Buy vs Rent

Buy vs Rent: Which is Better for Singapore Property?

Buying can build equity and provide stability; renting maximises flexibility and lowers upfront costs. The right move depends on your finances, lifestyle and time horizon.

1) Buying a Property in Singapore

Pros & Cons of Buying

Pros

  • Long-term investment potential backed by scarce land & steady demand.
  • Build equity with every mortgage payment.
  • Stability & control (renovate/customise, no landlord risk).
  • Future rental income potential.

Cons

  • High upfront costs: down payment, BSD, possible ABSD, legal.
  • Ongoing costs: interest, MCST fees, tax, repairs.
  • Lower flexibility; SSD may apply if sold within the holding period.
2) Renting a Property in Singapore

Pros & Cons of Renting

Pros

  • Lower initial outlay: deposit + advance rent.
  • Flexibility to relocate or upgrade/downgrade.
  • No major maintenance (typically landlord’s duty).
  • Prime locations may be more accessible than buying.

Cons

  • No equity built; rent is a pure expense.
  • Exposure to rental increases at renewal.
  • Less control over renovations and tenure.
3) Financial Considerations

Side-by-Side Cost Snapshot

Scenario Key Upfront Monthly Estimate Other Ongoing
Buying — $1,200,000 purchase Down payment 25% = $300k
BSD + legal ≈ $34.6k 		Mortgage (25y @ 4% on $900k)
≈ $4,750 		MCST fees & tax ≈ $350–$500/m
Renting — Comparable unit Deposit (2 months) $7,600
Advance rent (1 month) $3,800 		Rent $3,800/m No ownership costs; no equity built

Figures are illustrative; actual numbers vary with interest rates, project, tenure and rules (BSD/ABSD/SSD).

4) Lifestyle Factors

How Your Situation Points the Way

Favour Buying if…

  • Stable job/income and plan to stay 7–10+ years.
  • Family anchors (schools, commute, community).
  • Property as a core wealth strategy.

Favour Renting if…

  • Possible relocations or uncertain horizon (< 5 years).
  • Saving toward a larger down payment or lower rates.
  • Want to test neighbourhoods before buying.
5) Hybrid Approach

Rent Now, Buy Later

  • Rent short-term while building capital and monitoring interest rates/new-launch pipeline.
  • Use the time to refine must-haves, school options and commute needs.
Get a Buy-vs-Rent Plan from AsianPrime We’ll compare real units (cash flow, BSD/ABSD/SSD, equity build) and send you a clear, personalised recommendation.

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