Why Are HDB Owners Upgrading To Private Property?

Making a decision to upgrade your HDB flat to a Private Property? You might not want to miss out the real reason behind HDB Upgraders.

Capital appreciation ​is how the majority of wealth is built in real estate, combating inflation and high living expenses. While not all properties are built equal, the ownership and rights of an estate will be a determining factor to your capital gain.

In case you are not aware, HDB owners do not own the flat despite paying for the big ticket purchase. They are known as a lessor of the flat instead. Whilst, homebuyers who purchased a private property, can practically call that purchased unit as their own.

As HDB flat is originally meant to keep housing affordable for the masses, the capital appreciation will not grow as much compared to the private counterparts.

Imagine if you are banking on HDB flat as an asset for your retirement, you might want to give it a second thought. Let’s take this as an example here:

Husband and Wife, both in their 60s, with a fully-paid HDB 4-room flat that valued at $400,000. If they were to downgrade to a 2-room flat that costs approximately $250,000, do you think that a $150,000 retirement fund would be sufficient for both the husband & wife? The $150,000 profit is even before the charges of CPF Accrued Interest and other administrative costs.

That is the real reason behind why HDB Upgraders are leveraging their HDB flat to grow their wealth, by upgrading to a private property instead. Whether as a form of forced-savings or riding the capital gain of the private market, a good property enables you to retire comfortably in the near future.

Not all private properties come with a hefty price tag. If you’re looking for an affordable private property, drop us a message and we will share with you what are the undervalued properties you should be looking at today. We are Pamela & Shirley from Wonderhomesg.com, thanks for reading our article. Hope to hear from you soon!