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 …

Mandarin Top 5

Top 5 : Best Architectural Marvels in Singapore

Jayson Ang – December 7, 2024 –

Singapore, a vibrant city-state known for its diverse culture and stunning skyline, is also home to some of the most...

Mandarin Top 5

Top 5 Cafes in Singapore for Brunch

Jayson Ang – March 10, 2024 –

Singapore, a melting pot of cultures and flavors, offers an incredible array of culinary experiences to tantalize your taste buds....

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...

Buying Tips Mandarin Top 5

Singapore Living: 5 Must-Know Factors for Choosing the Perfect Neighborhood

Jayson Ang – June 30, 2023 –

Singapore Living: 5 Must-Know Factors for Choosing the Perfect Neighborhood When it comes to purchasing a property in Singapore, the...

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 Buying Tips Selling Tips

Could It Be Wise to Sell Your Property After Just 3 to 4 Years?

Jayson Ang – February 5, 2024 –

TLDR In this blog post, the writer delves into the Singapore property market, particularly focusing on the effectiveness of quick...

All Buying Tips Opinion Selling Tips

How to Identify an “Undervalued Property” in Singapore in 2025: 6 Easy Tips

Jayson Ang – November 9, 2025 –

TLDR Undervalued properties are harder to find in Singapore due to market transparency, but deals still exist. Target areas with...

All Opinion

Unseen Dangers of Putting Your Money in Upscale Freehold Properties in Singapore

Jayson Ang – February 17, 2024 –

TLDR Luxury freehold properties in Singapore may not always be the lucrative investment opportunities they appear to be. High-end properties...

All Buying Tips Opinion

What’s A Fair Price For An HDB Flat in 2025? A Savvy Buyer’s Guide

Jayson Ang – November 5, 2025 –

TLDR There’s no single “fair” price for HDB resale flats—what’s fair depends on your needs, motivation, and timing. To navigate...

All Buying Tips Opinion

Here Are 6 Interesting Facts About The Minimum Occupation Period (MOP) That Not Many People Know About In Singapore

Jayson Ang – May 1, 2024 –

TLDR When it comes to understanding the Minimum Occupation Period (MOP) set by the Housing Development Board (HDB) in Singapore,...

All Buying Tips Selling Tips

The Emergence of Million-Dollar HDB Flats in Singapore: Could This Become the Standard Moving Forward?

Jayson Ang – July 28, 2024 –

TLDR Understanding the nuances of the HDB property market in Singapore, especially the trend of million-dollar flats, requires a deep...

All Blog Posts Buying Tips Opinion

Why There’s No Perfect Time to Enter the Market

Jayson Ang – December 18, 2022 –

TLDR When it comes to property transactions, understanding the factors influencing rising prices is crucial. The pandemic has driven up...

All Blog Posts Buying Tips

Resale Viewing Do’s and Don’ts: Expert Advice from a Singapore Real Estate Agent

Jayson Ang – December 19, 2022 –

TLDR The blog post provides valuable insights for first-time buyers on navigating the resale property market in Singapore. It covers...

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...

Mandarin Top 5

Top 5 Factors: Singapore Offer A Stable And Lucrative Investment Opportunity In Real Estate?

Jayson Ang – May 17, 2025 –

Singapore, a small yet economically powerful city-state, has long been recognized as one of the most attractive destinations for real...

All Buying Tips

Thinking About Investing In An Old Landed Property In Singapore? 7 Crucial Tips To Keep In Mind Before You Make Your Move

Jayson Ang – April 8, 2024 –

TLDR Older properties come with unique challenges due to outdated design elements, potential roofing issues, odd land shapes, basement drawbacks,...

All Buying Tips

Why The URA Master Plan Matters For Your Property’s Potential

Jayson Ang – March 24, 2024 –

TLDR The URA Master Plan entails significant shifts like the relocation of Paya Lebar Airport or creation of Punggol Digital...

All Blog Posts Buying Tips

Discover 11 Helpful Tips for Buying an Older Condo : A Comprehensive Guide for Buyers

Jayson Ang – March 2, 2023 –

TLDR When considering purchasing an older resale condo, ensure you investigate potential en-bloc bids, lift conditions, parking conveniences, playground safety,...

All Blog Posts Buying Tips

An Essential Guide to Buying a Home in Singapore 2023

Jayson Ang – January 17, 2023 –

TLDR When navigating the complexities of purchasing a property in Singapore, ensure you meet eligibility criteria, consider affordability factors, and...