Case Study

Decoupling to Purchase New Launch for Investment

Introduction:

Jason (41) and Claire (39) had owned their current 3-bedroom private condominium for nearly 8 years. With their children now in primary school and stable careers, they were keen to explore ways to grow their property portfolio while managing tax exposure and preserving holding power.

Situation Overview:

Combined monthly income: $32,000 (Jason: $18,000, Claire: $14,000)

Current Private Property (Existing Home):

Purchase price 8 years ago: $1,450,000
Outstanding loan balance: $520,000
Estimated current market value: $2,100,000
CPF OA refund (used for original purchase): ~$350,000
Cash savings: $400,000

Dave's Approach:

Instead of selling their current property or attempting to purchase under joint names, we evaluated decoupling as a strategic pathway. By restructuring ownership into Jason’s sole name, Claire could purchase a new launch private condominium as a first-time buyer, thereby avoiding Additional Buyer’s Stamp Duty (ABSD) on the second property.

Decoupling Execution:

Claire transfers her share of the existing home to Jason via part-sale
Part-sale consideration: $1,050,000 (50% of current market value)
CPF OA refund to Claire: ~$175,000
Cash received by Claire after CPF refund and legal costs: ~$325,000

New Launch Investment Purchase (Claire):

Purchase Price: $1,950,000 (2-bedroom new launch in RCR)
Buyer Stamp Duty: $63,000
Legal & Misc: $5,000
Total Cost: $2,018,000
Loan (75% LTV): $1,462,500
Cash + CPF Required: $555,500

Funding Allocation (Claire):

CPF OA refund from decoupling: $175,000
Cash received from decoupling: $325,000
Own cash savings: $55,500
Total funds available: $555,500 (fully funded)

Holding Power Assessment:

New loan of $1,462,500 at 3% interest over 25 years: ~$6,930/month
Existing home loan continues under Jason: ~$2,760/month at 3% interest
Total household monthly instalments: ~$9,690/month
Combined income: $32,000/month

Even under single-income scenarios, they retain meaningful buffers. In addition, rental income from the investment unit upon TOP is expected to offset a significant portion of the new loan servicing.

Final Plan & Outcome:

Jason and Claire successfully restructured ownership through decoupling, allowing Claire to secure a second property as a first-time buyer without ABSD liability. Their long-term plan is to hold both properties, with rental income from the investment unit contributing to overall portfolio growth while maintaining strong holding power.

Client Profile:

Age / Life Stage: Early 40s, Married with 2 children

Family Situation: Dual-income professionals

Property Type / Ownership: 3-bedroom private condominium jointly owned

Main Concerns: Expanding property portfolio, managing ABSD exposure, ensuring long-term financial safety

Key Takeaways:

Decoupling can be an effective ABSD management tool when executed early

CPF refunds from part-sale transactions provide meaningful funding for new purchases

Investment property purchases require careful stress-testing on dual and singleincome scenarios

Holding power, not maximum borrowing, remains the cornerstone of responsible portfolio growth