiny units tend to attract a very niche crowd—retired seniors, affluent singles, or opportunistic investors. That means a longer resale timeline and a lower selling price when you finally decide to move on.
Common Scenario for the Youth
Picture this: you buy that shoebox for yourself, then years later decide to tie the knot or welcome a new arrival. Suddenly, you’re staring at the inevitable decision to sell the box and step up to a larger home. But the market? It might not be a sweetheart at the moment, and the resale could be a tough sell compared to a typical condominium.
As of 2021, the bulk of buyers shifted from buying private property to upgrading their HDB—families looking for at least a three‑bed layout. And here’s a kicker: you’re required to wait 30 months after selling a private property before you can hop onto a new BTO (Build‑To‑Order) flat. You might end up stuck with a pricier resale piece that has a shorter lease.
Renting Isn’t Always a Waste
It’s easy to dismiss renting as a money‑dump, but sometimes it’s the smarter move. Think long‑term: will that shoebox serve you in five, ten, or even fifteen years? If the answer is a resounding “maybe,” the wiser path might be holding off on that million‑rough budget grab.
Bottom line: plan your future, not just present moments. A one‑bed HDB may look enticing now, but your growing family—and the market—could leave you scrambling downstream.
2. If you buy with your parents help, set some common points of agreement first
When Your Parental Co‑Owner Becomes the Drama King (or Queen)
Why the “Borrow From Mom” Plan Looks Great at First Glance
Almost every first‑time buyer feels banks are a bit too picky to let them shoulder the entire mortgage alone. The fix? Bring a family member into the mix as a co‑owner or co‑borrower.
Get the Fine Print Before You Start a Family Drama
- Future Sale Hiccups: Picture this – you’ve bought the house, and two years later you want to cash out. What if your parent, who’s tied into the deal, isn’t on board with the sale? Suddenly you’re stuck trying to negotiate with a stubborn,
love‑lorn co‑owner. - Financial Turbulence: A parent hits a hard financial crunch and decides the only way out is to sell the property. You’re now juggling your own stability with their distress. You might have to part with the house at a loss or find a buyer against your wishes.
- Decision‑Making Dilemmas: From a cash‑out refinance to deciding if strangers should rent out a spare room, your parent’s opinion can be pivotal. Often, one of you is a cautious risk‑verse strategist, and the other a thrill‑seeker. That mismatch can lead to heated arguments.
How to Save the Family Vibe (and Your Wallet)
- Draft a Simple Agreement: Before signing the title, chalk out the core rules in layman language. Think: when should the house end up on the market, how to handle sale proceeds, and what obligations each side holds.
- Set a Clear Exit Strategy: Decide together on a timeline or a set of triggers (like a major life event) that could kick‑off the sale discussion. Having a roadmap avoids nasty surprises.
- Define Roles & Licenses: Is your parent an active partner or just a silent investor? Work out who can actually make decisions about loans, tenant approvals, and repairs.
- Reserve a Dispute Resolution Clause: If arguments surface, plan how you’ll solve them—maybe a mediator, a rotating decision‑maker, or a polite, agreed‑upon compromise.
Bottom Line: Protect Your Home and Your Relationships
Having a parent as a co‑owner isn’t a bad idea, but it comes with its own set of emotional & financial hurdles. A well‑written, mutually understood agreement is your shield against the inevitable “Will‑We‑Sell‑It‑Today?” headaches.
3. If your entire CPF is cleared out, ensure you have additional emergency savings
When You Buy a Home at 25 and It Seems Like a Bad Idea
Buying a house early is tempting, but it can crush your savings if you’re not careful. Picture this: you hand over a hefty down payment, a stamp duty, and then those monthly mortgage checks that drain your CPF Ordinary Account (OA). By the time you hit the first year, your OA might be almost empty.
Why That’s a Recipe for Trouble
- Job loss or a pay cut – If your income takes a hit, your CPF might be the first thing to feel the pinch.
- No quick fix – You can’t just boast that you’ll sell the house instantly to bail out.
Sell Hard and Sell Fast = Low Prices
If you’re forced to sell urgently, buyers see the desperation and the price drops. Think of it as a “sell now, pay less” stamp of doom.
Stamp Duties: The Hidden Tax on Your Selling Costs
- Private Properties: If you sell within the first year, you’ll hit an SSD of 12 %. The second year is 8 %, and the third year 4 %.
- HDB Homes: Breaking the 5‑year Minimum Occupancy Period (MOP) is a tough sell – you need special approval and it’s usually not granted quickly.
Is Homeownership Safe Without Savings?
Not really. If your CPF is wiped out, you’ll be left high and dry. The best way out is to boost your emergency fund ASAP. Aim for at least six months of expenses – and don’t forget the quarterly maintenance fees for condos.
Bottom Line
Buying low at 25 is a lowball gamble that can leave you cash‑strapped when life throws a curveball. Save early, stay prepared, and remember: homeowners need a cushion. Without one, you’re playing a risky card game in your own house.
4. Sometimes, it’s worth renting in a particular place before you buy
Living on Your Own: Why It’s Absolutely Worth It
Don’t fall for the myth that moving out just burns your wallet and your sanity. In reality, it’s a golden ticket to discovering who you are—no degree required.
- It’s an Adventure: Think of it as a thrilling reboot of your own life.
- Reality Check: You may have to experiment a bit to find out what really makes you tick.
- Growth Happens: Even if you’ve never lived away before, you’ll learn to chart your own path.
So, grab that courage, stack your self‑confidence, and get ready to write your own life story—one apartment at a time.
Living the Dream: Where Good Plans Meet Reality
When you’re a young buyer, the idea of snapping up a place right next to your favourite mall or the newest MRT station seems like the ultimate perk. Seriously, you’re picturing yourself sipping latte on the balcony, grabbing fresh snacks like a gazelle. But fast‑forward two to three years, and the glossy dream starts to pixelate.
Common Oversights: The “What Did I Miss?” List
- No childcare facilities nearby – If you’re a young couple with kids, it’s a deal‑breaker that turns the condominium into a “kid‑free zone” dilemma.
- Parents live too far away – You may have once preferred the distance, but now you need your parents for grand‑kid duty, grocery runs, or a midnight lifesaver.
- High‑priced amenities above your budget – Think Holland V or Botanic Gardens; everything from boutique cafés to yoga studios can drain that single‑person or couple’s wallet.
- Gym & pool fatigue – After a few months you might forget the joy of a splash or a lift. That $1,000 + quarterly cost? Equivalent to a luxury vacation every year gone. Suddenly, the “leisure” feels like a monthly mortgage.
- Walk‑up woes – Initially cool; now it’s a daily uphill (literally) of four flights plus your grocery bag. Your body demands a break.
- Open‑concept kitchen nightmare – It looks spacious but the lingering aroma of mom’s dumplings never quite leaves, turning the living room into a scented sauna.
- Storage shortage – Your closet is full of gadgets, sneakers, and that one beard‑care kit you bought on a whim. A single shelf just ain’t cutting it.
Finding What Truly Matters
We don’t always know our priorities until we actually live and breathe within them. That’s why many savvy buyers choose rent‑first strategies. It gives you a live‑in test run without the long‑term commitment of buying outright.
Consider the Market
Current rental rates are climbing, so if you’re eyeing this route, factor the ballpark of your future cost. It’s a smart move, especially if the ceiling of your “must‑have” list renders your savings to go from budgeting to bargaining.
Tune Into Your Own Life Story
Ultimately, the “home” you choose should complement your lifestyle, not chase a trend. Keep your eye on those oversights, test the space, and then decide. Your future self will thank you – especially when you’re not paying monthly for a gym you never used.
5. Don’t just focus on one specific thing that’s important to you
Why Young Buyers Love One Thing… And Why You Shouldn’t Do the Same
The “One‑Thing” Obsession
Picture this: you’re in your mid‑20s, you’ve got a playlist of your favorite pubs and a list of gyms you’ll hit every other day. Their real estate hunt becomes a quest for that exact spot. If the market’s roughly right near the hotspot you enjoy everything feels sweet.
But—Hold Up!
Life’s a remix. Those places you adore today might be renovated or turned into a coffee shop in five or ten years. Plus, your weekend vibe can shift from DJ nights to late‑night yoga in a handful of years.
Take the Big Picture
Don’t let one notch win the entire home‑buying game. Study the whole neighbourhood:
- Public transport: Are the buses and trains sprightly or a sluggish slog?
- Work proximity: A hop, skip, and a jump away can save you both time and money.
- Safety & vibes: A friendly community or quiet streets can be a lifesaver.
- Future growth: Is the area buzzing with development or a sleepy suburb?
Bottom Line
Think of buying a home like picking a playlist: a single genre is cool, but a mix makes the good life longer and more fun. Keep your eyes open, your ears tuned to change, and pick based on a balanced mix of factors. That way, no matter how many ways your weekend shifts, you’ll still own the perfect groove.
6. Think about the remaining lease even if you are planning to stay for the short-term
Quick‑Ticking Leases and Budget‑Friendly Homes
Ever heard the term lease decay? In plain English, it means the lease period on a property gets cut short. When that happens, the price usually dips, making these homes a perfect pick for young buyers who’re careful with cash.
Why It’s a Deal‑Breaker for the Financially‑Frail
- The lease is shorter, so the property’s cost quotient goes down.
- Cheaper entry point for first‑time buyers.
- Still offers the same features—just at a more affordable price.
Small Homes, Big Lease Worries
Picture this: you’re eyeing a 409‑sq‑ft slice of heaven at People’s Park Complex and you’re paying just about the price of a resale flat—$530,000. Or maybe you’re attracted to a 506‑sq‑ft unit at The Hillford (yes, the same place that’s meant for retirees) and your wallet gets taxed at roughly $590,000.
What’s Behind Those Numbers?
- People’s Park – Built in 1973, sits on a 99‑year lease.
- The Hillford – Constructed in 2017, only a 60‑year lease.
That extra length of lease might feel like just a number at first, but it’s actually the secret sauce that keeps buyers and banks happy.
Why the Lease Matters (and why you should care)
- When you plan to carve out a few memories in a tiny apartment, you might think “I’ll stay for 5–10 years and leave it be.” But the remaining lease length matters a lot once you decide to sell.
- Banking giants aren’t too keen on extending mortgages on properties that have 60 years or fewer of lease left. Anything under 30 years, and it’s basically a no‑go for financing.
- That can lead to resale headaches—either you’re stuck selling at a loss, or you can’t get the snap‑on support you need to move on.
Bottom Line: Check Before You Pre‑tify
- Do your homework. The lease length should be a top‑priority item in your decision tree.
- Even short stays are risky. A 60‑year lease isn’t a silver bullet for long‑term security. A 30‑year timeframe can rewrite your financial future.
- Book it. Don’t let the lease clock tick away your dreams—have a plan that spells resale, financing, and escape.
So, if you’re ready to live in a tiny, slick space, just remember that the lease timeline is the unseen hero (or villain) that will shape the story of your next big move.
7. Have a clear strategy in mind before going into details
Escaping Parents: A Quick‑Guide for First‑Time Buyers with COVID‑19 Boredom
Hotel‑style cabin fever is hitting all of us, and the temptation to grab every cheap condo we see is stronger than ever. Forget the long‑term plan for a minute—let’s look at what you’ll really do with that unit once you buy it.
Why it’s a Bad Idea to Rush Without a Plan
- Regrets later – If you overspend and your budget shrinks, you might have to ditch the luxe loft for a smaller HDB or resale flat.
- It ruins cash flow – You’ll be chasing mortgage payments you’re not prepared for.
- Emotional stress skyrockets when you can’t decide on a home.
Ask Yourself These Questions Before You Click “Buy”
- Will you resell to upgrade to a bigger condo?
- Will you sell for a bigger resale flat?
- Do you plan to live in it long‑term (and if so, for how long)?
- Select the house as a rental asset (e.g., double‑key unit to offset expenses with a tenant).
Having a clear answer keeps you focused and less likely to regret your choice.
Keep It Stress‑Free When You Tour Properties
- Knowing your goal removes that “what if” loop.
- Feels like making a decision rather than a gamble.
When in Doubt, Rent for a Bit Longer
There’s no shame in staying a tenant. Take your time, see what you love, and buy when you’re truly ready.
Want to Avoid PLH Flats if You’re Planning an Upgrade?
Check out the full article on why PLH might not be the best fit for future growth.
Happy house hunting, and may your new home bring you as much freedom as you’re craving!
