This is going to be something interesting! Just a couple of weeks ago, I received some enquiries from HDB owners with regards to their affordability to upgrade to a private property.

Well, frankly speaking, not all HDB owners are eligible to upgrade to their dream homes. While I have e-meet some of my clients via Zoom over the past weeks, it was disheartening to realise that some HDB owners are facing a negative loss. The negative loss has got nothing to do with the pandemic. But the CPF accrued interest.

Well, I am not surprised, but such news was the last I hope to learn of. This couple, Joshua Lim & his wife, Yu Wen (both in their mid thirties), prompted a good question. If their flat is currently at a negative loss today, and with the incurring of further accrued CPF interest, will they be incurring more losses in the coming years?

It is true that the further incurring of the CPF accrued interest is not just losing the 2.5% but more on the whole of the 5% opportunity cost. In the long run, it wouldn’t be making the right financial decision for themselves.

Over at our discussion, we did a financial calculation, where this round, Joshua & Yu Wen is required to take out $25,000 in order for them to upgrade to a private property.

What if they waited longer? Would it still be $25,000 to upgrade to a private condo or more?

Are you looking to upgrade your HDB to a Private Property but unsure if on your household’s affordability? It is time to do a health check on your HDB flat! My name is Jen Tan, drop me a private message & we will get back to you soonest. I hope to e-meet you guys over Zoom & to share more with you!