facebookShould I buy a 5 room hdb flat now, or a 3 room hdb flat now, and upgrade to a 5 room after MOP, and invest the difference? - Seedly


27 Jan 2020



Should I buy a 5 room hdb flat now, or a 3 room hdb flat now, and upgrade to a 5 room after MOP, and invest the difference?

Hi, my partner and I are looking at buying a resale hdb flat this year, and I'm torn between whether i should start big with a 5 room hdb flat, but at the same time wipe out all our savings, or start small with a 3 room hdb flat, invest the rest, then upgrade in 5 years time after our first kid (we plan to have kids in the next 2-3 years).
I understand that HDB flat appreciation is poor at this time, so I'm considering if the 3 room route makes financial sense.

Discussion (4)

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Tze Wee

27 Jan 2020

Marketing Manager at ERA Realty Network Pte Ltd

Dear Sir/Mdm/Miss,

It depends on how old is the block of resale flat you are buying, you will expect different appreciation rate of HDB prices in future to no appreciation and depreciation of much older HDB flats instead.

Generally the older a resale flat gets the rate of appreciation lowers to the point it will depreciate for 40 years and above flat.

Base on the above, is the 5 room and 3 room you are considering to purchase a depreciating asset or slightly appreciating only?

I might be purchasing HDB too in near future so i take extra note on HDB datas.

May i share more datas and graphs with you over a cup of coffee to let you understand more on what or where you could consider purchasing?

Tze Wee


CEA Reg no.R058547I

Marketing Manager

ERA Realty Network Pte Ltd

Hariz Arthur Maloy

26 Jan 2020

Independent Financial Advisor at Promiseland Independent

I went for the 3 room route in hopes to upgrade in the future. Yes this is a financial consideration but more importantly a family consideration because we were only planning to have kids (if we do) in our 30s, so that's past MOP of the flat we're getting so we can get a bigger space when we want kids.

But for your case if kids are coming sooner in 2 to 3 years, you may want to get the bigger space first. But still, 5 room for a small family is quite overkill.

I would any day prefer a lower fixed commitment (mortgage repayments), and invest in equity rather than property.

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