Upgrade to a Bigger Home—Use $400K Cash and a Rented Out HDB to Skip ABSD!

Planning Your Next Move: A Fresh Take on Your Real‑Estate Options

Dear Stacked Homes Team,

Thank you for your thoughtful guide. We’re at a crossroads: two full‑paid properties, a daughter, a 55‑year‑old wife and a 56‑year‑old me—all working, all interpreting the new normal. Here’s what we’ve been crunch­ing and why we’re reaching out.

Your Current Situation

• Two‑bedroom condo worth ≈$1.1 M, just next to the MRT with all amenities within arm’s reach.
• Five‑room HDB flat (≈$600 K) rented out, generating $2.4 k/month.
• No outstanding loans. Entire portfolios are 100% paid.
• Net worth: $1.7 M property + $400 k cash + $400 k OA + $500 k SA + $200 k RA

Why We’re Thinking About a Move

• Work‑from‑home >50 % of the time = tiny two‑bedroom feels cramped.
• We want a three‑bedroom condo with ≤900 sq ft that’s still close to an MRT.
• A larger home would help us host guests, manage pop‑up workspaces, or simply breathe easier.

Tax & ABSD Basics (Without the Math)

Simple, but tricky:

• ABSD (Additional Buy‑Sell Tax) at 25 %: If we buy a new 3‑bedroom condo (≈$1.4–$1.5 M) we’ll owe $350–$375 k immediately.
• Sell the current condo: 8 % ABSD refund right away – a quick cash injection.
• Sell our HDB: We’re eligible for 17 % ABSD refund, but our flat is 23 years old (maintenance on our mind). Also, we can only sell after the lease ends or pre‑lease‑sale with new rent rate, earliest September 2023.

A Big Question: “What’s the Likelihood of Capital Gain in the Next 10 Years?”

Guides say the NE MRT line has steady demand and increasing rents. A 3‑bedroom condo now could yield a 4–7 % annual appreciation—solid, though not guaranteed.

Options We’re Considering

1. Buy + Sell Combo
2. Purchase a new 3‑bedroom (£1.4–$1.5 M) and sell the 2‑bedroom condo for an 8 % ABSD refund.
3. Pay the 25 % ABSD upfront; the refund will offset part of it.
4. Sell the HDB first
5. Get the 17 % ABSD refund (≈$102 k).
6. Use that to fund the condo purchase or to build an emergency reserve.
7. Hold both & invest on the side
8. Keep the rental income from the HDB.
9. Channel surplus cash into high‑yield CPF or other securities.

Plus, A Few Fresh Ideas

• Consider a co‑ownership model with an extended family member, splitting 3‑bedroom costs while retaining ownership.
• Explore pre‑sale of the HDB to a developer—unlocking a larger amount of liquidity whilst still keeping the property until lease expiry.
• Look into property exchange programs (Stellar/DAO swaps) for flex‑budgeting.

Final Thoughts & Advice

We’re well‑positioned but also money‑conscious. You want a new cushion for retirement: consider the 3‑bedroom condo as a lifestyle upgrade now, the HDB sale as a capital tap later, but keep an eye on inflation, ABSD fluctuations, and maintenance liabilities.

In short: Buy the condo, sell the 2‑bedroom unit, use the ABSD refund to smooth the cash bump—and keep a stash for contingencies. That way your daughter can plan her own space later, the house supports your current work‑from‑home life, and you still have a steady cash flow.

Conditions for ABSD refund

Unlocking Your Next Property (without losing your sanity)

Let’s break it down like a cheat‑sheet you could actually understand. You’re already owning two fancy dorms (aka condominiums). Want to grab a third without selling anything first? Fudge, that hurts the wallet big time.

Why the ABSD Freaks Out

• Buy a new home and keep the old two → Non‑refundable 25 % ABSD.
• Think of it like a pricey “no‑exit” ticket: once you hop on, you’re stuck with it.

How to Get the Refund – The “Sell‑Sell‑Sell” Dance

1. Sell your existing condo (the one you’re about to ditch).
2. Grab a new property with fresh optimism.
3. Sell the HDB within six months of that purchase.

Only with this tight choreography will you see the refund dance out the door. It’s like a “show‑one, buy‑one” rule – you’re allowed to keep only a single home once the clock finishes.

Everything Gets Paid… Fast

Both BSD and ABSD are expected within 14 days of the exercise date, which is rickety for pulling out your CPF

Use cash first, hand over to your solicitor, then file the CPF loan request. They’ll swing the money back later. Kinda like doing a reverse pay‑back.

Quick note: this “cash‑first, return later” trick only applies to private homes. With HDBs you can lean on your CPF straightaway – no upfront cash needed.

Bottom Line

To dodge that massive ABSD, you have to sell all your current properties before buying another. If you’re looking for a smoother ride, playing the “sell, buy, sell” whistle‑tune is the only escape hatch.

What’s your affordability?

Plan for Your Next Home: Cash‑Only, No Loans!

Let’s keep it simple: you’re eyeing a retire‑in‑five‑years lifestyle, you’ve got the FRS sorted in your CPF, and you want to whisk those bags of cash straight into your next property. No borrowing, no extra hassle.

Scenario 1 – Sell the Condo, Buy the Next

• Condo sales proceeds: $1,100,000
• Combined CPF funds: $500,000
• Cash on hand: $400,000
• Total available: $2,000,000
• BSD (Buyer’s Stamp Duty): $64,600
• ABSD (17%): $340,000 (refundable if you dump the HDB within six months)
• Net affordable purchase: $1,595,400

Scenario 2 – Sell Condo + HDB, Then Grab the New Place

• Condo + HDB sales proceeds: $1,700,000
• Combined CPF funds: $500,000
• Cash on hand: $400,000
• Total available: $2,600,000
• BSD (Buyer’s Stamp Duty): $88,600
• Net affordable purchase: $2,511,400

Picture this: your ABSD drizzle disappears entirely because you’re selling both properties before the next purchase. That means you keep more cash for the dream home and sidestep that hefty 17% fee.

Pros:

• Higher purchasing power – more room for that fancy kitchen!
• No ABSD, which saves a tidy chunk of money.
• Everything paid upfront, no loan‑related headaches.

Cons (and a little reality check):

• You need a place to crash in the interim – the rental market’s not exactly cheap these days.
• Coordinating two sales and an instant purchase can feel like an Olympic relay.
• Long‑term flexibility might shrink if you lock everything into cash‑only.

Reality: HDB prices are at historic highs; it’s a golden moment to cash in, especially at 23 years old. Your lease runs until September 2023 – check the agreement for any early‑termination clause that might apply when you sell the HDB.

Bottom line: If you’re comfortable juggling homes for a few months and you’re chasing the best bang‑for‑your‑buck, the dual‑sale route is sweet. If not, stick with the single sale – just know you’ll pay that ABSD gun.

Next Steps

Decide which path feels right, double‑check your tenancy terms, and get ready to reap the rewards of a cash‑driven home move!

Leasing the Old‑School Boom: Why 21‑Year Homes Are Hot Right Now

The 21‑Year Stagnation Myth

Traditionally, lease‑hold flats hit a point of price plateau around the 21‑year mark. It’s like a “tortoise” market – slow, steady, predictable. But the plunge‑impact of the pandemic has flipped that script.

Pandemic‑Driven Demand Surge

With remote work becoming the norm, folks are hunting for extra space. Older flats, with their quirky character and often more room, have turned into the real estate equivalent of a viral meme. The fresh demand has nudged prices up, even for those 21‑year‑plus gems.

Pathways You Can Explore

• Think Before You Leap: Do a quick run‑through of the lease term and any upcoming ground rents. A shorter remaining lease might feel like a bargain now, but you’ll need to factor in future costs.
• Get a “Condition Survey”: Old flats can have hidden quirks—roof leaks, outdated wiring, eccentric layouts. Spotting these early saves a ton of money.
• Negotiate the “Re‑Let” Clause: Some sellers include a clause that lets you re‑lease parts of the unit (think office space or a tiny studio). It’s an extra way to pan out future earnings.
• Consider a “Lease Extension”: If the remaining term is less than 25 years, you can extend the lease. It’s like paying an extra fee for peace of mind.

Bottom Line

Older leasehold flats are suddenly hot commodities thanks to the pandemic’s shift in lifestyle. By staying wise, probing carefully, and keeping an eye on future lease terms, you can turn these unique properties into a solid investment— and maybe even a laugh‑out‑loud story to share at the next office party.

Option one: Sell two buy two

How to Dodge ABSD & Still Own Two Homes

If you’re looking to retire with a little extra bodega, the trick is simple: buy one house for yourself and a second one to rent out. That way you avoid the hefty Additional Buy‑Sell Duty (ABSD) and still have a steady income stream.

Quick Cash Flow Snapshot

Sell both properties, add your CPF and any pocket money, and you’ll walk away with about 2.6 million dollars. Ding‑ding! After paying the Buyer’s Stamp Duty (BSD), you’ll have roughly 2.5 million left.

– 1.5 million earmarked for the place you’ll live in
– 1 million left for the rental property

BTW – the BSD is cheaper (≈ 20 k) if you split the purchase into two separate deals (1.5 m + 1 m) instead of one lump‑sum. We’ll stick with the rounded figures for clarity.

Three‑Bedroom Sweet Spots < 1.5 M (North‑East, not Punggol)

Two‑Bedroom Deals < 1 M – Gold for Renters

Why Younger Properties? And 2‑Bedroom Preference for Investors

Planning to stay for at least a decade? Pick a fresh development—it’s more likely to climb in value. And for rent‑in‑future, a two‑bedroom unit is a safer bet: it’s easier to flip and you can rent out one room if you can’t get the entire unit booked, cutting vacancy costs.

These options are chosen based on the rough specifications you provided. You’ll still want a real estate agent to dive deeper into the numbers.

10‑Year Playbook: The Vales & Parc Riviera

Let’s do a quick projection using a 23.4 % growth from 2012 to Q3 2022 (per the property price index). Imagine you buy a three‑bedroom at The Vales (own‑stay) and a two‑bedroom at Parc Riviera (investment).

Private Property Index Highlights

• 2012 – 151.5
• 2013 – 153.2
• 2014 – 147
• 2015 – 141.6
• 2016 – 137.2
• 2017 – 138.7
• 2018 – 149.6
• 2019 – 153.6
• 2020 – 157
• 2021 – 173.6
• 2022Q3 – 187.1

Result: 23.4 % rise over ten years.

Future Value & Cash Flow – The Vales (Own Stay)

• Projected price in 10 yrs: $1,826,320
• Current price: $1,480,000
• Interest (fully paid): $0
• Monthly Service Charge (350 $/mo): $42,000
• Estimated gains after 10 yrs: $304,320

Future Value & Cash Flow – Parc Riviera (Investment)

• Projected price in 10 yrs: $1,183,268
• Current price: $958,888
• Interest (fully paid): $0
• Monthly Service Charge (300 $/mo): $36,000
• Rental income (11 months @ 3,400 $/mo): $374,000
• Annual agent commission (1,700 $/yr): $17,000
• Estimated gains after 10 yrs: $545,380

Total Gains if Both Properties Are Sold After 10 Years

Combined profit: $849,700

Remember – these are paper figures, actual returns will hinge on market twists, property taxes (which are omitted here for simplicity), and other variables. With the rental income, you’ll have a nice extra stream of money that can keep you cozy in retirement.

Bottom Line

Buying separate properties lets you dodge ABSD entirely, preserves your living situation, and delivers passive income. If you choose a two‑bedroom for the investment and a three‑bedroom for living, you’ll likely see solid growth and enjoy flexible future options. Have a chat with a qualified agent to fine‑tune the numbers for your exact needs.

Option two: Sell two buy one

Finding a 3-Bed Home for Under $2.5 M

If you’ve got an around‑$2.5 million budget for a three‑bed unit, you’re in a sweet spot. You could snag a newer property in a central district, get a bit larger, or even strap on a few extra nice touches.

Newer 3‑Bed Options (All < $2.5 M)

• The Panorama – 1,141 sqft, 99‑yr lease, $2,180,000
• Sky Vue – 1,141 sqft, 99‑yr lease, $2,200,000
• Pollen & Bleu – 1,163 sqft, 99‑yr lease, $2,150,000
• Thomson Grand – 1,356 sqft, 99‑yr lease, $2,390,000
• d’Leedon – 1,216 sqft, 99‑yr lease, $2,400,000

All of these are in a fairly central location and would give you a nice mix of convenience and modern amenities.

The 10‑Year Projection – Pick the Panorama!

Let’s say you buy The Panorama for $2.18 M. After 10 years, here’s what could happen:

• Assume a 23.4 % annual growth → $2,690,120
• Current valuation → $2,180,000
• Interest costs (fully paid house) → $0
• MCST (about $400/month) → $48,000
• Estimated gains → $462,120

One Property vs Two Properties

If you only own one unit, the net gain after 10 years would be roughly $387,580 (after subtracting the MCST). But if you own two and you’re looking at a similar category, the combined profit climbs way higher because you’re spreading risk and layering upside.

Trade‑offs: Central or Cash Flow?

• Central units give you convenience – you’re close to shops, MRT, and the vibe of town.
• But they might not give you the passive income you’d get from a rental‑ready investment unit.
• And if you ever want to cash out, you’ll need to sell the house and move elsewhere – a big drag if you’re planning for retirement.

In short, a central fella might be great for your day‑to‑day, but it’s not the best producer of monthly cash flow.

What About a Dual‑Key Set‑Up?

Another cool idea is a dual‑key unit – a two‑bed space with an extra studio. You and your adult daughter can co‑live, keeping each other company yet enjoying privacy, especially since you’re both WFH half the time.

And when your daughter finally moves out, you can lease that studio apartment to bring in a nice extra income stream, marrying lifestyle and cash flow in one neat package.

So, weigh centrality, property size, income potential, and your future plans. With the right choice, you’ll score a home that feels like home and chimes into your financial goals.

Option three: Sell two buy one, and invest the remaining funds

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Why Owning Just One Property Is a Bit Like Sowing Only One Seed

Think of your portfolio like a garden. Planting all your money in a single
property? That’s like putting every seed into one pot. If the soil isn’t right,
that pot might turn into a very expensive disappointment. Instead, diversify your
plantings and you’ll grow a bumper crop no matter what the weather throws at
you.

Your Blueprint: The “Three‑Bedroom + High/Low Risk” Plan

Picture this: you snag a swanky three‑bedroom unit in the North‑East
(The Vales) for $1.48M. That’s the base of your strategy. Now, take the
remaining $1M and split it evenly—half goes into high‑risk investments
and the other half into low‑risk ones.

10‑Year Projection in a Nutshell

• High‑Risk, 7% Annual Return: $500,000 turns into $983,576
• Low‑Risk, 4% Annual Return: $500,000 turns into $740,122
• Initial Investment: $1,000,000
• Estimated Gains After 10 Years: $723,698

Those numbers come from a simple, clean calculation: compound interest
tacked yearly on top of each pile. Remember, the 4% return isn’t “risk‑free
in the classical sense,” but is a realistic benchmark because you’re looking
at the type of returns your CPF RA actually offers.

What Happens After 10 Years?

Adding the gains from both the high‑risk and low‑risk sides gives you a
total of $1,028,018 (that’s the sum of the $304,320 from your
property and the $723,698 from your investments). It’s a tidy bundle that
shows how a balanced approach can pay off.

Heads‑Up: Market Fluctuations Still Play a Role

Even a well‑spaced portfolio can feel the buzz of market swings. Aiming for
higher liquidity by diversifying can shield you when the need for cash hits—
but it also introduces its own risks. Think of it as having a safety net
that’s a bit less stiff but still large enough for a quick rescue.

Bottom line: mixing a solid property purchase with a smart split in
investment risk offers you both stability and the chance for a decent
return, all while keeping your financial bumpy ride a little less rough.

What are the chances of potential gains in 10 years?

Where Does the Property Market Stand? A 2013 Peak Review

Just like any good story, the housing scene has its own ups and downs. When the market hits a high point, prices get a shiny new sticker and most buyers still stare at that number like it’s a newborn baby. It takes a while before the crowd finally nods and says “yes, you’re right.”

Let’s Dig Into 2013’s Biggest Launches

To keep things fair, we’re only eyeing the 99‑year leasehold projects that popped up during the last market peak in 2013. Below is a quick tour, sprinkled with a bit of humor, to see how they’re doing today.

The Top 5 99-Year Leasehold Projects

• Project A – “The Sky Loft”

  Gradually losing the Parisian chic feel as generic “polyurethane” breezes creep in, but still a solid investment if you’re into vintage vibes.

• Project B – “Riverbank Vista”

  Lake views are still on point, but the real estate friends say it’s a bit of a “forever lease” drama – the lease is long, but the flip is so slow that you almost forget you own it.

• Project C – “Eastside Square”

  Closely managed, still holding the initial charm, yet the price has done a right turnaround, dropping most of the way back down toward where it was before the 2013 boom.

• Project D – “Digital Orchard”

  Designed around tech‑savvy living, it remains high‑tech, but the popular apartments are moving at a slower pace. Maybe the AR’s left? Anyway, it still gives a good second‑hand value.

• Project E – “Greenfield Enclave”

  Fertile, lush greens, it’s a wonder the price is holding steady. Back in the day’s numbers? It’s a bit higher; yet the price is on a slow path back to the mid‑2000s range.

The Takeaway

Back in 2013, each of these 99‑year leasehold projects set a new “go‑to” price point. Fast‑forward to now: the market’s dipped a few affairs, but the projects still hold their own. Whether you’re the buyer who “just buys because the price’s higher” or the move‑savvy seller, these projects have taught us a lesson: the market is like a rollercoaster – you’ll feel the highs, but the eventual climb or descent eventually settles back to a calmer pace.

Curious about your own property’s performance? Create a quick spreadsheet, throw your balloon in the market, and watch the numbers wobble. In the end, the only thing you can truly rely on is the good old notion that the market always comes back to a balanced tune, absolutely loud enough to make the walls echo and still, that’s what we love to talk about.

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What Happens After the Cool‑Off: A Real Estate Survival Guide

We’ve seen the property market swing its backyard fence wildly—some projects ran around faster than a squirrel in a park. The reasons? A mix of location quirks, how close you’re to the nearest coffee shop, and even the quirks of the units themselves. The big twist? Even when prices nosedived after those three “cooling” measures rolled out in 2013, most projects bounced back once the market found its footing again.

Key Takeaways (Spoiler: It’s Not All Doom & Gloom)

• Peak Purchases Aren’t Dead‑Ends – If you bought at the high tide, the seas can still rise.
• Timing Matters – Think about holding onto the property for a decade or more; that’s the sweet spot where appreciation tends to kick in.
• Weather the Storm – A good “holding power” means you can ride out a dip without losing your shirt.
• Right Property, Right Place – Picking the correct development with stellar amenities can tilt the scales in your favor.

Remember When—The Peak‑Buyers Review

We’ve already dived deep into how those who snagged units during the market’s peak are faring. The verdict? Many are walking away with a grin, not just a shrug.

Bottom Line—Buyers, Take Heart!

Even if you find yourself buying at a high point, don’t panic. With the right property, a long enough stay, and a dash of resilience, your investment can still grow—all while you sip your coffee and watch the market do its weird dance.

Conclusion

How to Dodge the ABSD (and Still Stay Comfortable)

Quick heads‑up: If you want that sweet ABSD refund, you’ll need to sell your current condo first before you buy the next one. And you’ll have to clear out the HDB within six months of that purchase. If you sort both sales before the new buy, the ABSD dodges you entirely and your budget gets a nice boost.

Three Game‑Plans (All About Flexibility & Comfort)

1. Sell Two, Buy Two – Flexibility For The Win
   • No one’s throwing a wrench at your living situation. You can flush out cash whenever the market perks up.
   • Plus, you’ll grab a steady stream of passive income – perfect for filling those retirement coffers.
2. Sell Two, Buy One (Better Location) – Comfort Over Cash
   • Think bigger rooms or a fancier spot.
   • But remember: if you wanna cash in later, you’ll have to move again – a move can feel like a marathon, especially when the years are rolling in.
   • And no rental cash? You’ll miss out on that income cushion.
3. Sell Two, Buy One & Invest Rest – Sharp Liquidity, Variable Risk
   • Boost your liquid capital, but the risk depends on where you put that money.
   • Hard to give a one‑size‑fits‑all verdict – just a “consider this” option.

What The Retirees Are Really After

Most folks in their golden years crave peace of mind. You’d rather not fence‑post about how your investments are doing every day.

So, if you want that calm factor, Option One is a solid pick. Two fully paid homes = zero mortgage worries. Plus, the rental profits can jazz up your CPF payouts, giving you that extra cushion.

Should you later shift to an HDB, you’ll still clutch that rental cash and any potential capital gains as a plus.

Thinking About Legacy & Where The HDB Comes In

• The HDB can serve as a “sell later” asset for your heirs, since there are strict rules if your kids already own homes.
• If you’re not chasing sky‑high appreciation, snagging an older resale flat makes sense – it frees up cash for the long haul and might land you in a better spot than a newer job.

All told, pick the plan that lets you relax, enjoy retirement, and still keep your wallet in good shape.

Source: Stackedhomes