Should you rent or should you buy a home? Many Singaporeans struggle with this question. After all, it can be among the biggest decisions they make in their lives. Homes are costly, even with loans from a money lender Singapore. Renting seems cheaper, but what about the long term?
To help you make that decision, take a look at both sides of the coin.
Why should you buy a home?
You’re building wealth
When buying a home, you often would not pay for the full price of the property outright. Instead, you pay a mortgage per month. It’s a bit like rent, but with a key difference.
Mortgage payments don’t just go to someone else’s pockets. Instead, each payment you make contributes to your ownership of the home. Once you have paid your last mortgage payment, the home is all yours.
Over time, you could even sell it for more than you paid. Property often appreciates, or goes up in value over time. With that, your home becomes a potential asset.
Renting doesn’t give you that kind of return. All you’re doing is paying for a place to live for as long as you stay there.
Tax benefits
In 2025, the Ministry of Finance (MOF) is giving homeowners one-off property tax rebates. If you own an HDB flat, the government will give you a 20% rebate; if you own a private residential property, you get a 15% rebate. But there is a limit of $1,000 per homeowner.
You can take advantage of these along with other tax perks if you own a home. Renting does not give you anything like these.
You can do what you want with the home
When you own your home, you can repaint the walls, knock down a wall, or remodel the interior. The property is yours, and as the owner, you have the right to do anything you want with it.
When renting, you have to stick to your landlord’s rules. You can’t just do anything you want. Any changes you want to make will need your landlord’s consent first.
Why might renting be a better choice?
Flexibility
If you don’t like being tied down financially, renting is ideal. You can easily relocate for a new job, to be closer to family, or for any reason.
Buying your own home is a huge, long-term financial commitment. You have to stick to it until the home is fully paid; otherwise you will end up losing a lot of money. Also, selling a home takes time and effort.
No need to shell out a lot of money upfront
If you decide to buy a home, you will need to shell out a large amount of money for the down payment plus other related fees. On top of that, you will need to pay a monthly mortgage over several years.
But if you’re renting, in most cases, all you need is a security deposit and the first month’s rent. That makes renting more affordable in the short term.
Maintenance is not your expense
Every homeowner is responsible for maintaining their homes. If anything breaks in your home, it’s on you to fix it. Repairs can be costly, like fixes for leaking roofs or faulty air conditioning.
If you’re renting, however, you just have to call your landlord to get things fixed. They will shoulder the costs of repairs, not you.
Conclusion
There’s no one-size-fits-all answer to whether renting or buying a home is better. If you’re looking to build wealth and have a stable place to live for the long term, buying a home is the better choice. But if you value flexibility more, and if you cannot afford huge upfront costs, renting is better.
Consider your financial situation and capabilities before making a decision.
