It’s extremely common these days when the date of a marriage is fueled or partially influenced by when the couple successfully ballots for a flat in an area they want.
As a result, with marriages orbiting around the flat procurement process, and it becoming more of a priority than it was in the past, many young couples find themselves in a state of flux. Where do they live in the two to four years before their flat or condo is ready? Do they rent and spend money monthly when they should be saving? Do they skip the BTO process and explore the resale markets?
In this article, we take a look at some of the options that are available to young couples.
- Live with his or her parents
The most common solution is also sometimes, the least optimal. Married couples that choose to move in with their spouse under their parents’ roof may save on things like rent and housing expenses but they give up plenty of privacy in the process. However, this is the most affordable option for couples waiting on their BTO to be completed. Couples can even alternate between the respective parents’ houses to ease the burden on each household in the interim.
- Buy a condo
If you and your spouse are able to afford property from the private market, then you can skip the BTO process and dive into the private market. Ensure that you are pre-approved for bank loans and perform the due diligence prior to committing on the dotted line. In addition, do note that as a first-time buyer, purchasing a condo establishes the financial comfort zone of your combined household and as such, may greatly impact your success in the future if you decide to buy a new BTO.
- Buy resale
Either resale condo or resale HDB, the open market presents a good choice for the couple that wants more control in where they will live. Resale flats will be more expensive than BTOs but less pricey than a resale condo which can easily cross the $1M mark. HDB flats also tend to be roomier than many condominiums so if you are still within HDB’s income ceiling for purchasing a BTO flat, then do so first. You can always upgrade in the future when your household income increases.
- Rent from HDB
Under the Parenthood Provisional Housing Scheme (PPHS) issued by HDB, married couples or applicants under the fiancé/fiancée scheme can rent a PPHS unit at a fair rate until such time when you are ready to move in permanently to your new home. The rates vary on the location but expect prices to be anywhere from $800 to $1,100 for 3-bedrooms and around $1,800 for 4-bedrooms.
- Live separately
While living with parents is least ideal, living separately is not ideal at all. However, in some situations this is an inevitability. In cases where there’s just a year or so before you move into your new flat, it doesn’t make sense to pack all your belongings and move into a rental apartment. You’re going to have to repack, unsubscribe for internet services and not to mention, pay for those services and more. Sometimes, it’s just better to wait it out in your respective homes and save money for when you will need it after you move into your matrimonial home.
It can feel overwhelming, impossible even, at times when the success of purchasing property so you can start your life together on the right foot is dependent on external factors not always within your control. However, there’s no rule or law that explicitly states that you must purchase either a BTO or condo to be able to move on with your lives.
As couples marry younger now, finances are sometimes tight and in these situations, putting up with family or even renting under HDB would be easier alternatives to give you the time you need to get your finances in order for the big purchase.
There is always more than one option so the only question is how willing are you to explore them?