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 …


Looking To Buy An Older HDB Flat? Here’s What You Need To Know Before You Sign On The Dotted Line!
All Buying Tips

Looking To Buy An Older HDB Flat? Here’s What You Need To Know Before You Sign On The Dotted Line!

TLDR When considering purchasing an older flat, ensure to thoroughly inspect wet areas for leaks, check balcony conditions, watch out...
Read More
I Decided to Pay the Additional Buyer’s Stamp Duty to Purchase a Condominium While Retaining My HDB: My Reasons
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

TLDR Despite a 20% Additional Buyer’s Stamp Duty (ABSD) for second properties in Singapore, Yang chose to hold onto his...
Read More
Top 5 Reasons Why Singapore’s Luxury Property Market Is Booming – Expert Analysis!
Mandarin Top 5

Top 5 Reasons Why Singapore’s Luxury Property Market Is Booming – Expert Analysis!

Singapore's luxury property market has been experiencing a significant boom in recent years, attracting the attention of investors and high-net-worth...
Read More
5 Singapore’s Best Property Investments for 2023: Where to Find Growth and Income
Mandarin Top 5

5 Singapore’s Best Property Investments for 2023: Where to Find Growth and Income

The Singapore property market has long been a sought-after investment destination, with its stable economy and growing population making it...
Read More
ANALYSIS: Unveiling the HDB Towns with the Steepest and Lowest Price Surges!
All Buying Tips

ANALYSIS: Unveiling the HDB Towns with the Steepest and Lowest Price Surges!

TLDR The real estate market for HDB flats in Singapore has witnessed significant growth, with prices reaching new highs. The...
Read More
Beware of These 7 Deceptive Tricks In Showflat Condo Sales
All Blog Posts Buying Tips

Beware of These 7 Deceptive Tricks In Showflat Condo Sales

TLDR When navigating the complexities of the real estate market, it's crucial to be wary of hidden marketing tricks when...
Read More
Top 5 Reasons : Why Does Singapore Have Such Extensive Restrictions On Foreigners Purchasing Residential Property?
Mandarin Top 5

Top 5 Reasons : Why Does Singapore Have Such Extensive Restrictions On Foreigners Purchasing Residential Property?

Singapore, a thriving city-state in Southeast Asia, is known for its stable political climate, strong economy, and strategic location. As...
Read More
What Might Occur If We Ease Property Cooling Measures?
All Opinion

What Might Occur If We Ease Property Cooling Measures?

TLDR To assess if Singapore’s property cooling measures are working, compare our actions with China, which is applying the opposite...
Read More
5 Factors : Why Singapore’s Prime District Properties Are Still In Demand
Mandarin Top 5

5 Factors : Why Singapore’s Prime District Properties Are Still In Demand

Singapore's prime district properties continue to be in high demand due to a combination of factors that make them attractive...
Read More
Discover the Optimal Timing to Invest in Singapore Real Estate: Unveiling Historical Insights
All Buying Tips Opinion Selling Tips

Discover the Optimal Timing to Invest in Singapore Real Estate: Unveiling Historical Insights

TLDR When considering the best time to buy or sell a property in Singapore, historical data analysis reveals key insights....
Read More
New Condo Sales Surge: Decoding Singaporeans’ Enthusiasm Despite “High” Prices
All Buying Tips Opinion

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

TLDR Recent strong condo sales in Singapore, including Emerald of Katong’s 99% take-up during launch, challenge perceptions of unaffordability. Key...
Read More
Discover What Else You Can Focus On Beyond PSF – Here’s How!
All Blog Posts Buying Tips

Discover What Else You Can Focus On Beyond PSF – Here’s How!

TLDR When considering real estate investments, factors like property size, location, and PSF play crucial roles in determining affordability. Smaller...
Read More
Top 5 Sushi Restaurants in Singapore
Mandarin Top 5

Top 5 Sushi Restaurants in Singapore

Singapore, a melting pot of cultures and culinary delights, is known for its diverse and vibrant food scene. Among the...
Read More
Top 5 : Best Laser Tag Arenas in Singapore
Mandarin Top 5

Top 5 : Best Laser Tag Arenas in Singapore

Laser tag has become an increasingly popular activity in Singapore, offering adrenaline-pumping experiences for people of all ages. This exciting...
Read More
Breaking the New Launch Conflict: Leasehold or Freehold?
All Buying Tips Reports Selling Tips

Breaking the New Launch Conflict: Leasehold or Freehold?

TLDR Freehold properties in Singapore offer indefinite ownership but come with a 15–25% premium over 99-year leasehold units. Despite common...
Read More
6 Must-Know Factors to Consider When Purchasing a Resale HDB in 2023
All Blog Posts Buying Tips

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

TLDR When buying a resale flat in Singapore, make sure to walk around the neighborhood to assess actual distances, check...
Read More
Don’t Miss Out: Take Control of Your Life in Your 30s and 40s
All Blog Posts Opinion

Don’t Miss Out: Take Control of Your Life in Your 30s and 40s

TLDR The stages of wealth management vary from ages 30 to 80, with different focuses and considerations at each stage:...
Read More
Discover the Best Breakfast in Singapore: Top 5 Must-Try Spots!
Mandarin Top 5

Discover the Best Breakfast in Singapore: Top 5 Must-Try Spots!

Trying out some of the best breakfast places, I've put together a list of the top 5 must-try breakfast spots...
Read More
7 Essential Considerations to Keep in Mind When Assessing a Floor Plan for a New Condominium Development
All Buying Tips Opinion

7 Essential Considerations to Keep in Mind When Assessing a Floor Plan for a New Condominium Development

TLDR When selecting a property unit, carefully examine the floor plan beyond aesthetics. Consider non-living spaces like ledges and void...
Read More
6 Essential Tips for Singaporean New Homebuyers
All Blog Posts Buying Tips

6 Essential Tips for Singaporean New Homebuyers

TLDR Best practices for first-time homebuyers, the key points include setting clear and detailed goals, planning a realistic housing budget,...
Read More
1 5 6 7 8 9 34

Compare Listings