Own a Home without being House Poor
The average cost of a house on the market in Singapore is roughly SGD2 million1. If you get a government subsidised (HDB) flat, you are looking at an average of a little over SGD530,0002. Either way, it is a costly endeavour, especially if you are still establishing your career and planning to raise a family at the same time. Typically, people aim to become financially responsible by their 40s. This includes ‘living within their means’, in other words, budgeting for expenses and financial outflow in accordance to one’s income, while accounting for the ownership of assets, such as a home. As life evolves, so do one’s financial priorities. With time, expenses tend to increase, and one needs to begin budgeting for a family, retirement, exigencies, health, and a host of other needs. How then is it possible to allocate funds towards a huge financial commitment such as home ownership, while earmarking for monthly expenditures on a fixed or variable income? In spite of the Singapore governmen