Upgrading from 5 room HDB to 4 Bedroom Resale Condominium

Upgrading to a Condo from HDB is most Singaporean’s Dream and Aspiration; the same goes for Sim’s Family. What are the pitfalls to avoid? How do they go about doing it? Are they eligible? Can they use their CPF to repay their mortgage loan? Read on to find out more.

Our Acquaintance


My acquaintance with Mr & Mrs Sim was via their close friend whom i assisted to sell their HDB and bought a landed property. The couple was happy with my service therefore decided to recommend me to the Sim’s family.

Soon, they called me and arranged a meet-up session at their place to take a look. Also, to discuss their plan and objectives for upgrading from their current HDB to a private condo to accommodate their growing family and to enjoy the facilities a condo can offer.


Questions & Doubts


There were many questions in their minds. Is their plan viable? Will they be over stretching their finances? Which location will be good to explore? and many more.


Discussion, Planning & Finances


During the meeting, I addressed each of the questions they raised. They felt comfortable and confident in me and decided to execute their plan. With their combined incomes to qualify for a reasonable good amount of loan, together with their sale proceeds and usage of their existing and returned CPF monies, they can upgrade to a bigger property; however, there are also some critical points to take note; they need to secure a potential buyer before they can purchase due to additional buyer’s stamp duty (ABSD) and likely they may have to obtain a bridging loan to cross over. With that, I carefully worked out their estimated financial plan and timeline (see below).



Marketing & Selling Journey


Closer to their MOP date, I started marketing; the above picture was their current property; the property was well-maintained and renovated. Within weeks of marketing, I found them a buyer and a good offer. Concurrently, I also brought them to search for their purchase unit. Location was another critical factor to consider; it has to be near their children’s school, and being near the train station would be even better to ease their morning traffic congestion when commuting to schools.


Buying Journey


The buying journey was not an easy one; after exploring various locations and various options ranging from boutique condos to mid-range condos and finally to large-scale projects, they successfully secured a unit situated above Kovan MRT within the Kovan Melody development. This ground-floor unit fits their requirements: it has three bedrooms plus a study. It also has a spacious and useable patio. Unfortunately, it requires renovation due to fair wear and tear from the previous tenancy. Additionally, this unit happens to have an existing lease. Therefore, they must wait approximately a year before taking it back, renovating it, and moving in. Throughout the process, I guided them on the the potential upside of the capital appreciation of this unit and the pros and cons, which they ultimately decided to follow. Therefore, from now till one year, they must make sacrifices to stay with their parents and they’re willing to do so.


Shifting In after 1 year.


After one year, when the lease ended, they took it back and renovated the property. A few years later, I visited them and looking back; they have not regretted the decision they made back then. To date, during a short span of 5 years, their property has appreciated about 60% in value. Moreover, they are so happily staying there as it was so convenient, bright and windy even though it was on the ground floor. They were thankful for the advice and services that I had rendered. In addition, they have also recommended me to one of their schoolmates, whom I later helped them to sell their property too.


This photo which was taken at the patio of their home. Congratulations once again to both Mr & Mrs Sim for a warm and beautiful home!

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