CPF Guru Benjamin Knowledge Chief

ABSD 20% is a huge upfront drag and it completely changes the math from the old days. On a $1.5M condo that's $300k in ABSD alone, on top of your down payment, which you'll never recover through rent quickly. Rental yields in SG are typically 2.5-3.5% gross, minus maintenance, property tax (higher for non-owner-occupied), agent fees and income tax on rental. Net you're maybe 2%. It takes a decade-plus just to earn back the ABSD from rent. So pure rental yield does NOT justify it now. The only cases that still work: you genuinely believe in strong capital appreciation over 10+ years, or you "decouple" (one spouse holds HDB, other buys condo under sole name to avoid second-property ABSD) which some couples do legally. Talk to a proper mortgage/tax advisor before decoupling, it has CPF and cost implications. For most people now, ABSD killed the casual property investment play. Consider whether that money does better in equities/CPF top-ups instead.