Sell HDB Buy 2 Condo – We Break it Down For You – Upgrading Made Simple

Sell HDB Buy 2 Condo – We Break it Down For You

I am sure as you checked your FB newsfeeds, you would have seen these ads or a variation of it.

Sell HDB and buy 2 condo

You might have seen this ads on a regular basis while checking your FB newsfeed. Some of the common points they will make are:

  • sell your HDB and upgrade comfortably (with cash left over)
  • sell your HDB and buy 2 private properties
  • sell your HDB and buy a property that can help you gain passive income via rental
  • sell your HDB and buy a property that can lower your monthly installment

When you see this ads so often, you start to question yourself – is it really possible?

Are they just selling a dream? (Yes, of course – upgrading is a common aspiration amongst HDB owners)

Are they just trying to earn a commission? (Yes definitely, agents do need to eat as well.)

Are these claims true? (Yes. Such transactions have happened before and on multiple times.)

So I hope with this blog post, I can shed some light on how this “selling HDB and buy 2 condo” process is done.

Disclaimer: This process is NOT suitable for everyone. Hence please look for an agent that has your welfare at heart. 

Sell HDB and Buy 2 Condo – Let’s Break It Down

I created a video that shows exactly how by selling your HDB flat – you can then buy 2 condo from the proceeds of the HDB sale. 

There are numbers included to show clarity. 

You can watch it here below if you have 13 minutes to spare. 

The main concepts to understand:

Concept #1: Understand the amount of monies entering your CPF accounts

If you are working and receiving a monthly salary, you will know that you are receiving CPF contributions from 2 areas:

  • 20% from employee (you)
  • 17% from employer 

These monies are then split and put into your:

  • Ordinary Account
  • Special Account
  • Medisave Account

How it is split will be dependent on your age band. 

These monies are sitting quietly in your CPF accounts, earning the 2.5% interest in your Ordinary Account. 

They are subject to CPF Board’s terms and conditions. 

Is there a better way to utilize these CPF monies and put them in places where they can work harder?

Concept #2: “Freeing” the CPF monies to channel into your 2 new properties

The idea is by selling your HDB flat, you are able to free up more CPF monies to channel into your 2 new properties. 

It is interesting that people often forget how much money they have paid into their HDB flat.

After about 5 years, it could be quite a significant amount. 

For those flats that have appreciated in value, they will be able to “free up and unlock” more funds than they originally put in.

For those flats that didn’t appreciate in value, it could result in a negative cash sale – where there is no cash proceeds becoming available. 

This is where a detailed financial calculation is needed to break down the figures. 

You can watch this with great detail in the video.

Concept #3: HDB Flat Valuation

Now for you to successfully be able to get enough cash proceeds to buy 2 properties – you will need these factors to be in your favour:

  • Amount of CPF monies available from husband and wife
  • Amount of investable liquid cash available
  • HDB flat valuation and eventual selling price

If all these 3 figures are high enough, there should be more than enough to proceed to purchase 2 properties under 2 different people’s name.

Property A will be under the husband’s name.

Property B will be under the wife’s name. 

One of the properties will be the matrimonial home while the other is rented out for passive income. 

The HDB flat valuation is also a key number – it actually determines the likely selling price and eventual cash proceeds (if there is any). 

The value of the flat can be estimated from similar transactions that has occurred within the same block or nearby vicinity. 

Concept #4: Depreciating HDB Flat 

You would have seen various news articles regarding this issue. 

As your flat starts to approach the 40 year old mark (99 – 40 = 59), it might become harder to sell due to restrictive CPF financing.

Will depreciation also hit private properties? Yes of course.

But do take note of the en-bloc exit strategy available to private property owners:

  • en-bloc collective sale option once enough owners agree
  • owners need not wait till 70 years to come together to do a collective sale

The decision to make is then: How much longer should you hold on to your HDB property?


Is the concept of selling your HDB to buy 2 condos a good idea?

More importantly, is it a risky idea?

Yes of course! There are risks involved in every investment decision.

It then boils down to your own risk profile – whether are you a conservative investor or an aggressive investor.

This is why a detailed financial assessment and calculations are key – to ensure that we mitigate all the various risk factors. 

Equally as important is making sure you are partnered with an agent who is experienced and has helped his or her clients successfully achieve their goals. 

Still not sure if you should sell your HDB and upgrade to a Condo? Read the following Blog Article – Should I Sell My HDB and Buy Condo

Keen to explore further through an experienced HDB upgrading strategist? Do fill up the form or drop me a PM to arrange an appointment to discuss further.

Make an appointment with me today and let me
guide you towards achieving your dreams.