Reader Mailbag # 6 : Cost of Living in Singapore and others!

Hi Sandeep,

Awesome information you have posted here. I am negotiating an offer with a Big 4 for Singapore. My family size if myself, my wife and kiddo (4 months) to be precise.

What wud be the breakeven that I shud negotiate given ur experience there?

-zibbs

Hi zibbs!,

Thanks for the praise! I have very less information to answer your question. I guess what you are looking for is a good saving potential while negotiating your salary with Big 4(What does that mean?..does it mean PwC, KPMG or MS or somebody else!). Any way I guess you need to do a detail analysis of what you are saving in your home country and what would be the saving potential when you start earning and spending in Singapore. This is the most critical part in decision making to move from your current location. 

Also the role you will be getting in new location also matters a lot. It also depends what are your opportunities in current location if you change there itself. So you need to drive the decision based on many factors than just money. If your intention is to just make money than your decision making is more easier. 

So think carefully and let me know if you have specific question in mind which I can really answer with some data. Remember that what you will be saving in first year of living in Singapore and what will be the saving in 2nd year and so forth will be quite different as you start living here your needs starts growing same time as your child!

cheers

Sandeep

Sandeep, Good work Keep it up Does the HBD flat have TV ?
regards -manish

Well yes most of the HDB flats on rent I have seen will have TV set. Although it will be CRT one and may not as good as your specification sometimes. If you are lucky you will get a 29" TV too!. So whenever you are looking for a HDB/Condo flat make sure that your essential list is ready on which you do not want to compromise at all...e.g. Good TV, Fridge, Washing Machine, Cooking Range, Wardrobes, Sofa Set etc ..As repair service is quite expensive depending upon the part change required. You need to make sure that all the things in the rented flat are looking good(not too old!).

I need to know how to invest in MF through SIP from USA? I have Suvitha account in Citi Bank in India. Will it be possible to buy through the account? How will i be able to submit the Pan Card details? Or do i need to get the NRE account? Please suggest in detail about this. Iam new to this and need help. Is this the right time to start MF(SIP)?Any particular fund?Please kindly suggest.Thank you so much.... 

-Anonymous

I guess investing in MF while an NRI in USA the rules are different by many AMCs. You need to check that. Citibank Suvidha account is for Indian Residents not for NRI as far as my knowledge goes. You need to have an NRE or NRO account in order to invest in MF in India. Also PAN card and KYC is must now a days. 

About your other question whether this is a right time to invest in MF in India. I am not quite sure about right timing. But I believe in some strategy which you can read here : 

Mutual Fund Investment when sensex is low!

I am not a Financial advisor, so I am just writing what I feel like and also do myself. You are welcome to comment on my blog!

cheers

Sandeep

Reader Mailbag # 5 : Cost of Living in Singapore posts!

Sorry for not being able to update my reader mailbag for sometime. Also I would like to request my readers to have more detailed information in case they want a specific query to be answered. This is my best attempt to answer what I feel about the query and should not be taken as it is. Do your own research before taking any decisions.

Hope you enjoy reading my posts and get some value out of it. Please feel free to comment and share your experiences with other to help them out!

Will 60000 Singapore dollars per annum sufficient for a couple to live in Singapore and save some pennies for home.....
-Swami

I believe it is good salary to start with if you are looking for a change and would like to move to Singapore from India. Although as I have said earlier, the cost of living depends on many factors and it is important that you do your own math before classifying anything to good, decent or fair. As that helps you to set the expectations right and no surprises when you land in new country with changing times. Please go through my earlier Reader Mailbags and posts to find more.

Hi Sandeep ,

I am looking for 2 bedroom hdb now , but not getting anything less than 2k.
-Chandra

I do have any details on what rent prevails in which area in Singapore. But if you give more details probably I can help out. I personally feel that rents are coming down a bit in some areas in Singapore. Also rent in any area depends on many factors like renovation in the flat, proximity to MRT, Malls. You need to give some hard try before reaching any conclusion. As I have speak to many people who come to Singapore ..I find that they do give up on searching and settle on something they have found. This happened to me as well. So do some more search and you should be able to find a HDB flat in your budget. ..good luck !

Hi Sandeep,

Thanks to you for so informative blog. Just wanted to know, whats the difference between a Condo,a HDB and Landed accommodation. I also find that people give on rent their single rooms.Is that a common practice in Singapore.

Also what are the central locations in Singapore. Please advise. Regards.
-Anonymous

Thanks for reading my posts and commenting. A Condo privately build gated apartment complex with security and also amenities like swimming pool, gym, party hall etc. HDB aparments do not have gated security and other amenities attached to apartment but at same time offer good accommodation and proximity to schools, malls, MRT and Bus stops. Landed property is a row house or a independent house....in India we call it Row House or Bungaow or Villa!

Yes it very common practice to get Single rooms like Master room or 1 bed room by families. It is cheaper and good option if you a bachelor.

Singapore is built nicely all over to provide all amenities to public. By central if you mean the Business District, then it is Marina Bay, raffles place, suntec city, river valley road etc etc ...

Hope this helps!

Enjoy ..Sandeep

Reader Mailbag # 4 : Cost of Living in Singapore 2008

Hi Sandeep,

we are planning to rent out this house at HDB Bukit Batok, 177 Bukit Batok West Avenue 8, Singapore 650177, The rent is SGD 1700/ month, you think it is a good area and a decent rent??
-Bijal

Bijal thanks for commenting on my blog.

Well, as I said earlier in my posts that all areas in Singapore are good in terms of accessibility, food options, grocery, shopping malls etc. So finally it comes to your choice of location in terms of commute to office and how much you want to pay as rent!.

So go ahead if the HDB flat is not too far away from MRT Station - may be 3-4 bus stops is a good idea.

About rent this looks like good rent for 3-4 room house. But again as I lack details in the question, can't comment on that. Again it depends sometimes, some people prefer small but well furnished flats and some prefer bigger flats like 3-4 bedrooms.

Hi Sandeep,

hope all well with you.
Could you please advice in which areas the rent is not high. Am a business men and planning to open a office in Singapore so would like to shell out less funds. I would be moving with my wife. Are the rents payable very month or its taken in advance for 12 months. Are there any security deposits while renting.
-Sachin

Sachin thanks for posting a comment. Rents are payable monthly most of the times unless its a lease(again I have not seen anybody personally doing so). Advance rent depends upon your contract terms, for 1 year rental agreement the advance would be 1 month rent in advance(wow that gives relief if you are coming from India where we pay 10-12 months rent in advance!)

The rent in advance itself is a security deposit. Most of the rent agreements has a clause to for either party to vacate or ask to vacate after 6 months by giving 1 month notice. So need to check the agreement carefully before you sign in.

About rent being high or low in areas in Singapore. You need to search based on your office location and commute time you want to spend. Once you decide on location for example Senkang, Ang Mo Kio, or Tampanies you can try searching flats in those areas and generally rent varies depending upon type of flat and renovation done.

cheers
Sandeep

Reader Mailbag #3 : Cost Of Living Singapore 2008

I am getting more comments for the cost of living post and I am making efforts to answer them. Readers please post comments to share your ideas too to help these people in their decision. Again as mentioned earlier, you need to do your own research before taking any decision. As moving from one country to another country involves lot of cost and also other factors like change in job, culture, climate and many other things. Also for most cases the decision once taken cannot be changed very easily in short duration. I am glad that I am able to provide some help in this process. enjoy reading!

Hi Sandeep,

Thanks for the information.

I have got an offer of 5000 SGD per month from singapore. I am bachelor and I would like to know whether this is a good salary or not? I am an S/W engineer having around 4 years of experience.

Please let me know.

-Rahul

Rahul, I like you read the following post of mine here. In my personal opinion SGD 5000 is a good salary to save enough money if you are going to share the apartment with few more bachelor's like you.

Best of luck !

-Sandeep

I am a software engineer with 5 years of experience. Recently I got an employment offer from a Singapore based company.

Basic Salary : SGD 2850

Accommodation : SGD 350

Transportation : SGD 100

Meal Subsidy : SGD 150

Customer Services Subsidy: SGD 50

Total Salary per month will be SGD 3500. I am also entitle to AWS in year end, equal to or prorate of 1 month basic salary, upon confirmation of employment.

Q1)Is it a good offer comparing to the Singapore standard ?

Currently I am working in Bangalore,India and drawing a salary package of Rs-8,50,000 per anum. I'm able to draw around Rs-53,000 in hand per month (after tax). I am a newly married and my wife also earns around Rs-20,000 a month. Normally our family expense (rent Rs-10000, food and travel) wont go beyond Rs-22,000 per month.

In Singapore, I would like to go for a HDB flat (minimum 1 bedroom, 1 living room, kitchen and toilet) and I don't want to share the accommodation.

Q2)From the given data, Whats your opinion on my relocation to Singapore? Is the offer financially beneficial for me?

My wife is .net/C#/VB software engineer with 1+ years experience in an MNC.

Q3)Whats her chance of finding similar job in Singapore?

Q4)What salary range she can expect in Singapore ?

Q5)With the double income option, Whats your opinion on my relocation to Singapore?

Please send me your reply to

Thanks and Regards,

-Ravi

Ravi,

A1)As you might know,there is nothing called as Singapore Standard or for that matter India/USA standard when comes to salary package , it all depends on various factors like company you are joining, your skill level, need by the company and your negotiation skills for getting good salary package. You can have an idea about Singapore Wages here :

Ministry of Manpower Singapore Data on Salaries in Singapore

A2) This is an average salary. You need to define your goals for savings in Singapore as compared to what you are saving in Bangalore. I believe savings of around of Rs.50k(Rs.72k salary - expenses of Rs22k) is considered good in Bangalore. You should consider some other companies in Bangalore or in India to see what is being offered for your exp.+ skills. This will help you to take the decision better.

A3) Yes she can get job with some time of searching.

A4) Salary range could be checked in the report I have provided link earlier.

A5) Yes double income surely helps!

Hope this helps.Best of luck!

regards

-Sandeep

I would request readers to comment in more details, in case they are looking for any specific information. This would help me to provide better feedback. Also whatever I write is my personal opinion and cannot be taken granted. DYWR(Do You Own Reseach!)

Reader Mailbag #2 : Cost Of Living Singapore 2008

Hiii sandeep ur blogs have been highly informative and are a great help. i wanted to know about tax filing in singapore and India. Are u required to file returns only in Singaore or also in India how do u manage to do it??? 

-Bijal

Thanks for the comments Bijal. It is a very good question. I believe most of the people who get relocated to the new country from India must be thinking about this. Well the simple answer to this question is that you need to file Income Tax in Singapore as long as you are eligible for it. For more information checkout the informative website : Singapore Income Tax Website. Regarding Income Tax in India. You need to file returns with Indian Income Tax authority and pay the required Income Tax if you have any income in India. This is also applicable for people who have NRI status. 

Now with India providing various ways to file returns electronically it is much easier to file IT returns in India. Please read more about this at : RBI on NRI Rules on Income Tax

Hi Sandeep, many thanks for this information. Really you are doing a great work.I am planning to move to Singapore in Dec 08 along with my spouse. I would like to know more about master room (facilities, area, access to this room, cooking facility etc). Whether cooking is allowed? Thanks 

-PU

I assume you are talking about renting only the Master Bedroom out of 3 Bed Room HDB Flat or a Condo. Well generally speaking this kind of arrangement is more suitable for bachelors. But there are couples also who share HDB/Condo flats like this. Generally it requires lot of understanding between 2 parties sharing the flat and also requries some flexibility from everybody who is sharing the flat. The Master Room is the one which is having attached bathroom and toilet. Three bed room HDB flat have 1 Master room with attached bathroom and toilet. The other toilet is either near the Kitchen or having access via the living room(this is mainly true for new HDB flats which are less than 6-7 years old). Whether cooking is allowed or not depends on the owner of the flat. Most of the times the kitchen is well equipped with Fridge, Microwave Oven, Rice Cooker and some utensils too if you are lucky!..Best of luck for your house search !!

Reader Mailbag #1 : Cost Of Living Singapore 2008

In this series I will try to address the questions asked by my readers specially on Cost of Living in Singapore. This helps me to consolidate the questions and answers by me. Also it helps readers to find the answers they are looking for quickly!

The reason of for having this series is that I would like to help readers and want to protect their identity in case they put their email in the comments. Also this is a great way to share ideas !

I am getting an Offer from company to pay me SGD $3000 and rental provided by the company. I have two kids, one goes to nursary and other is neonatal.How it would be to move to Singapore from India and earn some money..plz reply back me on at yahoo.com.
- Vidyanath

I would personally avoid to give any recommendations or advice in this case. But at the same time I would like to share some facts so that it helps you to take the decision better.

If you are planning to move to Singapore from India. It is important for you to assess what you are saving there per month and how much is your expectation when you settle down in Singapore after 6 months of moving in. As there are expenses when you move in, so the first year's average savings reduce. I would suggest you to do some fact finding based on your current spending habits and savings per month in India. Also factor your current job and its potential to grow in India.

Nursary costs depends on where you put your kid. The range is between $300(decent one)-$750 based on my research in this area.

hi Mr.Sandeep ...good work ..I have got a offer from Singapore and they are offering me $1200 for housing and $2800 for other expenses. My husband and 2 yr old son will move with me. my husband is a marketing manager and I hope he will get a job in Singapore..I am really confused if I should take up the job ..what do you think ?
-Praveena

I picked up this question from my readers comment too as it similar to what I answered earlier. But this has another important aspect. It happens many times that either of the spouse finds a job and they have this tough question to decide whether to move in with that and then find job for other one later when they land in.

In this particular case again its a tough decision to take. But if you do your research right and plan properly this is something worth exploring. You would get 2 Bed room HDB apt in Singapore for $1200, although it depends on area and how furnished the flat is. Living with a family of 3 with $2800 is tough on budget, but if your spouse is confident on getting job here in Singapore in 3-4 months timeframe. The idea is worth looking at.

Singapore job market looks promising at present. So getting a job if you have right skills in demand is not difficult.

Please refer to following archives for more information on this subject:

Cost of Living in Singapore Posts