Dear HDB owners, Congratulations if you have already met your 5 years MOP! The question is “WHAT NEXT?”


Hi, I am RAAMA

Over the years, I have held the hands of many clients in their asset progression journey. Many have enjoyed great returns in their investments, fulfilling their financial goals at the same time.

While every home owner has different needs when it comes to property investments, undoubtedly, they still share these COMMON FINANCIAL GOALS.

Do you also wish to…

  • Own a fully paid property of your dreams for retirement? 
  • Have surplus cash savings for retirement, children's education, healthcare and care for elderly parents? 
  • Own a second or third property for passive income?

If you answered YES to these questions, read on to find out how these can be achieved through in-depth financial planning and proper management of your property portfolio.

“Billionaires build their wealth through real estate investment, hence a property need not be just a roof over your head!"

But Wait. Do You Have These Thoughts?

  • I don't think I can afford to upgrade. 
  • Private properties are only for the rich. 
  • I do not want to wipe out my cash savings. 
  • I do not want to be burdened by hefty mortgages every month.


90% of our clients were not aware that private properties are well within their reach. As a general guideline, you can consider to upgrade if you have a combined household income of at least $5K. However, coupled with your future plans, family size and financial comfort, careful financial assessments have to be made to qualify home owners. We will advise clients against making the move if the property is not within their AFFORDABILITY and SUSTAINABILITY.


Mortgage loans for private properties are pegged to the TDSR (Total Debt Servicing Ratio), while mortgage loans for HDB properties are pegged to both the TDSR and MSR (Mortgage Service Ratio). Hence, a buyer’s approved loan for a private property will be generally higher than his/her loan for a HDB property.

For example, along with their approved loan and CPF available, Mr & Mrs Tan can afford to buy a property of $1m. However, can they afford the monthly mortgage that comes with it? That will bring us to our next subject.


Payment of monthly mortgages is the biggest worry for many of us. Often, we worry if we can sustain the property in the long run. THIS IS A VALID CONCERN. Ultimately, upgrading your property should bring you more happiness, not financial stress! We will guide you through an in-depth financial planning to ensure a worry-free future so you can embark on this journey with ease!

  • Property health check 
  • Detailed financial assessment 
  • Comparative market analysis 
  • Real-time property data 
  • Futuristic capital appreciation analysis with guided timeline 
  • Study on potential growth and future transformations of a project

Here are some asset progression stories of our clients. See if you can relate to their concerns and worries!


Upon hearing their plans and dreams for the family, we presented every possible option including the purchase an EA or EM and also a private property that they never thought possible! They were pleasantly surprised of their financial capability after we did a financial assessment for them. After careful financial planning and weighing the pros and cons of purchasing both type of properties, they decided to take the leap and secured their very first private property!

Why the change in decision?

  • No cash top up involved in the servicing of monthly instalments
  • Enjoyment of an array of condo facilities
  • Huge potential for capital appreciation
  • Difference between HDB conservancy fee and condo maintenance fee is marginal
  • No major renovation required means more cash savings
  • Still in close proximity to parents

Ultimately, all the boxes are checked and they are now proud home owners of a condominium. They still have thoughts of buying a huge EA or EM flat in future, but not after they gained the profits from their current investment and perhaps fully pay their future property while holding on to more cash savings. How savvy is that?! Wait, how about a landed property next for them?


They first met us with many concerns of owning a private property and like everyone else, financial capability topped their list. To add on to their concerns, we realized that they faced a negative sale should they sell their flat. The question is to sell or not to sell?  

As they are well aware that HDB resale prices have remained pretty stagnant and they are looking at a bigger negative sale in future due to running interest from their loan and their CPF accrued interest, they decided that they should cut their losses and make their move.  

We walked them through their property cycle and crafted a thorough financial plan that would be beneficial not only for their retirement but for their dearest son’s future too! We don’t believe in selling and buying for its sake but every investment should benefit in terms of future monetary gains and add to our clients’ quality of life financially and emotionally.  

Now, they are home proud owners of a beautiful unit at Westwood Residences EC. Seeing how much EC prices have risen since then makes every penny worth!! What a worthy investment!


They had no intentions to sell their flat. However, as they were approaching their MOP, they were intrigued to find out how they can take advantage of their 5-room BTO in terms of financial prudence as they have heard and seen of asset progression but unsure of what it is.  

Just like anyone of us, their end goal is to retire with a fully paid home of their dreams, and have ample cash savings to sustain old days and their children’s future. We showed them how this is possible if one manages their property portfolio cleverly.  

Now, They own a private property and most importantly, these conditions are met.

  • NO CASH TOP UP involved
  • NO CASH SAVINGS was touched
  • Assured sustainability and investment returns



They have been watching the property market for over a year. In line with their careers as professionals, they are meticulous and savvy when it comes to financial planning.  

With this and their children’s future schools in mind, we carefully plotted their asset progression and only recommended projects that matches their future plans.  

What led them to make the move finally?  

We provide clients with comparative market analysis and real time data to ensure an investment value of a property before they commit. More importantly, we work with numbers to ensure affordability and sustainability, not mere talks!


Sadly, many home owners out there assume upgrading is not an option for them without consulting a real estate professional who are well-versed in ASSET PROGRESSION. Do know that our consultation comes with zero obligations. Even if the move is not feasible for you, we are happy to share our knowledge with you!.



Scenario 1: After 5 years, Mr & Mrs Joseph sold their flat at $450,000. They have an outstanding loan of $185,589.

Mr Joseph's CPF Refund + Accrued Interest

$72,785 + $9525 = $82,310

Mrs Joseph's CPF Refund + Accrued Interest 

$63,431 + $8052 = $71,483

After deducting their CPF refund, Mr & Mrs Joseph has a total sales proceed of $100,988.

This gives Mr & Mrs Joseph greater flexibility to manage their financial plans such as children’s education, healthcare, retirement and care for their elderly parents. 

Scenario 2: Mr & Mrs Tan bought a 5-room HDB resale flat 10 years ago for $390,000. They have fully paid their property. The selling price of their flat in the current market is $450,000. As they have fully paid their flat, there is no outstanding loan to offset.

Mr Tan's CPF Refund + Accrued Interest  

$223,185 + $28,867 = $252,052

Mrs Tan's CPF Refund + Accrued Interest  

$191,515 + $21,978 = $213,493

Notice how Mr & &rs Tan's total accrued interest has accumulated to $50845 after 10 years. After deducting their CPF refund, Mr & &rs Tan face a NEGATIVE $15,545 of sales proceed.

This is not uncommon in the property market especially when you take up a loan and use your CPF to pay your mortgage.

While we advocate strongly about paying off your last property before reaching retirement age, this move is not necessary if you have plans to upgrade your property or cash out from your flat especially if you are well below the age of 50. Speak to us for your property health check!

Myth Debunked

Fully paying your flat does not guarantee a higher sales proceed! It very much depends on your ENTRY PRICE and many other factors!

Something you must know!

CPF Accrued interest is the accrued interest amount that you would have earned if your CPF savings had not been withdrawn for housing. The interest is computed on the CPF principal amount withdrawn for housing on a monthly basis and compounded yearly. Even when you have fully paid your flat, the CPF accrued interest still runs.


With all or most of your CPF dumped into your HDB flat, you lose  

1) The 2.5% interest you can earn from leaving it inside the CPF.  

2) The accrued interest of 2.5% to return when you eventually sell.  

That is 5% taken away from you, year after year.

For example, if $200,000 worth of CPF fund is used to pay for your HDB, you lose $26,600 in interest earnings at the end of 5 years.

When you sell your HDB at the end of 5 years, you would have to return $226,300 to CPF which is $26,600 less cash from your property sales proceeds.



Raama is pride with the string of happy and satisfied clients they have served in numerous HDB and private property transactions.  

As one of Propertyguru Top 100 Producers and prestigious Platinum Award Winner, you can be assured that you are in safe hands. Raama is also a delegated trainer and facilitator in Propertyguru.  

Working hand in hand to ensure you make the best investment in your life!  

Speak soon!  

Think Property? Think Raama

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