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I have been following your articles for quite some time. Thanks for sharing the knowledge with us. Currently my wife and I co-own (50%-50%) a 4 bedder in Sengkang Grand Residence which just TOPed. We will be reaching the 3rd year holding period in a few months time. Therefore, we will not have to pay SSD. Me and my wife earn around 300K a year. Both of us are in our early 40s. Our 2 kids are studying in a very nearby Primary School. They will finish Primary School in 4 years time. We are thinking of a few options. We have a few preferences in our place of stay. We want to be as close to a train station as possible. We intend to eventually sell the current flat and buy 1 each. 1 for our own stay and 1 for investment. Both of our incomes are quite similar with one earning 15% higher than the other. Our main complaint is Buangkok does not have a lot of amenities, unlike most mature estates where we used to live. Option 1: Stay in current place for 4 years until our kids finish Primary School. Concern is that we will then be mid to late 40s and with the rising home prices, we may not be able to buy 2 units any more. Option 2: Sell the current place and buy 1 near Buangkok MRT and buy another 1 for investment. Once the kids finish Primary School, we will again move to another neighbourhood with better connectivity, slightly nearer to the city and amenities. Concern is that the live in property may not price appreciate as much and with rising renovation costs and interest rates, we may incur a loss for this property. Option 3: Sell the current place and rent 1 near Buangkok MRT. Buy 2 with 1 as our eventual live in property and the other for investment. Concern is that with the current high rental, this may not be very viable. As we would pay a substantial amount of rent while we wait again for our new property to be built. We would like your view and analysis on which one would make more sense? Hi there, Thanks for writing in! Just to introduce myself, I’m Joe, and I’ve been a real estate consultant for 15 years so I’ve advised several buyers with very similar needs. It seems that your current predicament revolves around balancing having an element of your own stay (with the main priority being primary school), and yet being able to still retain the value of your property. Let’s first work out your affordability, before going into the finer details.  As I do not have your exact figures, these are the assumptions I will be making for the calculations.  Husband: 41 years old, income of $160K/year  Wife: 41 years old, income of $140K/year I will also assume that both of you have sufficient funds for the downpayment of your individual purchases. Husband’s affordability (at 41 years old) Here’s a look at the affordability 4 years later: Husband’s affordability (at 45 years old) Wife’s affordability (at 41 years old) And what it’s like 4 years later: Wife’s affordability (at 45 years old) Let’s now run through the options you’re considering. Since has recently obtained its Temporary Occupation Permit (TOP), there isn’t any historical data available for reference. However, you can see that from recent sub-sale transactions, the project has seen an appreciation in terms of price. Examining the 4-bedroom units sold in 2021, the average price stands at $2,244,180. Comparing this against a 4-bedroom sub-sale transaction done in May 2023, where a 1,313 sq ft unit on the eleventh floor was sold for $2,530,000, there’s an approximate 13% appreciation. Given that Sengkang Grand Residences is the newest development in the vicinity and is an integrated development situated right above a mall, MRT station, and bus interchange, it’s reasonable to anticipate that prices will remain stable over the coming years. With this in mind, the primary concern lies not in selling but in your purchasing power in the future. Assuming that there isn’t a salary increase and changes in the loan requirements, you can see in the table below that in 4 years, your loan quantum will reduce by about 10%.  Given that you have two children, it’s safe to presume that a 3-bedroom unit would be the minimum requirement for your primary residence. As such for easy calculation purposes, let’s consider a unit size of 1,000 sq ft.  Based on the current average price PSF for non-landed properties, a unit in the Core Central Region (CCR) would amount to $2,260,000, whereas a unit in the Rest of Central Region (RCR) would be around $1,884,000. However, it’s important to note that these figures are based on the average PSF, and properties close to MRT stations and amenities may command higher prices. Over the past decade, non-landed private properties have seen an average annual appreciation rate of 2.9%. Assuming this trend continues, the average price for an RCR unit could potentially rise to $2,112,236 in four years. And so if your husband can loan a maximum of $1,129,989 at the age of 45, the required amount of CPF funds and cash may be substantial. Let’s assume he purchases a unit for $2.1 million. As for the investment property, assuming you were to purchase a 700 sq ft 2-bedder in the OCR, in 4 years, it could cost an average of $1,123,050. Let’s compare this with the scenario where you purchase the properties now. Assuming your husband buys the own stay property in the RCR at $1,884,000. And assuming you purchase the investment property in the OCR at $1,001,700. Do note that these numbers will vary depending on the specific developments that you purchase. Now, let’s take a look at the cost incurred over the next 4 years should you decide to stay put. As before, since I do not have your exact figures, these are the assumptions that I’ll be making. Average 4-bedroom purchase price in 2021: $2,244,180 75% loan: $1,683,135 Outstanding loan after 3 years: $1,572,680 Loan tenure remaining: 24 years Let’s take a look at developments near Sengkang Grand Residences, namely Jewel @ Buangkok, Esparina Residences and The Quartz. From the data above, it’s evident that two out of the three projects in the area have exceeded the market average growth rate over the past six years, and Jewel @ Buangkok isn’t too far behind.  Considering your husband’s affordability of $1,670,171 at 41 years old, it’s within reach to acquire a unit in any of these three projects. However, for Jewel @ Buangkok, you may need to focus on the smaller 3-bedroom units under 1,000 sq ft. Let’s take a look at the costs incurred over 4 years if he were to buy a unit at $1.67M. One advantage this pathway has over Option 1 is that you’ll have an investment property which you can rent out to help offset some of the cash outlay.  With a budget of $1.46M, you will be able to acquire a 2b2b unit. Let’s assume the same purchase price as the investment property in Option 1 at $1,001,700, with a 3% rental yield.  You mentioned the need to rent while awaiting the completion of the new property, presenting various possible approaches. These pathways could involve purchasing two resale units, two new launch units, or one resale and one new launch unit. In any case, renting for four years remains a constant. Opting for two resale units enables you to rent out both properties during the rental period, potentially offsetting your rental expenses. Conversely, acquiring two new launch units may lack this additional cash flow, yet the monthly mortgage payments might be lower due to the progressive payment plan. A hybrid approach, purchasing one resale and one new launch unit, offers a blend of benefits. However, it’s worth noting that selecting a new launch property is restricted to available locations, and there’s an element of luck involved in the balloting process, particularly for highly sought-after developments. Let’s assume that you purchase 2 resale units at $1,884,000 for your own stay property and $1,001,700 for the investment property and rent them out at a 3% rental yield. Now let’s take a look at how much it’ll cost for you to rent for 4 years in the same location. As before, I will look at the 3 projects in the immediate vicinity. Considering your current property’s relatively recent construction and its suitability for your current living situation, decoupling presents potential advantages. This strategy allows you to retain ownership of your current property while freeing up one name to pursue the acquisition of another property for investment purposes. However, it’s crucial to recognise that the feasibility of this option hinges on the purchasing party’s eligibility to assume the entire loan under their name and their ability to provide the necessary CPF funds or cash for the down payment. Since I lack precise figures, these assumptions guide my calculations: Percentage of shares held by each party: 50% Valuation of property: $2,530,000 Outstanding loan: $1,572,680 The initial 20% down payment for the purchase was paid for equally by both parties (Assuming a purchase price of $2,244,180): $224,418 each I will also assume here that your husband has a higher income, and hence that he would buy over your shares. With your husband’s maximum loan at $1,252,628, you’ll need another $482,462 to top up for the loan shortfall. This will result in the total CPF and cash required for the decoupling to go up to $836,912, which is a considerable amount of funds.  However, as this calculation is based on assumptions, the actual numbers may vary and this may or may not be a viable option depending on the actual numbers.  Let’s do a quick look through all 3 options again. *Based on the past 10-year average growth rate of non-landed private properties of 2.9% Considering that Sengkang Grand Residences meets your family’s current living needs and is the newest development in the area, it may not be rational to sell it and move to an older property nearby. From the performance of the neighbouring projects so far, property prices at Sengkang Grand Residences will likely remain stable in the short term as it will be seen as the main property of the neighbourhood. Selling would only make sense if there’s limited growth potential or if you prefer relocating to a different area. With these factors in mind, I wouldn’t recommend Option 2, despite its appeal of owning two properties. Option 1 avoids the inconvenience of moving twice, as required by Options 2 and 3. Since you’re dealing with only one property, the associated costs are the lowest among the three options. Additionally, considering the growth potential of Sengkang Grand Residences, holding onto it for the next four years seems reasonable. While I can’t accurately predict the market’s state in four years, assuming that we are currently at the peak, significant fluctuations in property prices are not expected given the number of cooling measures that have been set on the market.  With Option 3, you can secure the current prices for your desired property and benefit from a longer loan tenure. However, given the prevailing high-interest rates and rental prices, this option might incur higher costs, assuming both properties are rented out at a 3% yield. Should rental yields increase and interest rates decrease, the associated costs would likely decrease as well. To conclude, both Options 1 and 3 are viable paths, and the decision between them ultimately depends on your preferences.  We hope that our analysis will help you in your decision-making. If you’d like to get in touch for a more in-depth consultation, you can do so  .