In Singapore, the journey to owning a home often goes hand-in-hand with getting married. For many young couples, securing a Build-to-Order (BTO) flat is a major milestone. But recent trends suggest that this process might be pushing couples into early marriages, sometimes leading to early divorces.
The Early Commitment Dilemma
Imagine a young couple discussing buying an apartment on their second date. They quickly decided to apply for a public housing flat just six months into their relationship. Their eagerness led them to put down a S$40,000 deposit for a three-bedroom apartment in Queenstown, with the requirement to submit a marriage certificate within three months of receiving their keys.
This isn’t an isolated case. In Singapore, it’s common for couples to apply for BTO flats well before engagement. Government policies encourage early marriage to support family formation, but they also create pressure to make quick decisions. Rising housing prices and long waits for apartment construction are pushing younger Singaporeans to marry sooner. This trend has led to more marriages—and more divorces—among young couples.
The Financial and Emotional Toll
Take another example of a young banker who faced issues between her wedding and getting the keys to her new flat. She wanted to call off the marriage but didn’t because of the financial penalties and hassle involved. She went through with the marriage, only to face a costly divorce later, paying about S$50,000 in fees and returning housing grants.
The traditional “Will you marry me?” proposal has often been replaced by the common Singaporean phrase, “Want to BTO?” This shift can lead to rushed decisions and messy breakups, with financial stress adding to the strain.
The BTO-Divorce Link
The Kiasunomics book series by NUS Business School professors highlights this issue. Their research, covering data from 1996 to 2011, suggests a link between the BTO scheme and rising divorce rates. They found that BTO residents are significantly younger than those in resale flats, showing the scheme’s popularity among young couples. However, financial strain from mortgages and limited family support can lead to marital problems.
The Minimum Occupation Period (MOP) of five years for BTO flats also plays a role. The study noted a spike in divorce rates among BTO residents five years after marriage, coinciding with the end of the MOP. This suggests some couples delay their divorces until they can sell their flats without penalties.
Handling the Pressures
While securing a home is a big life goal, it’s crucial to consider all implications. Financial strain from mortgages and the emotional complexities of rushed marriages can create conflicts. A professor from the NUS Department of Real Estate suggests a multi-pronged approach to address these housing-related issues.
Additionally, another professor points out that cashback rewards on credit cards can lead to overspending and debt accumulation, adding financial pressure for young couples.
Conclusion
Of course, we are not saying BTO is the main cause for the rise in young divorcees. The journey to homeownership and marriage is significant, but it’s essential to approach it thoughtfully. Young Singaporeans should take their time, understand their finances, and ensure their relationships are strong before making such big commitments.
In the end, the dream of a loving family in a cozy HDB flat is achievable, but it’s important to balance practicality with emotional readiness. By doing so, couples can build a foundation that supports their housing dreams and overall happiness.
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