That your property makes up around 80% of your total net worth?

And your net worth calculation acts like a GPS for your retirement planning?

Why do I need to upgrade?

"My HDB flat is already fully paid, I do not want anymore burden"

Most Singaporeans use their CPF to service their housing loan. Like most owners, you must be thinking of paying off the loan as soon as possible, so that you can save on interest. But, is this the best option?​

With your CPF monies locked away in your fully paid HDB flat:

  • You do not earn 2.5% interest

  • You are paying accrued interest of 2.6% compounded yearly on the money used for your HDB flat till the day you sell

For example:

If you have used $250,000 worth of your CPF funds,

10 years later you would have lost $73,157 in interest earnings!!

And assuming you sell your HDB flat after 10 years, 

means you would have to return the amount used + accrued interest to your CPF.

$315,000 to be returned to your CPF-OA,

that is $73,157 less cash from your sales proceeds!!

That makes an opportunity loss of


Other common reasons include...

  1. I am very comfortable with where I live now

  2. don't think I can afford to upgrade to a private property

  3. Buying a private property is too risky

  4. Economy isn't good, I should play safe

  5. What if I cannot for the instalments 

5 Reasons Why You Should Consider Upgrading

  1. Loss in 2.5% interest earnings by locking monies inside fully paid HDB

  2. You need to pay ACCRUED INTEREST of 2.5% on the CPF you used for the HDB

  3. 15% Drop In HDB Value For Flats 5 - 10 Years Old (eg. SengKang MOP flat) 

  4. Plan early and Create an Opportunity To Make Profit of up to $400K

  5. Create a Legacy Plan for your children 

1. Loss in 2.5% interest earnings

For example, Mr and Mrs Lim, both 35 years old stayed in a Sengkang 4 room flat, after fulfilling their 5 years MOP (Minimum Occupation Period), the value of their flat is $500,000 and they chose not to sell. The $500,000 worth of CPF funds is locked in with their HDB. At the end of 10 years, they lose $62,500 in interest earnings.

2. Paying accrued interest of 2.6% on CPF used

For Example, if Mr and Mrs Lim sell their HDB 5 years later, they would have to return $569,334.12 to CPF. ($500,000 compounded yearly at 2.6% for 5 years), which is $69,334.12 less cash from their property sales proceeds.

Total Opportunity Lost $62,500 + $65,704 = $128,204

3. 15% drop in HDB value

The above chart shows that if Mr and Mrs Lim were to sell their flat at the 10th year, the price would have dropped by 15% from it's highest value. This is not only happening to Sengkang HDB 4 room flat!! Many HDB Estates and different flat types are facing the same problem as we speak. Have you ever questioned yourself WHY??? What if they can TURN BACK the clock to 2014? What would be the different for Mr and Mrs Lim if they sold their flat during the 5th year in 2014? See below

4. Create an opportunity to make up to $400K

Mr and Mrs Lim took action immediately!! They sold their flat and switched to a private property in 2014. They made a good profit of more than $300K, making use of their CPF locked in their HDB to work hard for them!!

5. Creating a legacy plan for your children

Do you want to hold a property that will not grow, or one that will appreciate in the next 5-10 years? "Singapore’s private property prices set to double by 2030, Morgan Stanley".



% of buyers with hdb address wee propert

Do You Want To Work Hard Or Work Smart your way to $300,000?

It is not uncommon for couples these days to earn a combined income of $12,000, even HDB has raised the monthly household-income ceiling from S$12,000 to S$14,000 and Executive Condominium (EC) from S$14,000 to S$16,000. There are more than 30% of Singaporeans owning 2 private properties, 1 for own stay and the other, generating passive income for them each month.

Many homeowners are not doing this as they are not equipped with sufficient knowledge to do so. So, homeowners, do you want to work hard to your $300,000 or WORK SMART to your $300,000? Do you want to provide the best for your family?

Choose the smart way to $300,000!

Were your concerns listed above? Drop us a message with your concerns and find out more today!

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