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6 Common Mistakes The Silver Generation Should Avoid When Rightsizing From Private Property To HDB
- Vivian Chong
- 18 hours ago
- 10 min read
I recently met up with two long-time clients who are now thinking about the next chapter of their lives and whether they should rightsize from a condo to an HDB flat.
Mr and Mrs Teo live in a 4-bedroom condo in the Bayshore area. Their children have grown up and moved out, and as they enter their retirement years, they are wondering if shifting to a smaller HDB flat would give them more comfort and financial peace of mind.
Another client, whom I will call Jane, is a single mum. Her son is studying overseas and has no plans to return soon. She currently lives in a 3-bedroom condo in Meyer Road and is considering moving to an HDB flat so she can free up cash from her sale for retirement.
You might be at a similar stage of life where your children have left home and you prefer simpler living. Or you may want better cashflow and less effort in maintaining a large property. In this season, rightsizing from a private property to an HDB flat can be a very practical and comfortable option.
But rightsizing is a big decision, especially for our silver generation. I often see our seniors make common mistakes that can be avoided with proper planning.
Here are six common mistakes to take note of when planning your next move:
Not understanding the financial timeline of selling and buying your homes
Not knowing the true cost of selling and buying
Poor planning of your move-out and move-in timeline
Not understanding the latest HDB rules for the silver generation
Not understanding CPF usage for older properties
Not understanding the financial policies set by MAS for housing loans
Let me share more in this article.
1) Not understanding the financial timeline of selling and buying your homes
I only want to sell my condo after I find a place I like.
This is something I hear very often from homeowners. It is completely understandable. No one wants to be left without a place to stay, especially in our silver years when comfort and stability matter even more.
But here is an important point many do not realise.
When you finally find a home you love, you may not be able to commit to the purchase if you need the funds from the sale of your current home. Your cash and CPF are still tied up, so you cannot make an offer with confidence.
Even if the seller is willing to wait, you may feel pressured to sell your home quickly. This often leads to compromising on your selling price or accepting offers that are below your ideal range.
On the other hand, some people consider putting their home up for sale first. This can work if you have another temporary place to stay. But for many in the silver generation, moving twice is stressful and physically demanding.
This is why proper planning of your financial timeline and sequence is so important. It helps you avoid rushed decisions, unnecessary pressure and unwanted disruptions.
2) Not knowing the true cost of selling and buying your homes
Selling your condo at $2 million does not mean you will walk away with $2 million in your pocket.
The amount you actually receive is usually very different from the sale price.
Your net proceeds will be reduced by your outstanding bank loan, CPF refunds with accrued interest, lawyer’s conveyancing fees and your agent’s commission. All these affect how much you can comfortably spend on your next home.
You should also take note of any penalties if your bank loan is still within the lock-in period, and the Seller’s Stamp Duty (SSD) if you are selling within 3 years of your purchase.
So, what are the costs involved when buying your next property?
The typical upfront costs include Buyer’s Stamp Duty (BSD), lawyer’s conveyancing fees and agent’s commission.
Do also check the HDB resale levy if you are buying your second subsidised HDB flat, such as a BTO flat.
3) Poor planning of your move-in and move-out timeline
During my first meeting with clients, I always ask two key questions:
Can you sell first before you buy? Most homeowners say, “I have nowhere to stay if I sell first!”
Then I ask the second question:
Can you buy first before you sell? And the usual reply is, “My cash and CPF are tied up in my current home!”
This is why, for many people, the best solution is to buy and sell concurrently.
While this is the best arrangement, it requires proper timeline planning. Without it, the entire move becomes stressful.
When you are moving from a condo to an HDB flat, these points are important:
Your condo completion should happen at least 3 weeks before your HDB completion. This allows your CPF and cash proceeds from the sale to be used for your HDB purchase.
Negotiate an extension of stay with your condo buyer. This lets you remain in your condo after completion while your HDB purchase and renovations are being settled. The extension is part of the sales negotiation.
You may consider a bridging loan if you need temporary support during the transition.
If the timeline is not planned properly, you may end up needing to rent a place before moving into your new home. Anyone who has moved before knows how tiring and stressful it can be. This is even more so for our seniors.
Proper move-in, move-out timeline planning is of utmost importance.
4) Not understanding the latest HDB rules for the Silver Generation
When rightsizing from a private property to an HDB flat, it is important to understand the current HDB regulations. These rules affect your timeline, your eligibility and the benefits you can receive.
Here are the key regulations you should know:
a) 15-month wait-out period for private property owners buying resale HDB flats
If you are under 55, you must complete a 15-month wait-out period after selling your private property before you can buy resale HDB flats. This rule was introduced because many private property owners were rightsizing to HDB, pushing up demand and resale prices.
Good news for the silver generation: If you are 55 or above, you are allowed to buy a 4-room resale HDB flat or smaller without serving the 15-month wait-out period. This exemption makes it easier for older homeowners to rightsize.
Earlier this year, I assisted a client in her late 50s with her move from a 3-bedroom apartment in East Coast to a 4-room HDB flat in Marine Parade.
She explored the option of a 5-room flat initially. After reviewing the financial implications and considering the required 15-month wait-out period, she decided that the 4-room flat would be a more practical and timely choice.
Guiding her through each step was truly rewarding, and reminded me how meaningful and personal the rightsizing journey can be for clients at this stage of their lives.
b) 30-month wait-out period for buying BTO flats
Regardless of your age, the 30-month wait-out period applies if you wish to apply for a BTO flat after selling a private property.
For seniors and young seniors who want to rightsize quickly, a resale HDB flat tends to be the more practical option.
c) CPF Grants and wait-out rules
If you plan to apply for housing grants, such as the CPF Housing Grant or Enhanced CPF Housing Grant, you will need to wait 30 months after selling your private property before you are eligible.
d) Silver Housing Bonus (SHB)
For Singaporeans aged 55 and above, the government offers the Silver Housing Bonus when you rightsize from any property (private or HDB) into a 3-room or smaller resale flat.
How it works:
You top up $60,000 into your CPF Retirement Account using your sale proceeds
The government gives you a cash bonus of up to $40,000 (1 Dec 2025 onwards)
This scheme is designed to help the silver generation strengthen retirement income while moving into a home that suits their lifestyle.
e) Other things to note
Remaining lease rules still apply when buying older HDB flats. The lease must cover you to at least age 95 for you to use full CPF.
Ethnic quota and SPR quota may affect which units you can buy in certain blocks.
If you plan to rent out your unit later, there are HDB rules on minimum stay and approvals.
Understanding these regulations early helps you plan your move smoothly, avoid delays and take advantage of incentives meant for your age group.
5) Not understanding CPF usage
CPF rules can feel confusing, especially when buying or selling homes in your silver years. But understanding them is important because CPF directly affects how much you can use for your next home, and how much you must refund when you sell your current one.
Here are the key points to know:
a) When you sell your properties after age 55
If you used your CPF to purchase the property, you must refund the CPF amount withdrawn along with the accrued interest back to your CPF Ordinary Account (OA).
If you are aged 55 or older and have pledged your property to meet the Full Retirement Sum (FRS), you must also refund the pledged amount in addition to the CPF used and accrued interest.
The refunded CPF will first be used to top up your Retirement Account (RA) to reach your FRS. Any remaining balance will go back to your CPF OA. You may still withdraw any amount above your FRS if you meet the withdrawal conditions.
b) CPF usage rules when buying older HDB flats
Older flats come with additional CPF conditions. These rules are meant to ensure buyers have enough retirement savings.
The amount of CPF you can use depends on the remaining lease of the flat and whether that lease can cover the youngest buyer to at least age 95.
Here are the key guidelines:
If the flat’s remaining lease covers you to age 95, you can use full CPF.
If the lease does not cover you to age 95, the CPF usage will be pro-rated.
If the flat’s remaining lease is less than 20 years, CPF cannot be used at all.
6) Not understanding the financial policies set by MAS for housing loans
Many homeowners are not aware that Monetary Authority of Singapore (MAS) has rules that affect how much you can borrow for your next home. These rules apply whether you are buying a HDB flat or a private property.
Here are the key points to know:
Total Debt Servicing Ratio (TDSR): This limits how much of your monthly income can be used to repay all your loans combined. If you have other loans or lower income in your silver years, your borrowing amount may be reduced.
Mortgage Servicing Ratio (MSR): This applies when buying HDB flats. It limits how much of your income can go into your HDB loan each month. It can affect the size of the loan you qualify for.
Loan tenure and age: Banks gives shorter loan tenures as you get older. A shorter tenure means higher monthly payments, even if the loan amount is small.
Loan-to-Value (LTV): This determines the maximum percentage of the property price you can borrow. It may be lower if you are buying a HDB flat with shorter balance lease.
These policies help homeowners avoid over-stretching, but they also mean that proper financial planning is needed when rightsizing in your silver years.
Frequently Asked Questions (FAQ)
1. Should the silver generation sell their private properties first before buying a HDB flat?
Most homeowners cannot buy first because their CPF and cash are tied up in their current home. Selling first can also be difficult if you have nowhere to stay. The best solution for many is to buy and sell concurrently with proper timeline planning.
2. How long is the wait-out period when moving from a private property to an HDB?
If you are 55 and above, you can buy a 4-room HDB or smaller without serving the 15-month wait-out period. If you want to buy a BTO flat, the 30-month wait-out period still applies for all ages.
3. Can I use my CPF to buy an older HDB flat?
Yes, but how much CPF you can use depends on the remaining lease and whether it covers the youngest buyer to age 95. If it does not, your CPF usage will be pro-rated.
4. What must I refund to CPF when I sell my private property after age 55?
You must refund:
The CPF principal amount you used
The accrued interest
Any pledged amount used to meet the Full Retirement Sum (FRS).
5. What costs should I expect when buying a HDB flat?
Typical costs include Buyer’s Stamp Duty (BSD), conveyancing fees and agent commission. You may also need to pay a resale levy if you are buying your second subsidised HDB flat.
6. What costs should I expect when selling my private property?
You must account for your outstanding loan, CPF refunds with accrued interest, legal fees, agent commission and any bank penalties if you are still in a lock-in period.
7. What MAS rules affect how much home loan I can get?
Your loan amount is affected by:
Total Debt Servicing Ratio (TDSR)
Mortgage Servicing Ratio (MSR) for HDB
Loan-to-Value (LTV) limits
8. Is rightsizing suitable for the silver generation?
Yes, many choose it for easier maintenance, lower expenses and more financial flexibility. But it depends on your lifestyle, income and long-term plans.
9. What is the Silver Housing Bonus?
It is a government incentive for Singaporeans aged 55 and above who rightsize to a 3-room or smaller resale flat. You can receive up to $40,000 in cash when you commit to a net increase of up to $60,000 in your CPF Retirement Account (RA) after rightsizing.
10. What happens if my timeline is planned poorly?
You may end up needing to rent a temporary place or make rushed decisions. Proper planning helps you avoid unnecessary stress, extra cost and back-to-back moves.
Conclusion
Many Singaporeans start thinking about rightsizing once their children grow up and the home feels too big. If you are in your silver years, moving from a private property to a HDB flat can give you more comfort, less stress and more financial freedom.
If you want to explore your options, I am here to guide you with patience, care and integrity.
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About The Author
Vivian is an experienced real estate agent who has been in the industry since 2002.
Over the years, she has transacted numerous property deals including HDB & private properties. She is well-versed in policies and regulations involving the sale and purchase of residential properties. She has also handled many transactions involving complicated situations like contra, divorce, administration/probate cases, and decoupling / part-share purchase.
Vivian is also a mother to 2 boys. Being a real estate mom allows her to spend much time with her children as they were growing up. Both boys are avid footballers representing their schools and clubs. She loves watching their games and hardly misses a game whenever they play.
Vivian is an active real estate salesperson and team leader. Call her at 98577714 for your real estate matters, or if you are looking to join the real estate industry.
