Should Singapore millennials (and Gen Z) buy or rent their homes?

THIS WEEK'S TOPIC: From a financial standpoint, should millennials (and Gen Z) in Singapore buy or rent their home?

Lawrence Loh Director, Centre for Governance and Sustainability NUS Business School

The traditional thinking is that rent payments are wasted outlays but home ownership will bring capital gains. Sustained property price appreciation is not a given, so the financial balance may not tilt towards the purchase mode. The decision to buy or rent, particularly for the younger generations, will have to depend on various non-financial factors. These include location flexibility, job mobility and lifestyle choices. We have to weigh the trade-offs holistically. Indeed, a policy sacred cow we have to review is whether home ownership necessarily equates to a strengthening of the social compact, as this comes with both benefits and burdens at the individual level.