The question that might typically loom over one’s head, especially when the have stayed in their HDB home past the Minimum Occupancy Period (MOP) is ‘Should I upgrade to a condominium?’
If you’ve had that thought, you’re not alone. After all, most Singaporeans are after the 5Cs, of which 1C is for Condominium. It is expected that as one’s household income increases over the years, they will look to upgrade them homes to – be it whether it’s to a bigger HDB flat, a condominium or even a landed property.
Upgrading your home is a huge commitment and one you’ll need to be very sure of, especially on the financial front. While HDB flats typically range from around $300k for a 3-room unit to approximately $600k for a 5-room unit, a condominium will set you back a minimum of $1million, and that’s just for a two-room condominium in the Outside
Central Region. Expect to pay at least $2million if you’re looking for a place in a more central spot in Singapore.
Other things you’ll need to consider are your Total Debt Servicing Ratio, which can’t exceed 60%, and also your Buyer Stamp Duty. While you also had to pay BSD for your HDB flat, it was likely at be at a cap of 3% of your remaining $640k as your flat is unlikely to cost you more than $1million. So even if you purchased a 5-room flat at $700k, your BSD will be $15,600 (1% of $180k, 2% of $180k, 3% of $340k) However for a condominium that will definitely cost more and is likely to set you back a minimum of $1.5million, your BSD will be include a 4% fee on the remaining amount for a whooping total of $44,600 (1% of $180k, 2% of $180k, 3% of $640k, 4% of $500k)!!!
So, you have to be sure you have your financials sorted. You won’t want the case where you’re after that more extravagant lifestyle, only to be set back huge debts as you weren’t able to afford the upgrade in the first place.
Once you’ve decided what you’re able to afford and the size of the apartment you’re after (do remember it’s likely a lot smaller than a HDB flat of the same number of rooms), you’ll need to choose if you’d like to go with a brand-new condo or the resale option. While we’d all prefer to be in a new place where no one has stayed at before, purchasing a new condominium will mean having to wait around 3 to 4 years before it’s up and ready for you to move in. If you’re going for a resale option, it will be easier on you planning wise as you can move in right away.
Now that everything has been said and you’ve made up your mind, simply head on over to SRX to get your dream condominium today.
Do visit SRX’s New Launches to get options if you’re looking for newly-launched condominiums. Here, you can refer to the New Project Insights to reference the percentage of units sold and launched, the average price, and average price per square foot (PSF), of various new and upcoming condominiums, all at a glance.
Alternatively, simply head on over to SRX’s Singapore Condo Directory for multiple resale condominium options for your consideration!