The email address in "Contact AK: Ads and more" above will vanish from November 2018.



Featured blog.

1M50 CPF millionaire in 2021!

Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.


"E-book" by AK

Second "e-book".

Another free "e-book".

4th free "e-book".

Pageviews since Dec'09

Financially free and Facebook free!

Recent Comments

ASSI's Guest bloggers

Don't have to sell HDB flat and buy 2 condos to improve cash flow. (Have a fully paid HDB flat and make money.)

Monday, June 5, 2017

A friend told me he is seriously considering selling his fully paid 5 room HDB flat in RCR to buy 2 shoebox apartments so that he could stay in one and rent out the other for cash flow. 

Hopefully, property prices would go up and he could benefit from capital gain by selling one.

I told him that he would be moving from being debt free to being indebted. 

There is no guarantee that the monthly rental could cover the mortgage payments (plus the much higher monthly maintenance and property tax of a condo).

He says he just wants to make money but how sure is he that he would make money this way? 

I see a strong speculative flavour in his hope that property prices would go up. 

I told him if he thinks property prices would double in 10 years like it did in the recent past, that is speculation.

I told him that if he wants money in the pocket, just rent out 2 bedrooms in his current flat. 

Free cash flow guaranteed. Easy. 

To that, he said that it is very hard to rent out the spare rooms now. 

Oh, and he thinks renting out a shoebox apartment is going to be easier? Duh.

I also told him that if he didn't want to share his home with strangers, he could think about downsizing his current flat to a 3 room flat and he would have more money in the pocket. 

Since his current flat is his first, he could get a BTO 3 room flat. 

It is much cheaper than buying resale.

Or maybe a BTO 2 room flat? 

Price tag? $90,000 maybe. 

So cheap hor?
Purchasing a 2-Room BTO flat

A BTO 2 room flat? Serious? 

Alamak, he was thinking about buying a shoebox apartment to stay in. 

How big do you think a shoebox apartment is?

Of course, he might have to wait a few years but he would be able to pocket a few hundred thousand dollars in price difference. 

Also, he would be getting a fresh 99 years lease. 

Then, there is also the option of looking into HDB's sale of balance flats which would reduce the waiting time.

With the price difference of his old and new flats, he could invest for income and it could even be in the form of a shoebox apartment that he is thinking about once he has served his MOP.

There is no need to always take on more risk in life to have a better life. 

I like to have my cake and eat it too but I don't like to choke on my cake.

Oh, in case you are wondering, he got the idea to sell his 5 room flat to buy 2 shoebox apartments from someone. 

Guess what that someone does for a living?

So clever! Bad AK! Bad AK!

Related posts:
1. Power to be financially stronger.

2. Retirement funding and HDB flats.


Betta man said...

Property agent ?

ITTA said...

Hello AK, I have been reading your blog for years now but have yet to make any move to invest. But my current situation does force me to start being serious and to act on it......

Wondered if you have any advise on HPH Trust, Alliance Mineral and Saizen REIT? Or any potential investment that you are looking at? Of course i will not hold you responsible.. hehe

Any advise would be of great help!

ITTA (Is Time To Action)

laurence said...

To me, AK's posts always make the most sense and logic. I've been sending to a few friends the links of selected posts that I thought would help to enlightenment them. Together with my own thoughts as well. But at the back of my mind, I suspect most, or at least some of them curse me "Talking Nonsense" upon receiving my Whatsapp messages. Because greedy people are unlikely to agree with what you say.

Singapore Man of Leisure said...


We Jedi snake-oils are good at planting ideas into other people's heads or what?

The feeble-brains probably think they thought of it themselves... LOL!

Lucky my weekend gig does not pay commissions. If not, my old ways may return...

If compounding interest is powderful, try saying no to the "incentive" of commissions!


wx said...

The person i guess would be a real estate agent! Got prize or not for guessing correct? Hehe

assi ak71 said...

Your friend can still meet the income ceiling requirement for BTO?

Sanye ◎ 三页 said...

Property Agent!

Got prize bo?


AK71 said...

Hi betta man,

Alamak. I also dunno. I blur. ;p

AK71 said...


I don't give advice but you could search my blog and if I have blogged about something before, you will find it. ;)

AK71 said...

Hi Laurence,

Of course, we can only bring the horse to water. Drink or not, up to the horse. ;p

AK71 said...


The JEDI population is small. It is good that you have returned from the Dark Side. ROFL ;)

AK71 said...

Hi Wei Xiong,

Alamak. You also say like that? I blur lah. ;p

AK71 said...

Hi assi,

Wah, we have same name. So confusing for other readers. ;p

Yes, he qualifies for a BTO flat. :)

AK71 said...

Hi Sanye,

Everyone wants a prize. I also want. ;p

Spur said...

"Never ask a barber if you need a haircut!" Wakakakakaka!!!

Speaking of which, I think I need to lift my lazy ass over to the barber's --- hair getting long liao after 2 months!

Been lazing around my area for the past week & subsisting on the mini-supermart downstairs. Cheaper than the NTUC 10 min walk away, but more processed foods than fresh. Hmmm.... frozen nuggets, otak, ramli burgers, chicken wings, unagi,... BAAAD!! ok, ok managed to also eat some fruits, but still....

AK71 said...

Hi Spur,

Alamak. You talking about me har?

Bad AK! Bad AK! ;p

laurence said...

Hi, Spur,
I've found that statement to have wide-ranging applications. Awhile ago, I was surfing the net and saw this online store site. In their FAQ page, Question 1 goes like this:

1. Is it scram for your site?
We do not cheat any client. We have engaged in online retail&wholesale for years. We hope do business with you for long terms and creat a pleasant shopping experience so that you will get your friends about us. That you can be rest assured buy from us.

Notice the terrible English?
Never ask a scammer whether his business is a scam.

simplyme said...

Actually I wouldn't give him any advise at all. Should property price double (or worse triple) he will forever blame you. I actually refuse to entertain such questions until the questioner (haha) is thoroughly aware that it's only my opinion. Separately, only the lazy or very rich engage property agents. With the internet, who needs them?

AK71 said...

Hi simplyme,

Haha. My social circle is shrinking as I age. It is something I am used to. ;p

Sammy said...

'I like to have my cake and eat it too but I don't like to choke on my cake.'


AK71 said...

Hi Sammy,

A friend told me I no substance never mind. Just be funny can already. ;p

AK71 said...

As a follow up to the last blog I shared on FB:

What are some of the options available?

I have improved the blog with highlighting and better spacing too.

AK71 said...

Reader says...
I feel strange that ppl have to attend course to buy property.
Many dumb dumb.

AK says...
gong giah
jin jialat.

Reader says...
I wait wait but no opportunity so sian ah

AK says...
dun buy lor. 😛
i no FOLO

Monthly Popular Blog Posts

All time ASSI most popular!

Bloggy Award