Smaller property means less debt.
With Singapore’s limited land space and an ever-rising population, homes in the city-state are becoming smaller. Here are some reasons why you should embrace this growing trend of small-space living.
1) Affordable and creative living
A smaller property is undoubtedly more affordable, and if you (and your interior designer or contractor) are open to creative furnishing ideas, you’ll soon have a place to call home. Graham Hill, founder of LifeEdited.com and a frequent Ted Talk speaker, demonstrated this with his own New York City apartment. He quadrupled the use of one space through clever renovations which includes a movable wall! Do check with the relevant authorities on the rules and regulations before starting any renovations.
2) Minimalistic lifestyle
Instead of buying a bigger home in Singapore’s heartlands, why not experience the urban living you truly desire, albeit within a smaller space. As many people would say, less space means having less stuff, which also means you spend less, save more money and potentially lead a happier life. What’s more, you save on utilities and maintenance costs in the long run.
3) Smart investing
Exorbitant prices and relatively stagnant salaries have discouraged millennials from investing in property. However, even savvy investors will know that despite its size, micro-units can be an excellent investment. Despite its lower rental yield, when compared to neighbouring countries such as Cambodia, Vietnam and Indonesia, Singapore’s stable economy and ability to attract high-net-worth individuals shouldn’t be discounted.
By investing in a smaller unit, you’ll have a head start on those who must save more for a bigger property. This means that you’d be in less debt, can save more and faster, and in time can have the financial freedom to start a business, travel and more.
Cities like Sydney, Hong Kong, London and Tokyo have already moved towards small space living, and it is time that Singapore catches on, especially as it currently outranks these countries as the most expensive city in the world.
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