Why buy a HDB flat?

Many Singaporeans earn an income high enough to afford a private property. But I still recommend buying a HDB flat first even if you can afford a private.

The main objective is to earn government's money. For HDB flat, for new buyers you get $30k grant. If you live near parents, you get another $40k. If your past 2 years average income is less than 4k per month, you get additional grant from $5k onwards. All these grants come in the form of CPF.

Let's say your HDB costs 400k and you have government grants of 80k. Considering a 80% loan financing, you can borrow 320k. The other 20% govt pays it for you, you dont have to fork out a single cent from cash or CPF.

After 5 years you can sell away your HDB and buy a private property. You gain the government grants in your CPF account. Though you still cannot touch the funds, at least you gain 80k which can be used for new private home payment.