First-time buyer, how to start investment in Singapore Property?

Owning private residential property is where most Singaporean dream.


Property investment, most of the people will have a mindset that you must invest in a private property. Is that the only area, let explore.



Before you start, it will much easier if you engage an estate professional to assist you in your planning if you are looking into building your wealth in property investment.


Where should I start? Public housing or Private Housing?


Let take a look at the differences in owning public housing and private property before you decide to which is good for you.


HDB Public Housing - BTO / EC and Open Market Resale



1. For BTO flats and new ECs, both buyers must be Singapore Citizens. Check here for the eligibility to buy.

2. You are eligible for HDB loan, there is an income ceiling for BTO flats.

3. For HDB loan, you can loan up to 90% of the valuation.

4. You are entitled to CPF housing grants, income ceiling apply.

5. You are not allowing to sell, buy or rent out your units before you fulfilled your minimum occupation period (MOB).

6. All buyers, age must be at least 21 years old.

7. For a single buyer, age must be at least 35 years old.

8. Mortgage Servicing Ratio (MSR) is at 30% of your income.



Private Property.



1. Age must be at least 21-year-old.

2. No restriction to the citizenship of the buyers.

3. Can buy in a single name or joint names.

4. Loan to value only 75% of the valuation of the property for the first property.

5. Total Debt Servicing Ratio (TDSR) is capped at 60% of your income.

6. No MOB period, you can buy another unit, sell or rent out your unit instantly.



How to go about to build my wealth in property investment?

I can simply say that in Singapore, most of us have this mindset. When you get married, you must get yourself a property, build your own dream home. This is how we start to get involved in property investment.


Most of us will go for the Public Housing, just because is the most affordable.


I strongly believe that you would want to make sure that your property, the values appreciates when you decide to upgrade in future.

Investing in property is a long term event, proper strategic, detail structural planning is a must.


let look into the different options.



Buying HDB Flats


John Tan 27-year-old and Mary Tay 26-year-old.

First-time buyer...


They intended to buy a matrimony home and build their dream home, and at the same time planning for investment in property.


Financial status for John and Mary.

1. Total monthly income for both of them is S$7,000.

2. Total fund in their CPF is S$70,000.

3. Cash on hand is S$90,000.


With the financial status above, they can have 2 options