According to the Singapore Department of Statistics, the home ownership rate in Singapore[1] is currently more than 90%. This means that for most, their property is likely to be the single biggest ticket item that they will be purchasing in their lifetime, let alone in their 20s.
Buying a property in Singapore doesn't just require a spouse, a hefty down payment and a creative renovation idea. For most, a housing loan spanning up to 25 years is necessary to finance this dream home. Depending on the home you've bought, this can also easily range from a few hundred thousand to more than a million.
Take a deep breath to understand the magnitude of the financial decision that you will be making.
You have just started working.
You have very little information on how your future is going pan out.
Or how much you will even be able to make in a few years.
Despite all this, you are going to take out a loan which very likely require a hefty mortgage repayment of a thousand dollars, or more, every single month for about 25 years.
Do you really wish to start your adult life with a large debt that you will need to work hard for best part of your working life to pay off?
Or would you rather compromise on a smaller, but more affordable, home that not only fulfils your needs today, but also empowers you with the financial flexibility of being able to pursue other interests in your lives without having to worry about your home mortgage.
There are plenty of housing options in Singapore including private properties, resale HDB flats in mature estates and more affordable BTO flats in non-mature estates. Choose a home that best fits your budget and aspirations, so that you do not have to lock yourself in to a large loan or limit yourself from doing the things that you prefer later on in life.
