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 government’s efforts to prioritise and encourage affordable housing, property prices are skyrocketing, making it tough for those relatively new to the workforce to fulfil their home ownership dreams. On the flipside, when compared with global standards, Singapore’s home ownership rate has been consistently high; approximately 90%3 of Singaporeans own their own homes. In my opinion, individuals should ideally invest in not just a home, but also pay heed to a good financial plan that allows them to become debt-free by their 50s, with respect to repayment of home loans, mortgages etc.

Here are step-by-step recommendations and issues worth considering when it comes to affording a home while sustaining a lifestyle within your means:
  • Get a Financial Health Check-up
  • Calculate all the Costs
  • Budget To Avoid Becoming House Poor
  • Complete Your Checklist

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