Buying Your First Condo in Singapore? Here’s What You Might Overlook

Buying your first private condo feels like a major life milestone — and it is. But between the polished showflats and sleek brochures, many first-time buyers forget what really matters after the purchase.

If you’re planning to upgrade from an HDB or jumping straight into private property, here are the key financial, legal, and lifestyle details that often go unnoticed — until it’s too late.

💰 1. Your Monthly Costs Are More Than Just Your Mortgage

Yes, your loan is the biggest bite — but it’s not the only one.

Ongoing monthly expenses:

• MCST fees: $250–$600/month depending on the condo size and facilities

• Property tax: Higher for non-owner-occupied units or investment properties

• Home insurance: Often required by banks, ~$200/year

• Sinking fund & special levies: For major upgrades or maintenance

  
  

🧾 Pro tip: Ask about current and upcoming MCST projects — like repainting, lift replacements, or façade works — as these affect future costs.

🏢 2. Not All Condos Are Equally “Rentable”

Planning to rent it out later? It’s not just about location.

What affects rentability:

• Layout: Squarish units > odd-shaped ones

• Facing: Avoid expressways, bin centres

• Competition: Too many 1-bedders in the same area = price suppression

• Amenities: Proximity to MRT, groceries, business parks matter more than pools

  
  

📌 Tip: Check rental listings on PropertyGuru and URA’s rental stats to see if real rental yields align with your assumptions.

🏦 3. CPF Usage Has Limits Most People Don’t Realise

CPF can’t fully cover all costs — especially if you’re buying an older resale condo.

• Valuation Limit (VL): CPF usage is capped at the lower of property price or valuation

• Withdrawal Limit (WL): CPF usage capped at 120% of the VL

• Once you hit this, any shortfall must be paid in cash

• You must retain a Basic Retirement Sum (BRS) in your CPF before using excess funds if you’re aged 55 and above

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🧾 Pro tip: Use CPF’s Home Ownership Planner or talk to a mortgage advisor to avoid nasty surprises later.

📉 4. Loan Eligibility Isn’t Guaranteed — Even If You Have Income

You must pass the Total Debt Servicing Ratio (TDSR) test:

• All your monthly loan obligations (car, student loans, credit cards) must not exceed 55% of your gross monthly income

• If you're self-employed or on variable income, banks usually take 70% of your income for calculations

📌 Even with a high income, existing loans (including study or renovation loans) can reduce your max loan quantum.

🧾 Pro tip: Always get an In-Principle Approval (IPA) before putting down any Option Fee.

🛋️ 5. The First Year Is the Most Expensive

Condo buyers often underestimate how much cash-on-hand is needed upfront.

First-year costs:

Item	Estimated Amount
Option Fee + Downpayment	25% of purchase price (5% cash, 20% CPF/cash)
BSD + ABSD (if any)	~3–4% of purchase price
Legal fees	$2,500–$5,000
Renovation & furniture	$20,000–$80,000
Stamp duty on loan	~0.4% capped at $500

🧾 Pro tip: Set aside 5–10% of your purchase price as liquid cash — beyond what the bank tells you.

🚪 6. Don’t Forget: What’s Your Exit Strategy?

It’s tempting to focus only on buying — but how and when you exit matters just as much.

• Are you planning to stay for 10+ years, or upgrade in 5?If it’s the latter, think carefully about future resale demand.

• Is the lease still attractive to future buyers?Especially important for resale condos with less than 70 years left.

• Are you buying purely to rent later?Check if surrounding developments may dilute rental demand.

• How liquid is your unit type?Niche layouts or penthouses may take longer to sell.

  
  

📌 A good property move doesn’t just solve your needs now — it should support your next step, whether that’s upgrading, relocating, or cashing out.

📊 Summary: What First-Time Condo Buyers Overlook

Aspect	What People Miss
Monthly Costs	MCST, property tax, insurance, levies
Rentability	Layouts, nearby supply, noise exposure
CPF Usage	VL, WL, BRS rules
Loan Approval	TDSR test, self-employed income buffers
Upfront Expenses	Renovation, legal, stamp duties, cash top-ups
Exit Strategy	Resale potential, lease decay, buyer demand

✅ Quick Checklist Before You Buy

✅ In-Principle Approval (IPA)

✅ CPF usage simulation

✅ Loan repayment planning

✅ Visit in the day & night for noise/light checks

✅ Clarify lease tenure (especially for resale condos)

✅ Think about your 5–10 year exit plan

💬 Planning Your First Condo Purchase?

Want help reviewing your loan eligibility, CPF usage, or finding a unit that actually suits your long-term goals (not just your IG aesthetic)?

🏡 Schedule a free chat or drop me a DM — no hard sell, just practical advice.