To rent or to buy: Rule of 15 revisited.

Reader:
My bf and me are both PR. And the topic of housing is always a big question mark to us.

Both of us is not eligible to buy BTO, unless one of us convert to SC and this option will take longer time (apply SC, BTO...)

We are not married yet, so not eligible to purchase resale HDB flat.

My bf and his brother in law invested in a shoebox apartment in Singapore. So, even if we marry, we are still not able to purchase resale flat untill he dispose the shoebox apartment.

We have discussed buying a private condo under my name. This option is the most expensive, and also create financial stress.

We also thought to leave Singapore so we can have our own house without much hassles.


AK suggested that the reader considers the Rule of 15. For those who don't know what I am talking about, take a break from reading this blog and read this first:

To rent or to buy: Rule of 15.

Now, this rule really isn't a rule. It is more a guide which encourages prudence for anyone who believes that having a healthy positive cash flow is more important than having lots of assets and little or no positive cash flow.

In Singapore, considering the Rule of 15, a BTO HDB flat is the best choice. 

A 4 room HDB flat in CCK could probably fetch about $2,000 in monthly rent and the BTO price tag is probably less than $300K. So, to rent would be silly as the monthly rental would pay for the flat in 12 years or so.

Buying a shoebox apartment in prime district 9? A price tag of about $1.2 million would not surprise me. A monthly rental of $3,000 is about right. It would take more than 33 years for the monthly rental to pay for the condo.

Of course, in both scenarios, the assumption is that the properties were fully paid in cash without taking a housing loan. Yes, interest rates are going up and it will add to the cost.

We have to consider that it is also more costly to own a condo than a HDB flat in more ways than one.

To be fair, compared to some other places in the world like Hong Kong, Singapore is still relatively cheap. 

Years ago, Anita Yuen and her husband made the decision not to buy a property in Hong Kong but to rent instead. Why?

In order for them to buy a property in Hong Kong, they must believe in the Rule of 130.

What is the Rule of 130? 

If you have read my blog on the Rule of 15, you would be able to figure it out.

Related post:
Rule of 15.

Did I work too hard in my younger days?

Dentsu has banned its employees from working late hours following an overwork-related suicide.

------------------------------------------------------------------------------------------






A chat with a friend who is working in the Singapore Armed Forces:

AK:
You block leave?

F:
Ya

AK:
You have best job!

F:
You cannot meh?

AK:
I don't have best job. I have no job.

F:
Previous job

AK:
Aiyoh. Slave.

F:
Slave earn big bucks

AK:
Big bucks?

F:
Bigger than mine

AK:
Aiyoh. You don't work 6 days a week mah.
That's why I worked on Sunday too for extra money when I was younger. In the end 7 days a week.

F:
GOM states 5.5 days though

AK:
Also worked on some week nites for extra money... Very cham as a young working adult.
Your life so good in comparison lor.

F:
Dont compare😁
Thats what you said

AK:
Now, I don't liao. Irrelevant to me now. 😀








This friend is a super investor and trader, by the way. 

He doesn't have to work anymore but he has a job that is pretty undemanding and pays relatively well.

He works because he wants to and not because he has to.





Sometimes, I wonder if I worked too hard in my younger days and missed out on having fun. 

Oh, well, I will just have to catch up with having fun now.

All work and no play makes Jack a dull boy. What about all play and no work?

Bad Jack! Bad Jack!

Oops. 

Bad AK! Bad AK!





Related post:
Financial freedom and not enough time.