Should I sell and rent a place before BTO key collection?

I have booked a BTO @ $510K , estimated TOP 2025. Approved Bank Loan 75%
I currently own a resale 5-room flat, estimated value $550K. 150K balance on HDB loan. Current CPF for used for Property is $375K including accrued interest.

Given the above scenario. Which one makes more financial sense:

(1) Collect keys to BTO, sell current flat within 6 months
(2) Sell current flat XX months before key collection, rent a place while waiting for key collection.

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Ryan

09 Dec 2020

I would continue to stay in current flat for the moment. Decision might change as it gets close to around the collection of keys.

Reason for staying on is the rental that you would need to pay to rent a flat would most likely be more than the monthly mortgage payment you are doing.

Besides that, mortgage payment can be made via CPF and not pure cash in case of rental. This gives you more liquidity in current economic conditions should you lose income.

HDB would also not force you out of your house if you have no money to pay the mortgage immediately but your landlord for rental might do so.

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