A wise financial decision? Couple spends $700 a month on rent while waiting for BTO flat, breaks down extra costs

Thinking of living alone before that BTO flat of yours is completed?

Renting a space might be the obvious alternative.

But with five-room Ang Mo Kio flats being rented out at $6,500 and 3-room Bidadari flats going for $4,100, this option might seem rather impractical.

Not for Michah Velonza and Keven Chia though, who are paying $700 for their 3-room HDB flat.

Michah took to Lemon8 explaining how they managed to snag such a good deal.

"Like many others, our BTO [flat] got delayed due to Covid-19. However, we wanted to start living in our own space without breaking the bank because the public rental market has been skyrocketing," she wrote.

So the answer came in the form of HDB's Parenthood Provisional Housing Scheme (PPHS).

The scheme helps to temporarily house families as they await the completion of their new flats and is part of HDB's enhanced Marriage and Parenthood Package.

One tiny issue for Michah was that their rented unit would be, more or less, empty but Michah provided a quick run-down of the extra costs involved in renting her own HDB flat.

The couple already had a mattress, bed frame, dressing table and benches, so furniture expenses totalled up to just $144.

They bought a wardrobe ($80), two bedside tables ($20) and a dining table with four chairs ($44).

The new unit did come with a new water heater, which they are "super grateful for". 

But plenty of basic appliances were missing.

Michah did admit that not having aircon was something she had her husband took some time to adjust to.

They did purchase a portable aircon ($576.10) though, along with appliances such as a fridge ($1,350) and washing machine and dryer bundle ($3,088).

With furniture movers ($590) and storage space ($345.34) added to the list, these "extra costs" amounted to about $6,655.44.

While some might raise their eyebrows at the amount spent, the couple seem justified in their decision.

Plenty of purchases were made with their BTO flat in mind, so things like appliances and storage furniture will be following them to their BTO flat.

"So the total we spent on things solely for our rental was $822. It's all about perspective, in my opinion," Michah shared.

AsiaOne has reached out to Michah for more information. 

Waiting for BTO flat too?

Families awaiting the completion of their new flats can apply for the PPHS. 

But do note that there are some eligibility requirements to meet before you do. For example, you must have booked an uncompleted flat under HDB's sales exercises and belong to any of these groups:

• Married couples (both first-timers or a first-timer and a second-timer)
• Applicants under the Fiance/Fiancee Scheme (both first-timers or a first-timer and a second-timer)
• Divorced or widowed parent with children

All members of your PPHS household must not own an existing HDB flat.

Also, note that your monthly household income must be $7,000 or below, based on the income in your sales application to buy a flat.

And if you are sharing a PPHS flat with another PPHS household, the total number of occupants must not exceed six per flat.

Rental rates are based on location and flat type – a four-room flat in Tiong Bahru will cost you around $1,500, but a three-room flat in Boon Lay or Yishun can be as low as $600.

In a separate Lemon8 post, Michah reminded potential renters that unit selection, the signing of the rental agreement, payments and key collection all happen on the appointment date.

So be sure that you have enough money in your bank on the day as payment is by Nets or cash deposit only.

ALSO READ: 'The first day I left my parents' house, I cried': Local actor opens up about living alone in Singapore

amierul@asiaone.com

No part of this story or photos can be reproduced without permission from AsiaOne.