10 Reasons Why Sell One Buy Two is a Trending Investment Option

If you don’t really know what is “Sell One Buy Two” about, it is actually sold your HDB flat, husband and wife purchases one private property each.

In-depth, please read another 3-min article, which I will explain how you can do it, pay the price of a Master Bedroom monthly rental but ACTUALLY OWNING 2 private condos!

1. You Save 6 Figure for not paying Hefty Tax!


The tax mentioned is Additional Buyer Stamp Duty (ABSD).  If you keep your HDB and buy a condo as your second property, you would have to pay 12% of the purchase price. A $1mil condo will cost you $120k. If you rent it out for $3k, it takes you 40 months to break even.

Why not sell one buy two, then you can save that $120k to pay for part of the downpayment already!

2. It works against Inflation

Property Investment against inflation

Everyone aware of rising inflation.  Singapore’s annual inflation rate edged up to 0.7% in August 2018. It was the highest rate since May 2017.  In August, food inflation rose to a 19-month high of 1.7%.

Do you know that given a rising inflation of 1.7% per annum, if you are spending $2,000 per month today, you will have to spend $2,800 in 2038?

You may not feel an impact while you are still working, but what if you plan to retire? You will feel a huge impact if prices are rising but your income is constant!

According to Investopedia, Real Estate is the best choice against inflation. Not just the increase of the resale value of the property over time but what is so amazing is that the property can be used to generate rental income.

However, if you own only HDB flat, it is merely for own stay, but not used to against inflation. That’s why “sell one buy two” makes sense!

3. Your HDB Flat Price will not Appreciate Like What Happen Before 2012

Year HDB Resale Price Index Change
2018 - 0.8%
2017 - 1.5%
2016 - 0.1%
2015 - 1.6%
2014 - 0.6%
2013 - 0.1%
2012 + 6.5%
2011 + 10.7%
2010 + 14.1%
2009 + 8.1%
2008 + 14.5%

Obviously, it was when the government introduced Mortgage Servicing Ratio (MSR) to the resale flats in 2013, the prices started to slump.

Also in the same year, newly-minted Singapore permanent residents will then have to wait 3 years before buying a resale flat, instead of straightaway after they become PRs.

Another big story is that 2012 is the record high year of new flats. HDB has launched a total of 34,237 new flats in 2012. These owners will fulfill MOP in time to come, which means they will sell their flats in the resale market and create high supply situation.

So what will happen to the HDB resale prices? The fact is, it is getting harder to upgrade to private property in the future.

Back then, owning a HDB flat is like sitting on a goldmine.  But today, you should retrieve the Gold and sell the Mine!

4. Your HDB Flat is Aging!

“Don’t assume all old HDB flats will become eligible for SERS!”

Avoid speculating in hope of a ‘big payout’ for VERS!”

“So buyers need to do their due diligence and be realistic when buying flats with short leases. This is especially important for young couples, who have to plan for a much longer future.”

Do the statements sound familiar to you?

These are some key statements made by our MND minister since 2017.

The fact is, the older the flat, the lower the price.

You might notice that there are some flats in a very good location are asking for damn cheap prices!

Aging HDB flat prices drop

Why? Because the flats are around 50 years old.  For the purchase of any residential property less than 60 years remaining lease, the maximum amount of CPF that can be used is capped at a percentage.

In such case, most people can only use their CPF the monthly installment for around 15 years, then the balance loan got to be paid monthly by full cash.  That’s why those older flats couldn’t fetch a good price despite having a superb location and even well maintained.

In general, you got to sell your flat before it reaches 30 years old before it starts to depreciate drastically.

5. The Price Gap between your HDB and Condo is getting Wider!

HDB and Condo Price Gap

The graph clearly denotes the gap between the price of the private property and HDB flats throughout the years.

It is getting harder for HDB owners to upgrade from time to come.

6. Do it before 55 or else Your CPF Money to be “Locked”!

CPF money is locked

Photo Credit: The Telegraph

At 55 years old, two important things occur when it comes to your CPF:

1. A Retirement Account (RA) is created to set aside your CPF Minimum Sum.
2. You can withdraw a portion of your CPF savings if you choose so.

Take your destiny in your own hands!

I would choose to fully utilize my ordinary account and optimize the amount through real estate.  This is the only way to “unlock” it from the retirement account and the safest way to gain.

Don’t get me wrong! I’m not asking you to waive your CPF blindly for property purchase.  But every decision making must come with a wise plan.

7. Plan early for Your Retirement, Lower Commitment, Better Return!

As we grow older, our maximum allowable loan amount shrinks.

And your monthly repayment will be higher than before because of the shorter loan tenure.

It’s more difficult for you to commit when you see the high monthly repayment. That’s why you should plan for your retirement as early as 30.

Cultivate the habits of saving money, in real estate.  This is the best option for forced saving.

Best of all, you are leveraging on someone’s money to grow your retirement funds!

8. Flexibility to swap between your 2 Condo based on Your Own Needs

You see, when you own 2 properties, you can stay one and rent out one.

You have to stay in the bigger one while your children are still young. So you choose to stay in the 3 bedders and rent out the 1 bedder.

When your children form their own family in the future, you will have 2 extra bedrooms.

That’s the time you may consider to move to the 1 bedder and rent out the 3 bedders. This will be when you can really retire comfortably.

9. Enjoy the Condo Facilities and Lifestyle

You see, when you own 2 properties, you can stay one and rent out one.

You have to stay in the bigger one while your children are still young. So you choose to stay in the 3 bedders and rent out the 1 bedder.

When your children form their own family in the future, you will have 2 extra bedrooms.

That’s the time you may consider to move to the 1 bedder and rent out the 3 bedders. This will be when you can really retire comfortably.

10. Higher possibility to be a Millionaire!

never be enough

Have you heard of a HDB owner being the overnight millionaire through en bloc?

Well, this only happens for the private property owners. Especially those former HUDC owners!

They deserve the million dollars reward, for making the right decision in investments. Some even experienced 3 times collective sales, making them a quarter of a billionaire now, staying beside the real billionaires!

Stephen Chong
Stephen Chong
Lim Ming Hwee
Lim Ming Hwee
Stephen is a very good agent who goes beyond his way to ensure that his clients are happy. He is very patient and helpful, and will always give good advice.
Joseph Sze
Joseph Sze
Stephen is a professional & responsible person who has provided good quality customer services to our recent Condo housing purchase & related matters. I found he has put in great efforts and gone for extre miles to assist us in the whole process and related purchase issues. Excellent work, Stephen!👍🏼👍🏼👍🏼
SZ Lim
SZ Lim
Was going thru Stephen's video when I noticed he had a google review panel up. Going to copy paste my review on his FB page from 2019. I still stand by my review. Stephen was very professional throughout our engagement process. I first engaged Stephen as his effort could be seen thru the videos he made. The videos were informative, detailed, yet easy to understand from a beginners point of view. Could also see the improvement of his videos as time passes, and that speaks volumes about one's character on his eagerness to improve and share. During my engagement with him, Stephen was very professional. Since I was very new in the scene, I required alot of guidance and honesty. Stephen was very upfront with me on many items and did not try to hide any facts from me. As a first time buyer, both good and bad prospects were laid out after his detailed analysis on my current financial condition and also on the projects we went to see. Comparing to other agents who will just blab anything that benefits their sales point, Stephen was straightforward and truthful on the issue. I have met quite a few agents but would highly recommend Stephen to people who are looking for properties, be it looking for a place to stay, or looking for a property to invest.
YingYu Tan
YingYu Tan
Stephen handled both my HDB sale and new condo purchase. The whole process was fuss-free and smooth. What impressed me was his willingness to go the extra mile for his client, from analyzing every detail and being there for me and my wife every step of the selling/buying process.
Cannot believers Mr Stephen posting my rental unit less than 10 mins ? Yes, can't believed it ? but please believed it. 1st day open ..more then 8 enquiry. Mr Stephen was very professional, patient and knowledgeable, he shares all the information i needed, excellent service 💪💪 Rent out my unit within 2 days highly recommended ..BINGO
Jade Bai
Jade Bai
We came across Stephen YouTube video and appreciated the tips he is providing. We decided to engage Stephen when we were house hunting. Most people may feel that you can DIY resale hdb buying process. Personally we feel its money well spent engaging Stephen. The whole buying process is swift. Stephen is very prompt in his reply. He did alot of detailed analysis and recommend us the units we can explore. He is very detailed anf meticulous. This process saved alot of time. He also gave us helpful advice on the units we viewed. No hard selling or rush you into hasty decisions 😊
Adrian Tay
Adrian Tay
Knowledgeable and professional, Stephen is not the typical agent you will meet. Ever so patient, he will help provide his genuine feedback and never pushy unlike most sales agents. Fortunate to have Stephen walk with me in my property investment journey. Will recommend Stephen to anyone who is looking for a trustworthy agent to walk the mile with.
michael tan
michael tan
Very patient and give good advise. I bought ec under him and he sold my hdb.
CY Goh
CY Goh
I believe every property investors or home buyers have encounters with numerous property agents. However, how many of you ever met someone with passion and enthusiasm to sit down and analyze each property based on your criteria (budget, requirements like location, size, etc)? Having watched Stephen's videos in YouTube, decided to ping him and the rest is unspoken of. Not only did he helped to narrow down our search, he also analyzed which project has higher prospect and which unit (level, facing, etc) fits our living habits. No complaints, except for not knowing Stephen earlier. Good job Stephen, thank you.
Esther Cheh
Esther Cheh
Stephen was the agent assisting us in the purchase of our condo and now to market them for rental. He is extremely helpful, open, transparent and reliable throughout the entire time. He went above and beyond to help us set things up while we are not in Singapore.He is also very professional and knowledgeable about the property market in general. I am confident to leave our condo in his care to find us a good tenant and to manage them in future.