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!

6 February 2023
Stephen is very professional and trustworthy agent, he's very responsive and treat all customers with respect. He has put in a lot of effort in making sure my transaction is handled properly, on time and on top of priority. I have already recommended him to my friends that's interested in buying property. Thanks Stephen.
Elwin840808 Elwin
Elwin840808 Elwin
16 January 2023
Stephen really a good agent. I was new to home selling and have heard many about terrible agents. Stephen was professional and he never made me felt uncomfortable. He is professional, experienced and helpful agent. Highly recommend.
Marchelina Vincensia
Marchelina Vincensia
17 August 2022
I’ve met so many property agents in my life but Stephen is really a rare find. If you are looking for someone unconventional, who gives advice based on data and answer all your easy and hard questions tirelessly, then I couldn’t recommend Stephen more. A very hardworking, humble and strategic agent, highly recommend!
Sei Chia Lau
Sei Chia Lau
4 August 2022
Stephen is efficient, responsive and informative. He is able to give us useful advise and guide us patiently. Overall, his service is great👍
Stanley Tan
Stanley Tan
26 June 2022
Stephen is experienced, analytical and views properties comprehensively. This is evident right from the beginning when we chanced upon his informative YouTube videos. He provided us invaluable advice throughout the process of our property purchase. His calm, humble and polite nature made him an approachable professional to discuss the many questions we had. He was patient with his technical explanations as well as his insightful suggestions. He placed our interests first, in the buyers' shoes, gave us space to consider and has never rushed us to make decisions without proper considerations. His attentiveness goes a long way. Stephen carefully planned out the timeline for us and gave us reminders to complete the various items ahead of the deadlines to avoid unwanted hiccups. It was entirely a worry-free process. Stephen even gone the extra mile to meet us at the law firm to show us the way and be in person with us to sign the S&P. He made our property purchase a great buy and an enjoyable experience. Thank you, Stephen.
Leo Lim
Leo Lim
21 March 2022
I would like to send a note of commendation to Stephen Chong for his dedication, professionalism, diligence and patience in handling of property transaction. I would absolutely recommend Stephen Chong to buyers and sellers who are considering to buy or sell their homes.
Lim Ming Hwee
Lim Ming Hwee
26 February 2022
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
24 December 2021
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
20 July 2021
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.