For newcomers and long-termers alike, renting rather than buying can be the right decision, given the high cost of purchasing a condo. Buying takes a massive initial investment, with a 20 percent down payment plus 3 percent in taxes and other expenses.
Whether you’re on a full expat package or on your own, renting is fairly straightforward. Admittedly, it’s easier for an expat whose company gives a budget and finds a rental agent. For everyone else, though, it’s still fairly easy.
A trifecta of factors
Three decisions usually loom largest for renters. One is location, a second is price and the third is choosing a condo with the right ambience. Factors like transport and schools may well figure in, too, depending on your situation.
For location, the simple answer many years ago was Orchard Road (below). Times have changed and everyone now has their own favourites scattered all around the island.
The shopping experience makes Orchard Road a popular living destination for expats
For inner city living, a multitude of new condos in the Central Business District (CBD) offer easy access to the office even if weekends are very quiet.
The east coast includes Tanjong Rhu, which is just across the bridge from the CBD and offers an easy commute into town along with easy access to parks and water sports. Just a little further out, Siglap offers a somewhat slower pace and a multitude of quaint restaurants along with the same easy access to sea views and parks.
Orchard Road still offers convenience and the allure of access to shopping, albeit at a price. Just a little further out, Holland Road offers a little more greenery and space plus faster access to the slightly bohemian Holland Village.
Small communities have also sprung up around the international schools in Singapore. There’s an American community in Woodlands, for example, and children have just a short walk to school. The Australian School and others have similar communities nearby.
Going online
There are a multitude of other locations, and everyone has their own favourites. Talking with people will give a flavour of each, and information is also available on websites such as:
http://www.guidemesingapore.com/singapore-housing/singapore-rental-areas-guide.htm.
Price varies widely, of course, from the low end when you’re sharing a small condo with friends to the high end for a large house near Orchard Road. The key is to set your budget and to stick with it.
Websites like Property Guru are a blessing for busy real estate hunters
If you’re working with a real estate agent and tell them your budget, you’ll most likely see places at or just above that amount. Go too low and you may be told there’s nothing available, even though the reality is that there are accommodations for almost any budget. Searching online and in the daily newspapers will also yield a multitude of places to check out that can work quite well.
The amenities and facilities that lend to the ambience at many condos, from pools and tennis courts to children’s play areas and the feel of the condo interior itself, can be quite impressive. Priorities vary -- if you have young children the play area is great, for example, and swimmers obviously love pools. If you won’t actually use the facilities much, your range of options for where to live expands a lot. The key question that remains, though, is how much you’ll use any of these amenities.
Once you’ve chosen a place to live, the next step is the lease. While two-year leases are generally the standard, except for serviced apartments, more owners are willing to rent for shorter periods now and you can find monthly or 6-month leases. Condos and houses can be furnished or unfurnished, too, depending on what you need.
While the clauses in most leases are fairly standard, several factors loom especially large. One is the deposit, with one or two months’ rent clearly being preferable to three months. Another is who pays for repairs, and it’s obviously preferable if the landlord will pay. Yet another is having a “diplomatic clause,” which allows you to cancel the lease if you’re transferred unexpectedly. While landlords may say that none of these are standard, rest assured that 1-2 months deposit and owner-financed repairs and a diplomatic clause are a part of many leases.
After signing your lease, you’re ready to move in. Pop the bubbly and enjoy!
Richard Hartung | 05 August 2010
