We Have $400k In Cash And Stay In A Condo While Renting Out Our HDB: What Options Are There To Avoid ABSD While Upgrading To A Larger Home?

  • November 11, 2022
  • 12 min read
Join our Telegram group for instant notifications
Join Now
Notify of
Newest Most Voted
Inline Feedbacks
View all comments
Julie Angel Chan
Julie Angel Chan
1 year ago

Interestingly and coincidentally I am also 55.
I have been lining overseas for 6 years, with past 3 years straight before returning to Spore on 9 October last month for only half a year.
If I would to decide, I would certainly keep the condo if it is a Freehold property and sell the HDB flat.
I also like to suggest to invest in another overseas property to spread the eggs and not just leave in one basket.
With 2 Overseas properties I have now, a penthouse studio unit with seaview and a 4-storey house of 400sqm, they let me embrace and live a more exciting lifestyle, residing 6 months overseas yearly and still receive passive income.
This can be the second option, if they would to decide to get a property in Singapore and not overseas. My advice to them, is to buy another 2-bedroom condo preferably freehold to be able to leave it for future generations like their daughter (in the above case). By the way, I am a single widow with no children.
Holding 2 condos are more beneficial in my opinion because their daughter can move to the new condo and they can lease out one room.
Well, the first option of an overseas property investment is still the most ideal suggestion due to lower costs of living as compared with Singapore’s and lower purchase costs too.
All the best! Thank you. Warm Regards. Angel Julie

Stacked Homes
1 year ago

Thanks for sharing your thoughts with all of us Angel Julie, that was really insightful! Overseas investment is certainly an attractive proposition considering the lower cost, but it can be quite daunting considering the lack of oversight, the hassle of managing a property abroad and also the FX risk. We have done a few articles on this before though, considering the interest in overseas property investments given the cooling measures here. Take care!

Anzo Tay
Anzo Tay
1 year ago

Can they not sell the HDB, transfer the existing condo to one person’s name through conveyancing then buy another condo to avoid ABSD?

Stacked Homes
1 year ago
Reply to  Anzo Tay

Hi Anzo, thanks for sharing your thoughts! This is definitely possible, however, we considered the lower cost (<$1m) of a relatively new 2-bedroom condo that can generate very decent yields. This would serve well during retirement (given the new age and decent rental income), as well as free up more cash compared to tying it up in a $1.1m condo.

1 year ago

The answer is very straightforward. DON”T DO ANYTHING. I am serious. At age of almost retirement and considering both are employees , they are already in a good position with one 2room condo and one HDB. only sell off both property if they intend to buy freehold landed terrace, which, at that age, and small family, is not advisable (FH landed is good store of future value, but small and older persons will have trouble with maintenance, climbing stairs etc,). If you buy in today’s market there is no more capital appreciation, prices have run up too high. Do not sell two, it takes a whole life to collect those two properties. I repeat: do not sell. you will regret it! Sometimes in life, just accept what you have, be happy and contented. TO remain still is sometimes the best thing to do.

Latest Posts

Woodlands Singapore
Resale HDB Where To Find The Cheapest 5-room Resale HDB Flats In 2024 (From $418,000)
February 29, 2024
13 The Local Project Neptune Court Large Res
Insider Tour Inside A Couple’s 1270 Sq Ft Japanese Modern Home With Open Living
February 29, 2024
5 Spacious 3 Bedroom Condos Under A 2M Budget Above 1600 Sqft
Units Of The Week 5 Spacious 3-Bedroom Condos Under A $2M Budget (Above 1,600 Sqft)
February 29, 2024
old vs new featured 2
Commentary How To Decide Between A New Launch Or Resale Condo (From A Floor Plan Perspective)
February 29, 2024
Lumina Grand EC review
New Launch Reviews Lumina Grand EC Review: A More Luxurious EC Near ACS Primary In Bukit Batok
February 28, 2024
Finance Is 2024 The Right Time To Refinance Your Home Loan? Here’s What Homeowners Need To Consider
February 27, 2024
million dollar flats Stacked Featured Image Template
Editors' Pick 6 Unexpected Million-Dollar HDB Flats In Singapore: Here’s Where To Find Them
February 27, 2024
Hoover Park Estate 65 1
Editors' Pick Touring Hoover Estate: My Favourite Landed Estate At Beauty World With Freehold Homes In A Convenient Spot
February 25, 2024
Living In Aen 2 uncompressed
Living In Inside A Designer’s Cave HDB Home With A Unique Skylight
February 25, 2024
strata mall
News Why I Look For Old Malls Before I Buy Property
February 25, 2024
Gallop Gables Condo 51
Property Picks 6 Condos That Are Quiet And Peaceful Yet Still Near An MRT
February 24, 2024
Lentor 3
Buying This Up-And-Coming Area Has 5 New Condos In Just 2 Years: Is Lentor Mansion Still Worth A Look?
February 23, 2024
Insider Tour Inside A Designer’s Own 980 Sq Ft Nanyang-Inspired HDB Home
February 22, 2024
5 Cheapest Spacious But Old Condos Under 3M Above 2000 Sqft
Units Of The Week 5 Cheapest Spacious But Old Condos Under $3M (Above 2,000 Sqft)
February 22, 2024
february 2024 bto review
BTO February 2024 BTO Launch Review: Ultimate Guide To Choosing The Best Unit
February 21, 2024
J'Den Model 1
Buying Can You Afford To Upgrade To A Condo In 2024?
February 20, 2024