BBFA Singles Property DIY B.A.N.T.E.R Guide

BBFA Singles Property DIY B.A.N.T.E.R Guide

 

The BBFA (Bold Beautiful Forever Awesome) singles property DIY B.A.N.T.E.R guide is written for us fabulous ones who prefer a hands-on approach to a sustainable life. In our world today, resources are depleting and wastage is sinful. In creating this guide, our principle is simple: 

- If I can do it, don't get someone else to do it.
- If someone has already done a decent job, don't waste or duplicate the effort.
- If there is no real value creation, don't do it.

Disclaimers:
*All facts and figures are accurate as at time of writing (19 September 2024).
*All screenshot graphics and tables are copyright of their original authors.

 

1. BUDGET

Before all else, check your finances and derive a budget for your property.
Ballpark is fine provided you have buffer savings or accounts in Bank Of Ahpa-ahma.

Downpayment

25% (HDB flat taking HDB loan) can use CPF

25% (HDB flat/private property on bank loan)

of which 5% has to be in cash (10% if LTV 55%, LT wat? see below), the rest CPF.

Loans

For HDB, option of HDB (income ceiling cap) or bank loans, subject to following:

MSR - mortgage servicing ratio of 30%, i.e. service loan <= 30% of monthly income
TDSR - total debt servicing ratio of 55%, i.e. all debts must <= 55% monthly income
LTV - loan to value, i.e. maximum of 75% to the price valuation by HDB
Tenure - max of 25 years subject to buyer age cap 65; if exceed 65 LTV is 55%

For Private, only bank loans, subject to following:

TDSR - total debt servicing ratio of 55%, i.e. all debts must <= 55% monthly income
LTV - loan to value, i.e. maximum of 75% to the price valuation by bank
Tenure - max of 35 years subject to buyer age cap 65; if exceed 65 LTV is 55%
 

Eligibility computation is calculated based on an interest rate floor determined by HDB or bank. This is 3% currently. This means the lender calculates how much you can loan up to vis-a-vis your income based on a minimum of 3% loan rate.
 

Monthly loan servicing can be in part or full cash/CPF. Just inform your bank when you adjust the CPF portion you intend to use on CPF portal.

HDB loan can switch to bank loan but it is a one way street i.e. no way back to  HDB loan after.

Is your head spinning yet?
 

Interest Rates
 

HDB loan interest rate is 0.1% above current CPF OA rate, i.e. 2.6%.

Bank loan interest rate varies based off SORA (Singpore Overnight Rate Average).
 

Interest rates are affected by the state of economy globally and at home. Historically, Singapore has seen rates as high as 12% and as low as 0.x%. In my over 20 years in the market, my highest ever loan rate was 4%.
 

Banks will require you to lock in x number of years for better rate offerings, i.e. penalties for early and/or partial redemption. You have choice of fixed or floating (based on SORA or board/Fixed Deposit rates). Choose based on your own comfort level and how you think the economy will pan out over the committed period.
 

You have the choice of switching banks (will need to reassess and submit income documents, aka refinancing), or switching to another package (repricing) with the same bank should you find your current deal doesn’t work for you anymore.
 

Mortgage brokers are aplenty in Singapore, many offer incentives like shopping vouchers or free gifts to obtain bank loans through them. Use them to compare deals and rates - the banks pay them, you don't. Some examples are redbrick and mortgagewise.
 

Grants
 

Free money from ah gong, dumb not to take, right? Depends.

TL;DR - If you intend to resell for profit within say 5-10 years, or hold till the very RIP end, it makes financial sense to max out your CPF and grants.

Grants are deposited into your CPF OA directly for purchasing the flat. When it is sold, you need to pay yourself back the accrued interest on ALL CPF used over the holding period including interest on grants taken. This interest compounds 2.5% annually.

Now, imagine you buy a 3-room flat at 300K, of which 100K is made up of own CPF and CPF grants. In 30 years' time should you sell it, you need to pay back into your OA 110K of interest on top of the CPF sum already used. What if the market is bad, but you need to sell it for cashflow and can only fetch 350K due to various reasons such as property age, lousy maintenance or neighbours from hell? Meeting the MP won’t do a thing for you.

Fees

Application fee - $80 (3 room HDB and larger).

Valuation fee - $120 payable by HDB buyer. For private buyer, FOC which is performed by the bank.

Legal fees - HDB loans, fees amounting to hundreds for their conveyancing lawyers depends on flat size. Bank loans, fees amounting to thousands, use a lawyer preferably on the bank of choice's panel. Things flow smoother.

Buyer Stamp duty (BSD) – a tax on your purchase, is a 4 to 5 figure sum, refer to IRAS for exact calculation which depends on property price.

Seller Stamp duty (SSD) is also on a graded scale depending on how long you have held your property, currently it can go up to 12% (sold within 1 year). N/A if sold after 3 years.

Commissions – applicable if you really, confirm, absolutely need to use agents, refer to section on Agents.

Insurance - CPF Home Protection Scheme mortgage insurance compulsory if using CPF monies. Fire insurance compulsory for HDB flats. Use your own preferred insurer, eg. FWD. If you are keeping the OG Mona Lisa at home, consider also getting Home Contents insurance.

 

2. ACQUIRE

Searching for your dream home can be the most exciting of times. BBFA DIY-sters like us treat home searches like mini vacations; who knows we may discover places we never even knew existed. Have fun and sweat it out in the process.
 

Flyers
 

If you already zoomed in on certain areas, try slipping flyers into resident mailboxes. Or under their doors, but please listen out for dog barks.
 

Portals
 

HDB, browse resale portal; private, browse propertyguru/99.co etc. Use filters on districts, road names, listed in the past week etc to further narrow down your selection if too many results turn up. Do a Google search also on your target properties. If you are on socials, search also in FB, Youtube, Insta, TikTok. You may turn up visuals and details of previous similar properties marketed or sold, helping you form a judgement call on the ones currently available.
 

If you see a property listed by multiple agents, it could mean the seller is urgent to sell and therefore you have better bargaining power, or it could also mean the seller has high confidence in selling the property and just throwing it out to any agent who can fetch the best price and buyer profile. If you see a particular property listing price drop over weeks/days it probably means the seller is more pressed to sell it fast. Edgeprop also shows the number of days a listing has been in the market so you can gauge for yourself how motivated the seller is to negotiate.
 

Agents

Since we are DIY-sters, we don't really want to use agents, do we? But if we really are pressed for time or have other challenges (eg. anti-social), a good agent can make the entire purchase easy peasy and ensure nothing is overlooked. For HDB, you pay the agent a commission, whereas for private your agent representative usually takes a cut from the seller's agent without you having to pay anything.
 

A good agent will make sure your interests are protected from start to end and negotiate in your favor at all times, not rush things through so as to rake up commissions and hit ranking tiers quickly. He or she will also have a firm grasp of the market situation and is realistic about pricing and potentials. It helps if you also have a seasoned negotiator in tune with every party’s needs and wants. Check how experienced your agent is on the CEA public register website which lists what they have transacted.
 

Large agencies (eg. propnex) agents usually have a more extensive network and pipeline of buyers, others pride themselves on tech-powered apps that make processes smooth and fuss free, and then there are niche players focusing on certain segments like landed or particular districts. In any case, the SG property market is so transparent, any property that is decent is probably already listed and availed on the internet to all prospective buyers.
 

Fees - Referring to buying (and also selling actually) commissions here, there are various business models out there currently ranging from 0% (eg. mogul.sg), fixed fee (propseller $5000) to 1% (ohmyhome), 2% and beyond premium (propertylimbros) engagements. It all depends on your requirements. I almost never pay commission fees in my history buying, spare the one time I was doing contra as the process was new to me. Commissions are always negotiable. I had in the past dangled additional incentive for motivated agents that sell above my target price.
 

Staging
 

For sellers, please make your property visually appealing and stash away clutter as far possible. A fresh coat of paint would be awesome. Move your furniture so that the space looks bright and open and uncluttered. In fact, empty or near empty houses tend to sell faster. Supposedly it is easier for the viewer to imagine their own furnishing and arrangements, plus of course it makes the place look more spacious.

There are professionals who dress up your house like a show flat, and some agents include the service as complimentary. If you are selling a multi-million dollar abode perhaps it makes sense to do it in order to attract buyers of certain SES or inclination. But if you already have a place that literally sells itself due to its stellar locational, positional, reputable etc attributes, you can pass on this.
 

As a buyer, if your seller clearly invested in and/or paid for staging, you can be quite sure they are looking to optimise their selling price into another ATH (all time high) and you are unlikely to strike a bargain here. Or they could be hoodwinked by their agent with the bells and whistles, who knows.

Viewings
 

Don't be late, respect everyone's time, cancel early in advance if necessary. Do it in day time and night time (when most neighbours are in), week days and weekends. Observe the upkeep of the property and grounds, look out for leaks, tile popping, large/long cracks, odd smells, sounds, activity and any red flags from neighbours. Don't miss painted over O$P$ artwork! (applicable to HDBs, but if your condo has this, don’t walk away - run!)
 

If you are the seller, it would be helpful to predefine available slots eg. only Mon Wed Fri evening 7-9 and Sat Sun morning 9-12, to save everyone headaches and endless unconstructive to and fro’s in appointment scheduling. Try to make slots available for both daytime and night time (plus weekend) viewings. When I bought my condo, I viewed it on a National Day holiday and got a good idea of how it was like at its most crowded and rowdy with facilities at their peak occupation rate.
 

For private property, if you can get your hands on the latest AGM booklet (ask the seller, agent or the MCST office – you may need to pay a fee), you get to know all the maintenance issues, financials, power players and any other monkey business of the property and its owners. It may introduce your future neighbour as a recalcitrant litterbug or worse, chain smoker who likes to do it in their balcony beside yours. Or that you will get wheel clamped in the middle of the night (whichever night the security officer is free) if you were previously caught alighting your limping granny in the wheelchair lot by the CCTV. Or that they have been pushing and fighting to increase the maintenance fees by a hefty 30% for years.

3. NEGOTIATE

Listings with unrealistic pricing (eg. huge variation vs recent like properties transacted) are often just testing the market, feel free to pass. On the flip side, those 'looking too good to be true' cheap could be a ploy by the agent to fish for business or bait switching you to another property they are marketing. Regardless, nothing is set in stone and it's open for negotiation based on the following factors.

‘Negotiable’ tagging the listing asking price means just that – the price is negotiable.

‘From $XXX’ indicates that the seller is expecting a higher then $XXX offer.

‘View to Offer’ means the seller is hoping to give you the once over to gauge how deep your pockets are. Or it could just mean the seller or agent has no clue how to price the property.

Valuation
 

edgeprop offers an estimation valuation along with good details of your dream property like age, tenure, past transactions (down to exact floor) and price trends and rental yield. SRX and 99.co (which uses SRX) also offers indicative valuation on their portals.
 

Valuation is a professional practice in itself. The people that come to assess the seller’s place are called valuers. They either work for a valuation firm or the bank (or HDB). The assessment attempts to put a value to the property vis-a-vis enhancements, renovations or damages done to arrive at a figure for its worth and market value. 

COV
 

Properties with outstanding attributes (eg. high floor, good views, long remaining lease) and well renovated usually come with COV (cash over valuation) expectations. It is entirely up to you whether and how much you value the attributes. For HDB, any COV has to be paid in cash. Note also loan quantum approved are based off the valuation price without considering the COV.
 

If you are buying a HDB flat, you would need to pay and request for valuation after you had paid the option money to get the OTP (Option to Purchase). This means if the valuation comes back as too low for what the seller is asking (high COV, more cash upfront) and you are not aligned on the property’s worth, you need to forfeit the option money paid.
 

For private property, the bank will usually match the valuation – it is after all their inhouse valuer. It only boils down to whether they deem it worthwhile to lend you the requested amount for the property (your credit worthiness, their interest earnings potential etc).
 

Extension
 

If the seller needs an extension of stay in the property you are buying, use it to negotiate for a better price. For HDBs, this extension is capped at 3 months. You can also strike up a private arrangement for the seller to pay you rental for the extension if you meet their selling price expectations for instance. Ensure you do a spot check shortly prior to final take over post extension, in case the seller was pissed a neighbour just sold $100K above his price and thus destroyed the whole marble flooring as your welcome gift.
 

Contra
 

If the seller is doing a contra i.e. sell then buy at the same time, you cannot do the same. Likewise for the seller of the property he/she is buying. Due to these restrictions you may further suppress the price in your negotiations. The purpose of a contra is so that the contra party need not fret over cashflow from sale to purchase as the monies are channeled from former to latter minimising the need for cash up front. Additionally, most HDB flat sellers require an extension of 1-3 months (max 3 months) to search for their replacement flat, renovate it and move over.
 

Ensure all these sale conditions are discussed and agreed upon by all parties before committing to the purchase. Put it down in black and white if necessary.
 

Profiles
 

As a seller, you may be lucky enough to get multiple offers. This is the time to assess the buyer profiles. Aside from obvious deal makers/breakers like extension, contra, timeline, essentially, you also want to close the deal with the most ‘steady’ (reliable) one. For example, between a retiree couple downgrading from having sold their semi-d, and a young family who is in the process of offloading their newly MOP non-mature HDB flat, who do you think is the more steady one unlikely to have any hiccups prop up in the transaction process?

Take note that HDB ethnic quota restrictions are updated month to month. If you are looking at buying, or selling a quota restricted unit, and the estate is quite actively transacted, situations may change for the better (or worse) month to month. You will also notice that ethnic quota restricted flats, especially those for the minority race groups, have depressed pricing. This is reasonable as the possible target buyer pool shrinks significantly. Being of the majority race, I like buying from ethnic minority owners for this reason, provided my ethnicity is not already maxed out. Certain areas like Chinatown, Tiong Bahru, Bukit Merah are difficult to find minority deals since the buyer also need to be of the same minority ethnicity. No points for guessing why property prices just seem to keep going higher there.
 

Considering all the above factors, you will see why even in the same project or cluster of similar blocks, transacted pricing can vary rather significantly. Every deal is unique and you should take everything into consideration in coming up with a reasonable offer or selling price in your negotiations (the not so fun part - some seasoned Chatuchak familiars may beg to differ). To state the obvious, if an ethnic minority quota restricted unit requires full 3-month extension, is doing contra, and is in original un-renovated condition on a low floor facing the bin center, its selling price will be significantly depressed. If you really own such a unit, don't fret. There are price-sensitive low floor lovers (cat or dog owners for examples) out there. I am one of them :) With the legalisation of cat ownership in HDB flats, low floor unit sellers can now hope for better outcomes.

4. TRANSACT

Process
 

For HDB, it is straightforward. Just follow the step by step on their resale portal, which is quite foolproof.  Basically it is:

HFE (HDB Flat Eligibility) -> OTP (Option to Purchase) -> RFV (Request for Value) -> LO (Letter of Offer from bank) -> Exercise -> Submit Application -> Approval -> Completion (-> Extension)

This takes as short as 3 months to (some have encountered) as long as 12 months. HDB will SMS you at every milestone and action point so you are in good hands.

For private, it is simply OTP -> LO -> Exercise -> Completion (lawyer handles most of it)

This usually takes 10 weeks in all. You will depend on your lawyer to ping you for input and action at each relevant juncture.
 

Legal

For HDB on HDB loans, you will use their internal conveyancing lawyers. The fees are fixed according to the type of flat.
 

For bank loans (both HDB and private), you can ask the bank to recommend lawyers on their panel or use your own. I used to work with a lawyer extensively due to the rapport and understanding we had built up over the numerous transactions he managed for me. Legal fees can range from 2-3K into the five figures depending on the complexity of the transaction. Take note some banks offer legal fee subsidy (up to a limit) so do ask your mortgage broker.

Timeline
 

HDB resale timelines can vary depending on how timely each party responds and submits documents. If every party take own sweet time and does everything last minute or misses out important deadlines, the timeline can stretch out. Other causes may include appeals and need for additional supporting documentation.

Private conveyancing is usually straight forward unless many parties are involved and the transaction is complex, eg. inheritance, estate issues, incomplete documentation, people not in same country/timezone, manner of holding etc. Discuss with your lawyer and let them guide you on timeline planning and projections.
 

If you are selling and buying a replacement property at the same time, timeline planning is of utmost importance. It can make or break a deal. In the most ideal case, you have a place to crash at if timing is off for some reason. What about your belongings? You can consider stashing them at 24/7 self service storage like extraspace and storhub. If you have pets it may be more challenging to find temporary accommodation.

Cashflow

Especially if you are selling and buying a replacement property, other than timeline planning, you need to ensure your cashflow is well managed. You must budget well and may need to have excess to pay certain fees upfront like applications fees, legal fees, stamp duty (substantial sum!) and renovation deposits or prepayments.  
 

Sales receipts and payments are typically in the form of CO (cashier’s orders). If you are primarily using a digital bank like TRUST, you will need to get a friend to help cut CO’s for payments. If you are using a private lawyer, they are not supposed to hold any of your monies so you will still need to cut CO’s to pay the respective parties; but your lawyer will tell you the exact amount to cut for each party. To cash out CO’s in your name, you will need to visit the bank and do it over the counter with your NRIC.
 

5. ENJOY
 

Proud new owner of your dream home, or cash out in your hands smelling so good, finally! Enjoy the fruits of your labor. But there are still a few things to take care of.

Reno

Personally, I’m not a big fan of renovation and major make overs. Trends come and go. A look that slays today might be passe tomorrow. I have seen pretty outrageous and personalised reno themes and wondered why the owners would do that and significantly restrict their future potential target buyer pool. Call me a cheapo if you will, or green warrior if you are nice. I believe in preserving what is not broken and adapting and re-using what still has life left. For the parts broken, fix them and if beyond fixing, then replace or repurpose.
 

If you intend to resell the place in a near future, minimise reno. Valuers don’t really attach much dollars to renovation as they are like cosmetics to a face. Exceptions are bought enclosed recess area, enclosed balconies, additional rooms or study areas created, double glazed windows etc maybe.
 

For forever homes, before you splurge on the reno, think of the utility life span. Also consider the maintainability of the materials and fixtures used. You will want easy and fuss free maintenance and avoid costly or special custom tailored servicing and repairs. If you itch for Taobao and the like, be aware it can be very hit or miss. Go for established brands for your white goods. Try new providers if you want for non critical stuff like ovens and dishwashers – things you can do without for weeks in case of breakdowns. Maybe washing machines too since laundromats are so ubiquitous in most neighbourhoods these days. As for whether to go for ID, full service or DIY etc, like whether to engage property agents, it fully depends on your available time, budget, requirements, preferences and know how.

For small spaces and ‘smart’ furniture that you need to move around in order to switch functionality, consider the days you feel dead tired after a long work day or out of commission due to illness or injury. Many folks end up having a smart wall bed permanently in the opened and laid down position from the hassle of having to open/close it every time of use. Those with young children and pets and seniors need to watch out for furniture placement, sharp corners and tripping hazards. Pay special attention to flooring materials to ensure non slippage both dry and when wet.
 

You will need to apply for a renovation permit if you are hacking anything whether in HDB flats or private condos. For the latter, you will need to ensure padding is provided to protect the common areas for transiting on renovation materials – your contractor can provide this and apply for permit with the management office. Most condos will also require a refundable deposit from you for moving in and out to cover any accidental damage or mess to common areas. Notwithstanding, you need to also abide by the permitted hours for works stated in the application forms. For HDB, it is usually Mon-Fri 9-5pm and Sat 9-1pm. Condos will have their own house rules.

Utilities
 

Ask the seller not to terminate the existing SP (Singapore Power) account and just open one of your own to switch over seamlessly. You can do it from the SP Group app. The last time I did it before official handover I wasn’t asked for documentation proof I am the upcoming new owner.
 

Choose the electricity provider of your liking that fits your needs. Some cook a lot and others have plenty of stuff wired up for smart home gadgets. Others need reliable power for their aquariums or eco-reptilian home. Certain providers have special pricing for off peak usage so consider that especially for shift and odd hour workers. Be careful about the contract ‘auto renewal’ if you are selling your property in future, as you may not want to be stuck with the same provider onto your new place or pay penalties for early termination of contract.

For cooking or heating you have options in piped in gas, City Gas or LPG. You should have checked what the property is using during viewing, and I don’t think you can suka suka anyhow switch to something that isn’t already built in other than for LPG or induction cookers.
 

You also need to pay for garbage disposal whether it is HDB or private. Obviously the banglas you see coming by daily (several times, sometimes) to clear your rubbish and recyclables are not working for free.

Tax
 

Thank you for your contribution to nation building. Know your property AV (annual value) and pay your taxes on time. I’m not a fan of GIRO so I set repeating calendar alerts. Other than determining how much owner-occupied property tax you pay, the AV will affect what and if any ang paos (and whether big or small) you can receive from ah gong.
 

The AV is basically how much rent your property can fetch without additional embellishments like furnishing, reno, gold plating and durians.
 

Maintenance
 

For HDB, inter-floor seepages are one of the biggest headaches you may encounter. Actually it is the same for private condos. The cost split of rectification is different though – HDB is 50/50 and condos the owner on the upper unit pays in full. If you are on the second floor, then you split the cost with the Town Council (representing the void deck haha). Speaking of which, never ever embed water pipes or AC piping into the floor slab if you can help it. They are a hell to fix when they get old and leak. Avoid drowning your kitchen floor to wash it, use wet wiping and dry them off immediately if possible. If water is pooling on your floors and not draining into floor traps, you should fix the levelling as soon possible.
 

For private residences, the MCST (Management Corporation Strata Title) is a body of owners who represent all owners in a condo property to upkeep and maintain it. Akin to the Town Council in charge of an estate of HDB blocks. The BMSMA (Building Maintenance and Strata Management Act) is the overseeing legal framework. It spells out do’s and don’ts of condo living and recommended maintenance practices. The MF (maintenance fee) and SF (sinking fund) you pay is for the maintenance and upkeep of common area facilities and services not limited to swimming pools, landscaping, cleaning, security services and equipment, pump system, guardhouse, BBQ, tennis courts, function rooms and so on. For mid to large sized condos, there often will be an onsite team of strata management professionals like condo managers, property officers and admin personnel. They are your first point of contact when you need to report issues with common areas and facilities, or have leftover mooncakes which you cannot finish.

6. RINSE (& REPEAT?)
 

Forever home is an alien concept to you? Whichever property makes you the most money is a good home? You need to flip property several times in order to build up funds for retirement or that round the world holiday? MOP is not a problem, you are young, you have time for several rounds? You want to upgrade to keep up with the Joneses?

Objective and Outlook
 

First, be crystal clear about your objective. Are you flipping to be close to your family and friends (will they also move in the future, anyway)? Are you flipping to right size? To set aside for retirement? To upgrade?

There are several school of thoughts for this. In so far as Singapore property is concerned, there are people who believe location is everything. Others insist timing is everything. Then some believe that niche and rare ones will maximise value and potential. Whichever rocks your boat, do your research well. Reference past transactions, economic activities and cycles, master planning (URA), demographics shifts, labor growth and influx patterns, any data that can help you form a more robust opinion of how the property market and demand and supply will pan out in the horizon.

Always remember past performance may not be promise of future performance. The property market in Singapore is tightly regulated and controlled by the government. Their ideal situation is a controlled pace of growth alongside the economy growth rate. This does not automatically mean all properties will make money in the long term. Sentosa and CBD projects are great lessons in this respect. HDB flats, due to the government’s vested interest in ensuring the majority population enjoy well maintained and somewhat value protected assets, keep up liveability in conscientious upkeep and rejuvenation pushes like state funded upgrading and improvement programs. Hence, HDB flats’ prices have kept rising regardless of lease decay fears.

Singapore’s sustained relevance and competitiveness in the global world should auger for steady progression of property prices over coming decades, barring economy shocks. However, it is prudent not to put all eggs into one basket – diversify if you can. Don’t dismiss also the power of compounding in our CPF state pension system.

Risks
 

If you want to flip properties, don’t forget to count all the fees, interest, maintenance, reno spent and so forth. If CPF is utilised, there is also the accrued interest which you need to refund back to yourself every time you sell the property. Of course, you can use all of it for your next property subject to withdrawal limits based on age, so if you are flipping and intending to leverage on loans and CPF, don’t wait until you are too old when the limits are substantial. It’s pretty much game over if you are say already 60 years old and not cash rich enough to continue flipping with minimal CPF and loan needed.

If you are using a significant portion of your salary to service loans, you need to assess your job longevity and security. Do you have buffer savings? The worst place to be is having to service your mortgage being unemployed with no income and unable to rent out (any part of) the property to make ends meet.
 

As we age, there is also the increased possibility of health crises popping up. Regardless of being insured or not, there is often some financial outlay. Also, if you already have a place to stay, and am just flipping said property for capital gains alongside rental income, at least you have a roof over your head in any situation.

MOP and SSD
 

HDB requires you to occupy your flat for a minimum of 5 years before you can rent or sell them. For Prime flats it is 10 years and has added restrictions on rental and potential buyer categories. So ask yourself, at your age, how many times can you flip to make it worthwhile? As your age goes up, your ability to obtain high loan quantums, employability, health and fitness, and resilience in bouncing back from setbacks reduces. There just isn’t that many years to make mistakes and pick yourself up or start over again.

Private properties will incur SSD (seller stamp duty) if sold within 3 years of holding. Evidently for the well heeled, it then suggests they can rinse and repeat way more times considering the short window. Policy restrictions are also almost none. There is no shortage of property experts out there espousing flipping HDBs, condos till being able to afford a landed property. As they say, the rich only gets richer. Sure, do that, but always have backup plans and don’t wear a hat too big for your head. If you need to borrow beg and steal from all your friends, aunties and uncles, I think you should take a rain check before committing.

Having said that, I always like to tell my friends - if each time the gains aren’t at least 3-4x your annual income, it probably isn’t worth the trouble.
 

For the sake of illustration, let’s come up with an ultimate perfect scenario.

35-yo BBFA you ballot and get (at first try) a 2-room 99yrs lease in a super prime location for $200K (after grants). It magically also is a very high floor unit and takes only 4 years to build. You are 39 when you take the keys, assuming no delays. Fast forward 5 years MOP you are 44. You managed to offload it for $600K – an easy possibility given some of the prime located 2 rooms have already sold $550K and upwards. With the $400K hot profit you dump into a shoebox condo in prime area and loan up to a million as your income is great and you are already a director level salaryman. SSD 3 years over, you are 47, your 1.4Mil shoebox condo shot up to 2Mil because Taylor Swift keeps coming back every year and the economy is just on a bankroll with SG debuting their first AI member of parliament. You offload that and plonk 1.5Mil into a 2 bedder condo in prime area and borrow 1.5Mil easily because you are already a senior director level. Sup sup water. At your great 50yo birthday, you flip it for a cool 5Mil coz the URA has announced 5 new MRT stations surrounding your condo. You haven't even actually started to plan for retirement when you pay the good 5Mil for that beautiful landed terrace in D16 where you grew up…
 

Doable? Can bo? Pray very hard for all the stars (and asteroids) to align.

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