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  • Writer's pictureBenjamin Loy

Life after your HDB BTO : Your Options and the Pros and Cons

So you have scrimped and saved every cent with your spouse, such that your joint efforts over the years have realised the first milestone of every Singaporean marriage: Buying your BTO HDB!!!!!!!

Congratulations! This is a great achievement and is your first step to fulfilling all your real estate aspirations. You will realise that the system has been curated in such a way that supports the growth of a family nucleus, with housing being a very significant aspect. Hence, you should be able to advance easily from this point to wherever you fancy if you know how to play your cards right.

In the event that your BTO has been the sole area of focus all along, and this fixation has caused you to be entirely out of touch with what happens or what you could do after you’ve procured it, you’ve clicked on the right article. Today’s content will highlight the various pros and cons of subsequent ventures.

Another BTO

You made profits from your first purchase, so it makes perfect sense to go by the tried and tested route. Not only are they priced affordably to earn you capital gains in the next few years, but they’re brand new, direct from HDB!

Keep in mind the conditions though: ​​You have to take part in balloting again, have to wait years for it to be constructed, and then an additional 5 years of MOP. There is also a resale levy if you are moving to and from BTOs.

Resale HDB

If time is of essence to you, there’s always the resale market where purchases are instant. You will also be able to experience the home firsthand which includes its design, layout, orientation, immediate environment, and more.

There are a number of financial cons, though. Firstly, you’re definitely paying for someone’s profit, or a possible cash over valuation in today’s market. Additionally, since you bought it during its appreciation, its price is likely to be stagnant from now onwards. You might suffer potential losses too because of loans and CPF accrued interest, so tread carefully!

And in most cases, renovations might dig a deeper hole in your pocket.

Resale Condo

Like the Resale HDB option, these are immediately available and some can even be occupied right away. Otherwise, if you’re looking to use these as avenues for passive income, some Resale Condos come with an existing tenant lease! For the older ones, there is also the likelihood of a potential en bloc.

Similarly, cons include also paying for someone’s profit, and depending on your entry price, there is a possibility stagnation in terms of value, along with added renovation cost.

New Launch Condo

You’ll definitely save money on renovation costs as these are spanking new and straight from the developer. Due to price staging, most projects are set to increase in value over the next few years, as long as they’re decently connected and have sufficient amenities nearby.

The catch consists of long waits that might see you temporarily renting or staying with your folks, maintenance fees, and having less space as compared to your current BTO flat.

Landed Property

It goes without saying that landed homes are the most spacious and belong to only the upper echelons of Singaporean society. With the luxury of space of probably at least 2000 square feet and more, you are entitled to much more flexibility in designing the house, and because land is such an extremely scarce resource, these estates appreciate rapidly.

But on the flipside, these are extremely pricey and depending on the age of the property, might also incur lots of maintenance fees.

There is no ‘correct’ decision as this highly depends on your long term real estate plans. As displayed above and contrasted against each other, you can clearly see how each option might suit specific budgets and support different goals.

Feel free to get in touch with me for a free consultation if you would like more light to be shed on what might be the best choice for your unique situation. This might seem like a trivial decision now, but it will exponentially impact your life decades down the road.

If you are thinking of selling or buying a property, Do consider reaching out to me @ | 8186 5466






See you soon,

Benjamin Loy


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