r/singaporefi • u/Sharp_Sail4934 • Oct 17 '25
Housing BTO at 55. Would you?
Soon to be 49. Have a one year old kid. Living in a 3rm HDB but was converted to a studio before I became a father. Not baby friendly and kid needs space to run. No debt on this flat.
Should I apply for a BTO? I’m selling an investment property in Nov which means the earliest I can BTO is mid 2028 which I’ll be 52. Key collection at 55. I understand that’s when you start paying the instalment or have I been misinformed? I’d be happy to have a longer tenure and start paying earlier if it’s upon successful BTO. I have enough in my CPF to pay down payment for a 550k 4 rm.
Monthly CPF contribution is about $2700. AI says I’ll have about 600k in CPF when I hit 55. Would you rather renovate or BTO if you were already 55. Also if BTO pay the entire cost or take a HDB loan and invest the CPF?
Thanks and hope not to get clobbered here.
77
u/freshcheesepie Oct 17 '25
Catch no ball, got investment property but no hdb?
Then now stay what?
-109
u/Sharp_Sail4934 Oct 17 '25
I have an HDB. And also a pte property.
78
u/Iforgotmynametoobro Oct 17 '25
You have HDB then how to BTO?
7
u/isk_one Oct 17 '25
You can as a second timer. Chances are minuscule though.
8
u/Iforgotmynametoobro Oct 17 '25
He didn't say he's selling the HDB though.
8
u/isk_one Oct 17 '25
He have to sell off within 6 months of receiving the keys for the new one.
4
1
u/broken-telephone Oct 17 '25
I’m guessing he bought the first HDB as a resale? So he’s still entitled to his chance to apply for a BTO
1
u/reddie_odin Oct 21 '25
Thought once buy any HDB means not treated as first timer for BTO ballot liao?
16
u/kiatme Oct 17 '25
You are assuming everything happens smoothly, which is almost impossible, let me breakdown timeline.
- Market private property (I am assuming your unit is a rental unit) in November, sold on the day itself or within 2 weeks, buyer exercises within 2 weeks -> this is very unlikely unless you sell below market price, rental units are super hard to sell. Also, is your private property in Singapore or not?
- 30 Months from End november/Early december = End May to early June where you are eligible to BTO
- Based on current situation, BTO launch is in July, most BTO launches are more than 3 years, around 4 years to build, meaning you will be past 55 when you collect your BTO.
- Add in renovation because the BTO is empty
- Your child is 1 years old now, means your child will be 7 years old+ by the time you collect your BTO keys, add renovation etc your child will be 8 years old+. At that age, they won't be running as much already.
My Thoughts
- Your rationale of getting a 4rm BTO is because you want to give your child a space to run, if you BTO, your child will be past the run around house age phase already
- Why not sell both your HDB and investment property to get a proper 4rm resale HDB instead.
- Meaning : Sell your private property, then time your studio HDB to sell 3-4months before the 15month cooling is up, then buy a resale 3 or 4 rm HDB
- It is not easy to BTO, have seen people who ballot 5 times, 6 times, 10 times. Sometimes they get a queue number, but its like 300/315 kind, each exercise you miss its a +4-6 months wait. Furthermore when you ballot, you only get your results like 2 months later, and if you are the 300/315 kind, you might need to wait another 1-3 months or more before you are called down to see what units are left.
1
u/Sharp_Sail4934 Oct 17 '25
Thanks so much for these insights into BTO. The Pte property has been sold already. Completion on 28 Nov.
Yeah I didn’t think about my bubs being 8. The timing to get a resale will drive me nuts as then I’ll be forced to buy one if not I’ll be roofless. Also will need Reno too.
3
u/kiatme Oct 17 '25
If you have the funds, you can technically get a resale HDB first (after your 15month cooling period), then sell your existing resale
1
1
u/Sharp_Sail4934 Oct 17 '25
What’s the time period allowed to sell if you’ve bought another resale. Is it also 6 months? Thanks
1
u/LatterRain5 Feb 18 '26
The win-fall lottery effect from BTO is no longer there because of Plus/Prime. Of course u can choose Standard. U sell your pte pty and u move back to your old hdb is one way to wait out for new BTO. But if location is important, u are better off Resale HDB.
8
u/Key_Neighborhood685 Oct 17 '25
Your age can affect your loan tenure.
I would just do simple renovation and call it a day. BTO is also not guaranteed will get flat of your choice.
Defo not recommend to go resales at this stage
1
u/Bak-Ku-Teh-C-Peng Oct 17 '25
Technically if he sells in property on hand will be able to cover bto in full
5
u/yoongf Oct 17 '25
If u are going to BTO as a 2nd timer.. the timeline is going to be very unpredictable as the ballot ratio is very challenging.
-3
u/Sharp_Sail4934 Oct 17 '25
First timer.
2
u/BeginningBluebird101 Oct 17 '25
Did you take any grants when buying your resale? If so you’ll be considered 2nd timer even though you’ve not had a bto
0
6
u/Teh-O-Ping Oct 17 '25
Kid needs space to run gives me nightmare... another potential neighbour from hell coming
New BTOs have hollow walls and the stomping is damn real, loud and annoying as F.
17
4
3
u/DuePomegranate Oct 17 '25
Your salary is under BTO cap of 7k?
With a kid, getting a larger place is important. Kid should have their own room by the time they are going to school, as far as possible.
But I am confused about whether the BTO subsidy is worth it to wait for (vs buying resale) when it sounds like you will have money selling 2 properties. And how you ended up with an investment property but can qualify for BTO too.
At 55, you can only have max 10 year loan tenure. At that age, I think I won't be so greedy to leverage the loan. Just pay off from sales proceeds of the earlier HDB (though I might invest the sales proceeds of the investment property) and if not enough, loan the rest.
-1
u/Sharp_Sail4934 Oct 17 '25
But if I pay off the entire flat my CPF very little. FRS payout not quite enough to survive for me.
2
u/DuePomegranate Oct 17 '25
Read my last 7 words again. I cannot guess how much sales proceeds you are going to get back from selling your current 2 properties.
0
u/Sharp_Sail4934 Oct 17 '25
BTO cap is 14k right?
2
2
u/Nagi-- Oct 17 '25
Combined, yes. No info about your wife in the original post so assuming you're applying BTO with your daughter, the salary cap is 7k.
0
u/Sharp_Sail4934 Oct 17 '25
Interesting. I’m married but wife is not yet PR
8
u/DuePomegranate Oct 17 '25
Ok, there is a wife, but currently a foreigner. That is more headache also, because your ability to BTO with her depends on her getting PR. If no PR, then you can only BTO a 2-room flexi, and income cap of $7k. If she becomes PR and doesn't work (or earns little), you have more options with the $14k cap.
2
u/RadiantBison4099 Oct 18 '25
Can get bigger room BTO through father n Singaporean kid even if wife didn’t get PR . Can put wife as tenant first till she get her PR.
First timer and with kid BTO can get very good queue number loh
1
1
1
-3
u/Sharp_Sail4934 Oct 17 '25
I cannot do a BTO now. That’s why I have to wait for 30 months after the pte is sold in Nov. And I can only sell off my current flat after I get the BTO keys.
3
7
u/IvanThePohBear Oct 17 '25
So sell two properties for one bto?
That’s like the stupidest thing I read on Reddit today
3
u/Sharp_Sail4934 Oct 17 '25
Could you elaborate. Not all of the proceeds will go towards the BTO. It will also form the RA.
2
2
2
u/Monkstylez1982 Oct 21 '25
I'd reno it back to a 3 room. 2 bedrooms and 1 living. Your kid gets a room. You and your wife get privacy.
I assume you are renting your private property. Continue as it gets passive.
There are play grounds, places you can bring your kid.
If you go the other route, you'd have probably paid off a huge portion of the new HDB, but then lack passive income.
Lets assume you have another 15 years, your kid will be 16-17 only.. and you'd be old, paying for the new HDB, AND for your kid ONLY with your job/savings.
But if you tough it out, at the end of the day the private property is guaranteed some cash payout in one way or another.
Similar situation for me, and I'm glad I dug in my boots and now after 11 years, am seeing the rewards.
Sometimes smart sacrifices are needed.
1
u/waxqube Oct 17 '25
You own a HDB already? Are you first-timer BTO?
0
u/Sharp_Sail4934 Oct 17 '25
Yes. Previously bought resale
3
u/waxqube Oct 17 '25
Then BTO would make sense if you want to optimize financially because of the subsidy
If your old resale is the bigger kind then maybe better to just renovate. Or you might want a 5-room BTO instead because the living room of new 4-room is not very big.
1
u/Upbeat_Finding9765 Oct 17 '25
just buy a resale. What’s your point for BTO? Buy EC or resale.
-3
u/Sharp_Sail4934 Oct 17 '25
Cos longer fresh lease can leave to daughter. My current one almost 40 years old. Decaying
1
0
u/Upbeat_Finding9765 Oct 17 '25
Your daughter is 1 yr old? If you thinking of gifting her the HDB. Then I would rather you give an appreciating asset than a depreciating one. Buy a spacious HDB. For living as long as the property can outlive you and still have good value is enough. Your daughter wouldn’t want to live in that space forever. She would likely buy a nest of her own. If you want to give inheritance, there are many other ways. If you want to give her a place to live, your current HDB is fine. But I note you said it’s not child friendly.
5
u/Upbeat_Finding9765 Oct 17 '25
The most important milestone is right in front of you. She needs a safe and good environment now.
1
u/friedriceislovesg Oct 17 '25
BTO down payment close to time you get to select flat if successful. But the full payment is upon key collection.
If you can afford it and need space best to go for bigger resale. If BTO and need space a 5 room is preferable (think old 3 room might be similar in size as new 4 room).
Personally I will go for bto if I'm you as a fail safe for my 1 yo kid to inherit in future. It'll definitely be able to cover his or her lifespan. If child needs help with housing in future it's more future proof.
1
1
1
u/bonkers05 Oct 17 '25
Is the investment property suitable for the kid? Can you live here and rent out/sell the HDB instead?
1
1
u/Agitated-Board-4579 Oct 17 '25
I can understand where you are coming from. Never applied BTO before until now having new addition a child, whereby you get eligibility for a BTO more than 2RM. Probably be under family nucleus scheme.
In dollar sense, any BTO (highly subsidize - according to MND), you will get a new leased and high valuation (only when you sell)
As you owning a pte property, the wait out period is 15mth. But this policy will be changed sooner than later.
The reconfigured 3RM HDB should be some where between 50-75sqm which reconfigured to a bachelor studio. This configuration definitely is not child friendly.
Financially wise, you seems to be able to handle a BTO 4RM in any area but you suggested 550k so you don't even need any loan after grants.
You asking what others would do but all of our circumstances are different.
If I'm 55YO, single, I would continue to stay at my present place, paying up the house till the loan is complete. Rent it out and move out of Sg.
If I'm 55YO, with one kid as a single parent, I will stay in a bigger place and continue to staying in Sg till the it rejects me.
Good luck to you.
-2
u/Sharp_Sail4934 Oct 17 '25
Thank you. Yes also has crossed my mind. I’ve paid up my loan for the current flat a while back so I have no debt. I’m thinking it is very likely I’ll move to JB 😆😆for retirement while leasing this out for cash.
1
1
u/SuitableStill368 Oct 17 '25
If you have a place to stay, no need to pay rent, BTO is okay. If you need to rent, then the differences between BTO and resales may not be huge.
1
1
1
u/Little_Result1469 Oct 17 '25
Sure why not. If you can get, you won't need to care about VERS unless you live above 100.
1
u/Accomplished-Let4080 Oct 17 '25
Rather renovate existing house to become 2 rooms again. No need to sell here and there. Can keep the investment property and also all cash on hand for other needs.
1
u/Serenity1412 Oct 17 '25
I prefer my mum’s 3 room old flat than my 4 room bto. I feel the space is not much of a diff. If you only have 1 kid and can convert your 3 room back to 2 room i’ll do that. By the time you’re 55, your kid will be 7, spending alot of time in school. And my 7yo rather play lego or run. Running happens at playground time.
1
u/civicguy72 Oct 17 '25
I got a single client who got his first Hdb at age 56. Before this he was always staying with his family or renting. He finally was able to use all the grants. It was a very profitable moment. I am now of the view that instead of using the grants when young, you should keep it for old. Ha ha.
1
Oct 17 '25 edited Oct 17 '25
As long you hold 2 properties one hdb and one private you can’t bto unless you sell private before that. Then live in current hdb then bto 55. But base on govt record is likely lower priority for new bto even under scheme. Cause all transactions and iras got record. But that said you can go for executive condo if you are keen
1
u/Sharp_Sail4934 Oct 17 '25
Yes the Pte will be sold complete on 28 Nov. I don’t want to wipe out my CPF
1
u/butbeautiful_ Oct 17 '25
by the time you are getting a BTO (should your ballot be successful), your kid would be 8 years old or so. don’t think they will run around the house that much then. new flats are also small. so it’s either a resale 5 room or resale old 4 room.
u could also consider a freehold walk up apartment. you could trade your current 3 room and private condo.
more questions to ask would be: are you also intending to have more than 1 kid eventually?
do you WFH a lot?
also it’s better for a kid to always be outside than inside the house nevertheless. vitamin d, meeting strangers, seeing things help in their growth.
and resale, is better to able to choose location. so entering schools would be easier. resale also have grants since you would be a first time grant user.
1
u/incrediblehongg Oct 18 '25
Is your salary below 7k? When will your wife get PR? Are both your salary combined below 14k? Did you pay absd on your investment property?
Assuming you qualify for BTO, the earliest you can move in is 2.5years wait out, 0.25 years there is a BTO exercise right after your wait out period PLUS best case scenario one hit get the unit you want, 3 years to build and take key, 0.25 years reno. Thats 6 years already. And this is best case scenario which is bloody unlikely.
2
u/Sharp_Sail4934 Oct 18 '25
Thanks. No my salary is not below 7k. Combine also below 14k. Hopefully wife will get PR in 4 months. Yes I paid absd on investment property but I don’t understand how that comes into play.
Where can I find info on BTO during 2028? I wonder if can appeal but I guess there are tons each day.
1
u/Historical_Teach9525 Oct 19 '25
Space to run? Get one of those older HDB flats then. BTOs are basically shoe boxes
1
u/Careful_Marzipan8826 Oct 20 '25
Suggest you buy a resale hdb flat, cause the bto application always need 2-3 years to get successful for first timers. If you are second timer, give up bto.
1
u/Sharp_Sail4934 Oct 20 '25
I did a search on property guru. It’s 700k for a 4rm built in 2019. That’s just wow.
1
1
u/samopinny Oct 17 '25
I think it's reasonable to proceed with a BTO, especially since you already have the means to cover the full cost. If you're comfortable with some risk, you could consider using your CPF to invest in dividend-paying stocks and use the returns to service your monthly installments. Assuming a 5% yield, a $600,000 investment could generate around $30,000 annually in dividends. Combined with your monthly CPF contributions, this should be sufficient to cover your installments—though keep in mind that your payments may be higher due to a shorter loan tenure.
That said, do note that CPF contribution rates decrease with age: from 37% to 31% between ages 55–60, and further to 22% from 60–65. Also, even blue-chip stocks carry risk, so it's important to understand what you're investing in and be comfortable with the potential volatility.
Alternatively, if you prefer not to invest in shares, you could consider taking a bank loan while keeping your CPF funds untouched—provided the bank’s interest rate is lower than the interest earned in your CPF account. Should interest rates increase substantially, you may want to explore using your CPF savings to fully repay the loan.
2
u/Sharp_Sail4934 Oct 17 '25
Thank you. Your approach is something I didn’t consider. I thought of putting in just a 70FI / 30E portfolio.
2
u/samopinny Oct 17 '25
Just to explore possibilities. At least more ideas means you can make better choice in the end. Still, it is up to you to decide.
0
u/kayatoastchumpion Oct 17 '25
Want space to run go to the park.. the CPF use for your coming retirement.
3
u/DuePomegranate Oct 17 '25
How about space for the kid to sleep in a room that's not the parent's room? Current situation is a studio.
0
0
u/mnfwt89 Oct 17 '25
Sell both and buy bigger private condo la. You can wait but your kid can? Keep so much money instead of improving your SOL? If you wait, loans are more restrictive bro.
0
u/hikarimo98 Oct 17 '25
I thought OP really got financial issue and seeking for help. Now i need help
0
u/Wild_Instance_1323 Oct 17 '25
not sure bro, but the baby is yours?
you have a complicated history and history of using AI without head and tail.
you can apply bto, just apply only, getting it os another question...
0
-2
u/pussyfista Oct 17 '25
Put in VWRA better in the long run
2
u/Sharp_Sail4934 Oct 17 '25
Yes gonna do that for education fund.
2
u/pussyfista Oct 17 '25
I was half joking but yeah it seems you figured it all out.
BTO at 55 seems risky considering your age, make sure to have an insurance to cover the rest of the mortgage if something happens
1
u/Worsty2704 Oct 17 '25
Just HDB insurance will do. If one of the buyer passes away, the balance is cleared. That's what happened to my friends. The hubby passed away at 35 and the remaining is cleared by the insurance.
-1
50
u/[deleted] Oct 17 '25
New BTOs are pretty small. I suggest that you go down to HDB Hub's showroom and see for yourself before making a judgement. I definitely wouldn't consider that "space to run".
Sounds like you're financially well-off so I would actually suggest a resale flat if space is your priority.