Resale or new launch?
Model what your money would do if you invested in equities vs property.
This one choice changes the answer — rental income vs growth plays out very differently.
Both routes buy at the same price — you compare what the same money does.
Time in market is the single biggest lever on the outcome.
Vacancy of 1 month/year is assumed. A new launch only starts earning this after TOP.
New launch adds an assumed +1.5%/yr premium — a reasonable expectation, not a guarantee.
The rate the "invest instead" column earns. 7% is a long-run balanced view; 10% is the optimistic one.
A flat rate for the whole hold. Trying a higher rate makes a useful stress test.
Guides loan eligibility (TDSR) and rental income tax.
Loan tenure shortens as age rises (banks lend up to age 65) — this changes the monthly repayment.
The new launch comes out ahead
The growth premium outweighs the rent missed during the 3-year build — the new launch finishes S$176,291 ahead at your numbers.
At these numbers, only the new launch finishes ahead of renting and investing.
Invest instead
Same cash, in the market
Net worth in 5 years
S$803,101
Resale
Buy, tenant from day 1
Net worth at exit
S$691,291
New launch
Buy, tenant after TOP
Net worth at exit
S$867,582
Net worth over time
Net worth if you sold at the end of each year, at your growth scenario. The new launch's line dips early — payments go out during the build before any rent comes in. The "keep renting" line accounts for the rent you'd continue paying.
- Invest instead
- Resale
- New launch
Sale values assume your 5-year growth scenario; intermediate years use the same path year by year.
What does this mean for your situation?
A careful model usually says "it depends". Get a personal read on your numbers, plus a link to this exact scenario you can come back to.
What this model assumes
Every number above flows from these inputs. The full model Sarah uses with clients covers more (CPF usage, second-property ABSD, stepped rates, and so on).
Buyer & loan
- • Singaporean buyer, first property → no ABSD; age and income as entered
- • Loan tenure: up to 30 years, ending by age 65 (so it shortens with age)
- • Standard LTV 75%; loan also capped by TDSR — 55% of income at a 4% stress rate
- • Cash on hand: exactly what the purchase needs — nothing extra left to invest
- • No CPF used (CPF mostly changes the accounting; the full model covers it)
Purchase & ongoing costs
- • Buyer's stamp duty (BSD): tiered IRAS schedule on the price
- • Legal fees: S$3,000 at purchase; S$3,000 again at sale
- • MCST: S$300/mo (resale) · S$350/mo (new launch, from TOP)
- • Property tax: estimated S$350/mo (resale) · S$400/mo (new launch)
- • Renovation: S$0 · cash buffer: S$0
Rental & exit
- • Vacancy: 1 month/year (resale) · 2 months in the new launch's first year after TOP
- • Rental income taxed at your marginal rate (less mortgage interest & expenses)
- • Selling: 2% agent fee + S$3,000 legal; seller's stamp duty applies on early sales (tapering to zero after year 4)
Growth & the invest column
- • Property growth: 2.5% / 3.0% / 3.5% / 4.0% a year (Slow → Strong)
- • New launch adds an assumed +1.5%/yr premium — an expectation, not a promise
- • Invest column: same cash compounded at 7%/yr; if you'd be renting anyway, your rent is subtracted for the whole period
- • New launch: 3-year build, 5% booking fee, progressive payments, final payment ~1 year after TOP
This is a simplified, deterministic model — real-world outcomes vary. It's a conversation-starter, not financial advice.
Common questions
Is resale or a new launch (BUC) the better investment in Singapore?
It genuinely depends on how you'll use the property. As a pure investment, resale's day-one rental income and the new launch's growth premium tend to balance out at typical numbers. If you'll live in it, resale gives up five years of tenant income while a new launch only forgoes the years after TOP — so the growth premium tends to matter more. Model both with your own numbers above.
What does the 'keep renting & invest' column mean?
It's the fair alternative to buying: the same cash a purchase would tie up (downpayment plus fees), compounded in the market — 7% a year on the balanced setting, 10% on the optimistic one — and if you'd be renting anyway, minus the rent you'd keep paying over the same period. Comparing property against this baseline keeps the picture honest for both sides.
Which assumptions does this calculator make?
A Singaporean first-property buyer (no ABSD) of your entered age and income, with the loan capped by TDSR at a 4% stress rate and a tenure ending by 65. Costs include tiered BSD, S$3,000 legal fees each way, MCST of S$300–350/month, estimated property tax of S$350–400/month, 1–2 months vacancy, and 2% agent fee at exit. New launches assume a 3-year build with progressive payments and an assumed +1.5%/year growth premium. The full list is in 'What this model assumes' below the calculator — and the full model Sarah uses with clients covers more.
Why does the new launch line dip at the start?
During the ~3-year build, progressive payments and interest go out while no rent comes in — so the line dips before it recovers. We think it's only fair to show that. And if you'd live in it, the rent you pay elsewhere during the build is counted too.