The cost of housing in the city of Singapore is on the rise, and it seems like the situation isn’t going to get any better anytime soon either.
With ever-increasing demand from residents and a continuous increase in raw land prices, it’s no surprise that properties and housing costs continue to get more expensive year by year.
The good news is that there are many ways for homebuyers, renters and those looking at buying a property in the near future to save money on housing costs.
From upgrading from an existing Housing Development Board (HDB) flat to renting out your spare room or buying a condo instead of an ordinary HDB flat — there are many affordable alternatives to cut down your expenses on housing without compromising on quality or living standards either.
Are you tempted by Facebook ads urging you to sell one HDB flat and buy two private properties?
Yes, I am tempted. They are so tempting! But the reality is that these ‘Facebook ads’ are not real. If you follow through with the plans outlined in these ads, you will be spending a lot of money and getting very little in return.
The best option for you is to buy a condo instead of selling your HDB flat and then renting out your spare room or renting out your entire apartment to make up for the difference in your housing expenses.
Buying a new launch condo before selling your HDB
There are many benefits to buying a condo instead of an HDB flat. Condos tend to have more space and are usually equipped with amenities such as pools, gyms and parking lots that most HDB flats don’t even come with. You can also buy a condo at a much cheaper price than other types of housing options in the city. If you’re curious about what it takes to buy a new launch condo in Singapore before selling your current HDB flat, here is an ultimate guide for you:
1) Check out the type of condo that appeals to you When deciding on which type of condo to buy, there are three main types to choose from — townhouses, semi-detached houses or detached houses. Townhouses tend to offer the best value for money as they typically have 30% lower prices compared to detached houses. Semi-detached houses and detached houses on the other hand provide more privacy and security but are usually expensive because they require larger land sizes and need more repair work.
2) Find out how much your current flat is worth Next up is figuring out how much your current HDB flat is worth by looking up the price per square foot (PSF) on SRX Property Value. Once you know how much your property is worth, you can decide if it makes sense for you to sell it or not. If not, skip this step!
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Can I upgrade to private property if I own HDB?
While upgrading from HDB to private property is not always economically viable, it does not mean that you are out of options. You can still upgrade to a condo through the resale market. For those looking for their first property, renting out your spare room could make sense as well.
Renting out your spare room means you have some more cash in your pocket while still getting a place to live close to your preferred location. It’s also an effective way of offsetting the rising cost of living in Singapore by letting someone else enjoy the same space that you did for a certain period of time before moving back into it or selling it on the market.
Tips upgrading from HDB to private property
1. Rent out your spare room If you’re looking to sell or rent out your spare room, it might be a good idea to get a little bit more for rent than what you would pay in monthly installments.
2. Buy a condo instead of an ordinary HDB flat You can save significantly by buying a condo instead of an ordinary HDB flat. For instance, if you have an executive condominium unit with 1-bedrooms and 2-bedrooms available in the same area, it would cost at least $1 million while the regular 1-bedroom apartment costs around $600,000. If you are looking for something smaller and less expensive, consider getting a 3rd floor unit as they cost about $200,000 less than units on the ground level or first floor which is about $300,000 cheaper than those 2nd floor units that cost about $500,000 less than the units on top of them.
3. Consider upgrading from HDB to private property Upgrading from an existing Housing Development Board (HDB) flat to private property is another affordable way of cutting down housing expenses without compromising on quality or living standards either. You could also consider buying new properties if you’re willing to spend more money on housing but are okay with giving away some space in return. Buying new properties comes with benefits such as securing a bigger piece of land and
Tell me the best way to sell HDB before MOP?
There is no easy answer to this question, but if you’re in the market for a condo instead of an HDB flat, it might be the ideal time to sell your HDB flat before MOP.
If you’re not sure about selling your HDB flat before MOP, don’t worry! There are many ways that buyers can purchase a condo before the government changes the resale price. The easiest way to find out how to sell your HDB flat before MOP is by contacting Singapore property brokers online.
Contacting local property brokers in Singapore who specialize in real estate would also be one method of finding out how much your HDB flat would be worth when it comes up for resale.
What are the financial implications if I lose my job?
If you’ve lost your job and are struggling to find work, the cost of living in Singapore will be much more difficult. The question is, how do you manage to keep from getting into that situation? One way would be to rent out your spare room if you live in a HDB flat.
But before you even start thinking about renting out your room, make sure that the unit is suitable for housing guests. There are rules and regulations for renting out your HDB flat as well, so it’s best to consult with your property agent first. Another way would be to upgrade from an existing HDB flat to either a condo or a private sale one.
In this case, it will still be possible to continue living in the same area or neighbourhood without having to move since you’re moving into a different unit.
You can save money on housing costs by upgrading from an existing HDB flat to either buying a condo or renting out your spare room. There are many affordable alternatives for homebuyers, renters and those looking at buying a property in the near future that will save them money without compromising on quality or living standards either.
How much is the upfront down payment when buying a condo?
The upfront payment when you buy a condo is usually in the range of 25 percent. This is based on the LTV (loan-to-valuation) that is currently capped at 75% for your first property.
If the condo you are buying is being sold for/valued at $1 million, this means your downpayment due is $250,000.
Conclusion
We hope that our article on upgrading from HDB to Condo in Singapore was useful for you. Please keep in mind that the information contained in this article is not legal advice and we cannot guarantee that upgrading your HDB will be easy.
Thanks again for reading, we are always excited when one of our posts is able to provide useful information on a topic like this!
