Property
What Type Of HDB Flat Can I Really Afford?
By Seedly  •  November 19, 2019

So…

You’ve decided to apply for the latest HDB BTO Sales Launch and now have to decide what HDB flat type to choose.

Should you just buy the largest flat that you can afford?

What if you only wish to live in the flat until you meet the Minimum Occupation Period (MOP) and want to sell it?

Are there any considerations that you should think about when deciding between a 3-Room, 4-Room, or a 5-Room flat?

WAIT.

Source: tenor

Before we get ahead of ourselves, let’s do a little math to find out: what type of HDB flat can you REALLY afford?

TL;DR: Only Buy As Much House As You Can Comfortably Afford

For this exercise, I determined what is the minimum average monthly household income needed when considering which type of HDB flat to get.

How did I do this? I…

used the Tengah November 2019 BTO...
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By Seedly
Launched in 2016, Seedly helps users make smarter financial decisions with its budgeting app which allows its 40,000 users to sync up their financial accounts and better manage their cash-flow. Last year, we introduced a new community feature which allows users to crowdsource knowledge from peers before making a financial decision.
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1 Comments

One response to “What Type Of HDB Flat Can I Really Afford?”

  1. Fred says:

    Yes, if it is investment and selling it after MOP, use this method.

    Check it’s BTO prices from HDB. Average out all the prices of 3, 4 or 5-room flats.
    Next check the nearest HDB blocks that are just MOP preferably in same estate, not more than 1km away and have similar attributes such as distances from Transport nodes, similar floors and facing.
    Compare and tabulate their differentials in percentages, quantum and other personal preferences, the wider the spread the better the gains.

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