HDB vs condo

 SINGAPORE: A 34-year-old woman took to social media on Monday (March 31) to ask Singaporeans whether she should purchase an HDB resale or go for private, sharing a few details about her finances.

Facing a Singapore housing dilemma as a single individual, the woman asks Singaporeans for housing advice —whether she should buy an HDB or opt to purchase a small condo. “I am earning $6,700 monthly, with an Ordinary Account (OA) of $183,000 and a net worth of $372,000,” she shared. She then asked, “Would it make more sense to buy an HDB resale (will probably be $7,000 monthly next year) or private?”

Many responded to her post, encouraging her to go for the HDB resale and to use her extra money to invest. “From a financial perspective, HDB is going to be better,” said one. “Right size your HDB (not too pricey), max HDB loan. Invest your money in other financial instruments. You are diversified against property concentration risk and also hedged against long-term property price and rental price increases.”

“HDB is much better if you are not someone who’s going to be using the condo amenities regularly, such as having a daily swim and having no use for parking,” said another. “Also, consider if you want to retire early or keep working to maintain your housing.”

Still, another said that it depends on the woman’s risk appetite. “Some will say maximise your leverage by loaning money and buying the best condo property you can afford for profit,” he wrote. “Some will say to get an affordable resale HDB so you will not be too financially stressed. I went with the latter and got an older resale, which I can fully pay for monthly through CPF without needing a cash top-up. And I have spare rooms to rent out if I need additional income. No regrets so far.”

Another common theme that came up in the comments section of the post was that the woman could invest in the HDB and rent it out for passive income.

HDB vs condo

According to DBS Financial Planning, HDB flats are a more affordable option than condos, with government subsidies like the Housing Grant and CPF Housing Grant further reducing costs. While condos offer amenities like pools and gyms, they come with higher maintenance fees.

Location is also a key factor, as it impacts resale value. When considering which option to go for, it is important to consider not only your long-term goals but also the current rules of engagement. It’s also wise to consider whether the property will appreciate as well as other financial commitments you have.