Buy resale HDB then BTO later

I have been fortunate to assist numerous professionals in understanding property ownership and wealth management in Singapore.

I encountered a similar situation with one of my clients, a young couple aspiring to purchase an HDB resale flat. While their parents also desired them to own one, they harbored plans to acquire a larger BTO unit when starting their own family. By delving into this matter, we were able to discern the best solution for them and navigate the complexities involved in handling financial matters while considering their aspirations.

Now, let's debunk some of the common myths and misconceptions surrounding this topic:

Myth #1:
If you have received grants when purchasing an HDB resale, then it is not possible to obtain a BTO flat.

Reality:
This assertion is not entirely accurate. While it's true that receiving certain grants may impact your eligibility for additional grants or concessions when applying for a BTO, it doesn't automatically preclude you from the process.

Myth #2:
You must sell your current HDB flat before you can apply for a BTO.

Reality:
You do not need to sell your existing flat before applying for a BTO. However, you must dispose of your current property within six months after receiving the keys to your new BTO unit.

With these clarifications in mind, here's my advice as an experienced financial advisor:

1. Consider what you aim to achieve in the future:
   While the idea of purchasing a resale flat alongside your parents may seem prudent, especially if you intend to reside with them for the time being, it's crucial to contemplate your future aspirations such as starting a family or pursuing career opportunities that may necessitate relocation.

2. Familiarize yourself with the grant rules:
   If you have received specific grants such as Extra CPF Housing Grant (AHG) or Special CPF Housing Grant (SHG) during a resale purchase, it may affect your eligibility for further grants when applying to purchase a BTO. Nevertheless, you can still apply to buy the BTO without selling your flat.

3. Explore alternative financing options:
   If you are ineligible for certain grants due to a previous purchase, explore alternative financing avenues such as bank loans or utilizing your savings for BTO acquisition. Ensure that when devising plans for wealth accumulation over time, you prioritize financial prudence and minimize excessive indebtedness.

4. Consult with a knowledgeable professional:
   Navigating the housing regulations in Singapore can be complex, and mistakes can be costly. Consider consulting with an experienced financial advisor like myself who can provide tailored advice for your situation and long-term goals.

My objective, as a financial advisor, is to assist individuals like you in understanding and making informed decisions about the various financial choices that arise in life. I aim to foster a relationship of trust with my clients, guiding them through diverse financial stages while keeping their ultimate objectives in mind. In my capacity as a financial advisor, I am dedicated to aiding individuals and families in effectively managing their financial matters. My aim is to ensure that you grasp complex financial concepts so that your decisions are based on comprehension rather than confusion.

To learn more about managing property ownership in Singapore or to receive personalized advice on your financial planning and other concerns, you can follow me on Instagram (@ngooooied) or request a consultation. Together, we will collaborate to build a sturdy foundation for your future journey.

It will tie down your name for the next 5 years (when the House meets MOP). You will not be able to apply for BTO with spouse.

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if u take HDB grant, u will lose one chance for future. suggest to take bank loan and buy from open market to not affect your chance for future BTO.