Option 1: Keep HDB flat, then buy a Condo
Pros:
- Own two properties with one for rental income (you can choose to either rent out your HDB flat or condo)
- There is no need for you to worry about timelines as you need not move out of your current HDB flat
Cons:
- Additional Buyer’s Stamp Duty (ABSD)
- Buying a condo would require a substantial cash outlay
- Condo buyers with outstanding HDB loans can only take a 45% loan for condo purchase
Option 2: Buy a Condo, then sell the HDB flat
Pros:
- You’re able to choose your next property carefully
- You’ll have plenty of time to renovate your new home before moving in
Cons:
- It’s mandatory to pay Additional Buyer’s Stamp Duty (ABSD) and you can claim a refund for ABSD only if your condo purchase is a matrimonial home (i.e. buying a second residential property under husband and wife’s names, with at least one of the couple being a Singaporean citizen) and you sell the HDB flat within six months
- The upfront financial commitment may pose a cashflow problem
- Buying a condo would require a substantial cash outlay
- Condo buyers with outstanding HDB loans can only take a much lower Loan To Value (LTV) for a condo purchase – this would necessitate a larger outlay for downpayment
Option 3: Sell the HDB flat, then buy a condo
Pros:
- Additional Buyer’s Stamp Duty (ABSD)
- You’ll have plenty of time to find the ideal new property
- No cashflow issues
- Ability to sell the HDB flat at a higher price now, rather than a lower price later
Cons:
- You may need to find temporary accommodation after selling the HDB flat
- Rental cost of alternative lodging during the transition period
Option 4: Sell the HDB flat and buy a Condo simultaneously
Pros:
- If planned well, there’s no need to pay for Additional Buyer’s Stamp Duty (ABSD)
- You’ll have plenty of time to find the ideal new property and renovate your new home
- There’s no need to search for temporary accommodation
Cons:
- This is only possible if you have proper timeline planning
- You’ll need sufficient cash to pay the 5% Option-to-Purchase (OTP) fee and Buyer Stamp Duty
- Your HDB flat buyer may not be willing to extend your stay
