When people ask how much cash they need to upgrade from HDB to a private property, they usually have one number in mind: the downpayment. But the downpayment is only one part of a longer list. Getting the complete picture right — before you commit — is the difference between a comfortable upgrade and one that leaves you financially tight for years.
The Downpayment
For private property purchases, the minimum downpayment is 25% of the purchase price, of which at least 5% must be in cash. The remaining 20% can be paid using CPF OA funds. So for a $1.8 million condo, the minimum cash downpayment is $90,000, with up to $270,000 from CPF covering the rest of the 25% requirement. Your available CPF balance — net of what needs to be refunded from the HDB sale — determines how much cash substitution is possible.
Buyer's Stamp Duty (BSD)
BSD is payable on all property purchases. The rates are tiered: 1% on the first $180,000, 2% on the next $180,000, 3% on the next $640,000, and 4% on the next $500,000, rising to 5% and 6% for amounts above $1.5 million and $3 million respectively. On a $1.8 million property, BSD works out to approximately $54,600. This must be paid in cash — CPF cannot be used for BSD.
Legal Fees
Conveyancing legal fees for a private property purchase typically run between $2,500 and $4,000, depending on the complexity and the firm. This covers the purchase conveyancing and, if applicable, the mortgage documentation. Budget around $3,000 as a realistic estimate.
Renovation And Move-In Costs
For resale properties, renovation can range from $30,000 for light cosmetic work to over $100,000 for a full overhaul. New launches are typically delivered with basic finishes and may require additional fitting out. Moving costs and new furniture add another $5,000–$20,000 depending on the scale of the move. These aren't optional — factor them in before signing the Option.
The Buffer
Beyond all purchase costs, maintaining a cash buffer of at least three to six months of total household expenses — not tied to the property transaction — is basic financial prudence. The buffer exists for life's unpredictables: employment change, medical costs, urgent family needs. An upgrade that consumes every dollar is an upgrade that leaves you vulnerable.