Sell One Buy Two
Is Sell one Buy two a Popular Wealth Building method or is it a Scam?
Sell 1 Buy 2 Properties
“Sell 1 Buy 2 Properties” has been one of the catchlines of various property agents in challenging times.
The proposal - sell your current property and use the proceeds for down payments on two properties.
It sounds like a perfect plan and has had some homeowners and investors hooked, but market watchers are cautioning against it, calling for prudence because Selling HDB to Buy 2 Properties carries some serious risks.
Check out the MAS statements within the Business Times
Table of Contents
Why Sell 1 Buy 2?
Since April 2016, HDB flat owners are no longer allowed to transfer ownership of the flat to a family member except under exceptional circumstances.
This means that HDB dwellers are disallowed from giving up their ownership to obtain private property without incurring the recently inflated Additional Buyer Stamp Duty (ABSD).
Selling your house to buying two private properties” strategy are usually targeted at property owners that need to pay additional buyer stamp duty (ABSD) for their 2nd property.
Having this precedence set, one would understand why the ‘Sell 1 Buy 2’ concept has picked up rapidly over the last few years.
Lets weigh the Pros and Cons of Sell 1 Buy 2 concept today.
An ingenious strategy or a doomsday plan? Is it a good idea to sell your HDB flat and become owners of two properties with potential for long term profit?
Lets weigh the pros and cons so that you can make a well-informed decision.
The Pros of Selling HDB and Buying 2 Properties
The price movement of HDB resale from 2014 to 2019.
And HDB price movement from 2020 to 2024.
The value of HDB flats was depreciating over time before ‘convid’ and only for the past few years, it has increased more than 33%.
In order to capitalize on its appreciation thus far, some owners have opted to sell off their HDB flats and renounce their ownership.
This will then enable one of them to purchase a private property such as a condominium as their residential home and the other can invest in another private property, that will not incur additional ABSD and can be rented out, resulting in earnings.
Normally buying a Resale Condo for homestay and purchasing a New Launch for investment.
On the flip side, this also means owners will have two mortgages to pay off.
However, with proper financial knowledge and planning involving personal finances, loans, CPF Ordinary Account contribution, their monthly installments will eventually be manageable.
Sounds enticing? When calculated prudently, employing the ‘Sell One Buy Two’ approach could pay off.
However, this approach is accompanied by certain risks that home owners should be aware of.
The Cons of Selling HDB and Buying 2 Properties
In an article by the Business Times late last year, potential buyers were warned of the sluggish economy, being laid off and depreciating property values.
The Monetary Authority of Singapore (MAS) themselves stood by these potential risks, urging Singaporeans to think twice.
Buyers also need to consider that their eligibility for a good loan to help pay off two mortgages is not guaranteed and so are the rental returns.
If they ‘Sell One Buy Two’, it will become necessary for both parties to work in order to qualify for their individual property loans.
In the situation where one party is laid off, finances would become tight, stripping reasons for having two mortgages.
Eventually, the second property may have to be let go at a loss. These are factors that need to be taken into serious consideration in your planning.
Is Sell 1 Buy 2 suitable for you?
In this article, I am not making an attempt to influence you in any way.
Instead, I would like to guide you on the factors that you must look into:
Factors to consider
Home Financial Calculation
In-depth financial calculation is always one of the key factors
Scenario 1 - Decide to sell HDB and buy 2 properties
Things to look out for:
- CPF usable amount for property purchase
- CASH proceeds you will get back after selling your house
- CPF monthly deductible for mortgage loan
- Mortgage loan for property purchase
- Potential Rental yield or passive income generated from the investment property
- Potential capital gain from investment property
Scenario 2 - Keep HDB and buy one more property
- CPF usable amount for property purchase
- CPF monthly deductible for a mortgage loan
- Eligible loan for next property purchase
- Mortgage loan for property purchase
- Potential Rental yield or passive income generated from the investment property
- Potential capital gain from investment property
- Additional Buyer Stamp Duty (ABSD)
Summary
To summarize, financial calculation is an important key factor in Selling 1 to buying 2 properties.
Have your financial work out on the available usable CPF and cash.
If you are not in a good financial situation at the moment, then the Sell one Buy two is a very risky option.
If you are well-positioned to explore the options available.
PLEASE study and analyze in-depth on the investment property that you are looking to buy.
Identify the benefits and how some owners successfully benefited from it
With proper study and analysis, there are some development out there that have good returns in time to come.
Successful owners that benefited from it.
Sell hdb buy 2 property | Case Study
Mr Ang has been staying in a 4 room flat in Punggol with his family.
One month before the property reaches MOP in 2017, Mr Ang contacted me to find out more about his options and in essence, I have gathered that their goals were to:
1) Invest in a property with potential appreciation as their main priority
2) Utilise a low-risk investment approach
3) Wait for the right opportunity
With the understanding that they do not require an immediate place to stay, I proceeded to work out both short-term and long-term plans for them.
With my recommendation, I sold the Punggol flat and went ahead to purchase a brand new 2-bedroom condo at Parc Riviera with Mrs Ang as the sole owner; at this point in time, we have not decided whether this property will be for own stay after its TOP or for rental purposes.
DOWN-PAYMENT without savings
They have since purchase a 2-Bedroom Private Condominium without touching their savings.
Mortgage Instalments without CASH
They can even repay their monthly mortgage loan installments WITHOUT paying any extra cash from their own pocket.
Then in 2019, after going through detailed financial assessments and a clear asset progression road-map planned for Mr Ang, he also bought a 1-bedroom resale condo with an existing tenancy to generate immediate rental income.
Thereafter, with the good rental yields, the Angs decided to focus both properties for investments, reaching their final goal of low-risk investment and asset progression.
What Mr Ang says about me:
Conclusion
Now that you see both sides of the coin, it will do you well to mull over the idea of ‘Sell One Buy Two’.
Invest some time to calculate and plan out potential options before deciding on a suitable solution and do deliberate this further with your trusted agent on your preferences and strategies.
As you will come to realize, there is no ‘best’ solution, there is only one that is the most suitable for your finances and family’s needs.
In doing so, you will be able to determine if your move is a doomsday plan or an ingenious strategy.
After learning how you can multiply your assets, and upgrade your family’s living standards, now learn how to execute this asset progression plan in a structured way in order to minimize your risks and gain maximum upside.
Bonus for my readers
Interested in learning how you can sell one property and buy two? I’m offering a free, no-obligation chat to dive into your questions and help sketch out your possibilities.
It’s a casual, straightforward conversation to clear up anything you’re curious about or to strategize your next big move.
Topics that I will cover during the discussions:
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Overview of the “Sell One, Buy Two” Strategy
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Singapore Real Estate Market Trends
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Financial Planning and Budgeting
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Loan and Financing Options
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Regulatory Considerations and Stamp Duties
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Risk Management
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Property Selection Criteria
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Rental Market Insights
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Case Studies or Success Stories
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Steps to Get Started
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FAQs
Awards and Accolades
Testimonials
I have successfully helped hundreds of homeowners just like you since 2010
Have you learned something New Today? Please help to share.
Self Introduction
Hi, I’m Rick Long
With decades of experience in Singapore’s real estate market, I’ve had the privilege of being mentioned in media outlets such as Channel NewsAsia, The Straits Times, and 99.co.
Over the years, I’ve written extensively on the local property landscape — tackling the real questions buyers and sellers face, and helping them navigate each step with greater clarity and confidence.
Many of my clients have become long-time friends — their trust and kind reviews continue to inspire me to raise the bar in everything I do.
I believe real estate should be strategic, seamless, and deeply aligned with your life’s journey.
Related Articles:
Ever wonder if you are suitable for Sell one buy two investment concept? – Read more (Sell one buy two)
Is buying new launch or resale condo have better returns? – Read more (New Launch vs Resale condo)
Looking to upgrade from Hdb to condo? – Read more (Sell Hdb buy condo)
What to take note when selling Hdb resale flat? – Read more (Hdb Resale Process)
Buying another Hdb flat, and using the fund from current home? – Read more (Hdb contra)
Why do some Hdb flat price depreciate so much? – Read more (Hdb depreciation curve)
What is one of the most common reason for property negative sales? – Read more (Cpf accrued interest)
Financial calculation for selling a Hdb flat? – Read more (Hdb resale calculator)
Buying EC before selling your HDB? – Read more (Upgrade to EC before selling your HDB)
Should you sell your EC after 5 years? – Read more (Selling EC)
Hi really appreciate the in-depth sharing. But i do have some doubts on the risk level. Will contact you for a meet up. Thanks