6 Answers

Ivan Ng

The ABSD rates after the adjustment are quite high, if you have to purchase I would recommend to purchase at areas where they are zoned for various upcoming infrastructure plans with potential room for capital appreciation. I understand however that its for your own stay and perhaps for your kids future in mind as well, hence this may not be an easy decision. Happy to explore all the options with your scenario. If its convenient, 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

Email: Ivanng10@gmail.com
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(Client's Testimonials)

**Note: We are not prompted when you respond here, hence please get in touch directly. Look forward to hear from you soon! **

-- HDB BTO 4rm Sellers Mr. Farvin & Ms. Sel --

Ivan was the first agent that we met up with and right from the offset we had good vibes as he has a friendly personal approach, detailed working style and focuses on building the long-term relationship.

Our unit comes with its challenges but Ivan remained positive and had no qualms committing to our plans right from the start. It took only 6 weeks of aggressive marketing for him to secure a good offer which was a pleasant surprise in the end.

Ivan was always responsive and we had no worries to pass him the house keys. The whole process was transparent and hassle free, and he was always thinking from our point of view on how to make life easier for the client. He is a committed professional and has fast execution, so we felt assured that things are done well and we can entrust the sale process entirely to him.

--- HDB Flat Upgraders Mr. & Mrs. Lee ---

We decided to engage Ivan as our agent as we were impressed with how he answered the enquiries on property guru website.

He has helped us to find our ideal unit and also sold our current unit. He was very patient and never pushy when we were looking for our ideal unit. He would tell us that it is always important to find a unit that we really liked.

When it comes to selling of our unit, he was always prompt in arranging for viewings and he also tried his best to arrange and consolidate the viewings due to our time constraints. He is a reliable and prompt agent and is always willing to clarify any concerns and questions that we have.

Thanks Ivan! :)

-- HDB 5-rm Sellers Mr. & Mrs. Ting --

We have engaged the services of Ivan Ng for sale of our property at Pandan Gardens. He is professional and systematic in his marketing approach.

He is hardworking and committed to his work. He puts in great efforts in arranging clients for viewings and kept us updated thereafter. He is ever ready to help and guide us whenever the need arises.

He provided us with sound and useful advice as well as closely follow through from the start till the smooth sale of the property within a short period of time.

Thanks, Ivan. Keep up the good work!
Gavin Ng

It would be difficult to explain in this post.

If you are keen, you may write to gavin.ng@orangetee.com.


D. Kumar
Hi there,

Thank you for your query.
To be fair and honest , any advise or computation given here would be brief , and not tailored succinctly for your proposed plans. To be able to assist more effective, perhaps you could contact me so that I can address all concerns and run you through the exact financial calculations and financial plan for your purchase to ascertain your feasibility. From there , I can narrow down your options and advise which will value add your portfolio. I have held many such cases in my career and will be glad to offer advise and insights as a form of preliminary discussion to expedite your plan. It will also be useful for me to run through transaction caveats of your property and customise and sales and purchase report for your understanding and perusal.

Please visit my website : www.kumarrai.com for all the up to date awards, testimonials and accolades. Thank you very much!

D Kumar
+65 96659926
ERA Associate Division Director
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Nick Tan
Dear Sir,

In my opinion, with the increase in ABSD, it may not be worthwhile to continue holding on to your HDB for the following reasons:

1. There is limited upside for your HDB flat in terms of capital appreciation as the supply of new flats will continue in the near future. Holding on to it may generate some rental income but as the flat gets older, there will more maintenance issues and with the shorter lease, it will be less attractive for potential buyers.

2. If you were to buy a 1.5 mil condo, the ABSD amount that you will have to pay is $180,000. This is a sunk cost and you may need 6 to 7 years worth of rental income just to recover this amount. For rental, there may be periods between tenancy when the place is vacant and therefore no income. Other costs that you may need to take note includes higher property tax and maintenance costs.

Your combined income is quite high and I believe both of you are quite young and have yet to reach the peak of your earning power. You may wish to sell off the HDB, get a private property first. After which you can save a few years and purchase a 2nd property using just one of your names to avoid the ABSD again.

Having said that, I will need to gather more information from both of you and examine your financial position before I can make more informed recommendations!

Please feel free to contact me so that I can assist you both further!

Nick Tan
(M) +65 9644 4854
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
(E) nick96444854@gmail.com
Visit my website to know me better: www.nicktan.com.sg
I was featured recently on Council for Estate Agencies (CEA) Newsletter:

Testimonial from Satisfied Clients
“I would like to recommend Nick Tan from SRI. Before we engaged Nick, we were working with another agent from a very popular property agency in February 2017. We decided to terminate the contract after 5 weeks of zero viewings and no paper advertisements. Basically he was just waiting for phone calls. We engaged Nick on 20th April and by 10th of May, our unit was sold off. Why Nick? 1. He has good marketing strategies 2. He always kept us posted on what he did (communications!) 3. He made sure we understand the current market situation but he will consistently reassure us that the unit can be sold off 4. He is not greedy and trusting 5. He walks the talk”

Peter & Wendy (Property Seller)

I write to commend Nick Tan (R040814C). When my husband and I first met Nick, we were impressed by his drive, commitment, business acumen and strategical thinking, and decided to engage him. We were not disappointed. Nick sourced for prospective quality buyers in a targeted methodical fashion and was effective in connecting us with serious buyers, notwithstanding the fact that the search primarily took place over Dec – Feb (a traditional lull period). Throughout the transaction, he also gave us helpful advice in various aspects; the advice reflected his personal experience and expertise and was not simply regurgitated from public sources without any value-add. Further, Nick went beyond the call of duty of a competent professional. He had a sense of humanity in the way he interacted with myself and the other parties to the transaction such as my parents. As an example, my newborn daughter was warded into A&E on the completion date of the transaction; the care and concern that Nick showed went beyond the scope of work of an estate agent. I commend Nick for his capabilities and character, and would certainly wish to engage him for future property transactions.

Weilun & Benita (Property Seller)

“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr &a
Ling CK

It's greatly dependent on your age group, if you are in your 30's and early 40's.
Then it is advisable to upgrade to a private property and let go of your HDB flat.

This advice is for higher income groups who have the capability to jump out of the rat race rather repeating all others mistake, by trying to keep HDB flat.
HDB flat is mainly for Singaporean to start up a family when their income does not justify them to hop on to the fast track. Our government will not want this property to raise to a level where it is out-of-reach to majority Singaporean. Thus their appreciation is going to be limited.

In Singapore short history in real estate or in short; property, statistics already allow us to understand that capital appreciation is much much higher than HDB flat.
Although most people are complacent with the capital appreciation, main reason was their friends, relatives, colleagues etc are mostly stay in HDB flat. Never know that private property had climb much faster and higher than HDB flat.

If you recall back in 2004, a 1000 sqf condo only cost around $500k, but now with $500k, properly you can only find HDB flat with the same budget.
A 1000sqf condo now a days already cost around $1.5M in avg.

The price gap difference between HDB flat and private is getting wider, it is around 3 times the difference. The amount will be signifcant if quatum is large;
e.g. $500k * 3 = $1.5M, $1.5M * 3 = $4.5M. Thus if you bought a property worth $500k appreciate 3 times in X yrs, you gain $1M, but if the property is $1.5M, your gain is $3M.

You relook at the current government policy, 4% Buyer stamp duty for $1M and over, ABSD increment, TDSR and many other cooling measure. These are telling you that our elite already aware that price in private property is driven by market to rise beyond their accepted level.
But looking at HDB flat, we are building more than 3 times than the amount built in 2004. HDB flat price has come to a standstill straight line and dipping every quarter.

1) To keep existing HDB flat, capital appreciation is expected to be minimum.
2) Rental for HDB flat is mainly for lower income group, their behaviour might not meet your expectation, thus increase conflict and frictions to deal with them. This is a long term headache where you might not want to have in your busy work.
3) 12% of ABSD for 2nd property investment does not seems to justify with the rental yield received. Simple calculation, let said you received $2k monthly, 5yrs is $120k. If you bought a $1M private property, your ABSD shall be also $120k. So it takes 5 yrs to recover your loss in ABSD, we are not considering the following:
(a) wear & tear,
(b) vacant period,
(c) capital appreciation lost,
(d) higher property tax keeping the flat
So it will takes at least about 6 yrs to breakeven.
4) By keeping the funds in HDB flat, you also have to pay higher mortgage in your new purchase.
5) Governemnt land sales (GLS) is getting higher. It will be more expensive than getting cheaper, because our land resource is limited. If GLS bid is lower, government will always announce it is below their expectation and retract from the bid. This already happened at least once in Paya Lebar bidding in the past.

Thus it is obvious to us what should be your choice.

Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at 90110636, or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK

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YT Tan (陈永达)
Good evening Sir/ Mdm,

Perhaps we can run through a detailed financial plan (inclusive of your existing BTO) to explore what are the available options to both of you. From there, you can weigh which option suits both of you the best.

Recently I had assisted my associate's clients in selling their unit at Punggol Wave (even gotten approval to sell before MOP) and purchase a freehold property with good rental and potential upside. Currently they are looking at their second property as well.

If I potentially can assist both of you to own two properties and save on tax savings, will you be keen?

Your BTO is going to MOP in few months' time so you got to plan fast to take action especially for the private segment as the gap is starting to widen. Usually I will help my clients to plan at least 3 months before MOP so preparation for marketing etc can be carried out in phases. I even had met clients whom their MOP is in Feb and April 2019 recently.

During our meet up, I will show you some articles on whether should you keep hdb and pay ABSD to invest in a 2nd residential property or otherwise.

If I am able to help you to buy 2 properties (one for own stay and one for investment) and you potentially able to get a reduced monthly mortgage for the one of the properties, will you be keen to explore?

With the recent cooling measures being implemented, do let me share with you whether is it a crisis or opportunity for home owners like you.

Do let me share the cooling measures more in depth that will be applicable to you if you decide to hold on to existing HDB:

a) ABSD 12% as Singaporean
b) Basic retirement sum of $85.5k individually if you had utilised CPF OA funds before
c) loan up to max 45% if you still have outstanding housing loan

If I potentially can assist both of you to own two properties and save on tax savings, will you be keen?

When will you guys be available to meet up this weekends? Tomorrow or sunday?

"Your Freehold Ally, Leasehold Tactician"

YT TAN 陈永达 | ACCA Graduate, RES
Propnex Realty Pte Ltd

(M): +65 9111 5171
(E): yt.tan91115171@gmail.com
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