Renting As A Singaporean, Yay Or Nay?

Is it worth renting as a Singaporean?

It is common than not for a Singaporean to stay with the family until very late into his life. This is a sharp contrast to Americans who leave the nest as soon as they turn 18. Of course, it makes economical sense to stay at home. Furthermore, home ownership is available when an individual, 1) applies for a BTO flat with his/her spouse, or 2) is over 35 years old and purchases a flat from a resale market. Option 1 requires a partner, whereas Option 2 requires significant resources – something which can be out of your control. Therefore, this leaves an individual with either continuously staying with his/her family or renting. In this article, fundMyLife shares reasons why renting as a Singaporean for a short term is not a bad idea.


Sometimes, you just want space. It could be due to several reasons. Your burgeoning sense of independence, increasing need for personal space, or even an oppressive home environment. Your family leaving you alone at home or coming home late at night does not constitute space. It is not sustainable over a long period of time without emotional distress.

On top of physical space, it’s psychological space that you might want to have as well. You cannot have that if you do not have a place to call your own. Plus, renting a place out there might make you appreciate your parents more and come home more often for their home-cooked soup.

Personal growth

With your own space, you’re free to explore activities or passions that you wouldn’t be able to without your own place. For example, you’ve always wanted a pet but your family is not pet-friendly. Or if you want to go out and stay out late at night without any repercussions. If you and your friends are up for it, you all can consider renting a place together. This will strengthen your friendships with each other. On top of that, it provides not only a fun chapter to have but it is also an opportunity to explore human interpersonal relationships, adding depth and dimension to your lives.

On top of that, if you do not rent for a short term, you will never truly have a time of your life when you had space to yourself. A typical living accommodation trajectory in a Singaporeans life involves staying with your parents until you apply for a BTO with your partner. After that, it will be you and your partner. The addition of children in the mix after a while means you will not have this luxury of space until when the children leave the nest. It sounds scary, doesn’t it?

Pre-marriage cohabitation

Renting as a Singaporean couple helps both to adjust to the independence, working out a proper household dynamic before settling in their new BTO flat.  They can also start easing themselves into the mundane, such housekeeping and cooking.

Read articles on how cohabitation can lead to divorce rates? Those aren’t entirely true. In a 2014 research, researchers found that age is a much stronger predictor for divorce rather than cohabitation status. People who cohabited or married at age 23 are half as likely to divorce as those who cohabited or married at age 18. Pre-marriage cohabitation, while seemingly a financial liability, will reap returns when you two get used to each other’s quirks and habits.

Connect with fundMyLife financial advisers today!

Renting as a Singaporean may not make financial sense at first, but there are benefits to doing this. It may not be such a bad idea after all to rent for a short while. Independence is a severely underrated skill to have, after all. However, if you’re going to spend part of your salary on renting, it’s important that you have a financial plan.

If you want to engage more financial advisers, or if you haven’t found the right one, why not consider advisers of fundMyLife? You can head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

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