5 Ways to Monetise Your Property for a More Secure Retirement
- Stuart Chng
- Dec 29, 2025
- 5 min read
As published in the Fund and Gains Section (October 2017) of PropertyGuru Newsletter.
For many homeowners, two long-term financial goals tend to stand out: building wealth steadily and ensuring a comfortable retirement. As Singapore’s population continues to age, retirement planning has become an increasingly important and widely discussed topic—and one that will only grow in significance over the coming years.
Regardless of whether you live in an HDB flat, condominium, or landed property, your home is likely one of your largest assets. Over time, it builds equity that can be strategically unlocked to support your retirement lifestyle.
In this article, we explore practical ways homeowners can monetise their property to generate income and enhance financial security in their later years.
Options for HDB Flat Owners
HDB flat owners have several government-supported avenues to unlock their housing equity for retirement purposes.
1. HDB Lease Buyback Scheme (LBS)
Objective:
The Lease Buyback Scheme allows elderly homeowners to receive a steady income stream during retirement while continuing to live in their homes.
How It Works:
Under this scheme, flat owners sell a portion of their remaining lease back to HDB. The proceeds are used to top up their CPF Retirement Account, which is then used to purchase a CPF LIFE plan that provides monthly payouts for life.
Eligibility Criteria:
Applicable to owners of All standard HDB types
Must have fulfilled the Minimum Occupation Period (MOP)
At least 65 years old
No ownership of other properties
At least one owner must be a Singapore Citizen
Monthly gross household income must not exceed $14,000
Flat must have a minimum remaining lease of 20 years (Additional terms and conditions apply)
2. Right-Sizing with the Silver Housing Bonus (SHB) Scheme
Objective:
This scheme helps lower-income households unlock housing equity to support retirement income.
How It Works:
Homeowners receive up to $20,000 in cash when they sell their existing property and use part of the proceeds to top up their CPF Retirement Account. This allows them to join a CPF LIFE plan that pays a lifelong monthly income.
Eligibility Criteria:
At least 55 years old
MOP fulfilled
Monthly gross household income below $14,000
No ownership of other properties
Purchase of a replacement flat that is 3-room or smaller (Other terms and conditions apply)
3. Renting Out Rooms for Regular Income
For retirees whose children have moved out, renting out spare rooms can be a simple and effective way to generate ongoing monthly income.
A typical 4-room flat can usually accommodate renting out two bedrooms, often fetching around $750 per room
Owners continue to occupy the master bedroom
Retirees who choose to live with their children may rent out the entire flat, which can generate at least $1,600 to $2,400 per month
This option provides predictable cash flow while allowing homeowners to retain ownership of their property.
Options for Private Property Owners
Silver Housing Bonus for Eligible Private Homeowners
Private property owners whose homes have an annual value of $13,000 or less may also qualify for the Silver Housing Bonus, provided they meet the same eligibility requirements outlined earlier.
1. Equity Loans:
What Are Equity Loans?
Equity loans allow homeowners to borrow against the increased value of their property or the portion of the loan that has been paid down over time.
Why They Appeal to Retirees:
Interest rates are generally comparable to mortgage loans (around 1.4% at the time of writing)
Loan tenures can extend up to 35 years or until the borrower reaches 75 years of age
Provides access to low-cost capital without selling the property
These funds can be deployed into conservative retirement strategies. For example, topping up CPF can generate:
Up to 3.5% risk-free returns in the Ordinary Account
Up to 5% in the Special Account
Up to 6% for members aged 55 and above
Despite common criticisms, CPF remains one of the few instruments available to the general public that delivers stable, risk-free returns regardless of market conditions.
(Banks will still conduct credit assessments before approving such loans.)
2. Private Banking:
For high-net-worth individuals, private banking facilities offer more sophisticated ways to monetise fully paid properties.
How It Works:
Private banks allow clients to use their properties as collateral for funding solutions that range from:
Simple revolving credit facilities
To more complex structures involving foreign currencies and carry trades
Example: A client may borrow at 1% interest, invest in a foreign currency yielding 5%, and maintain a minimum cash float. The resulting positive carry generates returns while leaving capital available for other income-producing investments.
Final Thoughts
After years of advising clients on property strategies, a consistent pattern emerges:Homeowners who upgraded their properties during their peak earning years or invested in multiple properties tend to enjoy far greater flexibility during retirement.
Inflation, much like death and taxes, is unavoidable. Fortunately, real estate values in Singapore have historically grown faster than the rising costs of healthcare, education, food, and transportation. This has enabled many property owners to hedge against inflation and maintain financial independence in their later years.
Has this article helped you better understand your retirement options?
If you found it useful, feel free to like, comment, and share it with friends or family members who may benefit from this knowledge.
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Stuart Chng, Executive Group District Director at Huttons, is a renowned leader and personality in the real estate industry.
He adores music and can play a few instruments decently without upsetting his neighbours. When not doing so, he enjoys pillow fighting with his son and coming up with silly puns which barely amuses his wife.
Professionally, he is a licensed real estate agent, an avid stocks, options and real estate investor, business owner, team leader, speaker and columnist for several property newsletters and blogs and is often quoted in media interviews on 938FM, Channel 8, PropertyReport, PropertyGuru and other publications.
Throughout his career, he has helped many clients grow their wealth through selecting great property investments and managing their portfolios actively. Read his clients' reviews here.
Stuart has also coached many top million dollar producing agents from top real estate agencies in Singapore. Read his agents' reviews here.
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