Nur S October 01 2021

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Pros and Cons of Resale Flats

With the current COVID-19 situation, people have been turning to Resale flats as it takes a longer time for one to get a BTO flat. Hence, resale flat prices have been soaring especially for a 4-room flat. If you’re thinking of getting a house and can’t decide on a BTO or Resale, then we are here today to give you a clearer picture of what getting a Resale flat entail. With that, here are the pros and cons to owning a Resale flat.

Pros of Resale Flats

1. Size

When it comes to size, a Resale flat will always be bigger than a BTO flat. The size of most 4 room BTO these days are normally 92 sqm while a 4 room Resale varies and even the smallest 4 room Resale is still bigger than a 4 room BTO.

2. Time

The thing about Resale flat is that it’s already built. Thus, once you and the seller of the flat has come to an agreement, the flat is yours and you can move in 2 months after all the paperwork is done! So, if time is an issue for you, then Resale is for you as a BTO will take you about 5 years to get due to the current pandemic.

3. Housing Grants

HDB Housing Grants by CPF

As compared to BTO, Resale has a higher amount grants available for first time buyers. With the Family Grant, which provides assistance to married couples, the Enhanced CPF Housing Grant, assisting the lower to middle income applicants and the Proximity Housing Grant, for those who buy a flat 4km away from their parents or child, one can get up to a total of $160,000 worth of grant. Click here for more info on first timer grants.

4. Negotiation

Negotiation for a Property Transaction

When buying a BTO flat, you are buying a new flat from the government and whatever price they say the unit is, that is the price that you will have to pay. However, for a Resale flat, you are dealing with a home owner. This means you can put your negotiation skills to the test as you go head-to-head with the home owner to see how low can you bring the price down.

Cons of Resale Flats

1. Renovation

Renovating a Resale flat will be costlier as the renovator will have to deconstruct the previous owners interior design before erecting yours. With that, more work is required and more work equals to more money.

2. Return of Investment

Buying a Resale flat may be bigger but ultimately you are buying an older flat. All HDB flats have a tenure of 99 years which means that as your Resale flat nears the 99 years mark, its price gets lower. Therefore, if you are looking to make money from your house in a few years, you have to really consider before buying a Resale flat.


In summary, before buying a Resale flat, discuss with your loved ones to whether the two of you is looking to make money and grow your wealth or settle down into a big and comfortable forever home. If it’s the latter, then you know what to do!