Check your flat’s eligibility first
HDB requires owners and spouses to fulfil the applicable minimum occupation period before acquiring private residential property. Standard flats generally have a five-year MOP; Plus and Prime flats have ten years. Check your own flat’s conditions and eligibility directly with HDB.
Calculate the proceeds you can use
Start with the expected sale price, then deduct the outstanding loan, required CPF refund and sale costs. Keep the resulting cash and CPF amounts separate. Check when you can use each amount for the next purchase.
Compare selling first and buying first
Selling first gives you a clearer figure for the funds available. You may need somewhere to stay before the next home is ready. Buying first lets you secure a home, but you need to fund the purchase while still owning your flat. Put both sequences on a dated cash-flow plan before choosing.
Check whether you qualify for ABSD remission
Some married couples who buy a second home jointly can qualify for ABSD remission. IRAS requires at least one spouse to be a Singapore Citizen, along with other conditions and a deadline for selling the first home. Ask your lawyer to confirm whether you qualify and which deadline applies before exercising the option.
Plan the gap between homes
Put the sale and purchase completion dates on the same calendar. Add renovation and moving time. If you need an extension of stay, discuss it early and check the applicable rules. Also decide where you would stay if the dates change.
Resolve the questions before committing
Keep the expected proceeds and confirmed loan amount together with the purchase costs. Record what still needs checking and who can answer it, such as HDB, your banker, CPF Board or your lawyer. Get those answers before committing to the purchase.
If you’re working through this for your own move, let’s chat about the details.