HOW TO UPGRADE FROM HDB FLAT TO PRIVATE CONDO

Written by Chris Pang
Tuesday, 22 November 2022

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
HOW TO UPGRADE FROM HDB FLAT TO PRIVATE CONDO - Option-1_-Keep-HDB-flat-then-buy-a-Condo

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
HOW TO UPGRADE FROM HDB FLAT TO PRIVATE CONDO - Option-2_-Buy-a-Condo-then-sell-the-HDB-flat

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
HOW TO UPGRADE FROM HDB FLAT TO PRIVATE CONDO - Option-3_-Sell-the-HDB-flat-then-buy-a-condo

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
HOW TO UPGRADE FROM HDB FLAT TO PRIVATE CONDO - Option-4_-Sell-the-HDB-flat-and-buy-a-Condo-simultaneously

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I am Chris Pang

Property agent, Financial advisor

I specialise in residential property in Singapore and have been in the industry for over a decade. Helping my clients find their dream home or achieve their property goals is one of my favourite aspects of my work. With my knowledge of the vibrant city, I strive to provide my clients with ideal locations by understanding your personalities and preferences in order to better guide you towards the neighbourhoods that are ideal for you and your family.

Seeing the positive impact my work have on their families brings meaning and purpose to my life. Being able to change the lives of my customers for the better and put them and their families in a better position for the future makes me feel fulfilled!

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