Buy a House First or get married First, Which is Better?

In many Western cultures, cohabitation before marriage is a common practice. However, in Singapore, tying the knot and purchasing property often go hand in hand. A significant number of young couples in Singapore opt to apply for Build-To-Order (BTO) flats at the early stages of their relationship. This decision is primarily driven by the lengthy waiting times associated with BTO flat completion. While some may view proposing with a BTO application as lacking romance, the practical benefits are clear and compelling.

The decision to marry before acquiring a mortgage or vice versa is a deeply personal one, influenced by individual needs and circumstances. Both marriage and homeownership represent significant financial commitments, necessitating careful consideration and planning.

One of the most popular options in Singapore amongst couples starting their life together is the 4-room BTO flat. In 2020, individuals aged 25 to 34 accounted for 60% of the ownership of these flats. A usual 4 Room BTO in a choice location would usually require a down payment of estimated $100,000 Singapore Dollars which can be paid with your CPF OA account or Cash. Depending on where you are at in terms of career, a $100,000 can be a daunting amount.

Weddings in Singapore are celebrated with great enthusiasm, but also often involving substantial financial outlay. Despite excluding variable and optional expenses, the cost for a mid-range wedding can range significantly, with banquet expenses typically constituting the largest portion. Depending on the scale of the celebration, expenses can vary greatly from as low as $20,000 to over a $100,000!

When deciding between the marriage versus homeownership dilemma in Singapore, here are some key factors to consider:

Longer Waiting Periods for BTO Flats

The construction delays caused by the COVID-19 pandemic have extended BTO flat completion times, prompting many couples to prioritize flat applications before wedding celebrations. Even though we are largely out of the pandemic crisis, BTO flat waiting times are still significantly longer compared to purchasing a Resale flat in the market. Eligibility for the Fiancé-Fiancée Scheme and various HDB grants also underscores the appeal of applying early.

Those who opt for BTO flats will likely take the plunge towards home ownership before marriage due to unpredictability in balloting as well as longer waiting times. Those who do not mind going for a Resale flat would likely plan both concurrently or get married first. After all, you need to produce a marriage certificate 3 months after key collection for both BTOs and Resale flats.

Availability and Financial Commitment of HDB Resale Flats:

Resale flats, which are available much sooner than BTO units, require a significant financial commitment much sooner. If the intention is to get married and move in to your new home immediately, this would incur upfront costs for both the wedding and property purchase at the same time, which would require immaculate planning. The bright side however, is that if you are handling both your wedding and home at the same time, even though it might be slightly hectic and stressful, you would be able to move into a new home for a brand new beginning with no more worries right after the wedding. Assuming everything is planned well.

Higher Down Payments for Private Properties

If you are gunning for a private condominium right off the bat, the financial commitments could be even more substantial, especially for resale private properties, which demand immediate payment of upfront costs. For New launch Condos, you would be able to take advantage of the progressive payment scheme to make payments according to the construction progress. Akin to waiting for a BTO or buying a Resale HDB, waiting for a New Launch condo usually takes 2-3 years and purchasing a resale condo means you get to move in soon.

Housing Options for Couples Without Immediate Plans to Purchase

If you wish you get married first and handle housing later on, many Singaporean Couples opt to stay with their parents as interim solution as rental in Singapore is relatively expensive. A 3-room HDB flat in Singapore could go for anywhere from 2.2K to 5.5K per month, which is a significant expense for a young couple starting their life together. However, if staying with your parents or in-law isn’t an option, balancing financial practicality with personal preferences becomes even more important to ensure that we start off our lives with good footing.

The decision between prioritizing marriage or homeownership depends on a variety of financial and personal factors. Couples are advised to carefully consider their options, keeping in mind the potential risks and financial obligations associated with each path. Planning and open communication about financial contributions and ownership expectations can mitigate future conflicts and legal issues. Whether you choose to buy a home now or wait, exploring all options and seeking advice can help you navigate your journey toward homeownership and marriage with confidence.

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