9 Scenarios Why Renting A Serviced Residence Could Be A Financially Wise Choice
This post was written in collaboration with Far East Hospitality. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best recommendations and advice in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.
Renting in Singapore is not cheap, whether you’re renting a HDB unit or condo in a prime or not so popular location. The price goes up even more if you want the whole place to yourself and don’t want to deal with housemates.
Some of us opt to stay with our parents until we get married or turn 35, but this lifestyle doesn’t work for everyone. Or maybe you’re not eligible to buy your own HDB (for whatever reason) and don’t have the financial means to secure private property.
Furthermore, HDB BTO prices are becoming more expensive every year, especially in mature estates, with demand outstripping supply. HDB resale prices have also skyrocketed this year, rising 5.9% in the first half of 2021 and is expected to hit a new high by the end of this year. How to afford?!
More people are also renting due to BTO and renovation delays due to the ongoing pandemic situation. However, renting comes with its own problems too — from nightmare housemates to landlords from hell. Thus, one option to consider is renting a serviced residence from a reputable property group that provides all the creature comforts you need without the hassle.
Here are 9 scenarios why renting a serviced residence could be an economical choice.
1. Your BTO is delayed
Getting your own house is a big step and you can’t wait to begin your new lives with each other. But you may have to wait for up to 4 years till your HDB BTO is ready. Oh wait, now it’s 4+ and up to 7 years as contractors are unable to meet the deadlines. For those who want to live with their other half without the presence of your parents, or in-laws, renting is a good interim solution while you wait.
While HDB is offering interim rental flats, only 200 of the 800 flats will be ready in Q4 this year. However, the demand for interim rental housing far outstrips that of supply. According to HDB, in 2020 alone, applications reached 2,350 compared to 1,370 in 2019.
If you can’t be bothered to wait knowing that you may not even get the flat you want, one option to consider is a serviced residence.
Far East Hospitality’s serviced residences are fully furnished, including a well-equipped kitchen, provides complimentary wifi & cable TV, laundry and housekeeping services, plus utilities are included too. There’s no need to spend on any extra household items, worry about your bills or sprucing the apartment with new paint and aircon servicing. All you have to do is just move in, a plug and play solution. Sounds like an extended staycation — count us in!
2. You don’t want to be tied down with mortgage
You know what they say about housing here. Once you get a house, you’ll be in debt, having to pay for the mortgage. The bulk of your CPF will be used to pay for your house and if you prefer to save your CPF so that you can enjoy more in retirement, staying in a serviced residence may be the way to go instead.
Rental fees for Far East Hospitality’s serviced residences start from $3,200/month, which is comparable to condo prices for rent. Yup, did we mention that you get the same amenities that a condo has, such as a pool, gym, tennis courts and BBQ pits?
Whatever income you’re earning can go towards reinvesting whether for your personal portfolio or if you have a business, and the returns from investment can go further to offset the rental costs of your serviced residence. Win-win!
3. You want to spend less time commuting to work
The thought of going back to the office fills many with dread but as the country is opening up, we have no choice but to endure rush hour traffic and crowded public transport. With Far East Hospitality’s serviced residences, renters have their pick of apartments from 9 locations islandwide, all conveniently located near to MRT station/shopping malls and to stay somewhere closer to their workplaces.
Four apartments are comfortably spread across Orchard — Orchard Scotts Residences at Newton, Far East Plaza Residences, Orchard Parksuites and Regency House — putting you right in the heart of shopping, supermarkets and food options, as well as public transport to get you to the CBD or connect to other MRT lines quickly.
Another two residences — Village Residence Clarke Quay and Village Residence Robertson Quay — are within close proximity to the CBD and surrounded by a range of F&B options as well. If you have a night out with friends, you can easily walk home after.
There’s also Oasia Residence in West Coast Crescent and Village Residence in West Coast Road for those who have to work in the west (Jurong East is a hive of commercial activity; and there’s a slew of business and science parks in the one-north and Science Park districts, not to mention the National University of Singapore), while Village Residence in Hougang is a nearby option for those who work in the digital and aerospace hub in the north-east.
4. You want to rent out your current property
For those who are currently living in your own private property, you can consider renting out your home and living in a cheaper serviced residence instead. This way, you could earn some passive income — especially if you fetch more renting out your own place than what you pay for your stay at the serviced residence.
5. You’ve sold your home and need an interim place to stay
Serviced residences offer a flexible interim option while you’re exploring other home options or waiting for your next place to be ready.
Unlike negotiating rental contracts with landlords where you have to stay for a year or more, renting a service residence lets you choose short-term durations, with a minimum of 6 nights’ stay. Far East Hospitality’s serviced residences offer weekly and monthly options, which are great for those who are unsure of how long they need or want to stay.
6. You want to renovate your current home
Same thing for those renovating their homes and need somewhere else to stay in the meantime: Take a “reno-cation” instead while your home is out of commission for the time being. For homeowners impacted by the renovation delays, especially in the current climate, you may find it assuring to know that you can extend your booking according to your requirements.
Far East Hospitality’s serviced residences also has a wide selection of apartment types ranging from 1 bedroom to 4 bedroom penthouses that can comfortably accommodate singles, couples or families of up to 8 pax. Most residences are also pet friendly.
Reno-cation promo alert
There’s an ongoing promotion for those renovating. From now till 31 Dec 2021, take $100 off weekly rental or $300 off monthly rental rates. If you need storage space for your belongings, there’s 50% off packages by Far East Hospitality’s subsidiaries Store-Y and up to 20% off cleaning, moving and disposal services by Agape Services.
7. You need some time to yourself to focus on a big project
The beauty of a serviced residence and the flexibility it offers means that you can book one for a short period of time if you need to get some work done. This is perfect for singles who live with others and because of work from home conditions, you need to go somewhere else to focus and concentrate on work. A serviced residence offers you everything you need to work from home — from a kitchen to cook in, to a living room to relax and watch TV in, and a bedroom — with all the privacy you need.
8. You want to experience living on your own
For young adults who want to experience what it’s like living by themselves, a serviced residence offers you the chance to live alone or with friends. Far East Hospitality’s serviced residences can be rented for as short as 6 nights rather than lock you into a long-term rental contract. If you decide it’s not for you, you can always move back home without paying any termination fees — this saves you the hassle of negotiating with a landlord or handling difficult situations with housemates.
9. You want to spend less time doing chores
One of the perks of living in Far East Hospitality’s serviced residences is that professional laundry and housekeeping services are included. Great for all the lazy— I mean, overworked goal-chasing professionals who have no time to deal with household chores.
This also works for those who don’t want to spend money on hiring a housekeeper or helper or are not comfortable with strangers being in their home.
Having your own space, not having to deal with a landlord, the flexibility of rental periods, and of course all the services and amenities available in Far East Hospitality’s serviced residences make it all worth it.
If you’re keen on booking, enjoy 10% off your stay when you quote ‘FEHxMS2021’ in your ENQUIRY. Check out Far East Hospitality’s portfolio of serviced residences HERE or email your enquiries to firstname.lastname@example.org
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