Wanting a place of your own but could not afford to buy your first property in Singapore yet? Properties in Singapore along with living expenses are expensive and you cannot afford to get yourself a property in Singapore just yet. Therefore you decide to rent an apartment in Singapore. But how much should you pay for renting an apartment in Singapore? What is the actual rental cost of apartment for rent in Singapore? Before renting an apartment in Singapore that you can afford, it is crucial to figure out the actual cost of renting an apartment in Singapore to avoid from paying more than what you should. The basic rule of thumb, be realistic and set realistic budget within your means to save you from disappointment.
First and foremost, use the rental calculator to check for the rent affordability of the apartment for rent in Singapore. Just key in your monthly net income, monthly expenses, monthly savings, monthly debts, and the location of your desired apartment into the provided columns and the calculator will do the rest. The results will then suggest the rental cost that you can afford comfortably with apartment listings within the range for you to decide. Definitely a life saver if I may say so.
Next, you have to know that the amount that you will be paying is more than just rental cost for the apartment itself in Singapore. Let us just face the reality. Nothing is free and everything costs money. Take into account the necessities that you need in your daily life, such as transportation costs, e.g.: transit fees, car payment, car insurance, petrol, health fees, renters insurance, credit card bills, tuition fee loan payment, cellphone, Wi-Fi, groceries expenses and utilities. In addition, the leisure needs for yourself, such as gym membership fees, shopping, daily caffeine fix, Friday’s night happy hour, Netflix and etcetera. All these can add up to quite a huge amount if you do not plan your budget wisely, which will then affect the next point that I will go into – savings. Having a saving is crucial as it might help you through difficult times in case of any events that happen unpredictably. Therefore, bear in mind that is is important for you to have a saving. It does not matter how much but at least have a portion of your monthly income fix for your savings plan or investment account every month to tide you through unpredictable events in the future.
In addition, choose the location wisely. Bear in mind that rental cost for an apartment or an HDB flat in Singapore costs more in a prime area or the Core Central Region as compared to apartment or an HDB flat in Singapore that is located outside the Central Region. 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. Do also note that rental units with amenities, short distance to education institution and short distance to the MRT stations are going to cost at least twice the average rental amount.
Last but not least, if renting a whole apartment or HDB flat in Singapore is more than what you can afford monthly, you can consider splitting the cost of your rental by living with your friends. Splitting the rental costs with two, or three or even four roommates is going to save you quite an amount in the long run. Just make sure you pick the right people as your roommates because you definitely do not want to deal with dirty roommates or find yourself constantly drown in dramas.
If you still find yourself struggling with rental for the apartment or HDB flats for rent in Singapore, take an extra step to check for the rates of neighbouring units. Speak to the landlord or agent of the property and express your interest. Try negotiating with the landlord if you are going for a longer lease as most owners are longing to have their place rented out for a long term to minimise vacancies. You can even try to bargain the rental costs down by 10% to 15% of the initial rental cost if you are taking a longer lease. You will also be surprise to find out that there are people offering a cheaper rental cost for an apartment or an HDB flat in the same neighbourhood. Even if it is only cheaper by $300, it still matters, because that extra $300 that you save on monthly can be used a to invest in things other than property, or it could be an extra allowance for your shopping spree.
In a nutshell, be sure to do your research and homework in advance. Make sure that you are not overpaying for an apartment, HDB flat or a room in Singapore. Do also set realistic goals and budget to avoid disappointments or prevent yourself from getting into financial burdens. A rule of thumb, always use the 30% expense ratio guideline to guide you through renting an apartment in Singapore to make sure you can afford the rental cost and still have extra for other expenses such as savings, entertainment, food, transportations and etcetera. Your rental cost for the apartment or HDB flats in Singapore that you are eyeing on should never cost more than 0% of your net monthly income.