Moving Out on Your Own? Here’s What You Should Know

This was originally posted on Planner Bee.

Having your own space is exciting, but as with any major life change, it’s important to go in prepared. Singapore’s high cost of living means that striking out on your own comes with its fair share of challenges. Don’t worry: this guide will help you navigate the exciting (and sometimes scary) journey of moving out. Let’s dive into everything you need to know to make this transition as smooth as possible!

Financial preparation

Financial readiness is the cornerstone of a successful move. Living independently can be expensive, so it’s essential to assess your financial situation and plan for the various costs you will incur.

Monthly rent

Rent will likely be your largest recurring expense. The cost of rent in Singapore varies significantly depending on the location, type of property, and whether you’re renting an entire unit or just a room. To budget effectively:

• Research market rates: Use online property portals like PropertyGuru or 99.co to get a sense of the current rental market.
• Consider co-living: If you’re open to sharing a space, co-living arrangements can reduce costs significantly. This is especially popular among young professionals in Singapore.
• Negotiate: Don’t be afraid to negotiate the rent with your landlord, especially if you’re planning to stay for a longer period. Some landlords might be willing to offer a discount for longer leases.

Utilities

Utilities such as electricity, water, gas, and internet are essential services you will need to budget for.

• Utilities: Utilities such as electricity, water, gas, and internet are essential services you will need to budget for.
• Energy efficiency: Opt for energy-efficient appliances to reduce your electricity bills. Simple habits like turning off lights when not in use can also make a difference.
• Bundling services: Consider bundling your internet, mobile, and TV services with the same provider for potential discounts.

Groceries and household supplies

Groceries and household supplies are other significant recurring expenses.

• Meal planning: Planning your meals ahead of time can help you avoid unnecessary spending and reduce food waste.
• Bulk purchases: Buy non-perishable items like rice, pasta, and cleaning supplies in bulk to save money.
• Discounts and deals: Make use of discounts, loyalty programmes, and services like RedMart or FairPrice to find the best deals for groceries.

Savings and emergency fund

Having a financial safety net is crucial when living independently.

• Emergency fund: Aim to save at least three to six months’ worth of living expenses. This will give you a buffer in case of unexpected situations like medical emergencies or a loss of income.
• Automatic savings: Consider setting up an automatic transfer to your savings account each month. This can help you build your emergency fund without having to think about it.

Read more:__ How To Cut Down on Electricity Bills and Save Money

Housing options

Choosing the right housing option is critical. You will need to decide between renting and buying, and each option has its own set of considerations.

Renting

Renting is a popular option for those who prefer flexibility or are not yet ready to commit to buying a property.

HDB flats are generally more affordable, with rents ranging from S$1,500 to S$3,000 per month. They are available in various sizes, from one-room units to larger flats. Consider:

• Location: Proximity to public transport, amenities, and your workplace can significantly impact your daily life.
• Lease terms: Ensure that the lease terms are clear, including the duration, rent payment schedule, and any rules about subletting or making modifications to the property.
• Condition of the flat: Inspect the flat for any existing damages and make sure they are documented in the lease agreement to avoid disputes later.

On the other hand, private apartments and condominiums offer more amenities like swimming pools, gyms, and security services, but come at a higher cost, often exceeding S$3,000 per month.

Buying

Buying a property is a long-term commitment and involves significant financial planning.

HDB Resale Flats

These are generally more affordable than private properties, and you may be eligible for government grants such as the CPF Housing Grant for Resale Flats and Enhanced CPF Housing Grant.

• Eligibility: Ensure you meet the eligibility criteria for buying an HDB flat, such as being a Singapore Citizen or Permanent Resident, and adhering to the income ceiling.
• Valuation and financing: Get a valuation of the property and understand your financing options, including how much you can borrow with an HDB loan or a bank loan.
• Lease decay: Consider the remaining lease on the flat. Flats with less than 60 years left on the lease may be harder to sell in the future, and financing options could be limited.

Private Properties

These include condominiums, landed properties, and executive condominiums (ECs). Prices vary widely, starting from around S$800,000 for a small condo up to several million dollars for landed properties.

• Down payment and stamp duty: Be prepared for a hefty down payment (usually 20% of the purchase price) and additional costs like stamp duty (up to 12% for subsequent properties).
• Future value: Consider the potential for property appreciation, especially in areas with upcoming developments or improved infrastructure.

Read more:__ Rent or Buy Before 35 — Which Makes More Financial Sense?

Legal and administrative matters

Legal and administrative tasks are an essential part of moving out. Ensuring that all necessary paperwork is in order will save you headaches down the road.

Rental agreement

The rental agreement is a legally binding document that outlines the terms and conditions of your tenancy. Key clauses to look out for include:

• Deposit: Understand the terms regarding the security deposit, including how it will be used and under what conditions it will be refunded.
• Maintenance and repairs: Clarify who is responsible for maintenance and repairs. Typically, the landlord handles major repairs, while the tenant takes care of minor issues.
• Early termination: Check if there’s a clause about early termination of the lease and any penalties associated with it.

Setting up utilities

After securing your new place, you’ll need to set up essential utilities.

• Electricity and water: You’ll need to register with SP Group to set up electricity, water, and gas services. Consider comparing electricity providers under the Open Electricity Market for potential savings.
• Internet and TV: Research different internet service providers to find the best deal. Some providers offer bundles that include TV and home phone services.

Change of address

Updating your address is an important step that ensures you receive all your mail and important documents.

• Government agencies: Update your address with government agencies through the MyInfo or SingPass portal. This includes your NRIC, CPF, and HDB records.
• Banks and insurance companies: Notify your banks and insurance providers to ensure that your financial statements and policy documents are sent to the correct address.
• Subscriptions: Update your address with any subscription services you use, such as magazines, online shopping accounts, and utilities.

Home insurance

In Singapore, rental tenants are not legally obligated to have home insurance, but it is strongly encouraged. While the landlord usually has insurance for the building structure, it does not extend to cover the tenant’s personal belongings within the unit.

• Coverage: Look for a policy that covers personal property, liability, and additional living expenses in case you need to temporarily relocate due to damage to your rental unit.
• Premiums: Shop around for quotes from different insurance providers to find the best coverage at a reasonable price.

Read more:__ Home Insurance: What To Consider and How To Know Which To Choose

Maintaining a healthy relationship with parents

Moving out from your parents’ home is not just a financial and logistical decision. It is an emotional journey as well. It is important to consider the impact on your relationships and your mental well-being as you adapt to independent living.

Leaving the family home can be a bittersweet experience. While you may be excited about your newfound independence, your parents might have mixed feelings.

Open communication

Keep the lines of communication open. Regular phone calls, video chats, or visits can help maintain a strong relationship. Share your experiences and listen to theirs, as this transition is significant for them too.

Set boundaries

It’s important to set healthy boundaries, especially if your parents are used to being heavily involved in your daily life. Clearly communicate your need for independence while reassuring them that you still value their advice and support.

Involve them in the process

Consider involving your parents in the moving process, such as helping with packing or shopping for furniture. This can ease their concerns and make them feel included in this important milestone.

Getting your own space is a huge milestone, one that comes with its fair share of excitement and even some nerves. But with the right preparation, you’ll be ready to tackle whatever comes your way.

Let’s take it one step at a time, enjoy the process, and don’t forget: you’re not alone. Whether it’s family, friends, or even this guide, there is plenty of support to help you along the way. Here’s to your new adventure and all the amazing things yet to come!