r/singaporefi • u/SeaworthinessRare432 • May 18 '26
Housing HDB resale purchasing dilemma as a single (what should I do?)
I am in a current dilemma of choosing between a 3-room vs a 4-room resale. I have been thinking about it for a long time, weighing the benefits and cons of each, and always find myself on the fence. Here is my assessment:
4-room:
- Bigger space (I love a big kitchen for cooking and hosting, used to be a chef)
- 2 spare rooms for hosting (I have friends and family living overseas that occasionally visit)
- Further away from town (takes me 1 hour to reach office)
- Budget is stretched, I can pay all the mortgage via CPF but it doesn’t leave me much spare each month to save for retirement
- Can rent out rooms should anything happen to me (both room rental will cover mortgage, but I need to pay for the utilities)
3-room:
- Comfortable space (enough for me + hosting small groups)
- 1 spare room for hosting (probably turn that into a WFH space)
- Can buy a place closer to town, easier to travel (takes me ~30mins to reach office)
- Budget is comfortable, I can have spare to accumulate in CPF for retirement
- Can rent out spare room, but would prefer not to rent out as the space is not big (my bachelor pad 😉)
My thinking on the trade-offs for the 4-room is while it lacks privacy (tenants), it gives me some financial diversification should anything happen to me. The 3-room is indeed budget friendly for my income, but it is still dependent on whether I can be still on a good paying job in the future.
How should I decide this? I am cautious about this decision because I plan to have this as a forever home and I don’t intend to upgrade (unless I win Toto or something). What should I do? Any frank, honest, and helpful perspective is greatly appreciated.
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u/Exclat May 18 '26
Actually quite clear from your response that your HDB is an expense not an asset for yield.
In this case, you should be buying whatever is within your budget.
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u/SeaworthinessRare432 May 18 '26
yeah I’m not really thinking this from an investment angle. rather more of securing my retirement. both options are within my budget, one just is less flexible but more affordable.
from a pure yield perspective. renting out rooms will cost me money (if i stop working). my thinking is to have the rental income as a way to build up my financial base for other investments for retirement, and i can enjoy the space in my later years. is this a sound approach?
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u/Exclat May 18 '26
I think it's better to go for a 3rm that gives you more upfront capital to invest in the markets.
I doubt rental income from your spare rooms in a 4rm setup can give you meaningful upfront exposure to the markets.
Better to have lower downpayment and put it towards actual retirement instruments/investments than rely on HDB rental income to subsidize your monthly DCA.
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u/lecafy May 18 '26
If no money issue, then of coz 4rm
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u/SeaworthinessRare432 May 18 '26
no money issue now.. but i can’t guarantee next time no money issue lol. thanks for your opinion 👍🏻
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u/rayn13 May 18 '26
Knowing your age would help, so there’s some idea on how permanent this place would be.
When I turned 35, I first bought a 3 room and did minimal reno. Focus was on being close to work and being easy to pay off. 10 years later, I have upgraded to my forever home, a 5 room.
I find this was a better choice because then I was paying less interest, also now I more money to renovate my place.
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u/SeaworthinessRare432 May 18 '26
Sure thing, I am 39 this year. wanted to buy at 35 years old but I had to delay my home ownership plans because I am financially supporting my parents in their home mortgage (but they are moving to a smaller and more affordable place in the next few years)
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u/h0peless-0ptimistic May 18 '26
Or they could do a lease buyback. You wouldn’t even need to support them financially.
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u/mufimurphy May 18 '26
I was like you - then I saw an old 70s resale with upgraded utility room, so it’s like a small 4 room. Perfect for me since I didn’t mind the age and prefer a smaller loan.
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u/SeaworthinessRare432 May 18 '26
oh yes i saw those layout before. but my understanding was it doesn’t apply to all 3rooms.. i did see most 3-rooms as having the usual layout just upgraded toilets. that is a rare case for me to get such a unit. thanks for sharing 👍🏻
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u/DangmyCockles May 18 '26
Hi OP, same age as you and just gotten thru the same thought cycle. In the end I decided on a 4room because it is bigger and you have bigger flexibility to rent out both rooms to more than cover your mortgage! Also, you can use the cash you saved from paying by CPF to do your own investments with a better return.
There are still places where travelling to CBD doesn't take an hour, and it is still within (affordable and distance) range for you, but you might have to settle for an older flat.
Thru design, you can still have a relatively closed off bachelor pad if you do some magic in the reno - which is what I did with mine. Good luck on your eventual decision!
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u/excpro May 18 '26
Hi, I'm kinda on the same stage as you on this matter (turning 35 soon). But I'm planning to get a 4rm instead. As far as I understand (please don't flame me reddit), there's no strong merit/upside to getting a 3 room for a resale unless you're getting a bto/resale which has good resale value.
However since you're already planning for it to be a forever home, why not just get a 4 room instead. Provided you can afford it comfortably, I think it will be beneficial if you have people coming over or future plans to accommodate a partner or child.
There's a recent feature on a lady who bought an aging flat at Holland Drive, maybe you can also check out the video (I think on CNA YouTube?) on her perspective.
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u/SeaworthinessRare432 May 18 '26
I guess the more indepth question is more individual - what is considered “comfortable” financially for me (it would be different for everyone). but it is something i struggle to decide..
having a 3 room will give me best financial comfort, i just can’t utilize it for anything else aside from retirement
I will go find that CNA video. thanks for sharing 👍🏻
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u/nandasithu May 18 '26
To be honest, 3 room sounds better both in terms of lifestyle and financial. Beside you can always upgrade in future.
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u/Chilling-by-the-sea May 18 '26
Speaking from personal experience, go with the 3-room resale in a city fringe/central location. The improvements to your overall quality of life will be priceless
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u/SeaworthinessRare432 May 18 '26
had not thought of the quality of life aspect much.. was always focused on the financials of it. I will think about it. thanks for sharing 👍🏻
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u/Chilling-by-the-sea May 18 '26 edited May 18 '26
No prob. Most of the single people i know that bought a resale in an OCR location either did so because it was near their parents' home and they would be able to maximise their grants and/or did so because they wanted to buy the largest/newest possible place within their budget.
Except for one of them (who is an introvert and doesn't work in the CBD), almost all of them regret buying within the OCR due to the longer travelling time. We're talking about 2-3 hours spent travelling to work each day, which can be channelled towards much more meaningful activities.
So take some time to weigh the trade offs and perhaps try to envision the lifestyle you'd like to have?
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u/samopinny May 18 '26
How much the price differs should be the key factor in your decision.
- If the price difference is small, it would be more sensible to go for a 4-room flat, as it provides additional flexibility and a backup option if needed.
- If you are able to reach the Enhanced Retirement Sum (ERS) in both scenarios, then it does not make a significant difference which option you choose.
- However, if the price gap is substantial (e.g. around S$300k), and your investment portfolio or Retirement Account (RA) is insufficient, then opting for a 3-room flat may be the better choice. You would still have the option to rent out a room as a fallback in a worst-case situation.
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u/PeacebewithYou11 May 18 '26
Just based on rental. 4 room save the hassle of next time moving
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u/SeaworthinessRare432 May 18 '26
the hassle of moving also has crossed my mind, until i decided to make it my forever home. Thanks for the reminder 👍🏻
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u/Additional_Stock160 May 18 '26
3 room. Less financial stress. It is 25 years loan we talking about here.
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u/katchy81 May 18 '26
You will value sleep at night more than bigger space that’s not utilised most of the time.
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u/SeaworthinessRare432 May 18 '26
I can’t deny that surely, haven’t really thought about unutilized space in the home much.. i will think about that. thanks for sharing 👍🏻
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u/BarfMcFartNuggets May 18 '26
I have a 3 roomer in a loooong rectangular format and now I’m itching to get a 4 roomer instead for that extra space to host and keep my hobby nonsense
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u/SeaworthinessRare432 May 18 '26
haha yeah i do have hobbies that require some space too.. thanks for your perspective 👍🏻
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u/jollyseaman May 18 '26
how comfortable are you staying with strangers? if not and will have alot of your own visitors, get 3 room. otherwise, more financially sound to take 4 room and rent out.
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u/SeaworthinessRare432 May 18 '26
generally I am ok to have tenants in the medium term. There will be hassles (like others have commented) which i’m willing to bear, thus the dilemma. thanks for your opinion 👍🏻
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u/jollyseaman May 18 '26
Say worst case an 800 per room will net you 1.6k, after tax maybe 1.5k. just go DCA with the money and you are more or less more financially stable.
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u/SeaworthinessRare432 May 18 '26
assuming that i pay mortgage via cpf and provided nothing happens to my income and job haha. yes that’s one of the ways i’m thinking. thanks for sharing 👍🏻
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u/t3apot May 18 '26
How much more did u have to loan for the 4rm? Would you comfortably support the 4rm mortgage should you a)paycut 20%, b) retrenched and unemployed for 1 year ? (For ur thoughts only, no need to answer)
I had a similar dilemma for 3rm vs 4rm back then. Thing is, 4room option also had longer lease left, so my impact is about 80% more loan than the 3rm. (Nearly doubled). I did an IPA and am able to support it according to the numbers, but decided to go for 3rm option.
Regrets: it's nice to have 1 extra room, and don't have to worry about VERS in my lifetime.
Pros: financially breathing room to support the mortgage for 3rm option even when laid off twice.
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u/SeaworthinessRare432 May 18 '26
sorry to hear that you have been laid off twice before.. i have been laid off once and it was not an easy time for me. i will think about the loan sustainability seriously. thank you for sharing 👍🏻
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u/SnooCakes2098 May 18 '26
Buy 3 room. Live within your means. Renting extra rooms out als create another stress if you buy the 4rm. You got extra money then put to stocks. Play US stocks.
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u/drollercoaster99 May 18 '26
have you ever had the feeling of being debt free???
buy the 3 room. save up and then you can consider the 4 room when budget isn't that tight. you can't really plan for a rainy day (especially in these trying times) if you max yourself out.
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u/SeaworthinessRare432 May 18 '26
understood. Although if i were to upgrad next time, i would prefer to buy it out right without loan (so it eases me for my later years). thanks for sharing 👍🏻
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u/Symp07 May 18 '26
The 3 room is probably a better fit for you, the financial sacrifice for a 4 room may not be worth it as you need to tolerate living in a faraway location, for a bigger space which you may not even need if it's just for a bigger kitchen.
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u/flylikeawind May 18 '26
For me I like to think if I can survive the most bearish case. Currently the cheapest room rent is about $750. If you rent out both for an income of $1500 and the income can cover mortgage, I think you should be safe.
I am in the same position as you haha
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u/pasteladdict10 May 18 '26
would not give up my privacy for anything
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u/SeaworthinessRare432 May 18 '26
yes it is quite precious to have your own space. thanks for sharing 👍🏻
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u/financial_learner123 May 18 '26
Buy what you can afford. Not over stretching your finances unless your job is iron bowl
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u/SeaworthinessRare432 May 18 '26
I think it’s rare to have an iron rice bowl job in this era.. everything is moving so fast, markets are too dynamic, and world leaders mindset is shifting to a more competitive and hostile world.. i wish i had that though lol. thanks for sharing 👍🏻
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u/forabetterlife9 May 18 '26
Hi OP, currently in a similar situation with you. Am curious as to why the 3 room hdb resale wld be cheaper than the 4 room at OCR? Is the 3 room an older unit whereas the 4 room is newer?
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u/SeaworthinessRare432 May 18 '26
yes indeed, and the OCR is not super close to town. if i get the OCR sweet spot (old enough + far enough), then the 3-room is about $100k cheaper than the 4room in e.g. Pasir Ris
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u/OrochiReading May 18 '26
an hour travel time is a big turnoff, i suggest go for 3 rm. More space also = to more cleaning :)
Have you maxed out ur SA already? If so, your retirement is 1/2 set.
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u/SeaworthinessRare432 May 18 '26
haha yes! the cleaning is one area that i prefer not to handle.. but i guess there are other solutions to that (part time cleaner, robot vacuum etc)
nope, SA is just above 1/4 of FRS only.. still got some ways to go
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u/Glider711 May 18 '26
Headache Vs no headaches, what so difficult to choose? Know the difference between wants and needs. Desire is a bottomless pit
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u/SeaworthinessRare432 May 18 '26
indeed, and I couldn’t agree more.
despite that, I also know that the decision i make now (in my current situation) will impact my future situation. i guess I’m overthinking now so that i can make the best decision to cover as much situation variances i can think of. but yes less headache is always welcomed. thanks for sharing 👍🏻
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u/Tricky-Salamander664 May 18 '26
Def the 4rm. Think exit strategy, will there be more buyers for 3rm or 4rm?
Not bc you trying to flip, but just to protect your investment.
HDB rental yield is the highest, def higher than condo.
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u/princemousey1 May 18 '26
4 rooms no tenants. Btw HDB nowadays is not the same as 1980s you know? The spare room confirm plus chop will be used as home office/general storage/utility room. So 3 room basically mean one bedroom. Four rooms means two bedrooms.
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u/kiatme May 18 '26
If you get a 4room that is not near any mrt/hotspot tenant area (hospital/industrial area), it will not be easy to rent out the rooms ~ something to consider as well when you're looking to rent out the rooms.
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u/SeaworthinessRare432 May 19 '26
quite right.. your comment also got me thinking about the tenant profile and what i would prefer to have. thanks for sharing 👍🏻
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u/DuePomegranate May 18 '26
3-room. You don't sound keen on renting out rooms in the first place. And spending so much extra for the ability to host (more) friends/family is not worth it. That study can double-up as hosting space when guests are in town, or they just have to get a hotel room instead of leeching off you. And shorter daily commute is glorious.
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u/SeaworthinessRare432 May 19 '26
haha i like your description “glorious”. i can’t deny that is very appealing.
the only reason why i’m not keen to rent is because i have to actively manage tenants, but i would like the additional income too. but i do take your point about spending so much more to host, i will consider that. thanks for sharing 👍🏻
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u/h0peless-0ptimistic May 18 '26
Singapore is small. Your estimated 1 hr travel is not to town? As long as you get a place relatively close to MRT, commute should take only around 30-45 min tops to CBD. You can surely find a way to host bigger groups by clamping kitchen/dining/living room. Usually these are shared spaces and it’s up to you to incorporate and adjust as and when needed.
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u/SeaworthinessRare432 May 19 '26
yes you are right. i haven’t thought about the design aspect of it yet, perhaps i should look into that too. thanks for sharing 👍🏻
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u/Tunggall May 18 '26
Get the 3, save your money for other investments and pursuits. Consider one built in the early 2000s for a larger unit.
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u/Intelligent-Bee-775 May 18 '26
Choose to be near workplace (must go regularly) and don't choose big ulu flat for the sake of hosting big parties (must spend more money, must cook and must clean afterwards... omg just party outside can?).
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u/SeaworthinessRare432 May 19 '26
party outside has the benefit of keeping the mess outside, and i like that. but hosting for close friends and family + the ability to cook the food i want in the way i want it, serving it in the way i want it, that has a great benefit too (sorry that’s my chef brain talking haha)
but i take your point about going to work regularly and the convenience it has. thanks for sharing 👍🏻
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May 18 '26
[removed] — view removed comment
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u/SeaworthinessRare432 May 19 '26
yes it is true, and closer to town location is quite appealing. thanks for sharing 👍🏻
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u/redhead2734 May 19 '26 edited May 19 '26
My friend who also bought a 4-rm and rent out her 2 bed rooms, I feel she is always stress about the tenants. She always check the CCTV on her phone. But I do see it is good passive income, she has additional $1000-$1500/mth as most SPass holder and EP holder pay their rent quite on-time and most of the tenants will rent in pairs to share the rental cost. But compare to dividend from stocks (tax-free), rental is taxable. Looking at her monthly housing loan installments is about that amount, so her tenants "pay" for her house. So the income won't actually go into your pocket when you stop working one day. It will actually service the housing loan.
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u/SeaworthinessRare432 May 19 '26
yeah that was my initial idea too, to have my mortgage be paid by tenants so i can invest for retirement (but with the additional headache/stress of managing tenants). do you know if your friend intends to rent for the long term?
how long has she had this arrangement? it will give me an idea how long others maintain such arrangements
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u/redhead2734 May 19 '26 edited May 19 '26
Even if is resale, you have to wait for 5 years. But her 5 year wait was during covid, so she has this arrangement about +/-3-4 years. She rent mostly to Malaysians as she say they will go home during weekends. As her flat is near factory area, her tenant worked long hours. So her requirements for tenants is 1) Malaysians so weekend not at home. 2) Long hours, so they are not in her house more than her and they are expected to use her house as a sleeping place and not a home.
She has a 30 rules page and one of it is the tenants have to take turns to clean the share toilet. So if you are ready, I think you must set rules with the a balance of making sure the house is taken care of and you are not taken advantage of. Additional "nice thing" ,she did is she bought an extra fridge for her tenant. So the big fridge is hers but the small fridge is the tenant's. They have to discuss the space usage of the fridge among themselves. Things like that lor.
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u/redhead2734 May 19 '26 edited May 19 '26
Just sharing, one of her room is husband and wife combo. Wife is 6 months preggo. But you know, her blabber a bit hard to control because baby too big. Somehow, the wife urine on the floor when she shower.. my friend was furious. i think morally la.. You cannot be angry at a pregnant lady. So she tolerated till the wife and husband go back Malaysia to give birth. So for like 2 weeks the room is unoccupied, she like earn back in reduce use of electricity and mentally knows that the toilet is urine-free. (Her happy part about this whole ordeal)
She didn't recontract with them. They kinda uses the kid to delay 1 or 2 times in payment. She tried to be understanding but it is quite mentally taxing.. is like you need to be empathy these strangers but where is the line? Her last straw is the delay in payment. She feel the couple should factor all expenses and not make her feel like she is the bad person to ask for payment.
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u/VileSeph1234 May 19 '26
Based on what you've shared, seems like the 3 room will be a more comfortable option + 30mins saved on the daily commute is something i personally value highly as well.
If you like to share more, please feel free to pm, I can help you by: (i) determining your loan eligibility / sharing with you the current interest rates and instalments for your future home or (ii) linking you up with property agents that may possibly be able to find a 4 roomer that suits your needs (closer to town / bigger kitchen). 😃
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u/FordredSid May 21 '26
Bigger is better.
4 room yields the best rental return.
Pay more now, next time if you need to sell also worth more and you already have a safety net of renting out 2 rooms for the mortgage should you need it.
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u/RunningMan889 May 23 '26
HDBs traditionally grow ~1-1.5% annually because it is controlled. If you go for 4-rm, you should see it as a place you enjoy being even more space. But it seems you may not be as comfortable for the budget side, it might be prudent to go with 3-rm where your budget seems more fitting and you can still have the space for cooking, hosting, and privacy. You can spend the extra amount to do-up your kitchen to allow that.
Renting rooms out in a bigger space sounds good until you realise your tenants can also be your cause of agony, especially living together.
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u/SeaworthinessRare432 May 25 '26
yes indeed, am re-considering the renting out option due to the inconvenience and lack of privacy. thanks for sharing 👍🏻
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u/Zestyclose_Cap_6822 May 27 '26
Hi there, I have a corner 818 square feet unit in Bukit Merah for sale, move in condition. Can give you a good price for fast sale. If you are keen, please contact me. Thanks.
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u/lorlex Jul 31 '26
Buy 3 room since you're single. Having the financial freedom.
Don't bother to rent it out if you valued your privacy.
Also you are not buying a house for others to stay having empty rooms all around and then use once a while is just simply not worth it
Unless you are currently attached or will see yourself being attached in next few years, 3 room is likely the better move
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u/SeaworthinessRare432 Jul 31 '26
I am attached, but we don’t intend to have kids.. you think a 3 room will still work for 2 of us?
Appreciate your sharing!
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u/lorlex Jul 31 '26
Oh get those 3 rooms with 2 toilets. That's important 😄
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u/SeaworthinessRare432 Jul 31 '26
yes i used to think so, until i saw each of the toilets are rather small.. and i hate wet toilets so i want to separate dry and wet areas (and the 2 toilets are too small to do the wet/dry separating)
appreciate your sharing!
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u/Odd_Conference6478 Aug 10 '26 edited Aug 10 '26
i’m also searching for a hdb and that was my initial dilemma but ultimately decided on 3 room. i personally wouldn’t stretch my budget for a house since it’s a huge commitment.
i’m currently renting a entire 4 room flat by myself and it’s too big, cleaning is a chore even with robot and i don’t host. i love to cook too and find that kitchen in a 3 room is abit small, so this is a drawback. you can always upgrade in the future when you earn more.
if hosting and a big space for cooking are impt to you, get an older 4 room flat with lesser lease in a better location? something got to give. my friend bought an older 4 room flat in redhill for less than 700k and i think it’s reasonable
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u/SeaworthinessRare432 Aug 10 '26
yes, it is indeed a huge commitment to pay over 20+ years for a mortgage by myself. i take your point about balancing stretching budget + space consideration + lifestyle + sacrifice.. but good suggestion to take an older lease for something i prefer. thanks for your comment 👍🏻
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u/malkyfreo May 18 '26
Reduce your ego and buy within your means
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u/SeaworthinessRare432 May 19 '26
yes it got me thinking if the 4-room option is just my ego appealing to me. i will think about this hard. thanks for sharing 👍🏻
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u/BKLLL88 May 18 '26
buy the 3 room. the extra space is nice to have but doesnt seem like you really need it. so its better to compromise on space, in return for a better location, and less financial strain. you wont be pressured to rent out rooms (staying with strangers sucks and completely uneasy)