Family upgrade
From a maisonette search to a four-bedroom condo
They wanted more room for their two children. Running their private-home numbers opened up choices beyond an older HDB maisonette.
This couple were considering an executive maisonette built in 1985. They were in their thirties, with two children and a four-room HDB flat worth around $1M. They wanted more space, and the maisonette was the home they had in mind.
Before narrowing their search to older HDBs, they needed to know what else they could afford. A condo purchase uses a different borrowing assessment from an HDB purchase. Checking both would give them more homes to compare for the space they needed.
What their income allowed them to consider
Their assessed condo affordability came to around $2.4M after we ran the numbers. That opened up four-bedroom condos alongside the maisonette they were considering. They could compare a wider selection of homes for the space their family needed.
For an HDB purchase, the Mortgage Servicing Ratio limits how much income can go towards housing repayments. A private-home loan uses the Total Debt Servicing Ratio, which includes other debts. The different assessment gave this couple a higher private-home budget.
A four-bedroom home that met their needs for under $1.7M
We found a four-bedroom unit in a five-year-old condominium for under $1.7M. It gave them the extra room they wanted in a much newer development. They could buy it for substantially less than the $2.4M we’d assessed.
There was no need to spend another $700,000 just because their income allowed it. This unit already met their need for more space. Buying it meant a lower purchase price than the maximum we’d worked out.
The four-bedroom layout also gave them families to consider as future buyers. Such units are relatively scarce, and another household looking for more room could have the same need. The recommendation considered that future demand alongside the space this family would use now.
How their search changed
They started by considering an older maisonette and bought a five-year-old four-bedroom condo. We found them the space they wanted at under $1.7M after checking what their income could support. Running those numbers early gave them more homes to compare before committing to the maisonette.
If you’re looking at an older HDB for more space, it’s worth checking what a private home would cost you too. You may still prefer the HDB. At least you’ll have compared it with the other homes you could buy.
The $2.4M assessment reflected this household’s income and commitments at the time. Your borrowing eligibility, cash requirements and loan terms will depend on your own circumstances. MoneySense explains the borrowing rules.