In Singapore, property is not mainly a “monthly mortgage” decision. It is a multi-year capital allocation commitment with interest sensitivity, liquidity lock-up, and exit risk.
The right way to evaluate buying is a 5-year total exposure model: not just instalments, but the full ownership cost structure that survives even if your price prediction is wrong.
Start here (fast path)
If your decision is “transport vs property capital allocation”, compare against: 5-year car ownership model.
A clean 5-year ownership model prices:
If you want to price buyer friction properly, read: BSD & ABSD (stamp duty) explained.
One-line rule: If you cannot hold long enough, exit friction dominates.
This is why “I might sell in 2–3 years” is not a minor detail — it changes the entire math.
If you’re deciding between HDB paths, start with: BTO vs resale (full cost comparison).
This pillar is intentionally neutral across HDB + condo. Subtype deep dives: condo · rental property · BTO vs resale. Also: renovation cost planning.
5-year total exposure ≈
Instalments include principal repayment, which is not a “cost” (it becomes equity). The cost is the drag/friction around the asset and the risk of needing to exit early.
This page uses a planning baseline consistent with Singapore reality:
These are illustrative frameworks, not quotes. Your exact BSD, loan terms, and taxes differ. The point is structure: you should still be making a good decision after changing assumptions.
Below are simplified examples to illustrate what dominates cost. They are intentionally conservative and model-first (not sales brochure math).
HDB typically has lower ongoing “building cost” friction vs condos (MCST), but still has real maintenance and tax costs, plus the same exit-risk logic.
Condos are more sensitive to “I might sell early” because absolute dollars are larger, and ongoing fixed costs don’t care about your timeline.
If your question is specifically condo mechanics, go here: The Real Cost of Owning a Condo (2026).
Want the long-horizon view of interest exposure (25–30 years) and what rate moves do to total interest? Read: Mortgage Interest Cost in Singapore.
Rate changes matter because they affect interest drag and your monthly cashflow. The model survives when you stress-test:
If 0.5% higher breaks the decision, your plan is fragile. A good ownership decision should survive realistic rate movement.
The biggest real-world risk is not “price goes down 1%”. It is: you need to sell earlier than planned.
Exit risk rule:
This is why “I might upgrade in 2–3 years” should be treated as a high-risk assumption, not a casual plan.
Buy (or proceed) if:
Postpone / restructure if:
Next: choose the path that matches your situation: BTO vs resale · condo ownership · rental property ownership.
The true 5-year cost is not just mortgage payments. It includes interest drag, buyer costs (BSD/fees), ongoing costs (tax/maintenance), opportunity cost of upfront capital, and exit costs—plus the risk of price movement. A disciplined model prices total exposure, not instalments.
It depends on holding period, interest sensitivity, and liquidity resilience. Condos often have higher entry friction and ongoing fixed costs (MCST), so you should decide using a 5-year exposure model, not instalment comfort. See: condo ownership cost model.
Using instalments as the affordability metric. Instalments are a payment method. The true cost includes interest drag, taxes/fees, ongoing maintenance, opportunity cost of locked-up capital, and exit friction.