As a single earner, is buying 2 room hdb flat (bto/resale) a good bargain?

Average price of 2 room BTO around $140,000 (non-mature) to $280,00 (Mature). Last i check listing for 2 room resell around $250,000 after 5 years. Not sure how many transaction.

For a single like us, best to buy a minimum 3-room resale flat. best if you can afford 4 -room . so u can at least rent out 1 or 2 room

In Singapore, becoming a homeowner can seem like a distant goal for many single individuals. However, with careful planning and the right assistance, it is entirely possible to achieve this milestone and establish a solid foundation for your future life. As a financial advisor specializing in wealth management for professionals, I understand the specific challenges and aspirations of individuals like you.

I recently had the opportunity to work with a client, a woman in her 30s who is a teacher. She was looking for an affordable home that fit her budget and future plans. After assessing her financial situation and exploring various options, we concluded that a 2-room HDB flat was the best choice for her.

Through discussions with her, we identified the challenges she faced in finding a suitable housing option. We also discovered the grants and subsidies she was eligible for, which helped us create a comprehensive plan for her to own a home while maintaining financial stability. She is now living happily in her cozy 2-room flat, with clear steps towards achieving other life goals.

Now, let's address some common misconceptions and confusions about securing a 2-room HDB flat as a single income earner:

Myth #1:
2-room flats are too small and unsuitable for long-term living.

Reality:
While these units may be small, they are designed to function well. By using smart space-saving strategies and keeping things simple, a 2-room flat can become a comfortable and cozy home for an individual or a couple without children.

Myth #2:
Resale flats are always a much better deal than BTOs.

Reality:
Each option has its pros and cons. BTOs may save money but take longer to obtain, while resale flats are available immediately but may have higher costs along with renovation expenses.

With these explanations in mind, here's my advice as an experienced financial specialist:

1. Consider your financial capacity:
It is essential to assess whether you can afford a 2-room HDB flat. As the sole earner, carefully evaluate your income, expenses, and future financial goals. While a 2-room HDB flat can be a cost-effective option, ensure that you can manage monthly mortgage repayments along with other associated expenses.

2. Utilize available grants and assistance:
When a single Singapore citizen purchases an HDB flat, there are various grants and assistance programs available. Examples include the Single Singapore Citizen Scheme (SSCS) and the Additional CPF Housing Grant (AHG). Leveraging these grants can significantly reduce upfront costs, making it easier for singles to own homes.

3. Lifestyle and future plans:
While a 2-room flat may meet your current needs, consider what you want in the long run. If you're thinking of starting a family or anticipating changes in your living circumstances, it may be wise to explore larger flat options now or plan for a potential upgrade.

4. Financial resources and stability:
Acquiring a 2-room flat may be more affordable initially, but ensure you have thoroughly assessed your financial situation. Consider whether you may need more space later on and if there is flexibility in the market for selling or transitioning flats easily.

5. Maintenance costs:
A smaller flat typically means lower maintenance costs due to less space to upkeep. This can be advantageous if you prefer to spend less time and money on home maintenance.

6. Consider community facilities:
If access to community amenities such as swimming pools, gyms, or barbecue pits near your home is important to you, purchasing a 2-room BTO may not provide these advantages immediately as they are generally offered by private developers later on when they construct larger condominiums.

7. Assess the location's potential value growth:
Property values tend to appreciate over time in some areas more than others due to various factors like development plans or proximity to new infrastructure projects (e.g., MRT stations). If this aspect matters significantly to your decision-making process, investigate whether the area where HDB flats are situated has potential growth opportunities that may benefit from market appreciation in the near future.

8. Consider rental prospects:
A larger size HDB flat like a 3-room type typically attracts higher rental values compared to smaller ones such as 2-room flats because it offers more rooms which tenants prefer. So, this may play an important role when deciding between buying and renting out property.

9. Look at market trends:
While purchasing any type of property involves some risk since its value will fluctuate over time, consider researching how the current trend affects prices for small-size units specifically before making final decisions.

The purchase of an HDB flat can be complex, with many rules and regulations to understand. You can speak with a financial advisor like myself whom you trust for personalized advice tailored to your unique situation – this will assist in making wise decisions.

As a financial consultant, my purpose is to help individuals like you achieve their goals and establish a stable financial future for themselves. I am dedicated to building enduring relationships with my clients, supporting them through every significant life event and ensuring that their financial well-being comes first.

If you want to learn more about the housing market from a single earner's perspective or need specific advice for your financial planning, follow me on Instagram (@ngooooied) or request a consultation. We can explore the options that best suit your situation and create a solid foundation for your future achievements.

Am single also, going for 3 room resale. My sis did a 2 room BTO and regrets it.

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Too small and no re-sell-ablity although she managed to rent it out for 2k/monthly.

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Am able to pay for the 3 room resale with no cash downpayment while I have an extra room in case I decide to not be single =)