Timeline Planning For MOP Upgraders

MOPUpgraders Team
Mar 31, 2020
2 min read

Updated: Jan 24, 2024

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.

mopupgraders — 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

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)

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

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]

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.