How Much Should You Be Spending On Rent
Interested in buying yourself a property in Singapore but could not afford it yet? Therefore the only choice you are left with is to rent a room in Singapore. However, with living expenses being so high in Singapore, you try to minimize all costs as much as possible and comparing prices in order to score a cheaper deal. Being a room tenant in Singapore, you caught yourself asking these questions so frequently “am I paying more than I should for my rental?” or “how much should I be spending on my rental in Singapore?”. Read further to figure out if you are paying the right amount on your rental in Singapore and know how much you should be spending on renting in Singapore.
Bear in mind that condominium rental is normally much higher than renting a room in a HDB flat in Singapore. In addition, location affects the rental prices as well. For example, the rental cost of condominiums in the Core Central Area and Sentosa is approximately $5,000 to $7,00 a month, whereas the rental cost for condominiums outside the Central Region is slightly cheaper, at approximately $2,100 to $2,600 a month. As for the rest of the Central Region, rental cost for condominium is priced at approximately $3,500 to $3,900 per month. In addition, rental costs for units nearer to a hub area, amenities, education institutions or MRT stations may go up to twice the rental prices that you typically see.
If renting a condominium is more than what you can afford, you can always opt for renting a room in a HDB flat as it will be cheaper and more affordable than renting a condominium unit. Owners of a 3-room flat in Singapore will normally have individual room for rent, and can be pretty affordable, at approximately $600 to $1,200, depends on the location of the HDB flats. However, renting a whole unit of HDB flat might cost the same as renting a condominium unit in the region outside the central. Whereas for HDB flats in the central or prime areas, the rental for a unit of HDB flat can go up to approximately $3,000 a month.
There are some guidelines and considerations for you to calculate on how much you should be spending on renting a room in Singapore. First of all, use the 40% expenses ratio guideline. As a rule of thumb, spend no more than 40% of your monthly income on rental in Singapore as we mentioned above, living expenses in Singapore is not cheap. You will definitely need to have savings and extra to tide you through difficult situations just in case. So a 40% of your income on rental is still sufficient for you to spend on necessities and allow you to have a decent savings.
Next, you should do your research and check the rental rates of units in the neighbouring area. Do not rush through major decision or you will end up regretting over your actions in the future. Do your homework. Check for the rental of room for rent in the neighbouring units in Singapore. Check if the development has any other available units with cheaper rental. Or you could speak to the owner of the units and negotiate with. By doing your homework, you might be able to deal a good deal for yourself and not overpay. You certainly do not want to find yourself paying the extra $300 for a unit where the other neighbouring units are paying $300 lesser than you are paying. That extra $300 could be a price for a furniture that you will need for your new room or unit so always be mindful, as most first time home tenants missed out on this crucial step which cost extra money for them.
You could also get a cheaper rental if you opt for longer lease for a room you desire. Always ask if you could get a better and cheaper price if you know you will be renting for at least 2 years. Most owners will be willing to lower the price down to 10% to 15% of the original rental if you were to take a longer lease, as most home owners or landlords are longing to minimise vacancies.
Lastly, do yourself a favour and go for furniture shopping before looking for a room. Do your research and decide if you want a furnished room for rent in Singapore or an unfurnished room. Do the calculation and see if getting a furnished room or an unfurnished room is cheaper after adding the cost of getting your own furniture. If getting a bed and a rack is more expensive than a furnished room in Singapore, then opt for the furnished room and save on the furniture cost. And vice versa, if getting a table and a bed is cheaper than a furnished room, then go for the unfurnished room and get your own furniture. Afterall, getting a bed, a table or a cupboard will not cost you a lot as they can be found at an affordable price from IKEA for example, or any other furniture shops or second hand furniture shops that you could find. Always remember, do your calculations in advance and work out the costing that you need before deciding or a furnished unit and an unfurnished unit.
In conclusion, you can be the one to decide on how much you should spend on renting a room or unit in Singapore. Do your research and homework in advance to secure yourself a good deal.
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