Man walks away from HDB resale due to $50k COV, used it to buy and renovate condo instead

When Eason and his wife, Yvonne (both 41 and having worked for 15+ years each), saw an HDB resale flat (which MOPed recently) within a 5-minute walk to their son’s primary school in Yishun, they were almost going to exercise the option-to-purchase ( OTP ) and commit to a huge lifelong investment. For the 4-room resale flat, the asking price was $520,000.

Their decision to sell their matrimonial 3-room HDB resale in Khatib Central and upgrade to another bigger HDB resale flat was prompted by their 6-year-old son starting primary school next year and needing more room. They also wanted to give him a good headstart and more free time after-hours by being closer to the school.

As they do not drive, travel distance definitely played a huge role in their considerations. Their wish list included being near to 1) Northpoint City Mall, 2) Eason’s in-law’s place (3 bus stops away) and 3) son’s primary school (two bus stops away).

“We’ve been living in our 3-room resale flat, which we bought for $368,888, for six+ years then. Unfortunately, by the time we were deciding to sell it and upgrade to a bigger home, the market condition became unfavourable (Covid-19 struck) and we had to put it up for sale with a loss at $350,000,” Eason said.

Cash-Over-Valuation shocker

Alas, despite the HDB resale being near their son’s upcoming primary school, Eason and his wife had to make the difficult decision to decline the offer. This was because the owner then asked for a cash-over-valuation of almost $50,000.

“It made more sense to use the COV on re-doing renovations for a design of a unit we like.”

Unwilling to let go of the offer just yet, Eason and his wife visited the flat again – just to be sure.

They soon realised that some of the renovation designs did not make practical sense for their lifestyle. For example, the king-sized platform bedframe was too large for their queen-sized mattress, the cooking stove was beside glass windows and the aircon unit was at the dining area (not the living area).

Eason felt that these will require re-work and additional budget on top of the already-high COV. “Also, I am quite into gardening as a hobby but there isn’t any good spot for planting – the corridor outside the entrance is very dark. With these considerations, we decided to pass and get back to house hunting again.”

An unexpected turn of events

Disappointed but having learned from the experience, Eason and Yvonne focused their search for resale apartments around the neighbourhood.

“The first unit we rejected was facing the multi-storey carpark and direct afternoon sun. The owner unknowingly shared that the afternoon sun creeps all the way into the living hall – so we immediately dropped this unit from our list. They also had quite a lot of built-in cabinetry, with antique designs that were already out of fashion.

“Another unit, a resale HDB, was very poorly maintained. Many of their cabinet and door frame corners showed damages. The parquet floor was badly scratched, probably due to the drag of heavy furniture or objects.”

For Eason, it wasn’t just the price of the apartment that concerned him, it was whether he needed to cough up additional money for unnecessary renovations.

It wasn’t until one sleepless night that Yvonne chanced upon a condo unit for sale that looked like it was in good condition.

Initially, Eason was against the idea of buying a condo as it was never on his viewing list. But he did his math and reckoned if he could bring down the condo unit’s transaction price, the PSF can actually be attractive.

“We arranged for 3 viewings of different apartments within the condo development on the same day. The second apartment swept us off our feet!”

Condo with two balconies at $840 psf

Despite initially locking onto the HDB resale market, Eason and Yvonne fell in love and went with a 2-bedroom, 1-study condo apartment at The Canopy executive condominium (TOP: 2014) in Yishun. While the price was definitely steeper at $860,000, the apartment has a floor area of 1,023 sq ft and a psf price of S$840. The best part is that it has two balconies, perfect for Eason’s home gardening hobby.

“We think that having a >1000 sqft space at $800+k of pricing is quite a comfortable range. Honestly, I thought this is quite a catch. Also, we managed to get HSBC to finance us at the same transaction price without any COV.”

Beyond the financials, the apartment has a clean design and was very well-maintained by the previous owners. “It gave us a soothing feeling during viewing. The balconies have little to no direct sunlight, so the living space from the exterior all the way to the interior will not suffer from the extensive Singapore heat.”

Also, there weren’t any additional built-in cabinets (except for the ones that came with the development), so hacking was minimal. “We particularly liked that they kept the doorway untouched because the space allows us to decide the type of shoe rack we want to include later on.”

Beyond the apartment, Eason and Yvonne are thrilled that they have access to a lap pool, kids pool and decent gym.

Having lived in the neighbourhood for the past six-plus years, they’re familiar with the cluster of shops, kopitiams, NTUC Fairprice and Giant supermarkets nearby. “The best part is that Yishun Hawker Centre is within a 5-minute walk from The Canopy. These are crucial to our lifestyle as we used to enjoy such amenities in our previous HDB flat at Khatib Central.”

Settling-in and renovations

At the time of writing, Eason and his family have moved into their new home for almost three weeks. They’re now busy with unpacking things at their new place.

“We’ve shifted quite a few times. From my previous apartment to a temporary place at my in-laws to moving larger items for storage at StorHub, and then reorganising more items between my in-laws and our new place.”

Right now, Eason’s planning to renovate his balcony by installing an invisible grille and zip track blinds. “We are looking forward to having this done by the middle of this year and perhaps adding a cosy coffee area there.”

In terms of renovating their The Canopy apartment, Eason has good things to say about his ID and contractor.

“We shortlisted two renovation companies and decided to go with Hue Concept not just because of cost comparison but because the ID, CC Lim, is someone we can communicate with. He has a very good design sense and an openness to consult on themes like colour and overall design themes.

“Of course, there are renovation issues that occurred during the process, but our ID listened and managed them efficiently. There was one incident when his carpentry miscalculated the sauce drawer and it hit the oven handle because of their right-angled placement.

You may think it’s silly but stuff like that can make some owners furious. Initially, we were nervous, but we were also confident at the same time. We reported this to our ID that night, and it was 100 per cent resolved the very next day! We were so impressed!

“For flooring, we used vinyl flooring from The Floors Emporium. We worked with Chloe Quek, who impressed us with her communication and product knowledge right from the start. More importantly, the workmanship has to be excellent – no gaps between boards, skirting nicely angled and covered.”

Insights from house-hunting and renovations

For Eason and Yvonne, choosing the right renovation interior designer is probably the most crucial aspect of their home journey.

For them, it’s not just about getting the best cost, but having the right rapport. His insight is apt, as we’ve seen several stories of bad renovation works in the past, including news of renovation woes celebrities like Joanne Peh and Qi Yuwu faced recently.

“This is going to be a long-term project which can last for months. If communication fails, this whole saga will drag. Knowing what you want and being decisive is key.

“Sometimes, it’s hard not to be fickle-minded especially when you want the best for your resting nest – and usually, this is simply not always the fault of the reno ID. The IDs and contractors are there to meet our needs or demands while delivering the end product. Be nice and cooperative with them too – this is a partnership project.”

This article was first published in 99.co.