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

Singapore’s Property Insights : Where to Find 5 Hidden Gems?

Jayson Ang – June 14, 2023 –

Singapore's Property Insights : Where to Find 5 Hidden Gems? With its booming economy, vibrant culture and attractive regulations, Singapore...

All Blog Posts Buying Tips

HDB Loan Vs Bank Loan: Pros & Cons

Jayson Ang – February 25, 2023 –

TLDR When deciding between an HDB loan or a bank loan for purchasing a property in Singapore, consider key factors...

All Buying Tips

Multiple Property Ownership in Singapore: A Different Landscape in 2025

Jayson Ang – July 22, 2025 –

TLDR Owning multiple properties in Singapore in 2025 is tougher due to higher Additional Buyer’s Stamp Duty (ABSD), stricter Loan-to-Value...

All Opinion

Why Can’t More People Own Private Property?

Jayson Ang – April 2, 2024 –

TLDR The blog post discusses the aspirations of individuals like Siti and Mr. Tan regarding property ownership in Singapore. Siti...

Mandarin Top 5

Top 5 Tips : How to Choose the Right Type of Property to Invest in Singapore – Expert Tips and Analysis!

Jayson Ang – September 24, 2024 –

Investing in property has long been a popular method for growing wealth in Singapore. With million-dollar HDBs being sold and...

All Opinion Selling Tips

Punggol Northshore HDB Flats Reaching MOP: Navigating the Resale Window

Jayson Ang – January 26, 2026 –

TLDR In 2025, around 1,765 HDB flats from Northshore Residences I & II and Northshore StraitsView in Punggol’s Northshore will...

Mandarin Top 5

Top 5 Tips How to Find Your Dream Home in Singapore: A Step-by-Step Guide

Jayson Ang – October 21, 2024 –

Singapore, a vibrant and dynamic city-state, offers a diverse range of housing options for prospective homebuyers. From condominiums and HDB...

All Buying Tips

The Numbers Behind Why Age 30–35 Is Prime Time to Upgrade from HDB to Condo

Jayson Ang – October 1, 2026 –

TLDR Upgrading from an HDB flat to a condominium between ages 30–35 is often considered optimal due to financial stability,...

All Blog Posts Buying Tips

Get Into Core Central Region Before Big Price Adjustments

Jayson Ang – February 13, 2023 –

TLDR Jayson Ang discusses the essential factors to consider when seeking a property for investment. By analyzing the safe entry...

Mandarin Top 5

Top 5 : Benefits of Investing in Older vs. Newer Singapore Property Market Condos for International Buyers?

Jayson Ang – January 14, 2025 –

Singapore's property market has long been an attractive investment destination for international buyers, offering a stable and well-regulated environment with...

All Buying Tips

5 Smart Techniques That Resourceful Homebuyers Utilize to Overcome Restrictions on Home Loans

Jayson Ang – May 16, 2024 –

TLDR When it comes to navigating the complex world of home loans and property acquisition, it's crucial to be aware...

All Blog Posts Buying Tips

Five Pitfalls of Selling a Home for the First Time

Jayson Ang – July 23, 2023 –

TLDR When selling your first home, avoid holding out for a better offer as it may backfire. Let your agent...

Mandarin Top 5

Top 5 Factors to Look for in a Property Developer

Jayson Ang – March 13, 2024 –

With a highly competitive property market, it's crucial to choose a property developer that you can trust to deliver quality...

All Buying Tips Opinion

Craving Dream Homes in the Urban Jungle: The Singaporean Dilemma Unveiled

Jayson Ang – May 10, 2024 –

TLDR The housing landscape in Singapore reflects evolving aspirations and desires, especially among the younger generation. Owning private property is...

Mandarin Top 5

5 Cons of Buying a New Development

Jayson Ang – March 4, 2024 –

Luxury properties in Districts 9 and 10 of Singapore are highly coveted, and for good reason. From stunning views and...

All Blog Posts Buying Tips Opinion

7 Lesser-Known ‘Minor’ Condo Problems That Could Lead to Major Issues Down the Line

Jayson Ang – October 11, 2024 –

TLDR When choosing a condo, it's crucial to look beyond MRT station proximity, developer reputation, and price. Overlooked details can...

All Buying Tips Opinion

A Potential Game-Changer: Singapore’s Proposed Minimum Transaction Rule for Property Agents in 2025

Jayson Ang – July 20, 2026 –

TLDR In Singapore’s real estate market, experience alone no longer guarantees an agent’s competence. Many agents maintain licenses without significant...