My answer will be general because I won't truly know your needs and wants but the important thing you have to take note is to always discuss it with your spouse before you make a decision.
Getting a 3rm or 5rm HDB flat will depends on:
1. Are you going to stay for life or you believe you will buy another property in the future (be it upgrade or another acquisition) ?
a) if you have plans to buy another property, do u plan to sell your 1st home away or rent it out?
Take note of the MOP then the ROI. New HDB rules have restricted the percentage of renting out in a zone. Go read on it.
2. your active cash flow of the family (combined) who are owners of the flat.
a)Are you financing the flat with ease or struggling.
3. the growth in your family member.
a) Are you planning to have 1 child or a big family?
b) Do you have plans to get your parent to live with you?
c) Do you have plans for your child/children to live with you after they are grown up ( married a not)
point b & c is important because if staying with you (willing or not) is part of the plan, then is better to get a bigger flat.
4. Do you have plans to do well with your excess cash/fund from choosing a 3rm instead of a 5rm? I don't mean investment yet.
a) Have you cover yourself with the right amount of insurance?
Since we are talking about flat here, we should be looking at an insurance payout that can cover the property purchased price.
do take note: term policy will be the cheapest for this scenario but term policy does not have surrender value.
b) is there other investment you are savvy with to grow your money. The key word is grow not strike rich. Please do not join any Quick Get Rich Scheme!
5. Do you have experience in getting a property?
What I am saying is. in most cases, your first property will be a mistake because only after staying in a property then you will know what you truly need and want.
Most people will adjust to the mistake to live with it or stay unhappy during the whole duration.
Example:
a) There is a multi storey carpark with STAIRS only and the nearest carpark is 2 block away which means after you super marketing, you have to carry the load all the way to your block rain or shine.
The above 5 points are really general but it would be something to pen down and discussed on.
To me Cash is King.
When you do a NEED approach, you PROBABLY will have more free cash flow to live a POSSIBLE less stressful life.
You will also have the cash to invest when the time/price is right and when the rules are less money driven.
Is all about lowering your long term expenses in a reasonable lifestyle.
Saving is the mother of all investment.
So start with Saving and do NOT invest in anything you are not savvy about.
Another Good Deed Done.
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