IS MY HDB PROFITABLE? (Yes, Your HDB is profitable! Examples on how homeowners did it are here!)

It is undeniable that most homeowners believe that it is not possible to make profit from HDB sales.

When you search online, the sales of HDB flats generally sound negative.

Hence, many are made to believe that they will definitely make a loss.

We are not negating the fact that some do make a loss. It is most likely that these people bought the property at a high price, its location or did not have proper planning.

Nonetheless, I am writing this to debunk some of these myths.

The main point is that we should think, plan and calculate ahead to understand if making a healthy cash profit from your HDB is possible for you.

Clearing the Minimum Occupation Period (MOP)

First thing first, before you sell, you need to make sure your Minimum Occupation Period (MOP) is cleared.

MOPs will last for 5 years though there are exceptions. Do make sure to check on your MOP.

If you are not clear about it, here’s a link to understand more https://bit.ly/minimaloccupationalperiod_MOP

What’s your reason for selling your HDB?

During the 11 years of my career in this industry, I have worked with a wide group of clients. Each has their reasons for selling.

Some sell to upgrade to private property and for better future plans or, some sell to downsize to cash out or current property may be too big for up keeping.

And of course, some choose to sell to make profits! Overall, a healthy cash profit is possible!

So, let me start with 3 positive examples.

1st example: Upgraded to a newer flat from the profit made from HDB BTO bought 13 years ago.

My client sold their HDB 4-Room BTO in Bukit Merah which they bought approximately 13 years ago at about $280,000.

With plans in mind to stay nearer to their child’s school and upgrade to a newer flat.

The property was put up for sale and sold at $668,000. With this very healthy profit, they successfully upgrade to an almost new loft unit.

2nd example: Downsized with a sum of money for retirement.

My clients were staying in a 4-room flat in Sembawang for about 18 years.

As age is catching up, even a 4-room flat becomes too big to upkeep.

Furthermore, with concerns about their retirement plans, they decided to downsize to a 2-room flat, fully paid.

With all these put into action and after refunding their CPF retirement funds, they had a sum of about $39,000 cash savings.

3rd example: Sell current HDB and buy a younger age property with the profit earned.

My client bought a 3-room resale flat 10 years ago.

Today, the flat is 42 years old. The new buyer may face issues on loan for mature estate.

She was so worried that she would make a loss selling this property which would affect her next purchase.

With an outstanding loan of about $13,000 and after a detailed financial calculation, she realised that she was able to make a positive profit of about $22,000 in cash!

Facts to understand before you confirm you want it your way.

Buy low, sell high.

This sounds absolutely easy! And obviously the best way to make money out of just any property.

Unfortunately, it's extremely difficult to find such gems in this property craze market. If you see one, it should be gone before you could even react.

Think, Plan and Calculate!

Hence, notwithstanding the market sentiment or content that you have read online, there are so many factors to consider before coming to a conclusion regarding HDB sales.

In Singapore, it is possible to make profits from properties.

My advice is that you do proper planning and calculations based on your own family obligations.

Find out how much you can profit from your property with the full range of options available. Feel free to verify with me and let us do the math together.