Your search results

Downsizing From A Spacious 4-Bedroom Condo To A Cozy 2-Bedder: How I Chose A Condo Over A HDB

Posted by Jayson Ang on April 28, 2023

| 0

TLDR

Mdm Sim’s decision to trade her four-bedroom house for a two-bedroom condo is explored, highlighting the benefits of right-sizing. The key motivating factors include financial stability, access to amenities for a vibrant social life, legacy planning considerations, and avoiding lengthy wait-out periods. The move to a smaller condo provides Mdm Sim with greater financial peace of mind, enhanced social opportunities, and a strategic approach to legacy planning. Additionally, the advantages of condos over HDB flats in terms of hosting events and the significance of security amenities are discussed. By considering these factors, individuals like Mdm Sim can make informed decisions when right-sizing their living spaces.

When it comes to right-sizing, one might think selling a house to buy a resale flat is the natural route. But this isn’t always the case – we recently chatted to Mdm Sim who made the wise decision to trade her four-bedroom home for a two-bedroom condo. Here’s why that could be the smarter move:

“What are the motivating factors behind right-sizing to a smaller condo?

After consulting with Mdm Sim and other like-minded individuals who have made the switch, the consensus seems to be:

Peace Of Mind In Terms Of Financial Stability,
Access To Amenities That Enable A Vibrant Social Life,
Resolving Legacy Planning Issues,
And Avoiding Lengthy Wait Out Periods.

1. Peace Of Mind In Terms Of Financial Stability

Mdm Sim asserts that relocating to a more compact condo, instead of an apartment, provides her with greater financial peace of mind. Her rationale for this is:

“If I own private property, I have the option of downsizing in case I need more money after retirement. Selling my property and moving to an apartment would be my only option if I only have an apartment.”

Mdm Sim firmly prefers freehold properties over leasehold ones such as HDB flats; she feels it can help maintain its worth and ensure further gains should she ever decide to sell.

“This statement is partially accurate; freehold properties have the potential to maintain their value more effectively over the long haul, however, it is not certain that they will always out-perform a leasehold condo in terms of value appreciation.”

2. Access To Amenities That Enable A Vibrant Social Life

Many seniors have noticed that, due to the luxuries offered in a condo, their families have become more eager to pay them a visit; and Mdm Sim has had a similar experience.

“Every weekend, it’s a good reason for the whole family to come together; my grandchildren have swimming lessons from their instructor at the local pool, while my son-in-law uses the gym here, since he doesn’t have one near his apartment. As a bonus, it also gives me a chance to see my daughter more often since they usually visit together.”

A fellow right-sizer enlightened us with the fact that, although HDB flats boast an array of modern amenities, condos remain the superior option for hosting large events. The luxuries provided by their clubhouse, he noted, far surpass those of the average void deck, and the BBQ pits in flats are far too cramped to accommodate larger gatherings.

You must select your projects with great care. While newer mass-market condos may boast an array of amenities, having a single swimming pool and tennis court shared among a thousand units could lead to overcrowding on weekends.

Having the condo security guards around certainly makes a difference according to Mdm Sim; they graciously open the door for her if she arrives by taxi, and even lend a hand with her shopping bags when she calls for assistance. This small act of kindness is especially valuable to her and her husband, who is wheelchair-bound.

3. Resolving Legacy Planning Issues

Mdm Sim decided to purchase a condo for a variety of reasons, one being that as the majority of Singaporeans own their own homes, their kids cannot inherit their parents’ HDB flat. This means that when their parents are downsizing or retiring, it is not possible to own two HDB flats; so to avoid having to give up one property, they can opt to buy a private one.

Mdm Sim is keen on passing down the property to her daughter, who already owns a condo unit, thus making a private property the perfect choice. She believes that her daughter’s condo unit would not only appreciate more than a flat, but it would also retain its value much better, ultimately giving her daughter a more substantial legacy.

4. And Avoiding Lengthy Wait Out Periods

Mdm Sim is fortunate that she’s already over the age of 55 and therefore isn’t affected by the September 2022 cooling measures, but Michael and his spouse, both in their late 30s, were unfortunate to have their plans for selling their condo and buying a resale flat thrown into disarray due to the sudden announcement of the policy change.

“After inheriting my late grandmother’s condo, which was quite old, my wife and I decided to sell it and downgrade to a more modern two-bedroom. We chose to purchase this smaller place so it would be near our shop and avoid having to wait out with a 15-month rental contract while trying to run our new business.”

Despite the fact that they had chosen a condo instead of an HDB flat, which resulted in a significantly lower capital for the business, Michael takes solace in the fact that he still owns a condo which is a valuable and growing asset.

Retirees May Be A Hidden Gem Of Potential Buyers For Owners Of Smaller Condos!

It is widely assumed that selling a shoebox unit or two-bedder could prove challenging due to the limited number of potential buyers; however, this is not necessarily the case. Recently, a trend of seniors opting to ‘right-size’ into smaller units has emerged, with many believing it to be a great investment and/or practical gift for their children.

Your children may not be able to move into it, but they can use it as an investment tool! With a fully paid one or two-bedder, they can use the rental income to help cover the costs of their current home loan and possibly become mortgage-free.

Stay up-to-date with all the news and reviews of the home buyer and seller experience by following me on my blog!

I’ll keep you informed of what buyers and sellers are thinking and provide insight on new and resale properties.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

Mandarin Top 5

Is Singapore’s Property Market on the Verge of a Crash? Understanding the 5 Factors at Play

Jayson Ang – March 31, 2024 –

The Singapore property market has long been an attractive option for both local and international investors. However, as with any...

All Buying Tips Opinion Selling Tips

3 Winning Strategies for Skyrocketing Your Property Market Profits (Including Real-Life Success Stories)

Jayson Ang – August 21, 2024 –

TLDR In the dynamic property market of Singapore, maximizing profit is key for sellers and investors. Three essential strategies stand...

All Blog Posts Buying Tips

6 Must-Know Factors to Consider When Purchasing a Resale HDB in 2023

Jayson Ang – February 5, 2023 –

TLDR When buying a resale flat in Singapore, make sure to walk around the neighborhood to assess actual distances, check...

All Blog Posts Buying Tips

Should I Buy In A Newly MOP HDB Or An Older Resale HDB?

Jayson Ang – March 18, 2023 –

TLDR When deciding between a recently MOP-ed HDB property and an older resale HDB property in Singapore, various factors come...

All Buying Tips Opinion

Debunked! 6 Popular Property Myths of 2023, Including the 99-1 Loophole – Legal or Not?

Jayson Ang – January 4, 2024 –

TLDR This blog post delves into various aspects of the Singapore property market, including topics such as decoupling, 99-1 property...

Mandarin Top 5

Top 5 : Why Ultra-Rich Foreigners Will Still Buy Property In Singapore

Jayson Ang – March 1, 2025 –

Singapore, a small island nation in Southeast Asia, has been steadily gaining recognition as a hotspot for the ultra-wealthy to...

Mandarin Top 5

Top 5 : Potential Risks Should Be Considered When Investing Property Within Singapore’s Competitive Real Estate Markets

Jayson Ang – May 2, 2025 –

Singapore, a bustling financial hub in Southeast Asia, has seen its real estate market flourish over the years. The city-state's...

All Buying Tips Opinion

New Condo Sales Surge: Decoding Singaporeans’ Enthusiasm Despite “High” Prices

Jayson Ang – January 14, 2026 –

TLDR Recent strong condo sales in Singapore, including Emerald of Katong’s 99% take-up during launch, challenge perceptions of unaffordability. Key...

Mandarin Top 5

The Top 5 Factors to Consider When Investing in Industrial Property in Singapore – Expert Insights!

Jayson Ang – September 18, 2024 –

Singapore, a thriving hub of business and commerce in Southeast Asia, offers a robust real estate market with various investment...

All Buying Tips Selling Tips

When Should You Consider Investing in Singapore Property, and When Should You Avoid It?

Jayson Ang – February 2, 2025 –

TLDR Investing in real estate is a complex decision influenced by personal goals, investment horizon, rental plans, and financial liquidity....

All Buying Tips

Is 2024 the Perfect Moment to Refinance Your Home Loan? Discover What Homeowners Should Consider!

Jayson Ang – July 20, 2024 –

TLDR The article covers the shift to SORA for home loan rates, urging consideration of refinancing options amidst rising rates....

All

The Uncomfortable Truth About Homeownership and Relationships in Singapore

Jayson Ang – July 5, 2025 –

TLDR Property ownership and prenuptial agreements are key for married couples in Singapore. Joint ownership (either joint tenancy or tenancy-in-common)...