Many people will think that with CPF it is better to buy than to rent. But for self-employed and single people, it is a totally different story.
It is more difficult to secure a loan with a bank for individuals who are buying an HDB as a self-employed person compared to an employed person.
I went to a bank with my income tax report stating that I am earning over 6 figures for continuously 3 years but the bank is only willing to loan me $70,000 to buy a 4-room flat. My friend who is making $2.5k a month manage to secure a loan of over $250,000 from the bank and I find it ridiculous.
I did the math and figured I could buy something small, and live without much reno. Money is tight, but I can pay my bills on time.
Previously, I rented overseas and feel like it’s a waste of money if you can afford the downpayment to buy and have financial stability – a month’s rent is almost a month’s mortgage. It’s also much harder to save up the downpayment if such a big chunk of change is going to rent.
I also have a very high need to control my living space because of my background so renting didn’t give me the sense of security I needed.
That being said, even the cheapest 3-4 rooms at non-matured estates go for almost half a million easy.
If you dunno where you want to stay or whether you’ll get married or be ok moving back in with your family then renting may be the better option since it’s much more flexible, and won’t wipe out your savings.
It seems like renting a HDB is a more viable option for now.