From public rental to HDB: How one family upgraded their home with my help

A step-by-step guide to finding affordable housing for low-income families

​By Khalil Adis

An HDB flat in Singapore. Photo credit: Yew Hui Tan.

Finding a suitable home in Singapore can be a daunting task, especially for low-income families. As an experienced real estate agent, I recently helped a family of five upgrade from a public rental flat to a 3-room HDB flat in Jurong West. Here's how I did it.
​
Step 1: Work out their total cash, CPF, and HDB loan

Photo credit: Pixabay.

Firstly, I sat down with them to find out their available CPF, cash, and HDB loan.

​We established a total of $30,000 in CPF, $2,000 in cash, and $180,000 in HDB loan.
​
Step 2: Identify grants they are eligible for

We identified three grants that they qualified for: Family Grant ($80,000), Enhanced Housing Grant ($65,000), and Proximity Housing Grant ($20,000), totalling $165,000 in CPF Grants.

Step 3: Work out their total housing budget

Photo credit: Pixels.

After combining their available funds with the CPF Housing Grants, their total housing budget amounted to $377,000.

​With 3-room HDB flats in most estates transacting above $400,000, we had to search for older resale flats.
​
Step 4: Narrow down to HDB estates close to their parents

An HDB estate in Jurong West. Photo: Khalil Adis.

The family's parents live in Jurong West, and we found an older 3-room HDB flat in the same estate that fell within their budget.

​I managed to negotiate the deposit down from $5,000 to $1,500.

Conclusion 

Screen grab of HDB Resale Price Index (RPI). Credit: HDB.

In conclusion, while the HDB resale market is at a record high, there are still affordable flats available, and there are various CPF Housing Grants that you may be eligible for. 

The recent Budget 2023 announcement to increase the Family Grant for 4-room and below HDB flats from $50,000 to $80,000 is a welcome move to reduce the cost of purchase. 
​
With a little research and negotiation skills, low-income families can also upgrade their homes and enjoy better living conditions.