How does location affect cost?

(Part of “The Almost Complete Goondu’s Guide to Buying a HDB Flat in Singapore” series.)

Now that you know you are eligible to buy a flat, and how much your flat should cost, the question to consider next is where. If you are eligible for housing grants, where can mean an extra $30k in grants. If you choose to buy a HDB in the same estate as your parents (eg. Bishan-Bishan, Tampines-Tampines, Bedok-Bedok), or within a 2km radius (eg. Bishan-Toa Payoh, Simei-Tampines), you get an additional $10k on top of the $30k family grant.

There are pros to living near your parents. They can spend time with their future grandkids and help you babysit, and it would be more convenient to visit them.

However, if your parents currently live in ‘hot’ estates like Chinatown, Queenstown, Tanjong Pagar (basically areas near the city), where property prices are sky-high, you might be limited to smaller flats in order to fit within your budget.

Eg. A $317k budget could get you a small 4 room flat in Simei, but only a small 3 room flat in Chinatown.

Some people choose to live further away from town, where flat prices are cheaper, and instead choose to get a car to make up for the distance. Most would regard a flat as an asset, and a car as a liability, due to its high costs of maintenance. Do your calculations and choose what works best for you.