Renting a property is a common practice for individuals from all walks of life, including government officials. On 3rd July, Law Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan addressed questions in Parliament regarding their tenancies of two black-and-white bungalows along Ridout Road.
Balakrishnans were seeking bigger home for expanding family
When it comes to choosing a home, personal circumstances play a significant role. Dr Balakrishnan shared that his family was seeking a larger home due to their expanding family. With four children between the ages of 17 and 24, including married children who have already started families of their own, the Balakrishnans desired a residence where their grandchildren could grow up under the same roof.
This decision was not made lightly, as it required the consent and agreement of the son-in-law and daughter-in-law, as well as the understanding that each nuclear family would reside in the same bedroom with their children.
Mrs Balakrishnan stumbled upon the property at 31 Ridout Road by chance. While driving to a friend’s place in September 2018, she noticed a “For Lease” sign on the property and decided to inquire about it. The contact number on the sign connected her to a property agent from Colliers International Consultancy and Valuation, who further facilitated the rental process.
The initial asking rent for 31 Ridout Road was S$19,000, and although the property had been vacant since 2013 and required significant repairs, the Balakrishnans agreed to take on the improvements at their own expense. In October 2019, Mrs Balakrishnan signed a standard tenancy agreement of 3+2+2 years with Colliers, committing to the property’s rental.
Shanmugam’s reasons for renting
On the other hand, Mr Shanmugam’s decision to rent a property stemmed from a different circumstance. Being a public official, he acknowledged that the boundaries between personal and public matters can blur in such situations. Mr Shanmugam made the choice to rent a property because he had decided to sell his family home.
As he reached his 60s, he recognized the importance of diversifying his assets and not keeping most of his savings tied up in one property. Although he clarified that the decision was not financially driven, it was based on prudent financial planning.
Mr Shanmugam emphasized that he did not sell his previous family home out of financial need but rather to ensure a diversified asset portfolio. He made it clear that he does not regret giving up his previous earnings as a Senior Counsel because serving the public is a privilege, and he would make the same choice again.
He added that he is in fact making a net deficit that he needs to top up now that he is living at 26 Ridout Road as his previous home is now non-owner occupied, and that the money from the rent from his previous home goes into his rental of the Ridout Rd home and complemented with the money that he made from his time working as a lawyer.