A roof over their head was never
the finish line.
I work the numbers with Singapore parents — so the flat you own today becomes something your children actually inherit.
Featured in EdgeProp
How Jesslyn Seah is reframing property for the next generation, from roof to legacy
- 01HDB flats fetch the highest resale value right after their 5-year MOP.
- 02Upgraders want to lock in the gains on their MOP-ed flat to finance a condo, or a larger, more central flat.
- 03Bigger households need more space for a growing family.
Why are so many people selling their newly MOP HDB?
Kim Seng and Lynette live in a BTO HDB flat which has just MOPed. The flat is valued at around $550K. They both work and have a combined income of $11,000. Considering stable market conditions with asset appreciation just slightly above inflation, what is the best move to get a good outcome for the future?
Upside
- No effort required, and no pressure on their finances.
Trade-off
- CPF savings taken out to buy the flat keep accruing at 2.5% a year. The amount doubles every 28 years.
- No guarantee the flat holds its value.
- Missed opportunities to grow net worth and build an income stream.
By doing nothing, Kim Seng and Lynette are comfortable — but the flat's value will stagnate and start falling after the 10th year. They also give up the time they needed to build an income stream for the future.
- 1BR condo
- $1,000,000
- 10% cash
- $100,000
- 35% CPF
- $350,000
- Stamp duty (cash)
- $24,600
- ABSD
- $200,000
- Loan $550K / 35 yrs
- $1,822 / mo
- Cash shortfall
- $387,600
Upside
- Generates an income stream and keeps the upside.
Trade-off
- With the profits still locked in the flat and ABSD on top, this one does not work on these numbers.
The ABSD is the dampener here — it limits their choices and eats the upside. It is still viable with more savings: the CPF contributions can service the loan even between tenancies.
- Sell HDB
- $550,000
- Buy 3BR condo
- $1,500,000
- CPF returned
- $390,000
- Cash proceeds
- $138,000
- 5% cash
- $75,000
- 20% CPF
- $300,000
- Stamp duty (CPF)
- $44,600
- Loan $1.125M / 30 yrs
- $4,158 / mo
- Cash top-up
- $1,958 / mo
- Left after reno & legal
- $65,000 cash + $45,400 CPF
Upside
- A better property with more room to appreciate.
- Can move nearer to preferred schools.
Trade-off
- A new mortgage to service — though on stable jobs, $1,958 a month in cash is manageable.
The straightforward upgrade. The gains come out of the flat and go straight into an asset with more room to grow, and the family gets the space they were short of.
- 2BR condo
- $1,200,000
- 1BR condo / commercial
- $800,000
- Structure
- Decoupling, so no ABSD
- Loan $900K / 30 yrs
- $3,327 / mo
- Less rental income
- -$1,700 / mo
- Net cash top-up
- $427 / mo
- Second loan $600K / 25 yrs
- $2,218 / mo
- Left over
- $88,000 cash + $31,000 CPF
Upside
- One flat becomes two private properties, with cash and CPF still left over.
Trade-off
- Two mortgages to service — but with the rental income, the cash top-up is very small.
They multiply the portfolio from one HDB flat to two private apartments, still hold cash and CPF, and only Kim Seng tops up $427 a month once the rental income is offset.
Monies taken out to pay for a property purchase must be paid back to CPF. As long as you do not sell, that money keeps earning 2.5% a year — with an extra 1% on the first $60,000 — even on a fully paid-up flat. It doubles after 28 years.
I am not asking you to do anything I have not done.
“I also recently sold my MOP flat in Bukit Batok.”
These are the four reasons I chose to sell — the same four I walk through with every family sitting on a flat that has just passed MOP.
- I knew many MOP flats were coming to market soon, so I wanted to cash out while mine was still attractive in age — not compete with all of them.
- We wanted the longer loan tenure and the higher loan quantum, so we could stretch the budget on the next purchase. As we age, the years we can borrow over only shrink.
- We wanted to take the profit out and reinvest it earlier rather than later.
- We wanted to cash in near the top, because MOP flat values fall once you get to the 10th to 12th year after MOP.
In their words.
More about Jesslyn“Jesslyn is a very responsible agent. We managed to sell our HDB through her. Being a first time home seller, it can be really nerve wrecking as you want to make sure you sell at the right price and time the market right. Jesslyn is very thorough and experienced which took a lot of the anxiety away and you know you can trust her judgment. She was able to give us good market insights, including the strategy to best manage our pricing and visibility to buyers. In the end, she managed to negotiate a very good price for us. It was seamless. I highly recommend her to anyone who is looking to buy or sell their home!”
“Jesslyn sold my HDB house in Aug 2023. Many other agents came and told me negative news like: too old, lease remaining issues, not renovated. But Jesslyn was very professional and very responsible. She was providing us good vibes and reassuring us every house have its buyer, just the timing and right pricing. Our house was sold at the price that we wanted, in less than 2 months. After selling, she still updates us often. She is the go-to person if you want to sell your house happily, smooth with good energy vibes.”
Every PropNex new launch, straight from me.
If the answer turns out to be a new launch, you are not starting from scratch. My PropNex project list stays current, and I will tell you honestly if a launch is not the right answer.
- Every PropNex new launch, updated as it releases
- Direct developer pricing, straight from the project
- Balance-unit charts and floor plans on request
Start with a conversation.
Tell me where your flat is and roughly where you stand. I will come back with a read on your options — not a pitch.