10 Answers

YT Tan (陈永达)
Good afternoon Sir/ Mdm,

Happy 2018 to you!

I do agree that rental yield is super attractive for HDB owners but its because of their lower entry price compared to private property.

As for capital gain, usually you will only realise them unless you sell them after fulfilling the minimum occupation period. If not the potential capital gain will slowly deplete due to either value starts to drop due to aging property or if not accrued interest is rotting the profits.

Let me give you some ideas on the potential few proposals I can think of.

1) Keep HDB and purchase a private property

You will be subject to additional buyer's stamp duty of 7% as Singaporean.

For instance: 7% on $1m is $70k.

Constant rental for your place might be around $4k.
You will have to ask for more rental in order to recoup the ABSD.

$70k divided by extra $200 will take around 350 months which will take around 29 years to recoup.

As the property ages and market conditions fluctuate, will you be able to obtain the consistent rental over the years?

On top of that, do bear in mind that the resale HDB market might remain stagnant due to the constant BTO supply entering the market over the years.

2) Sell HDB and buy two private

If your ultimate plan is to own two properties (one for own stay and one for investment), it might not differs much even you are going for private. On top of that, you are able to enjoy tax savings (ABSD) so why not?

Private pricing will usually influence by market conditions rather than controlled.

Perhaps you can share more with me so I will be in a better position to advise you further.

How about discussing over a cup of coffee?

Hear from you soon!

"Your Freehold Ally, Leasehold Tactician"

YT TAN 陈永达 | ACCA Graduate, RES
Associate Group Director
Propnex Realty Pte Ltd
Blk 480 Lorong 6 Toa Payoh, #11-95 HDB Hub East Wing, Singapore 310480

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Marge Christy Ho
Dear SIr/Madam
Thanks for your enquiry.

I normally advise my clients to think on the below matters first, and that will drive you to make the right decision for yourself:
1) What will be your future space needs for your family?
2) Your cashflow (based on current salary) and perhaps when you may not be working?
3) Will buying 2 condos help you in renting and maintaining good yield? That will also depend whether you are buying freehold or 99 leasehold.

Happy to discuss with you further on these matters.

Look forward to hearing from you soon.

Best regards
Maj, SMP Realty
 98630426  Read More
If your decision is based purely on numbers, I do not see a difficulty in making a sound judgement that you should sell the existing HDB and look into purchasing 2 different properties as most salesperson would recommend, simply because if it does not make sense, they won't be pushing for such option.

The key thing here is your attachment to this HDB now, especially so if it turns out to be your first matrimonial home, where your family grow together, with beautiful memories. These are values which cannot be translated into dollars and cents.

At the end of the day, I will always say it is highly dangerous to make decisions based on percentage, as our income do not change by percentage but absolute quantum. If you are basing on 9%+ rental yield for the HDB, it is safer to translate that into actual dollars and cents to determine your financial liability and commitment on a monthly basis, if retention of HDB is the option you are considering. This will give you a better idea on the stress applicable in your finances.

I hope the above makes sense and I definitely look forward to assist you in more details in your portfolio management for real estate.

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Geryl LIM
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Dear Buyer,
Congrats to your decision to start your property investment journey in Singapore.

Great to hear that your current HDB Rental Yield is getting 9.5%. This is a very good ROI based on current market.

I understand your concern on selling your HDB especially the attractive yield you collecting. Allow me to share my opinions on the options you are looking at.

Option 1: Rent out HDB and Buy another Condo.
This is the safest option as you are managing a home to stay and an asset to grow your wealth. The only concerns are:
- Your current HDB value might depreciated over time. As your flat get older, the price tends to drop.
- You don’t have to worry so much on the HDB value drop as long as the value drop % is less than your rental yields. (many will have different opinions on this)
- You cannot cash out your capital gains on your HDB. Different from Private Condo.
- You will incurred ABSD (additional Buyer Stamp Duties) of 7%.
- I myself is renting my HDB flat & staying in a condo for the past years. Very manageable Cash Flow.

Option 2: Sell 1 HDB Buy 2 Condo
This is more investment-driven. And have longer investment perspectives. You are having a Home to stay and an investment property (a better instrument than HDB flat). The concerns:
- The rental yield for Condo is not as high as HDB
- The capital gain potential is higher and you can cash out the capital gain without selling your condo(save on duties/legal/taxes)
- You might save on ABSD (additional Buyer Stamp Duties) if you buy with a investment strategy I used.
In short, there are many possibilities we can structure to suit your investment plan. Being a property investor myself, I understand the importance of having a safe, hassle-free plan before deciding which move to take.

As property buying is definitely one of the biggest investment one make, I strongly advice you to contact me to discuss further. No obligation but this sharing can potentially save you money & most importantly, Time.

Hope the above address to your concern, but if there are more queries, please feel free to call/WhatsApp me at 9366 1846  , or email: shawnkhooch@gmail.com if more information is needed.
I’m obliged to assist your needs.

Warm Regards,
Shawn Khoo
PNG Propnex
BA Design (Hons), DIP Architecture

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-- HDB Sengkang 4rm Landlord Ms Lim--

We approach Shawn to rent out our unit because he is always present in my area, through flyers and road show. He secured our tenant with my expected rental within 2 weeks of marketing and handle all the necessary arrangements. It was a hassle-free experiment for us. Currently, we are getting him to renew our tenancy with the existing tenant.

--- First Time Executive Condo Buyer Mr. & Mrs. Soo ---

We are referred to Shawn by our friend who bought a resale HDB through his services.

At that time, we are pondering whether to buy a resale or BTO. Shawn professionally explained the pros/cons on all possible options. We finally decided to buy a EC after he gone through the financial calculations with us.

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Dear Sir/Mdm,

Personally I think for your case, it is a good idea to keep your HDB. This is why I think so:

1. Your HDB is still relatively young and it is located in the central region. Rental demand should continue to remain strong and you should not worry about having difficulties to sell it in the future as it is still relatively young.

2. You have fully paid up your HDB and therefore will be able to leverage fully by taking advantage of the low interest rates environment and financing the condo purchase with a 80% loan. By leveraging fully, your LOI will be higher.

3. You have 900k spare cash on hand and therefore there is no real need for you to sell off your HDB just so that you can finance your condo purchase. The HDB can continue to help you to generate a stream of stable passive income which you can use to offset the mortgage payment. At the end of the day, you will own 2 properties, one for own stay and one for passive income.

4. As for the 7% ABSD, a lot of savy investors are still paying the ABSD to own multiple properties because as long as you buy at the upswing of the cycle, your capital appreciation will far outweigh the 7% that you are paying.

These are just my personal opinion. Please feel free to contact me so that I can understand your situation better and provide you with more informed recommendations!

Nick Tan
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(E) nick96444854@gmail.com
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Susana (Buyer) Read More

Based on the info shared, at 9.5% it sounds like an awesome high yielding investment with potential room for future price appreciation. It might be a good idea to keep it and exit in a more bullish property market. 5 room hdb of this size and age will become scarce in supply in the future and will definitely be able to fetch a higher premium than what is attainable now, maybe even offsetting the ABSD you are paying for the 2nd property in the long run.

May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude

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Robbie Chen Chee Howe

I am not sure how do you get 9.5% rental yield for your HDB, but I guess you calculated using your monthly rent divided by the price you purchased the HDB at.

I have very different perspective on this. To me, rental yield should be calculated using the market price for your HDB flat, rather than the price you purchased at.

An example:
5RM flat rented at $3000 per month.
Current market value at $900k.
Purchase price $400k.
Rental yield is 4%, and not 9%.

Based on the above example, I would say your unrealized profits for your HDB flat is $500k, with a rental yield of 4%.

Here, I give you a scenario:

If you choose to keep your HDB and purchase another condo, 5 years later:

Pays ABSD 7% on a $1.8m 3BR condo in Central location
ABSD $126,000
HDB rental $3000
HDB market value in 5 years $800k
Rental yield goes up to 4.5%
Unrealised profits drops from $500k to $400k. (i.e drops $20k per year)

Rental amount collected from HDB in 5 years: $180,000
Outlay and potential loss for keeping HDB: $226,000

Based on the above scenario, do you think this is a good option for you?

I suggest you consider your options carefully before you commit to anything. Do feel free to give me a call to take this discussion further.

Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you and your partner in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More

Hi contact me , thanks

welcome owners and landlords

contact me - 8 2 7 9 - 8 3 2 7


i can charge

2 years half month rental
1 year 0.25mth rental

for room rental other rates

sales - 0.50% open listings no need exclusive agent

contact me - 8 2 7 9 8 3 2 7 Read More
Hi contact me , thanks

welcome owners and landlords

contact me - 8 2 7 9 - 8 3 2 7


i can charge

2 years half month rental
1 year 0.25mth rental

for room rental other rates

sales - 0.50% open listings no need exclusive agent

contact me - 8 2 7 9 8 3 2 7 Read More