We’ve reached a point where asking to BTO with someone is as good as asking for your partner’s hand in marriage. However, for many young couples, the dream of settling down sooner can be overshadowed by the challenges of house hunting and the unpredictability of the BTO ballot.
Enter resale flats as another option. One Singaporean couple prove that house hunting as a young couple doesn’t have to be a long and arduous process; after just 5 days of house hunting and viewing their flat only once, the couple made the bold decision to place an offer on a million-dollar resale flat.
While some might label their choice as impulsive, others may admire their decisive action, especially in the face of scepticism from friends. Amy and her husband* give us insights into the challenges of financing their million-dollar HDB resale at 26 years old, and offer valuable tips for other young couples looking to follow a similar route.
*Names have been changed for privacy reasons.
Settling on a unit after one viewing
Amy and her husband had been primarily exploring units in a newly MOP-ed estate in the Kallang/Whampoa region. However, they were quick to rule out most options, deterred by lower floors and inward-facing layouts which could not justify high asking prices.
Image credit: HDB
The tenth unit they viewed – a 4-room, 990sqft flat with a 95-year lease balance – checked all their boxes. It was outward-facing, situated on a relatively high floor, and had a knocked-down room for extra space – all for the same asking price as previous units they had seen. Knowing how quickly desirable units tend to get snapped up, the couple decided to place an offer immediately.
“In fact, someone outbid us just one day after we signed the mutual agreement for our unit, while we were still waiting for the seller’s intent to sell to go through,” Amy explained. The Singaporean kiasu mindset worked in their favour, with the couple’s speedy decision-making allowing them to secure their ideal home just in time.
Deciding to purchase a million-dollar HDB flat, despite being advised against it
Amy and her husband’s decision to invest in a million-dollar HDB flat came down to a few key factors, with convenience topping the list. Proudly declaring herself a “loyal central girlie”, Amy was hesitant to move farther from Singapore’s heart, while her husband, who previously lived in the East, secretly craved the convenience of a centrally-located home as well.
While they did consider more affordable options in the area, they ultimately passed on these older units, prioritising a property that would retain its appeal for future resale. “We also explored other areas such as Toa Payoh and Kallang, but none of the units drew us in the way this one did,” Amy recalled.
In addition to fulfilling all their essential criteria, the couple found that the building had a good lifts-to-floors ratio, and was one of the cleanest HDB estates they visited. Amy and her husband also kept an eye out for units that would require minimal renovations, and focused on ones with layouts that appealed to them. Another plus point was that the estate was located within 4km of Amy’s parents, allowing the couple to apply for HDB’s Housing Proximity Grant.
Ultimately, her husband’s willingness to move forward with the million-dollar purchase was rooted in love and compromise, since Amy was more passionate about securing the resale unit than he was.
Despite their excitement, many people cautioned the pair against purchasing a million-dollar HDB due to the huge commitment of financing the loan. Several friends advised that they save up to invest in a newly-launched Executive Condominium instead.
However, the couple was determined not to rent in the interim; they were eager to settle down quickly and create their own space; although they do acknowledge renting or BTO balloting as a viable option for couples willing to wait.
While they explored various condos, the couple’s budget limited them to 2-bedroom units, which felt much smaller than the home they envisioned. Since this would be their matrimonial home, Amy and her husband wanted it to truly reflect their lifestyle and vision for their marriage – where friends and family could gather often.
“Essentially, we viewed the purchase as an intangible investment for our marriage and lifestyle, rather than just an asset for capital appreciation,” Amy explained. Their willingness to take the plunge, despite the advice of others, reflected their shared vision for their future together.
Financing their HDB flat at 26 years old
Having a clear-cut budget was of paramount importance to the couple. “We knew we weren’t going to pay over $930K for a level 3 unit,” Amy emphasised. However, they were prepared to fork out the money for a good deal. “The estate was actually very hot during that period, and of the 4 units we put in offers for, all of them sold at higher prices than we were willing to go for,” she shared.
We were provided with a financial breakdown:
- Full 80% loan from HDB
- Of the remaining 20% down payment, 11% was paid through CPF savings and grants, while 9% came from the couple’s cash outlay
- Managed to secure several grants to reduce their cash outlay – the $80K first timer resale grant and a $20K proximity grant
As if buying their dream home wasn’t enough, the couple were simultaneously planning their wedding. With expenses nearing $100K, the wedding was set for September 21st, just 1.5 months after their house completion on August 1st.
Despite the tight financial timeline, their solid saving habits proved invaluable, especially since Amy had been deliberately saving for the two milestones since she started working.
Amy also emphasised the importance of investing, even for low-risk takers like herself. “My husband is more financially literate since he works in finance, so he has been doing stocks and funds picking,” she shared. Paired with years of painstakingly saving, the couple’s investing strategies allowed them to finance both big purchases.
Buying a million-dollar HDB resale at 26 years old
In hindsight, Amy reflected that the process of buying a house was both an emotional experience and a logical decision-making process.
She advises fellow house hunters to find a unit that fulfils both aspects; highlighting the importance of being emotionally connected to a space you can envision as your future home, while also being practical and confident in your ability to maintain it financially. “Save well, live below your means, let your lifestyle inflate at a slower pace than your income,” she suggests.
For other stories, check out:
- Scoring a rental room in Woodlands for $450/month
- How we bought our first home as a gay couple in Singapore
- Giving up our duplex condo in Malaysia to live in a co-sharing space in SG
Drop us your email so you won't miss the latest news.
