Dear readers, I believe for residents staying in HDB flats, provided one can afford, it is a wonderful idea to be able to buy a second property, specifically a condominium while still keeping one’s HDB flat for residential purposes.
The second condominium property can be used as an opportunity to ride the property cycle for capital appreciation purposes. Alternatively, the property can be rented out for rental passive income.
Just how much monies does on need to own a second property while still retaining one’s HDB flat?
To answer this question, I find this guide provided by DBS very insightful.
In gist, for a $1 million condominium unit, one will need the following:
$250,000 for cash down payment
$200,000 for Additional Buyer’s Stamp Duty
$24,600 for Buyer’s Stamp Duty
Pay the remaining $300,000 in cash or using CPF
Take up a loan of $450,000
So what the above effectively means is that when one buys a $1 million second condominium property unit, one will need at least $475,000 cash upfront for down payment and the stamp duties.
One will also need to pay $300,000 in cash or using CPF and the remaining $450,000 be settled via a loan.
But let us face the salient fact. A $1 million these days can at most secure one a very small condo unit. For a condo unit of size that is suitable for a family, the price tag these days is minimally $2.5 million. And for someone who would like to buy a second condo property, this will mean close to $1 million cash upfront for down payment and the stamp duties.