Oh how awesome would it be if the fairy godmother can just upgrade our properties like this.
But back to reality, before you upgrade your property, you will have to see how much selling your current property will net you.
Because of the low appreciation rate of resale flats, the price of similar properties nearby remains close to the price you paid 5 years ago.
“Hmm, okay at least I wouldn’t lose money from selling this flat. I’ll be able to use the proceeds from the sale to buy a nice private property”
Then let’s say you took a 10 year loan for your flat. After paying your monthly payments for 5 years, you have about $140,000 left outstanding.
“That seems manageable, I will be able to pay this easily after selling the property”
Lastly, you’ll have to check how much accrued interest you have to return to your CPF.
After checking, it seems that you have to return $400,00 to CPF when you sell your HDB flat.