Fraud Blocker
Your search results

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

Posted by Jayson Ang on October 15, 2024
| 0

TLDR

Despite a 20% Additional Buyer’s Stamp Duty (ABSD) for second properties in Singapore, Yang chose to hold onto his HDB flat and purchase a two-bedroom condo. Yang downsized from his 5-room flat in Tampines to a 4-room in Bedok, driven by practicality after his wife’s passing and his daughter’s growing independence. He picked a unit in One-North, close to NUS and amenities his daughter enjoys, prioritizing her comfort over rental income. Yang opted to pay the ABSD to ensure his daughter’s financial security and provide her with long-term benefits, believing it would instill valuable life skills. His decision reflects concerns about future housing affordability and emphasizes the importance of buying property that brings personal value beyond financial gain.

Despite the staggering 20 percent Additional Buyer’s Stamp Duty (ABSD) for a second property, brave Singapore Citizens like our reader Yang still choose to hold on to their HDB flats. Against all odds, Yang made the bold move of purchasing a two-bedroom condo last April, with no plans of residing in it. But why did he make this unconventional decision, especially when he doesn’t even identify as a property investor? Let’s delve into Yang’s fascinating story.

Moving On From The Previous Home

Once the proud owner of a spacious 5-room home in Tampines, Yang reminisces about the early ’00s when he and his beloved late wife purchased the flat. However, after her passing, the once bustling home became too large for just him and his daughter. In a move to downsize and free up some much-needed space, Yang traded in his lavish flat for a more modest 4-room in Bedok.

With his daughter approaching adulthood and expressing her desire for her own future dwelling, Yang saw no reason to hold onto such a grandiose residence. “It’s simply impractical to maintain such a large space,” he explains.

And so, with the help of a trusted realtor friend, Yang strategically downsized to maximize his financial assets, making his daughter’s dreams of independence a tangible reality.

But don’t be fooled, for Yang sees no sacrifice in his move. “I still live comfortably in this charming East side neighborhood,” he says with a smile. “I have no regrets.”

Deciding On The Right Home

Amidst the hustle and bustle of condo hunting, Yang and his daughter explored various options, but with NUS as their ultimate destination, they settled on a charming two-bedroom unit in the vibrant One-North district, conveniently situated near Kent Ridge. Yang explains, “Not only is it close to Kent Ridge, but also Buona Vista and Holland V, giving her a perfect balance of hangout spots. And she can easily commute to NUS. Plus, with her love for digital art and anime, there are plenty of studios in the vicinity, making it an ideal location for her.”

Initially, Yang was advised to go for a smaller unit, a “mickey-mouse house” (one-bedroom), for its lower price and potential rental income after his daughter moved out. However, he was adamant to provide her with a comfortable long-term home, rather than just a temporary abode. As he puts it, “I don’t want to be a landlord collecting money. This is for her, not for my pocket.”

Prior to settling on One-North, the father-daughter duo explored options as far-flung as Sixteeen35 in Paya Lebar and Trilinq in Clementi. However, these didn’t meet their expectations in terms of price or location and layout. Yang adds, “The biggest challenge was our attachment to the East. We were unfamiliar with the areas near NUS. Thankfully, my army buddy, who lived in the vicinity for seven years, was a great help.

A Strong Urge To Hold Onto The ABSD Funds

As Yang broke the news of his plans to his parents, their initial response was to graciously offer him the option of moving back into his childhood bedroom. Despite the tempting thought of saving a substantial amount of Additional Buyer’s Stamp Duty (ABSD), Yang couldn’t deny the appeal of having his own space. After all, he often stayed over at his parents’ place anyway.

Caught in a dilemma, Yang contemplated reaching out to his real estate agent and requesting a change of plans – perhaps selling his current flat first before searching for a more desirable condominium. However, the moment his eyes met with the perfect home, one that even his daughter approved of, his resolve weakened.

But the thought of moving into his parents’ humble 3-room flat, after years of enjoying his own independence, didn’t exactly excite Yang. He confessed, “It’s the little things that matter. Like being able to eat out whenever I want. But my mother insists on cooking every meal at home, unless it’s a special occasion. I just don’t want to constantly hear her nagging me about eating out.”

For one whole weekend, Yang let the decision simmer in his mind. But as Monday afternoon rolled around, he found himself on the phone with his property agent, ready to take the plunge and make the purchase.

Explaining His Purpose To His Daughter

Yang’s daughter eagerly listened as he revealed the motivations behind gifting her the condo unit that would one day bear her name. “I want you to earn your inheritance,” he explained, “instead of simply being handed a pile of money while you’re still young and unprepared. Plus, this old flat will be worthless by the time I’m gone, just like your grandparents’.”

Yang believed that owning and managing her own property would instill invaluable life skills and independence in his daughter, especially since he was her sole parent and she would be left to fend for herself if anything were to happen to him.

The plan was for Yang to slowly relinquish his responsibilities as her guardian and allow her to take on more responsibilities, such as contributing to monthly maintenance fees and property taxes as she climbed the career ladder.

Through this gradual process, Yang hoped to guide his daughter towards a future of self-sufficiency and success.

People Are Increasingly Worried About How Affordable Homes Will Be For Future Generations

Yang voices his top concern as he envisions a future where housing prices continue to skyrocket without any hope of a downturn. With current times favoring homeowners, he worries about the ability of future generations to afford their own homes. He ponders on the possibility of his daughter graduating, finding a job, and getting married only to face unattainable housing prices.

It’s a fear that fuels his decision to pay the Additional Buyer’s Stamp Duty, knowing it will bring him a sense of security. As for those eyeing a second property, Yang advises, “Invest in a home that holds more value than just rent money – one that brings joy and serves a purpose, be it for yourself, your children, or your parents. That way, even if it doesn’t prove profitable, it will still enrich your life in other ways.

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:

  1. Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
  2. 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 …


Why Are Singapore Property Agents So Keen on New Launch Condos? Unpacking the Motivations in 2025
All Buying Tips Opinion

Why Are Singapore Property Agents So Keen on New Launch Condos? Unpacking the Motivations in 2025

TLDR In Singapore’s 2025 property market, agents’ strong preference for recommending new launch condos is less about chasing commissions and...
Read More
The Power Imbalance: Why Singaporean Landlords Often Have the Upper Hand
All Opinion

The Power Imbalance: Why Singaporean Landlords Often Have the Upper Hand

TLDR Singapore’s rental market reveals a clear power imbalance favoring landlords. Limited housing supply, rising demand from expatriates, and high...
Read More
5 Reasons : Why Investing In Singapore’s Property Market Can Be A Good Retirement Plan
Mandarin Top 5

5 Reasons : Why Investing In Singapore’s Property Market Can Be A Good Retirement Plan

Investing in Singapore's property market can be a good retirement plan for several reasons. Here are five key factors that...
Read More
5 Top Reasons Why Chinese Love to Invest in Singapore Property Market Today
Mandarin Top 5

5 Top Reasons Why Chinese Love to Invest in Singapore Property Market Today

Here are the top 5 reasons why Chinese love to invest in Singapore's property market today. 1. Political stability: Singapore...
Read More
5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn’t Take
Buying Tips Mandarin Top 5

5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn’t Take

5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn't Take Entering the Singapore property market can...
Read More
Should Buying A Low Lease Project Be A Viable Option?
All Blog Posts Opinion

Should Buying A Low Lease Project Be A Viable Option?

TLDR When considering low lease projects in Singapore, it's crucial to evaluate your individual needs, financial standing, and future plans....
Read More
Snag a Sentosa Condo for 40% Off? Should You Consider It!
All Opinion

Snag a Sentosa Condo for 40% Off? Should You Consider It!

TLDR The Residences at W Singapore Sentosa Cove has slashed prices by over 40%, but there are important details to...
Read More
The 5 Secrets To Successful Singapore Property Investing Revealed
Mandarin Top 5

The 5 Secrets To Successful Singapore Property Investing Revealed

The vibrant property market in Singapore has attracted numerous investors and speculators looking to profit from the nation's thriving conditions....
Read More
Are We Truly Headed For A Slowdown? How Will This Affect Property Prices?
All Blog Posts Opinion

Are We Truly Headed For A Slowdown? How Will This Affect Property Prices?

TLDR The pandemic-induced recession has surprisingly boosted property prices in Singapore, defying conventional economic trends. Factors like cost-push inflation, limited...
Read More
Discover the Top 11 Most Outstanding Condominiums in Singapore’s Holland Village Areas
All Blog Posts Top List

Discover the Top 11 Most Outstanding Condominiums in Singapore’s Holland Village Areas

Originally established in the early 1900s by Singapore's Dutch community, Holland Village was originally a residential area home to British...
Read More
Mega Developments vs. Regular Condos in Singapore: A Data-Driven Comparison
All Buying Tips Opinion

Mega Developments vs. Regular Condos in Singapore: A Data-Driven Comparison

TLDR Mega-developments (1,000+ units) in Singapore, once seen as chaotic, now offer competitive pricing and extensive facilities, making them attractive...
Read More
Should You Keep Your Resale HDB Flat When Buying a Private Property? 5 Key Factors to Consider
All Blog Posts Buying Tips Opinion Selling Tips

Should You Keep Your Resale HDB Flat When Buying a Private Property? 5 Key Factors to Consider

TLDR In Singapore, owning both an HDB flat and a private property has become complicated due to factors like Additional...
Read More
Singapore’s Property Market: Will the Newly Proposed 2023 Cooling Measures, Including a 60% Foreigner ABSD, Make Waves or Mere Ripples?
All Opinion

Singapore’s Property Market: Will the Newly Proposed 2023 Cooling Measures, Including a 60% Foreigner ABSD, Make Waves or Mere Ripples?

TLDR The recent surge in Additional Buyer's Stamp Duty (ABSD) rates in Singapore targets mainly foreigners and entities, with rates...
Read More
Is It Wise to Make a Partial Prepayment on Your Home Loan in 2024? Here’s How to Make Your Decision
All Buying Tips Opinion Selling Tips

Is It Wise to Make a Partial Prepayment on Your Home Loan in 2024? Here’s How to Make Your Decision

TLDR Partial prepayment of your home loan means paying off a chunk of your mortgage early to lower future monthly...
Read More
Top 5 Factors : Why Investing In A Property With A Good View Can Be A Profitable Move In Singapore
Mandarin Top 5

Top 5 Factors : Why Investing In A Property With A Good View Can Be A Profitable Move In Singapore

Investing in a property with a good view in Singapore can be a profitable move for several reasons. Here are...
Read More
Love Across Borders: Navigating Singapore’s Housing Choices for Mixed-Nationality Couples
All Buying Tips Opinion

Love Across Borders: Navigating Singapore’s Housing Choices for Mixed-Nationality Couples

TLDR Marriages between Singaporeans and foreigners now make up about 20% of all marriages, but housing options for these couples...
Read More
Top 5 Instagram-Worthy Spots in Singapore
Mandarin Top 5

Top 5 Instagram-Worthy Spots in Singapore

Singapore, a beautiful city-state known for its stunning architecture, lush greenery, and vibrant culture, is a photographer's paradise. The island...
Read More
Learn How To Negotiate For The Best Price When Purchasing a Resale HDB Flat
All Blog Posts Buying Tips

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

Navigating the complexities of purchasing a resale HDB flat requires honing negotiation skills and market awareness. Understanding property valuations, seller...
Read More
Don’t Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore’s Property Market
Buying Tips Mandarin Top 5

Don’t Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore’s Property Market

Don't Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore's Property Market When it comes to...
Read More
Top 5 : Golden Tips to Spot a Good Investment Property
Mandarin Top 5

Top 5 : Golden Tips to Spot a Good Investment Property

Investing in real estate can be a lucrative venture, but it's essential to know how to spot a good investment...
Read More

Compare Listings