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Mark, your RIGHT choice
Propnex Read More

Hi,

Not every property sale is profitable, and more importantly, not every property sale is motivated by profit.

In your case, your family needs a bigger home. That is a genuine housing requirement which may be more important than maximising the profit from your existing condominium.

You purchased at $1.25 million, and similar units are now selling at approximately $1.4 million. While the potential gross gain is $150,000, the actual profit will be lower after accounting for the relevant transaction costs.

As for Seller's Stamp Duty (SSD), the exact purchase date is important. If you purchased between 11 March 2017 and 3 July 2025, SSD generally no longer applies once you have held the property for more than three years.

However, I think there is a bigger question worth considering.

Even if your profit is relatively thin today, will waiting another year or two necessarily make it thicker?

For example, if your current property appreciates by another $50,000 but the larger property you intend to purchase increases by $150,000 over the same period, you may actually end up needing an additional $100,000 to upgrade.

This is why I believe upgrading decisions should not be evaluated based solely on how much profit you make from selling your existing property.

Instead, we should look at the price difference between your current home and your intended purchase, how that difference may change over time, and whether the move makes financial and lifestyle sense for your family.

May I know which condominium you currently own and what type of larger property you are considering?

Also, since you mentioned that you have an agent, has your agent provided a proper financial analysis covering your estimated sale proceeds, the cost of your next purchase and the potential implications of waiting?

An experienced agent should be helping you evaluate the entire upgrading journey rather than simply telling you that transaction costs will reduce your profit.

Sometimes, the right decision is not the one that produces the highest profit, but the one that puts your family in a better position.

Geryl Lim
 9278 7772  Read More

Hi, calculate two different figures: your overall profit and the cash available after completion. The $150k difference between $1.4M and $1.25M is only the gross price gain.

For cash proceeds, obtain the bank’s redemption figure, CPF refund amount and itemised selling costs. Deduct the loan redemption, required CPF refund, selling fees and any applicable SSD from the sale proceeds. CPF refunded to your account remains your money, but is not cash in hand.

For profit, compare the sale price with the purchase price and all acquisition, holding and selling costs, including interest. Do not deduct mortgage principal again as an expense.

Check the exact acquisition and disposal dates for SSD; “about three years” is not precise enough. Also check bank lock-in or subsidy clawbacks. Have your lawyer prepare a completion estimate before committing to the next home.

Silas Tan | Huttons | TRIBE
Free property guides and calculators: https://tribesg.com Read More

**To calculate your actual walk-away proceeds, subtract all transaction fees, outstanding loan redemption, and CPF refunds (plus 2.5% accrued interest) from your S$1.4M selling price.**

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### 1. Check Your Exact 3-Year Holding Date First (SSD Trap)

* **0% vs. 4% SSD:** For properties bought between 11 Mar 2017 and 3 Jul 2025, Seller’s Stamp Duty (SSD) drops from **4% (S$56,000)** to **0%** only *after* 3 full calendar years from your original Option to Purchase (OTP) exercise date. Ensure the buyer exercises their OTP strictly past your 3-year mark.

---

### 2. Net Sale Proceeds Formula (S$1.4M Example)

Log into your bank portal and **CPF Home Ownership Dashboard** to plug in your exact figures:

| Line Item | Estimated Cost / Deduction | Notes |
| --- | --- | --- |
| **Gross Selling Price** | **S$1,400,000** | Target market price |
| Less: **Seller’s Stamp Duty (SSD)** | **S$0** *(or S$56,000)* | 0% once past 3 full years |
| Less: **Agent Commission** | **~S$30,520** | Standard 2% + 9% GST |
| Less: **Legal & Discharge Fees** | **~S$3,000 – S$3,500** | Conveyancing + mortgage discharge |
| Less: **Outstanding Mortgage** | *(Check bank statement)* | Plus ~1.5% lock-in penalty if applicable |
| Less: **CPF Principal + 2.5% Interest** | *(Check CPF portal)* | Returns to your CPF OA (usable for next home) |
| **= Net Cash Walk-Away** | **Remaining Balance** | Paid into your bank account at completion |

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### 3. Key Costs Often Overlooked

* **Mortgage Lock-In Penalty:** If your home loan is still within a 2- or 3-year lock-in period (or requires a 3-month notice period), early redemption triggers a **~1.5% penalty** on the remaining loan.
* **CPF Refund Is Not Lost Money:** Your CPF principal and 2.5% accrued interest return to your CPF Ordinary Account—meaning you can deploy those funds directly toward your next family home’s downpayment and stamp duty.

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Gan Eng Joo Onassis 颜荣裕, REALTOR®

MSc BIT (Middlesex, UK); BBA (UniSA)

CEA Reg No: R021244C | Mobile: (+65) 8889 9918 

Email: onassis@sgagent.com

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