Upgrade to a New Condo with ZERO Additional Cash Outlay

Mr & Mrs Tan are in their thirties and married with two young children. The husband is a civil servant and the wife a sales executive. They lived in a HDB flat in Tampines and have a combined monthly income of about $8,000.

In 2016, Raymond casually shared with Mr & Mrs Tan about the Singapore property landscape.  It was only in the middle of 2018 that the couple contacted Raymond again. They decided they wanted to upgrade to an EC or a condo for a better lifestyle that they could enjoy with their children. They had noticed prices of private properties were trending up and were concerned property upgrading may soon be out of reach for them. 

Raymond proceeded to do a detailed financial analysis and stress test for the Tans. It was determined that Mr & Mrs Tan could upgrade to a new condominium with ZERO additional upfront cash. A reassuring safety net was also created to cover for about 5 years of monthly mortgage payments should the Tans not work. The Tampines HDB flat was then marketed and sold by Raymond with three offers within two weekends. Subsequently, Raymond helped Mr & Mrs Tan purchase a 3-bedroom condominium unit at The Tapestry.

When Terence met Mr & Mrs Tan in 2017, they were living in a HDB 5-room flat in Ang Mo Kio and were unsuccessful at the ballot for a new executive condominium. The Tans were motivated to upgrade their home to help provide for the future needs of their two teenage children as well as fund their own retirement in their later years. They were very concerned that the remaining lease of their flat was approaching 60 years and its market value may start to fall.

After gathering some details and working out the financials, Terence suggested the couple consider upgrading to a private condominium instead. If Mr & Mrs Tan were to buy a new EC, the 30% MSR (mortgage serving ratio) ruling applies. They must also pay a resale levy, as they had taken a CPF grant for their HDB flat. They would need to wait for about 3 years for the new EC to be ready for occupation and another 5 years Minimum Occupation Period (MOP); a total waiting period of about 8 years if they want or need to sell. 

Terence recommended two private condominiums for their considerations and the Tans booked a new 4-bedroom private condominium in the Northern region of Singapore. Thereafter, Terence proceeded to help the Tans market and sell their HDB flat for 60% more than what they had paid for it in the resale market in 1998. 

Since there was an outstanding mortgage and the large amount of CPF used for the flat and the compounding CPF accrued interest needed to be returned to their individual CPF Ordinary Account, they received zero cash proceeds from the sale. Thankfully, with the returned CPF cum accrued interest from the sale of the flat as well as their current CPF and cash savings, Mr and Mrs Tan were able to purchase the 4-bedroom condo. A reassuring safety buffer was also built in, such that if both Mr & Mrs Tan were to be retrenched or out of work, their current CPF and cash savings will be sufficient to pay for their monthly mortgage instalments for about 7 years! 

James & Pearline were contemplating to renovate their HDB 5-room flat in Bedok South with a remaining lease of 56 years when they contacted us after seeing our online ad. After two meetings and detailed financial calculations, they agreed the money for the renovation could be better spent upgrading to an EC with more potential for capital gain. Opting for the Deferred Payment Scheme that was available then, James & Pearline were able to book a brand new 4-bedroom EC at Parc Central Residences while they continue to live in their flat, with the mortgage payments only starting upon the EC obtaining the Temporary Occupation Permit (TOP). Also, since it was a new EC, no Additional Buyer's Stamp Duty (ABSD) is payable as they would need to sell their flat.  

It was at a reservist training camp that Raymond reconnected with Firdaus, his former colleague in the police force. During a casual chat at break time, Firdaus mentioned he was living in a 5-room HDB flat in Choa Chu Kang with his wife and three young children. Raymond then shared the benefits of upgrading to an Executive Condominium and asked Firdaus if he would consider it. Firdaus brushed off the idea, thinking it would be an expensive move and surely out of reach for him and his wife.

A few months later, Firdaus contacted Raymond to meet up. The thought of upgrading to an EC had been on his mind since he last met Raymond and he had discussed it with his wife, Siti. They liked the idea of enhancing their asset while enjoying a better quality of life. They wanted to find out more to see if it was really possible for them to upgrade to an EC.

After some fact-finding and thoroughly going through their finances, it was determined that Firdaus and Siti could indeed upgrade to an EC if they were to sell their HDB flat first, as they would require the cash proceeds and the returned CPF OA amount after the sale of the flat. Firdaus and Siti were

very motivated to upgrade and agreed to sell their flat first since they could stay with Firdaus’ parents during the transition period.

Their 5-room HDB flat was sold for $410,000. With the cash proceeds from the sale of the flat and an additional $9,000 from their savings, Firdaus and Siti were able to place the 5% booking fee for a $720,000 3-bedroom Wandervale EC. Their monthly mortgage payment was about $1,800.

On the day that Firdaus and Siti collected the keys to their new EC, they were so overjoyed you could see the tears welled up in their eyes. They are ordinary Singaporeans who live the dream.

Mr P.H. Ng is 50 years old and a civil servant. He owns a fully-paid 5-room HDB flat in Woodlands and lives there with his 90-year-old mother. Mr Ng knew of some friends who had profited by investing in multiple properties and he, too, had the desire to own a private condominium as an investment.

Mr Ng had no intention to sell his flat then as his elderly mother was comfortable living in the same familiar neighborhood and did not wish to move. His main concern was whether he could afford the down payment and the monthly mortgage payments for a private condo should he retire in a few years’ time. 

Raymond understood Mr Ng’s concerns and needs. He worked out a few scenarios for Mr Ng by applying various mortgage options and financial stress tests, taking into consideration that Mr Ng would need to pay the Additional Buyer’s Stamp Duty (ABSD) for owning a second residential property.  

After looking at the results of the stress tests, Mr Ng was convinced he could proceed safely to purchase a private condo with peace of mind. He is now a proud owner of a 2-bedroom condo in Parc Botannia. The stress tests illustrated that even if the rental market remains soft, Mr Ng could still pay the monthly mortgage instalments for his new condo for about 98 months and without touching his personal cash savings.

Mr Goh is a senior professional in an auditing firm and is married with two teenage children. Terence would occasionally meet him for lunch and it was during one of these meetings that the idea of buying a second private property for investment was discussed. Mr Goh and his wife, who are both Singaporeans, do not wish to sell their jointly-owned condominium in the West Coast area as their children were then studying nearby. 

At another lunch meeting months later, Terence suggested to Mr Goh to consider Queens Peak, a Rest-of-Central Region (RCR) condominium project that is linked to Queenstown MRT Station. Another piece of land in the vicinity but not as close to the MRT station was bought at a higher price by another developer. This would make Queens Peak a relatively much better and safer investment. Mr Goh thought so too, discussed with his wife and they did a part-share for their West Coast condo. Thereafter, Mrs Goh proceeded to select and purchase a 3-bedroom unit at Queens Peak that Terence subsequently helped to rent out. 

A few years later, Terence even helped Mr. Goh market and sell his condo in the West Coast and purchase a private property in the Rest-of-Central Region. When the Gohs finally decide to retire, they have the option to either cash out by selling one of their two properties, continue to earn rental income, or even sell both properties and right-size to a smaller one when their children have homes of their own. 

Terence was engaged by homeowners Dennis and Brenda to market their HDB flat in the central area for sale. The sellers had an interesting challenge for Terence: they would only sell their flat if they were able to secure another HDB flat they had identified. Terence took on the challenge and very quickly sold the flat at an attractive price as well as helped his clients secure their intended purchase in less than 4 weeks. To add on to the challenge, both the sale and purchase transactions involved contra parties. To handle these seemingly complicated transactions requires a good understanding of the HDB resale policies, process and timeline. Dennis recalled, “We very much appreciated the way Terence effectively managed the whole selling and buying process. Terence also gave us valuable advice and insights and he patiently handheld and guided us every step of the way.” Brenda added, “Right from the very start, we had so many viewings at our flat and we were extremely delighted to be able to sell it at a good price and also get the flat we want all within such a short span of time.” 

Raymond was contacted by Mr & Mrs Firdaus for his professional advice on real estate matters. The couple was quite concerned after they had read the news about the declining value of older HDB flats. They were equally worried about how the CPF accrued interest may affect their cash proceeds and future retirement plans. They were living in a 4-room HDB flat in Bedok and were keen to move into another flat with a balcony where they could chill and relax in.

After listening to their needs and concerns and exploring various options, Raymond marketed and sold their HDB flat within 3 weeks. At the same time, he helped Mr & Mrs Firdaus purchase a 5-room DBSS resale flat with a balcony. All these were done in just 6 weeks! A delighted Mr Firdaus said, “We are so glad to have engaged Raymond to be our sole agent. He was very patient and took the time to understand our concerns and needs. He also guided us through the entire HDB resale process with ease.” Mrs Firdaus chipped in, “I can’t wait for the completion of our purchase, so we could sit back, relax and enjoy our balcony!”