Why We Bought An Old 1970s Resale HDB In Holland V In Our 20s

Since the pandemic, it’s been a noticeable trend that more people have been willing to pay for old resale HDB flats. This was typically due to a variety of reasons – the need for more space or time constraints that rule out the long wait for a BTO.

But perhaps what is more unique is for a young couple to opt for an HDB flat that was built in the 1970s (because they would need more cash for the down payment). It probably isn’t what most young couples consider ideal; but as we’ve noticed, more and more Singaporeans are beginning to prize location over a flat’s age. This week, we talked to DS, who recently purchased a resale flat in Holland Close; a flat that was built way back in 1975:

A choice of location over lease

DS and his wife bought their 4-room flat in late 2023, located in the Holland Close area. The 4-room flat dates back to 1974, and DS says there was some initial hesitation:

“Many of our friends advised us to pick a newer flat, because by the time our MOP is up, there’s only around 45 years left on the lease. But we don’t think of our flat as our retirement plan, and we have a backup if we outlive it. Our hesitation was over the state of the flat, which needed a lot of work. Even the toilet was the old squatting type, so we had to install the toilet bowl.” 

Other issues included windows that were too rusted to open, weak flushing in the toilet (there is just one), and power outlets that no longer functioned. Cooperation from their upstairs neighbour was also needed to handle a leak that affected their kitchen. DS says they came close to spending $60,000 on renovations, despite keeping things basic. 

Nonetheless, the couple feels they got a good deal. 

The flat is within walking distance of Holland Village MRT station, which is more than just convenient: it’s where the couple first met and spent most of their dating years.  

DS also feels that skipping the construction time was vital: he had just started a new job in Buona Vista, so this resale flat meant he would be one train stop away when renovations were done. Besides, the next BTO offering in Queenstown, which was in December of the year they bought the flat, was predictably oversubscribed. 

Dealing with the financing issues

If a flat’s lease won’t last till the youngest buyer turns 95, then CPF usage is prorated based on the remaining lease. For DS and his wife, their flat’s lease would only last till they’re in their mid-70s. As such, they had to use a larger portion of cash for the down payment.

Fortunately, the couple are diligent savers, and DS had given up many luxuries – from aspirations of car ownership to vacations – in the years prior to obtaining their home:

“We started saving about three years before, and we never had any debt. We kept our wedding small and simple, and our last holiday was our honeymoon in Jakarta. We decided early on where we wanted to live, so we knew we had to be prepared to pay more.”

DS also had a conversation with his parents beforehand, who preferred that the couple lived nearby. While his parents were prepared to give him a loan if needed, the couple ultimately found it wasn’t necessary. 

Nonetheless, DS says there was help from his parents and in-laws, who collectively contributed a five-figure gift. This came after the couple had purchased the flat, and helped to cover a part of the renovations.

Skepticism from friends 

DS says some of their friends, one of whom is a seasoned property investor, tried to warn him off buying the flat:

“I was warned it would be hard to sell even after the next five years, let alone if we stay here for another 10 or 15 years. But as I said, we have other financial plans to provide for retirement, and that includes somewhere else to stay once we get to that point; so we’re fine even if this flat goes to zero, so to speak.”

DS says one of his friends even tried to get him interested in buying the friends’ parents’ flat, which was of a similar size and quantum:

“He did make a persuasive argument, and we did see his parents’ flat. It was newer, from the 2000’s, and the interior was really gorgeous. But it was at Bedok Reservoir, which was too far off for us.”

Now that the couple’s flat is renovated and they’ve moved in though, DS says the attitudes have flipped: 

“Now the same people who told me not to get such an old flat, are the ones saying they wish they could find one here because of Holland V.”

Future plans: Zilch

What makes the purchase viable for DS is their clarity of intent: the flat is a comfortable place for them to live, and they expect nothing else. 

If the purpose was something else, such as upgrading, retirement planning, etc., DS admits their choice of housing would probably make no sense. The couple’s overall life philosophy informs their decision:

“If you try and get the best for everything – best resale value, best price per square foot, best location, best rental – you will just get confused and end up buying something that won’t satisfy you. Prioritise the main purpose, and treat the other things as just ‘nice to haves’. You’ll be happier with your decision in the end.”