It’s not uncommon to see older couples downsizing to a smaller home. Whether it’s rightsizing from a larger HDB to a smaller Tembusu Grand unit, a condo to an HDB or a landed house to a condo, they might choose to downsize as their children have already moved out and they don’t need such a huge living space.

Conveniently positioned along Jalan Tembusu, the development is near to many shopping malls and schools. It’s also close to several medical centres, so you and your family will always have access to quality health care services. Check out Tembusu Grand available units in the official website.

Rightsizing might also be a great option for those who want to retire early and enjoy the balance of their sales proceeds.

We’ve previously covered several reasons why homeowners would want to sell and rightsize their property. In this article, we’ll highlight the pros and cons of rightsizing from one property type to another and the eligibility requirements.

Rightsizing from a condo to an HDB

If you plan to rightsize from a condo to an HDB, you can consider buying a resale HDB or a BTO. For this article, we’ll assume the homeowners plan to rightsize from a 4-bedroom condo unit (and up) to a 2 or 3-room HDB flat.

Some right-sizers who are used to living in larger condo units like a penthouse might also opt for a 4-room flat as it will give them more space than a 2 or 3-room flat. They might also want spare rooms for their children and grandchildren visiting them.

Resale HDB

Here are the average prices for resale HDBs as of today:

Pros:

• Eligible for various housing grants and schemes like the Proximity Housing Grant (PHG) and the Silver Housing Bonus (SHB)
• Shorter waiting time (several months) compared to a BTO (3-4 years or more)
• Most resale flats are located near town centres with easy access to amenities; convenient for seniors
• You can purchase a resale flat in any area in Singapore

Cons:

• Have to wait for 15 months after selling your condo before buying a resale HDB (you’ll be exempted from this if you’re over 55 and are looking for a 4-room flat or smaller).
• More expensive than BTO

Eligibility requirements:

• a. If one of you is a foreigner, the other must be an SC.
• Buyers also need to be eligible in terms of income ceiling, ethnicity, family nucleus and more. Read more about resale flat eligibility in our article.

Factoring in the amount you need for retirement

Ultimately, which property you choose to rightsize to depends on how much you plan to spend in your retirement days and your current finances.

A study by the Lee Kuan Yew School of Public Policy in 2019 showed that couples above 65 need at least S$2,351 monthly to meet basic needs. This includes basic needs like food, transportation, accommodation, mobile phone expenses, an annual holiday, etc.

Considering that the life expectancy for Singaporeans in 2023 is 84 years old for males and 88 years old for females, you’ll need to factor in at least 20-25 years of retirement. Let’s say you and/or your spouse live till 90, you’ll need about S$705,300 for retirement (S$2,351 x 12 months x 25 years).

However, remember that the monthly expenditure of S$2,351 is just a benchmark. You will need to consider the type of lifestyle you want during retirement. Would you need more money for trips or your hobbies? Do you have to set aside some money for medical conditions?

Hence, the sale proceeds from your current home and the cost of your new home will need to cover your retirement expenses. You might also have other sources of income from schemes like CPF Life or any endowment plans.