Over the past few years, I have helped various clients from various walks of life to restructure their property portfolio.
While they come from different backgrounds – they are all highly committed to securing their financial future through better property decisions.
I met this client when he was renting a room from my client for $1000 per month. He has been a PR for the past 10 years.
He then upgraded to rent a 3 bedroom apartment at $3500 as his wife and daughter join him. His daughter came here to study.
I did a clear financial plan and proposed to them to consider getting own place of their own since their daughter will be in Singapore for at least the next 10 years instead of renting from others and paying in cash. Rental is an expense and a sunk cost. At the end of the tenancy, they could not recover any amount they paid as the property does not belong to them.
The rental they paid can be put towards owning their own place.
They bought a brand new property that TOP within the next 1 year and that coincides with their tenancy that will expire in the next 1 year. The monthly repayment is lower than the rental that they paid.
And they have the flexibility to use CPF savings to pay for the monthly repayments. They are planning to cash out when their daughter completed her education in Singapore. We assessed the upside potential and the property has today appreciated about $120k to-date.
Happy and Proud Property Owner today!
Upon MOP, the resale value was lower than the price they purchased at. At the same time, nearby BTO flats also just reached MOP. This flat was 14 years. Selling was competitive.
Their flat was 12 years old. The selling price was comparable to a BTO flat turned 5 years old. Furthermore, their 4room flat which was on a high floor was comparable in price to a 5room flat of same age at a lower floor.
After a through analysis to weigh the pros and cons of upgrading to a private near school and the option of keeping the hdb flat to rent or letting it go.
They decided that it is not worthwhile paying additional buyer stamp duty for the condo while keeping the HDB flat with a dropping resale value. Rental is not attractive too. Sentimental attachment to the matrimonial house is the hardest reason to let go.
We managed to get a freehold 2bedroom condo that is beside MRT and within 10mins walk to the primary school. It was a perfect match for their own stay. They have also kept some reserves in place to plan for a second property for investment in the future.
This is the photo of the 5room HDB flat in Tampines which we managed to sell within 1 month. The family is planning to upgrade. We assessed the options available and they prefer to focus on selling first. They did not mind renting or moving in with parents after the flat is sold even though the hassle to move twice with their young kids.
We concurrently selling and searching to find a suitable buy. Many resale condo requires renovation before fit to move in for own stay and that requires to dig into savings for renovation. We managed to find a new condo under construction and ready in less than a year in city fringe. The space, location and finances fit their own stay criteria.
The cash proceeds from the HDB sale were partly used to pay for the downpayment for the purchase of the new condo and keep some cash reserves for future use, without touching their own savings.
Selling resale competition from nearby Dawson estate that offers flats that are newer though smaller but higher in price yet seem to be popular though further from MRT compared to ours.
Age of the flat does play a part on the resale value and the buyer’s demand and preferences. We priced and market it right to attract the right buyer who are looking for a flat as their matrimonial home in move in condition.
A smooth move in to the new place for their family before the handover of the sold HDB flat to the new owner and a timely HDB sale to meet the ABSD refund timeframe.
After doing the sums, she could in fact afford a condo. As her plan was to invest and not for own stay, buying a condo outweigh the benefits of buying a HDB flat.
Buying a condo also fits her retirement plan in 15-20 years’ time as the finances would allow her to downsize to a HDB flat, possibly fully paid, when she decided to move out to stay alone. She is now a happy landlord renting out her dual key condo with rental income that helps her to pay for the monthly repayments.
She was looking for a property that can offer potential upside and she can rent out easily as well as a place that she personally likes for own stay when she no longer stationed overseas for work.
Looking at an actual property allowed her to better visualize compared to looking at showflat units which she needs to visualise.
We did a thorough analysis and financial planning that the risks and benefits of buying a condo in city fringe suits her plan. Furthermore, she gets to enjoy the first owner advantage and she likes the space which she enjoys living in next time. At the moment,she will just collect rental as she is stationed overseas for work.
Travelling to and fro between Punggol and Clementi for work becomes a struggle.
The relocation to Clementi becomes more obvious as the couple start to plan schooling for their children who are going to primary school soon.
Unfortunately, they did not make much gains from the sale of their HDB flat. The next property was to offer a bigger space and a potential for capital upside while offering them the convenience to travel to their kid’s school and work.
This family decided to grow their property portfolio by adding a freehold property on top of keeping their HDB flat for own stay.
They also prefer a flexibility to rent out their HDB flat and to move into their condo. We have done analysis and they are also willing to pay for the additional buyer stamp fees as they like the flexibility of staying in flat that is near to school and their elderly parents.
The freehold condo is rented out and located in a district where there is limited freehold residential land and a number of supply of leasehold new launches at higher psf$.
It is good to have options. To most people – too many options can cause confusion as well.
Before my client met me, she has visited many new showflats by herself. Many are priced within her budget. The challenge is which is the one that allows her to rent out easily and make a potential gain from future sale.
She is very clear that it is for investment. She is not moving in as she is staying with her parents.
We analysed together and she understood that not all projects are the same though they are priced within her budget. Some are more suited for investment while some are more suited for own stay.
She also shared that to buy based on floor plan can be a challenge. We studied the physical site and she gets to understand the orientation and likely view of the unit that she was keen in.
We found a development that offers the uniqueness of a mixed development that is sheltered to MRT and in city fringe.
She gets to enjoy the first mover advantage and the recent new launches in that area are further from the MRT and priced higher than what she paid for.
They are looking for a 2 bedroom condo for own stay or for investment. The convenience, location and surroundings to suit their lifestyle besides being able to rent out easily.
Within the same price, they could get a resale condo near MRT but older with a bigger space compared to a brand new condo near MRT at a higher psf$.
We did the financial sums and analysis why bigger does not necessarily means “less costly” and “less risky”. And they bought a brand new condo and happily renting it out.