Why Some Buyers Regret Choosing the Cheapest Unit in a Project

Explore how corner stacks, poor facing, and layout compromises can affect resale or daily comfort.

alex

Jul 3, 2025 - 11:38

Why Some Buyers Regret Choosing the Cheapest Unit in a Project

For many Singaporeans entering the property market, one key question often comes up:
Should I buy a home for my own stay first, or purchase a property purely for investment?

Theres no one-size-fits-all answer. The decision depends on your lifestyle goals, financial readiness, risk tolerance, and long-term plans. Buying property in Singapore is a significant commitmentand whether youre choosing a private condo or executive condo, your buying objective influences everything from location to layout and even loan strategy.

Heres a breakdown of what to consider before deciding which route to take.

1. What Stage of Life Are You At?

If youre in your 20s or early 30s, unmarried, and flexible with living arrangements, buying for investment first might make sense. Renting a modest home while owning a property that generates income allows you to build wealth without compromising lifestyle too early.

On the other hand, if youre starting a family, prioritising school proximity, or need long-term stability, own-stay properties should take precedence. Comfort, space, and community become more important than immediate returns.

2. Are You Eligible for Grants or Priority Schemes?

For Singaporeans, eligibility for HDB grants or Executive Condominium (EC) schemes can influence the timeline.

If you're a first-time buyer and qualify for CPF housing grants, it often makes more financial sense to buy for own stay firstespecially if the grant reduces your initial outlay.
Once you own an HDB or EC, buying a second property comes with Additional Buyers Stamp Duty (ABSD) and stricter loan limits, making investing later more expensive.

Buying an investment unit first may reduce your ability to access government-subsidised housing later.

3. How Much Risk Can You Take?

Investment properties come with risk. Rental income is never guaranteed. Prices can stagnate or drop. Vacancies can last longer than expected.

If you're buying solely to generate returns, youll need to:

Understand local market trends
Factor in property taxes and maintenance fees
Prepare for short-term volatility in exchange for long-term gains

Buying for own stay reduces some of these risks, as you're not depending on rental incomeand you gain emotional and lifestyle returns beyond financial performance.

4. What Are Your Financial Commitments?

Buying for investment first requires strong financial discipline and liquidity. You must be prepared for:

Monthly loan repayments, even during vacancy periods
Property tax and MCST fees
Future interest rate hikes

For first-time buyers with modest savings or unstable income, it may be safer to prioritise own-stay needs, especially if youre planning to settle down within the next few years.

However, if you have sufficient cash flow and long-term holding power, investment property can offer rental income and capital appreciation that accelerates wealth-building.

5. What Are Your Future Plans?

Ask yourself:

Do you plan to live overseas soon?
Will your family grow in the next 35 years?
Are you willing to rent your own home while leasing out your investment unit?

Your lifestyle flexibility plays a big role in whether buying for investment makes sense. Some buyers live with parents or rent cheaply while building equity through rental properties. Others prefer security and control over their living environment.

6. ABSD and Loan Considerations

Once you own one property, buying another means:

Paying 17% ABSD (for Singaporeans on second property)
Facing lower loan-to-value limits on the next property
Tighter Total Debt Servicing Ratio (TDSR) requirements

These financial barriers make it harder to "buy one for stay, and one for rent" later. Some savvy buyers flip the strategybuy the investment property first, then sell it or decouple before purchasing their own stay home.

But this approach requires careful legal and financial planning.