Sell HDB and Buy Condo – Costly Mistakes to Avoid!

It is always difficult to move house considering the amount of complexity with so many new home loan financing rules, additional buyer stamp duties (ABSD), taxes and remissions, etc.

Buying a property is stressful especially if you are switching from HDB to Private Condominium. This is because the timing of purchase and sale is of critical importance, one wrong move could lead to a cash crunch.

Timing your Private Condo Purchase wrongly can seriously hurt you.

If your cash is limited, then you will need to time your purchase property to dispose of your HDB while timing the purchase of your condominium.

If you buy a Private Condominium before you sell your HDB, you could end up having to pay Additional Buyer Stamp Duty (ABSD) of 12% for Singaporean buyers and 15% for SPR buyers. This is because when you buy a condominium, the time coincides with the fact that you still owned a HDB flat. This could seriously get you in trouble if you have not prepared for extra funds for ABSD.

1) Should I Sell HDB first and Buy Condo later?

Selling your HDB flat takes time. Not all HDB flats are easy to sell, some are hot cakes and some takes time. If you are not sure if your HDB flat is in demand or not, you could contact me to find out. We will get them to tell you the blunt truth so you do not get rosy scenarios and hopes.

 If you take 3 months to sell and another 2 months to transact, then this will potentially take you 5 months. By that time, you would have lost your preferred property.

 Here is how long it takes: -

Some months to sell your HDB
Placing a deposit – Option to purchase (OTP)
2 weeks later - Exercise Option
8 weeks later - HDB Appointment (depends on schedule)

The waiting time required for appointments depends on the prevailing queue and scheduling at HDB.

 +++ What the Pros and Cons of Selling HDB flat first and buying Private Condominium later? +++

* Pros:
- Cash flow is clear and not in doubt.
- Will not incur additional buyer stamp duty (ABSD)

* Cons:

- Selling HDB flat takes time.
- HDB Transaction takes 3 to 4 months.
- Missing out on your preferred choice of house/bargain.

2) Are there any benefits to Sell HDB and Buy Condo?

Assuming that both HDB and PTE Condominium falls at the same rate. A HDB that is $500,000 that has fallen by 20% is $400,000, while a condominium that is $1,000,000 that has fallen by 20% is $800,000. The quantum is different. You may have lost $100,000 of value for your HDB, but you are buying PTE Condominium for $200,000 cheaper. The absolute price quantum also comes within your affordability range, this presents an opportunity to upgrade to a Condominium for lifestyle reasons. If HDB flat and Private Condominium both recovers 25%, you will have made $100,000 more in equity compared to owning at HDB flat.

 Just like you lose a bet for $10 and won a bet for $20, your win/loss ratio is still 50%, but you made $10.

But the reverse could also be true.

3) Should I Buy a Condominium First before Selling my HDB Flat?

Many times the right facing, the right price comes only once. It could be that some people wanting to offload their property quickly as they want to emigrate and need the money to buy a house overseas, it could be due to a divorce settlement or it could be an ancestral home where they want to sell to split their inheritance or this person simply needs the money for his business and the offer is just too good to refuse.

 +++ What are the Pros and Cons of Buying a Private Condominium first and Selling HDB flat later? +++

* Pros:
-You get a good deal that can potentially save you thousands of dollars.
-You get the right facing and right feng shui.
-You have a place to move into and have it nicely renovated and done up before moving out of your HDB flat.

* Cons:

- You need a lot of cash for this. Some people may have a cash shortfall if they have not yet disposed of their HDB flat.
Incur Additional buyer stamp duty (ABSD) for 12% for Singapore Citizens and 15% for Singapore Permanent Residents (SPR).
- Selling of HDB flat could take longer than you anticipated. Remission of Additional buyer stamp duty (SINGAPOREANS) subjected to selling your HDB within the 6 months stipulated period from exercising your Private Condominium as well as subjected to other eligibility conditions. (If in doubt, check with IRAS)

4) How do I get the Best of Both Worlds to Buy Condo and Sell HDB flat later without Incurring ABSD?

Is there a way where I can optimise for the following: -

I want to catch a good deal condominium with my preferred facing.
I want a condominium fully renovated.
I do not want to move house 2 times.
I do not want to pay Additional Buyer Stamp Duty (ABSD)
I want to have sufficient cash for the down payment.

To fulfill the above, it needs a bit of a manoeuvre. You need a good property agent to assist you to source for a private condominium while at the same time put your HDB flat up into the market. A good property agent will be able to estimate how long it will take to sell the HDB flat while standing by the Private Condominium choices and options.

With my extensive experience and knowledge in the local real estate industry, I can ensure a smooth transition with your property. From our initial consultation to handing over of keys, I’ll be with you every step of the way.

Please feel free to contact me for more details.

Thank you,

Jay Kumar
Hp +65 81807655
PropNex Realty Pte Ltd (L3008022J)
Reg No : R009536F
HDB sales :
Condos :

agent image
agency logo
Jay Kumar
PropNex Property Agent
CEA Licence No.:
L3008022J / R009536F
+(65) 8180 7655