top of page

Case Study

Young Couple Balancing Aspirations and
Long-Term Planning

P2P2-Hero.png

Introduction:

Ryan (29) and Jasmine (27) were recently married and looking to purchase their first home. Like many young couples, they were torn between stretching for a private property or starting with a more prudent first step. They wanted to make sure their decision would not compromise future flexibility.​

Situation Overview:

Combined monthly income: $11,500 (Ryan: $6,500, Jasmine: $5,000)

 

CPF OA Balances:

  • Ryan: $75,000 (after 4 years working since 25)

  • Jasmine: $60,000 (after 4 years working since 23)

  • Total CPF OA: $135,000

 

Cash savings: $100,000

​

While both sets of parents were willing to help financially if needed, Ryan and Jasmine were determined to handle their first purchase independently to build their own financial discipline and ownership.

 

Initially, they explored new launch private condos priced around $1.4M. However, after detailed analysis of the loan commitments, interest rate risks, childcare costs, and future single-income scenarios, they realised that stretching for private at this stage might compromise their buffers.

P2P2-Client.jpg
P2P2-Approach.png

Dave's Approach:

We reviewed multiple pathways and carefully ran stress tests, including childcare costs, temporary career breaks, and mortgage servicing ratios under rising rates. Rather than pushing their limits now, we recommended securing a strong foundation first while preserving future optionality.

​

They shortlisted a well-renovated resale HDB 4-room flat in Tampines, built in 2016 and approximately 8 years old. Key benefits included:

  • Significantly lower monthly commitments

  • Full CPF coverage of monthly instalments

  • Strong location fundamentals (near MRT, amenities, schools)

  • Sufficient living space to accommodate family growth comfortably

  • Future resale appeal for potential upgrading

  • Good sell-on value to serve as a springboard for their next property purchase

​

We also discussed ownership structuring. By listing Jasmine as an essential occupier (not co-owner), she would retain her full eligibility to purchase a private property separately after the 5-year MOP. This structure preserves flexibility as their incomes and savings are projected to grow significantly from their early 30s into their 40s, opening future private property options without penalties.

​

Transaction Breakdown:

  • Purchase Price: $720,000

  • Buyer Stamp Duty: $17,200

  • Legal & Misc: $3,000

  • Total Cost: $740,200

  • Loan (75% HDB Loan): $540,000

  • Cash + CPF Required: $200,200​

Funding Allocation:

  • CPF OA used: $135,000 (includes BSD)

  • Cash used: $65,200

  • Remaining cash buffer: $100,000 - $65,200 = $34,800

Client Profile:

Age / Life Stage: Late 20s, Newly Married

Family Situation: Planning to start a family in a few years

Property Type / Ownership: First property purchase

Main Concerns: Affordability, financial buffers, long-term flexibility, not overcommitting

Key Takeaways:

Practical first step preserves optionality

Smart structuring (e.g. essential occupier) enables future wealth moves

Resale HDB can be a strong platform for young families — space, stability, and growth potential

Keytakeaways2 (1).png

Holding Power Assessment:

At 2.6% HDB loan over 25 years, monthly instalments are ~$2,450, fully covered by their CPF OA contributions and ongoing CPF inflows. Even under temporary single-income periods, no cash top-ups would be required to service the loan.

​

Final Plan & Outcome:

Ryan and Jasmine proceeded with the resale HDB purchase. The structured, conservative approach allowed them to secure their first home comfortably while retaining liquidity. The essential occupier arrangement strategically preserved future private property options once their incomes and financial standing mature further.

  • Starting with resale HDB allows strong financial buffers

  • CPF ownership structuring can preserve future private property eligibility

  • Avoiding overextension in early years provides flexibility for family planning

  • Strong first property value provides a solid platform for future upgrading

bottom of page