Your search results

Does Sell 1 Buy 2 Strategy Still Works Today in 2024?

Posted by Jayson Ang on June 28, 2023

| 0

TLDR

When considering the “Sell One By Two” property investment strategy, keep in mind that it involves selling your previous home to purchase one larger and one smaller condo. This approach can help you generate rental income and avoid the Additional Buyer’s Stamp Duty. However, it requires careful financial planning, eligibility for separate home loans, and the ability to sustain multiple mortgages. Make sure to evaluate property prices, rental income potential, and mortgage sustainability before deciding if this strategy is right for you. Consulting with experts and conducting thorough due diligence is crucial to ensure its suitability for your situation.

I’m going to be discussing the “Sell One By Two” property investment strategy that you may have heard about on the internet or in the news. You may have wondered why anyone would opt to buy two condo units instead of just upgrading to a single, larger condo.

Well, there are actually two main reasons for this approach.

First, by selling your previous home, which could be an HDB flat, you will receive a lump sum of money. You can then use this money to purchase one larger and one smaller condo.

This approach can be lucrative for sound property owners who are looking to generate rental income. You can rent out one condo while living in the other, depending on your lifestyle and preferences. You can even swap later on. For example, once your children have moved out, you may want to move into the smaller condo and rent out the larger one. All of this is great in terms of property investment.

The second reason to opt for this approach is that you can avoid paying the Additional Buyer’s Stamp Duty (ABSD) that you would have to pay if you and your spouse bought the property separately. By selling your previous home, you and your spouse can each go out and qualify for separate home loans. Both of you would count as owning one property, which means you would be spared the 12% ABSD.

However, for this strategy to work, it relies on some basic assumptions. The first and most important assumption is that you have sufficient sales proceeds from selling your previous home. You also need to be aware that whatever funds you use from your CPF for your previous home will have to be refunded with the usual 2.5% interest. So, if you do not have sufficient cash in hand for the down payment of your next home, this approach may not be suitable for you.

The other assumptions are that you and your spouse are both eligible for separate home loans and have the ability to sustain a mortgage on your own. Remember that this is different from both of you upgrading to a single, larger home where you’re both sharing the mortgage. In this case, you have one mortgage, and your spouse has another mortgage. You need to be certain that you won’t get into trouble if one of you loses your income or ends up earning less.

Moreover, this is a property investment strategy that is better suited for more affluent Singaporeans.

As a rule of thumb, your property should not cost more than five times your annual income. This means that you alone should not be getting a property that costs more than five times your annual income, and neither should your spouse.

One thing to bear in mind is that choosing the smaller unit can be tricky.

Most of the time, it’s a compact unit 510 square foot or below, or it’s a two-bedroom. Picking a good investment property at one million or below takes good acumen.

Between a one-bedroom that’s 490 square feet and costs $900,000, and one that’s 550 square feet that costs $1 million, which would be the better investment?

While the one-million-dollar unit is cheaper on a per square foot basis, to a tenant, one-bedroom is still just one-bedroom. So there’s a good chance your rental income won’t be that much higher, and your more expensive unit might end up generating the same rental income as its smaller counterpart.

To sum up, the “Sell One By Two” strategy can be a lucrative approach for sound property owners who are looking to generate rental income. It allows you to rent out one condo while living in the other, and it also helps you avoid paying the additional buyer’s stamp duty.

Ultimately, the success of the sell one by two strategy relies on various factors, including your financial situation, your ability to sustain multiple mortgages, and your ability to pick the right investment properties.

In conclusion, the Sell One By Two strategy is a property investment approach that can be lucrative for sound property owners who have the financial means to execute it. By selling their previous home and buying two other properties, one larger and one smaller, they can use one condo as their residence and rent out the other, generating rental income and avoiding the additional buyer’s stamp duty.

However, the strategy does rely on several assumptions and requires careful consideration of various factors, including property prices, rental income potential, and mortgage sustainability. So, if you are considering this strategy, make sure to do your due diligence and consult with experts to ensure that it is the right approach for you.

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 …

All Blog Posts

Calculating Your Property’s Annual Value in Singapore 2024: A Simple Guide!

Jayson Ang – December 15, 2024 –

TLDR Understanding your property's annual value is crucial for determining property taxes in Singapore. The annual value is based on...

All Blog Posts Buying Tips Opinion

How Can You Prepare for Retirement in an Expensive Real Estate Market? Discover Your Options Now!

Jayson Ang – June 30, 2023 –

TLDR The article discusses the challenges of investing in a second property for retirement amidst Singapore's real estate market conditions....

All Buying Tips Selling Tips

Unpacking Property Ownership: Joint Tenancy vs. Tenancy-in-Common

Jayson Ang – September 10, 2024 –

TLDR When a property has multiple owners, the choice of ownership type is crucial to determine how shares are distributed...

All Opinion

Why Aren’t Spacious, Wallet-Friendly Homes Our Reality Yet?

Jayson Ang – April 17, 2024 –

TLDR The article discusses the current housing market in Singapore, focusing on the challenges faced by individuals like Sherlyn Tan...

Mandarin Top 5

Top 5 Rooftop Pools in Singapore for a Swim

Jayson Ang – March 30, 2024 –

Singapore, a bustling city-state known for its iconic skyline and innovative architecture, is home to some of the most stunning...

All Blog Posts

HDB Market Outlook 2023

Jayson Ang – January 8, 2023 –

TLDR: Understanding the HDB Market Outlook 2023 The HDB resale market showed resilience in 2022, with significant growth in sales...

Mandarin Top 5

Top 5 Reasons : Why Developers Seem Hesitant To Commit To New Projects In Singapore

Jayson Ang – December 1, 2024 –

Singapore, a thriving global city-state, has long been known for its robust economy and attractive real estate market. However, in...

All Blog Posts Buying Tips

6 Secrets Foreign Investors Are Rarely Told About Singapore’s Real Estate Market

Jayson Ang – January 6, 2023 –

TLDR The Singapore property market presents unique characteristics that foreign buyers should consider. From the high rate of homeownership to...

All Buying Tips Opinion Reports Selling Tips

Rise In Private Home Ownership Among Those Under 35

Jayson Ang – September 12, 2025 –

TLDR Youth homeownership in Singapore’s private housing sector is rising, with residents under 35 living in private properties hitting 380,459...

All Opinion Selling Tips

Is it Better to Sell Your Newly Launched Condo Before or After Completion? Here’s What the Statistics Indicate

Jayson Ang – March 14, 2025 –

TLDR Determining the best time to sell a newly launched condo involves weighing the benefits of selling before or after...

All Blog Posts Buying Tips Opinion

I Decided to Pay the Additional Buyer’s Stamp Duty to Purchase a Condominium While Retaining My HDB: My Reasons

Jayson Ang – October 15, 2024 –

TLDR Despite a 20% Additional Buyer’s Stamp Duty (ABSD) for second properties in Singapore, Yang chose to hold onto his...

All Buying Tips Opinion Selling Tips

Navigating the 2025 Singapore Property Market: Why Informed Buyers Can Stay Confident

Jayson Ang – July 9, 2025 –

TLDR Despite global economic uncertainties, Singapore’s property market remains resilient due to robust financial regulations, conservative loan assessments, and effective...

All Blog Posts Buying Tips

What is a Tenancy Agreement (TA)

Jayson Ang – July 21, 2023 –

TLDR When it comes to understanding property jargon, it's crucial to familiarize yourself with the specifics of a Tenancy Agreement...

Mandarin Top 5

Top 5 Japanese Restaurants in Singapore

Jayson Ang – September 14, 2024 –

Singapore, a melting pot of diverse cultures and flavors, offers an incredible array of dining experiences for food lovers. Japanese...

All Buying Tips Opinion Selling Tips

Market Mistakes in Property Investment: Key Lessons and Strategies for Success

Jayson Ang – July 16, 2024 –

TLDR In property investment, common mistakes include lack of research, overleveraging, and neglecting due diligence. To succeed, conduct thorough market...

All Buying Tips Opinion Selling Tips

Why Older Freehold Condominiums Are Losing Their Edge in En‑Bloc Deals (2025)

Jayson Ang – April 14, 2026 –

TLDR Older freehold condominiums in Singapore are losing their edge in en‑bloc deals due to several structural shifts. Developers increasingly...

All Blog Posts Buying Tips Opinion Selling Tips

6 Indicators and Measures to Determine if Your Home Has Unrecognized Profits

Jayson Ang – November 11, 2024 –

TLDR The booming real estate market presents opportunities for homeowners to profit from selling their properties. Two key signs that...

All Blog Posts Buying Tips

Learn How To Negotiate For The Best Price When Purchasing a Resale HDB Flat

Jayson Ang – February 17, 2023 –

Navigating the complexities of purchasing a resale HDB flat requires honing negotiation skills and market awareness. Understanding property valuations, seller...