Selling HDB Changed Chan's Life
Chan and I have known each other for over 15 years. We met during our reservist days with MINDEF.
After getting married, Brandon and his wife applied for two different BTO plots — Yishun & Punggol. This was back in 2008. At that time, oversubscription in non-mature estates was unheard of, and so the couple got both their locations and had to decide between the two.
2008: BTO in Yishun or Punggol?
Of course, a decision had to be made, and so the couple sat down to discuss the pros and cons of each location.
Yishun+ Better Unit (ie. Higher floor, better facing) + 2 years wait time for completion of flat - Not in a prime location |
Punggol+ Prime location (1 LRT station to Waterway Point) - Only 4 units were available on the 2nd floor - 5 years wait time for completion of flat |
At the end of the day, the couple was in agreement to take the unit at Punggol based on its location despite the longer waiting time and less desirable unit.
So Begins Their 5-Year Wait
The couple had then decided to rent a room in Yishun which amounted to $30,000 over the course of the 5 years — cash that they would not see again. As expected, living with a 3rd-party brings about its own challenges such as the lack of privacy and appliances (lack of air-conditioning, washing machine, etc).
However, for $500/mo, it was something the couple could afford and reason with.
2015: Homeowners for $280,000
After renting for 5 years, in 2015, Brandon and his wife got the keys to their new 4-room BTO in Punggol @ S$280,000 direct from HDB.
They were finally able to enjoy the privacy and full comfort of their own space, with the convenience of public transport and connectivity to town and work.
And of course in the back of their minds, they await the 5 years MOP period to be over.
2020: MOP — The Wait is Over
After their unit passed its Minimum Occupancy Period, the couple discussed their next steps. Having seen many neighbors move out during the period, the couple evaluated their financial portfolio and looked at market trends, and decided to hold out for a few more years before making a move, in hopes of timing the market.
Unknowingly, COVID-19 happened, compounded with other factors, launched property prices through the roof to the highest point yet.
2022: Choices Today
Recently, the couple was reevaluating their options. Through past transactions, they are able to see a 4-room in their block go for $480K - $520K. This means that if they would sell their unit today, it could potentially provide them their first pot of gold of $220,000 in cash.
Three Options:
Mitigating Worries
Sell High, Buy High
It's not wrong to come to the assumption that if you're able to fetch a high price in the market that the market prices are all high. That is true if you're looking to sell and purchase your next property in the same estate, or even district.
However, if you are willing to move into a less mature estate or spend time studying through the URA's master plan, you would be able to find and identify areas with growth potential but are not yet in the limelight of today's property market. For example, from our observations and insight, Ubi will be the next up-and-coming estate as the Paya Lebar Airport is set to shift in 2030, freeing up land space the size of Ang Mo Kio.
What did Brandon choose?
After considering all their options, Brandon and his wife are moving towards one of the options listed above. If you're curious about his decision-making process and the different discussions he's had with his real estate network, why not ask him directly?
You can WhatsApp Brandon here. He's more than happy to share his journey with you!
