Asset Progression -

Asset Progression

What is Asset Progression?

For many of us, our dream is to own at least one home in which we can spend our days carefree & worry-free with our own families and close ones. We can enjoy our days peacefully and with joy, even whipping up family meals on weekends with one another and bonding over food. We’d love to stay somewhere exclusive – even living on the first floor of our apartment building means we don’t get pesky strangers peeking into our windows and doors. Our children and fur kids can roam free nearby and enjoy what our estate has to offer, while we can relax after a long day at work.

While we can’t get this from living in an HDB apartment, we certainly can achieve it living in a private condominium. Upgrading from an HDB to a private condo is a dream for many – and it is totally doable if you can plan & strategise it right early on, regardless of whether you are already living in an HDB, or about to buy your first property.

Asset progression means you upgrade your lifestyle to fit the one of your dreams. It means you can retire comfortably, knowing that apart from living in the home you love, you can also potentially earn a monthly income from your second, or even third, rental property (which may or may not be in Singapore).

HDB Sale Cash Proceeds

If you’re already living in an HDB apartment and are planning to sell, here’s a simple formula to calculate your cash proceeds to help you determine your next steps in asset progression:

Cash Proceeds = Sale Price – Outstanding Loan (if any) – CPF Principal Sum Used – CPF Accrued Interest – Lawyer/Conveyancing Fees – 2-4% Agent Fee – HDB Admin/Other Fees

Let’s look at a real life case study (numbers are estimates):

Couple Profile – Married Couple living in 4-Room BTO

HDB Purchase Price – $290,000

Total CPF Principal Sum Used – $135,000

Total CPF Accrued Interest after 5 years – $17,700

Outstanding Loan – $170,000

HDB Sale Price – $430,000

The cash proceeds for selling their current BTO will be:

Cash Proceeds = $430,000 – $170,000 – $135,000 – $17,700 – $2100 – $8600 – $400

= $96,200

Positive vs. Negative Sale

In the above example, the couple goes through what we call a positive sale as their cash proceeds is a positive value. They can then use this sales proceeds to help fund their next property. Now, let’s say they sell their apartment only after 20 years. While their mortgage will be reduced, their CPF accrued interest will go up with compound interest, which snowballs over a certain period of time.

Total CPF Accrued Interest after 5 Years – $17,700

Total CPF Accrued Interest after 20 Years – $86,200

What does this mean?

The longer you hold on to your HDB, higher your CPF accrued interest, the less your cash proceeds will be when you do sell your HDB flat. As seen from past data and statistics, the value of HDB flats decrease over time. This means that if you want to obtain a higher profit margin from selling your HDB flat, you need to sell it early so that you can cash out and purchase your next home, which can potentially be a private condominium. This is what many upgraders have done, and I believe that you can do it too, if you take action early.

“But if everybody is selling their BTOs to upgrade, who is left to buy our resale HDB?”

I believe that for every home, there is a buyer/proud owner. There are many instances of people who buy a resale HDB. Some examples include couples who do not qualify for a BTO due to the income ceiling criteria, people who have already upgraded and now want to fully pay off their home to live out their retirement days, or even people who have significant investments and vested interests in areas other than property. 

“Why should I engage you to be my property agent?”

You don’t know what you don’t know. Maybe you’re clueless about property, maybe you’re not. Maybe you know a little something but are not sure how to get started. And don’t get me started on all the policies that keep changing with time. All these new launch condos look so amazing but you’re not sure if getting one is the right choice for you. That’s where I come in.

When you engage me as your realtor, it’s never a touch-and-go process. I work closely together with my clients in a form of long-term trusted partnership to carve out a lifelong plan for you. I believe that alone, you are strong but together, we are unstoppable. Together, we will plan and strategise a way for you to upgrade, taking into consideration your lifestyle requirements, right up to the price point of the condo you should be looking at (and the realistic pricing to set your resale apartment if you’re selling yours).

You also get access to my team of other realtors, top producing managers & consultants, bankers and lawyers for the best professional service possible. When you engage me, you not only tap on my services but also that of all those with whom I work, so that everything is seamless & convenient on your end.

It’s a no brainer. Why wouldn’t you engage me?

If you are about to make your first purchase in property but aren’t sure whether you should invest in a condo or an HDB, or are thinking of upgrading from your current HDB flat, contact me for a quick consult below.

I can also be reached via email at or (+65) 90470416.

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Roxanne Chia Realty Propnex

Roxanne Chia Realty Propnex Top Agent

Roxanne Chia  谢如瑄
Retirement & Legacy Planning with Property, PropNex Realty Pte Ltd

Mobile: (+65) 90470416 (Whatsapp)
Email: /
CEA: R059253Z

🏆 PropNex TOP 20% 1st 9 Months in 2019
🏆 PropNex GOLD Achiever Mar’19
🏆 PropNex Overall 2018 Champion Team
🏆 PropNex Singapore & PNG Champion District

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Transforming lives, one home at a time.