• Menu
  • Skip to right header navigation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Before Header

Call Joseph today for advice on your property transactions   (65) 9424-5244

PropertyAdvisors.SG

  • ABOUT
  • ACTUAL TRANSACTIONS
    • 3-Room HDB To 3-Bedder Private Condo
    • 5-Room HDB to Landed Property
    • 5-Room HDB to 3-Bedder Freehold Condo in District 9
    • HDB Upgrade to New Launch Condo
  • TESTIMONIALS
  • BLOG
  • CONTACT US
  • ABOUT
  • ACTUAL TRANSACTIONS
    • 3-Room HDB To 3-Bedder Private Condo
    • 5-Room HDB to Landed Property
    • 5-Room HDB to 3-Bedder Freehold Condo in District 9
    • HDB Upgrade to New Launch Condo
  • TESTIMONIALS
  • BLOG
  • CONTACT US

Mobile Menu

  • Mr Marecar
  • Mr Juraimi
  • Mdm Wong & Ms Lili Tan
  • Adam & Leona
  • Mr & Mrs Sani

Schedule A Free Consultation Now!

Find out how we can help you regarding your property issues.

(65) 9424-5244

  • Home
  • Blog
  • Contact

3-Room HDB To 3-Bedder Private Condo

You are here: Home / Actual Transactions / 3-Room HDB To 3-Bedder Private Condo

I first met Mr & Mrs Senthil back in 2012. Mr Senthil was a civil servant while Mrs Senthil was working in a bank.

They were initially staying in a 3-room HDB flat in Circuit Road.

Back then, they met me as an interested buyer for an EA flat in Sengkang I was marketing at that time.

They always dreamt of staying in a bigger property but was still doubtful and unsure of what to do.

When we first met, they haven’t even started marketing his 3-room flat!

In this case, I gained their trust – I helped them sell their flat first before buying the EA.

It was a smooth transition to the EA as we planned the timeline very carefully to minimize any disruptions or inconveniences.

Selling their Executive Apartment Flat in 2017

After hitting the 5-year MOP on their EA, they wanted to make the next step of upgrading to a private property.

Being a very conservative couple, they wanted a less risky approach – so we decided to market the EA flat first before closing on the private property.

Now, we faced this challenge: Selling a bigger flat is actually much more difficult compared to smaller flat.

This is because of the higher price tag means there will always be a smaller pool of buyers available.  We were also dealing with a slow market.

When they bought their EA back in 2012, they bought it at a price of $631K.

In 2017, the price that we sold it at was at $616K – it was sold at a loss of about $15K.

Now why was there a loss? Was I such a lousy agent? Or were they other bigger factors at play?

These were the factors that influenced the price:

  • Older flat meant a shorter lease remaining. Buyers were getting very sensitive at the remaining lease of the HDB flat.
  • HDB resale price index was declining
  • Slow market with plenty of HDB flats available for sale

They also decided to not keep the flat due to

  • Additional Buyers Stamp Duty (ABSD)
  • Challenges to rent out the flat due to ethnic quota restrictions

Bought their Private Condo in 2017

After selling off their EA, they bought their next property – a 3-bedder condo at $900K in 2017.

It is interesting to take note of the private condo’s prices:

  • In 2012 – it was selling at $1.01 million
  • In 2017 – it was selling at $900K
  • Now in 2019 – similar units has transacted at $936K

Had Mr Senthil immediately bought a condo back in 2012 after he sold off his 3-room HDB flat – it would have been too much of a financial stretch.

By doing a progressive upgrade from HDB to an EA first – it helped to lengthen his runway and ensured his finances were secured in a prudent manner.

At the same time, they now own a condo which:

  • has appreciated better than their previous HDB flat
  • free of ethnic quotas and restrictions
  • not subjected to a 5-year Minimum Occupation Period
  • able to be sold anytime if they wished to (but will be subjected to SSD that is applicable within the first 3 years)

Reflections & Learning Points

They have 2 young children in primary school so it was essential we guided the upgrading process in a way that will not burden his finances.

This process also positioned him to buy the resale condo of his dreams at a cheaper price.

The takeaway from this – your goals can be achieved with careful planning.

With proper financial guidance, you will be able to gradually upgrade progressively to grow your wealth and upgrade to a better standard of living.

Primary Sidebar

Request A Free Assessment

Unsure of what your next steps should be regarding your property issue? Request a no-obligation assessment to discuss options that are available to you.

FOLLOW US ON FB

CATEGORIES

  • General (1)
  • HDB (4)
  • HDB Upgrading (1)
  • Property Investment (2)
  • Retirement Planning (3)

RECENT POSTS

HDB Resale Price Index Went Up 4%. Here’s Why.

  Over the last few months, you might be seeing this …

2020 Recap – 3 Valuable Lessons From 3 Clients

For a lot of people, 2020 was a terrible year - there was job …

Everything You Need to Know About Social Security

The Inflation Threat – 5 Things You Must Know

The COVID-19 pandemic has forced governments all around the …

Has the Pandemic Affected Property Sellers & Buyers in Singapore?

When the Singapore government introduced the circuit-breaker …

The Most Important Peace of Mind a HDB Owner Can Get

Your HDB flat is likely the biggest purchase you made in your …

Site Footer

Joseph Tan is a licensed realtor from PropNex Realty. CEA Licence No. L3008022J • R010501I

Privacy Policy | Terms of Service | Disclaimer

Copyright © 2023 PropertyAdvisors.SG · All Rights Reserved · Powered by Mai Theme