Let's Dive into This Real Case Study

I will be discussing one of the issues that my seller was facing and that could potentially be one of the dilemmas that you're currently going through so read on...

One of my clients, let's call her Jane, who has three children and two helpers, has been comfortably living in her current Executive Condominium with her husband for more than five years.

After we went through detailed analysis and careful calculations, Jane decided to sell her resale Executive Condominium in the West.

I facilitated the sale at a high price and the next step was to search for another property to purchase.

Jane sold her Executive Condominium for $1.25 Million.

Jane can purchase another property at $2 Million.

Looking at Jane and her husband's current financial standings and current age of both at 45 years old, they are able to get a 75% loan of $1.5 million.

This means that their bank loan instalment will come out to be $7,575 per month at an interest rate of 2% per annum.

Jane was concerned that the monthly loan instalment together with the family's daily expenses might be too stressful for her and her husband. She asked if downgrading to a HDB flat might be better?

Is this something that some of you are facing?

The fear of taking on a Huge Financial Obligation and fearing that it will be too much of a burden for you?

We have done detailed analysis on 2 scenarios for a better visualisation of the future finance situation for Jane and her husband at the end of 25 years, upon completion of mortgage.

Scenario 1

Possible Outcome

• Jane and her husband would most likely live in a HDB flat forever.

• Their children would eventually go on to purchase their own properties when they are ready.

• They would then right-size to a smaller HDB.

Points to Note

• HDB resale prices in today's current market are at an all time high.

If Jane and her husband were to choose the route of owning a HDB.

• With government interventions on HDB regulations and prices, there is a huge risk entering the resale HDB market.

• Their profits and savings would have diminished as HDB prices tend to decline with a decreasing lease.

Scenario 2

Possible Outcome

• Jane and her husband will live in the condo that's carefully curated and selected under our framework.

• Their children would eventually go on to purchase their own properties when they are ready.

• They can then cash out from this property with their retirements secured and right-size to a smaller condo/HDB.

Points to Note

• There are 2 important steps that they need to take, which will make the upgrading less stressful.

Since Jane and her husband are gainfully employed, they can view upgrading to a bigger property as a form of investment for the future.

Step 1: Refinancing their bank loan and extending the loan tenure from 22 years to 28 years to lower the monthly installment. By doing so, they can lower their installment from $7,500 to potentially $5,800.

Step 2: Using their combined CPF of $2,300, and if both of them can fork out $1,500 each from their monthly income and the remaining $500 from their reserved funds of $150,000. These reserved funds can act as a buffer and service the bank loan instalment for the next 300 months!

In Conclusion

If Jane and her husband had chosen to go ahead with their HDB plans, they will be left with a HDB flat worth $700,000 or lower. On the other hand, if they had taken our advice to purchase a $2 million condominium (carefully curated by us), even if it did not appreciate in prices, they will still have a house that is fully_paid and saved $1.3 million more in savings.

It is not an easy feat to be able to save $1.3 million, while holding to a $700,000 HDB in the next 25 years. This is the reason why many of my clients buying properties push themselves to save more and make sure that they are growing their wealth through properties safely and securely.

What I'm trying to bring across to Jane was that being empowered with the right knowledge, right planning and courage to take the Ist step forward, she will realise that property upgrading is not such a scary nor stressful process. If one does not know the strategies and efficient methods to aid you in your property upgrading journey, you will be faced with a lot of unnecessary obstacles and fears that prevents you from upgrading, which also means that you may miss a lot of great opportunities to create wealth through properties.

If you are in a similar situation as Jane or facing any other dilemmas, I warmly welcome you to reach out to me for any property related enquires and I'm committed to make our non-obligatory discussion a fruitful one.

MY STRATEGIES AND HOW IT CAN HELP YOU

Customised Planning is part of a Larger, Comprehensive Strategy

As all of us come from different walks of life and have different needs and objectives, customised planning is needed to determine the most suitable options. What may work for another family, may not necessarily apply to all families, hence, I will listen and understand your all concerns and goals.

After our consultation, I will analyse and use various tools to form the best strategy to achieve your needs and objectives. The customised planning and strategy will empower you to make the best decision for your family and yourself.

ASSISTED MANY CLIENTS IN GENERATING WEALTH THROUGH PROPERTIES SAFELY

Over the years, I have assisted many clients on their home buying and investment journeys, using my Signature approach. Clients have generated wealth though their property transactions, which enables them to realise their aspirations and dreams. Some clients have gone on to upgrade their lifestyle and build their legacy by buying into Landed properties, while some have right-sized their properties, thereby realising their retirement funds and some have purchased investment properties to build on their financial and retirements needs.

GLAD TO BE PART OF THEIR REAL ESTATE JOURNEY

Sharing Our Success Stories

What My Clients Says

KOH YAn LENG - Vice President, Campus Infrastructure | National University of Singapore

” He was able to get me a good offer on the very first weekend of viewings. The offer that he got was way higher above valuation...Jason had also advised me to quickly invest in another 2 properties. These 2 properties which I have invested had already appreciated much in over S$300K the last 2 years” 

KATHY GOH - Deputy Director of Finance | Woh Hup (Private) Limited

” Hand on heart - Jason is an exceptional agent - one of the rare gems in the industry! He brings warmth, sincerity, and top-class efficiency.... optimize the unit (furnishing, renovation, etc) to get the best possible return on investment.... professionalism, dedication, and expertise are truly unparalleled” 

TAN KOK LIM - Retiree | Multi Property Investor

” Finally one day someone answered my call...Jason got me an offer higher than my target selling price. I was overjoyed! He helped me to close the sale and we realised it was a record selling price for a 3 bedroom unit in the development! He did a very good job for me which exceeded my expectations”