Selling Your First BTO: Calculation of HDB Sales Proceeds

If you're thinking about selling your first BTO in Singapore, you've got a big decision ahead.

Following our series of selling your first BTO, there's the 3rd series. 

The calculation of your HDB sales proceeds and make informed decisions that benefit your wallet and your future home dreams.

So let's dive right into how you can start this journey smartly!

II. Understanding Your BTO's Market Value

Selling your BTO isn't just about deciding on a number you like—it’s about getting a good handle on what your flat is really worth.

In our previous post, we teach you how to suss out the market value of your BTO.

III. Calculating the Sales Proceeds

Now that you've got an idea of what your BTO might sell for, it's time to crunch some numbers to see what you'll actually walk away with after the sale. Let's break it down:

A. Factoring in the Outstanding Housing Loan

First up, check how much of your housing loan you still owe. This amount needs to be cleared when you sell your flat, so subtract this from your expected selling price to see what's left. This leftover is your initial chunk of sales proceeds.

B. CPF Monies Utilised and Accrued Interest

Next, remember all that CPF money you used to buy your flat?

You've got to put that back into your CPF account, along with the interest it would have earned if it stayed in the account.

This can take a big bite out of your cash proceeds, so make sure you calculate this bit carefully to avoid any surprises.

C. Accounting for Additional Costs

1. Resale Levy

If this isn't your first subsidized flat, you might need to pay a resale levy when you buy another one.

This fee helps keep public housing affordable, but it can also affect how much money you end up with after the sale.

2. Property Agent Commission

If you got a property agent helping you out, you'll need to pay them for their services.

This fee is usually a percentage (1% to 2%) of the selling price or flat fee, so factor this into your calculations to see the final amount you'll pocket.

VI. Conclusion

And there we go! We've walked through the essential steps and considerations for selling your first BTO flat in Singapore.

From understanding the market value of your BTO to navigating the complexities of financial calculations and timing your sale right, it's clear that a bit of knowledge and planning can go a long way.

Whether you're upgrading to a bigger space or moving for other reasons, the goal is to make the process as smooth and profitable as possible.