[Real Case Study] From 4-Room BTO to a Property in the CBD + Extra in $1,500 Passive Income Every Month

Husband and Wife with 2 children in their 1st BTO at Choa Chu Kang for 7 years, (Combined Household income less than $12K/ Month)


Here's how Mr. & Mrs Ram successfully invested in a River Valley development with half of the expected cash outlay, which they initially thought was good for only a 60-years balance lease property.


Profile/ Situation

  • Couples in their 30s with two growing children below 12 years old staying in their first BTO Flat in Choa Chu Kang. 

  • Has made full repayment on their existing HDB Loan and looking to invest in a 2nd property.


  • To buy a 2nd property for investment without paying additional buyer stamp duty (ABSD) to generate passive income but fearful of installment and it the market is going to crash because of the coronavirus situation.

Current Problem

  • Fearful of the current market, ABSD and restriction of CPF usage, 

  • Even with combined savings, options are constrained

  • Even though their CCK HDB has went up $150K in value, a third of this capital gains needs to be returned the couples own respective CPF accounts due to 2.5% accrued interest payable for the amount used in CPF compounded, until the property is sold.


  • Helped the couple evaluate the pros & cons of a combined purchase vs purchasing 2 properties outright. 

  • Helped the couple identify the best timing, the right product, entry price and exit strategy

  • Shared the importance of their first real estate investment as a stepping stone 

  • Worked out the CPF, property value, numbers to ensure 6 to 30 months of safety net in the unlikely even that both becomes self-employed


  • Sorted out all available options: Resale VS New Launch

  • Identify undervalued properties in TODAY's market more resilient then others

  • Identify highest possible rental yield & housing options on top of built-in profits to springboard them on to multiple properties in 3 years time.

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Source:  The Smart Singaporean, Infopedia, Giphy
Produced by: Caleb Lim, Yvonne Goh, Chee Wei Zhong and Chen Li Ren