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Timeline Planning For MOP Upgraders

Updated: Jan 24

Wrong Timeline Can Be Very Chaotic For Upgraders



Regardless you are upgrading to EM / EA / EC / Private Property, there are some considerations you have to take into account in the timeline planning. One wrong move can end up with no roof over the head or consume all the hard earned savings.


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Sell then Buy? Buy then Sell? Buy Sell At The Same Time?

When you are upgrading from HDB or your MOP property, there are 3 scenarios which you can consider:


i. sell then buy

ii. buy then sell

iii. buy and sell concurrently


Planning Timeline is as important as Financial Planning

Under each option, we will explore the pros and cons. The pros and cons are not limited to just those few listed.


[WARNING]

The timeline charts are drawn for reference purpose only and do practice due diligence when you are following the timeline charts. Timeline planning works hand-in-hand with financial planning. One wrong move will result in grave mistake.


 

Option 1: Sell First Buy Later


Pros:

  • Cash flow certainty

  • No ABSD payable


Cons:

  • Possibly no place to stay or rent temporarily

  • Settle with what is available in the market


mopupgraders

 

Option 2: Buy First Sell Later


Pros:

  • Have a place to move to right away

  • Have time to renovate

  • Get to buy the ideal unit without waiting


Cons:

  • ABSD is payable for 2nd property

  • Risk of not meeting 6mth ABSD refund deadline

  • More cash / CPF is needed due to lower Loan-to-Value (LTV)


mopupgraders

 

Option 3: Buy and Sell Concurrently


Pros:

  • Get to find ideal unit

  • Have time to renovate

  • Move only once

  • No ABSD payable if plan well


Cons:

  • Must have sufficient to pay for 5%

  • Have sufficient to pay for Buyer Stamp Duty


mopupgraders

 

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I have highlighted the pros and cons behind each option. However, it may not seem as simple as that. With different financial capability of each family who upgrades, it involves tweak in the timeline.


[WARNING]

The timeline charts are drawn for reference purpose only and do practice due diligence when you are following the timeline charts. Timeline planning works hand-in-hand with financial planning. One wrong move will result in grave mistake.

 
mopupgraders

We understand that financial planning can be a daunting task, and we're here to simplify it for you speak with us.


If you have a plan in mind but not sure if it works well – do share with us or let us know.


We will do our best to assist you to make sure you look at your plan from multiple angles and ensure you have a very clear picture on what’s going on.

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