Upgrading Planning

Upgrade from your HDB flat

Do you have plans to upgrade from your humble HDB flat? Should you continue to buy another HDB BTO flat, resale flat or should you go for an Executive Condominium? This is the typical HDB upgrading routes you can explore.

Here are 3 key questions you may ask before you embarked on your next plan!

What is next after my MOP?

After fulfilling your MOP. What are the options available for you? Another BTO, EC or condo?

can i afford?

You may wonder whether are you able to upgrade comfortably with your current income.


After selling and buying your next home, how much cash will you have for raining days?

Enjoy this short video on Upgrading from your HDB flat. 

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Should You Upgrade When You Can?

Case Study 1

Mr and Mrs Tan are 40 years old with 2 children. Currently, they are living in a 4 room BTO flat. After selling their house. They stand to make $200,000 in profit. Their combined income is $12,000 per month. They plan to upgrade to a resale 5 room flat worth about $500,000 and plan to fully paid it in 10 years time. What is their housing plan in 10 years time when they are 50 years old?

Their 5 room resale flat will likely be valued at $610,000 (2% annually gain) They could make a paper gain of $110,000. If they plan to upgrade, they can loan up to 15 years only. They still can buy…..but at 50 years old to commit to a private property? Is that too late?
Alternatively, they can chose to downgrade to a $400,000 HDB resale flat when they are 60 years old.

Case Study 2

Mr and Mrs Ong are 40 years old with 2 children. Currently, they are living in a 4 room BTO flat. After selling their house. They stand to make $200,000 cash. Their combined income is $12,000 per month. They plan to upgrade to a EC worth about $1,000,000 and plan to take a 25 years loan to finance it. What is their housing plan in 10 years time when they are 50 years old?

Their EC will likely be valued at $1.22mil due to inflation. (2% annually gain) At this age, they have the options to upgrade to another condo or downsize back to a HDB flat. They would have pocked a cool $220,000 from the EC and yet enjoy staying there for the last 10 years. (Compare $110,000 from buying HDB) Their retirement plan is on track. They can chose to retire anytime after 50 years old.


No fix formula for upgrading what type of property type. Its boil down to personal preference.

If you can upgrade, you should leverage on your loan but yet at the same time do not overstretch. Take calculated risk!

Worst case scenario! Sell and profit the gain. What is the worst can happen anyway?

But the choice you make today will determine your family standard of living and your retirement plans down the road.

Keep 6 to 12 months of living expenses for contingency.

Been too safe in approach may not always be the best for your family. No pain, no gain!

Actual Case Study

Case Study 1

Hayati and spouse are 35 years old that year. They have fulfilled their HDB 5 years minimum occupancy period. They have plans to buy another HDB BTO flat again since their income is still within HDB income ceiling. They hesitate about their plan to purchase another HDB BTO flat when they see their friends profiting from the private property they owned. They decided to meet me and we explored their options.

Ultimately, they decided to purchase an executive condominium instead after working out a detailed financial planning with them. After paying the booking fees they still have $100,000 in cash saving for raining days.
Their executive condominium has since appreciate in value upon TOP.

Case Study 2

Alvin and wife are both professionals in their mid-40s with children. They own an old HDB 5 room resale flat. They are very comfortable with their lifestyle and have no plans to move. However, they worry about the depreciating lease of their HDB flat that could have implication to their retirement nest. They also witness how their colleagues’ cash out from their matrimonial home and owned multiple properties instead. They are wondering if they are too conservative in their approach. Soon, we met up and we explore their options together.

Today, they are the proud owners of 2 private properties. They are very comfortable serving the monthly installment for their current home. The other property has been rented out and the monthly expenses is fully covered by the monthly rental.

what are the benefits of upgrading then?

property is a good hedge against inflation

Are you aware that property appreciate in value over time. The property your parents bought in the 1980s would be worth multiple time today. Similarly, the property you owned today would appreciate in value in the long term accordingly.

leverage your property

Leverage is using other people's money to make money for you.... In real estate, you pay 25% of your money to control 100% of a property. When you sell that property or generate monthly income on that property, you're making money on the full value of the investment and multiply your returns.

Money in Your Pocket

If you rent out your investment property, you will be able to receive rental income. Any money left after paying your expenses will be money in your pocket. Suppose you have a tenant whose rent is $2,500 a month and your monthly expenses is $2,000. Thus, that will leave you with $500 to go into your pocket each month.

During the meet up

I seek to understand your needs before sharing our proposals.

I will run thru a detail financial calculation to assess your financial status.

I will share where are the undervalued buys that most buyers ignored.

The benefits of leverage and how it help to increase your return.

How to build your wealth and retirement nest through property.

What are the risks involved and how to mitigate them.

Disclaimer. The above is only suitable for those that have strong stable income. I do not advocate upgrading for the sake of upgrading if clients do not have the financial means. We only encourage upgrading in a comfortable and sustainable manner. After all, I believe we need to sleep with a peace of mind when committing to any property.