Everyone’s needs & wants is different at every stage.
There simply isn’t a one-size-fits-all strategy.

Case Study #1

Patrick & Jessica

Fiance & Fiancee
Patrick, Aged 30, Income $3,800
Jessica, Aged 27, Income $4,500

When We Met Them

As both their parents are living in Sengkang and Punggol area, they were planning to get a Resale unit in Rivervale Crest as it seems to them that it is more worthwhile buying into a property which is bigger in size yet cheaper in terms of both quantum and psf.

After Restructuring

By chance of referral, after understanding their situation and knowing that they were not actually looking urgently to move out immediately after they get married, we showed them the historical market trends of EC vs Condo and also various charts of New Projects vs Resale Projects to let them understand how the entire property market works in Singapore.

Being a young couple with an open mind, they fully understood what we showed them and after they are assured that their finances are good to go by going through our Detailed Financial Assessment, they eventually booked a New EC at Prive. In a flash of an eye, they are now happy home owners of a property which has a fantastic paper gain of 60% profit and the property is still going strong.

In comparison to if they had went ahead with their purchase at Rivervale Crest, it would have been a very different story now.

Why Did We Advised Them So?

✅ They were not urgently looking to move out
✅ They were not in need of a really big space for their home
✅ They were financially capable to finance their purchase
✅ They were looking for a long term homestay and not a short term investment
✅ They were lucky that there was an EC launch just as they were planning for a property

Case Study #2

Mr & Mrs Lim

HDB 4 Bedroom Owners (Fully Paid)
Husband, Aged 48, Income $7,600
Wife, Aged 45, Income $4,200
With 2 Teenage Kids

When We Met Them

Through a referral, we met up with Mr & Mrs Lim who were considering selling off their 6 years old HDB BTO and upgrade to a larger HDB in the same town as they always feel that it is mission possible for them to be able to upgrade to a private condo.

After Restructuring

By fully understanding their concerns and objectives and finding out that they do not want to have too much of a hassle moving around, we proposed to them that a New EC will be their best choice of option.

Running through a Detailed Financial Assessment, we realised that all they had to pay (by cash) to upgrade to an EC is just the 5% Booking Fee! The rest of the 95% payment will be fully handled by their CPF, Bridging Loan and Mortgage Loan.

As EC’s mortgage loan is calculated based on MSR (Mortgage Servicing Ratio – 30% of Income) instead of TDSR (Total Debt Servicing Ratio – 60% of Income), the monthly mortgage they have to handle every month is super comfortable for them. On top of that, there is no ABSD involved for HDB upgraders upgrading to an EC which further sweeten this entire upgrading plan.

In view of all these postives, they confidently went ahead to book an EC in Punggol and they are now happy owners looking forward to moving into a brand new condo with high potential for capital gain instead of a resale HDB unit which price will not be growing much in the years ahead.

Why Did We Advised Them So?

✅ They have only bought 1 subsidized housing from HDB before
✅ They love the idea that they can continue to stay in their current HDB all the way till the EC is completed
✅ They were more than financially capable to finance their purchase
✅ They were looking for a long term homestay and not a short term investment
✅ They were lucky that there was an EC launch just as they were planning for an upgrade

Case Study #3

Larry & Chermaine

HDB 4 Bedroom Owners (~$80k Outstanding Loan)
Husband, Aged 39, Income $8,600
Wife, Aged 34, Income $7,400
With 1 Toddler Child

When We Met Them

Being savvy investors, they always have the idea of owning a 2nd residential property as a form of investment and they were ready to pay ABSD to buy a new launch 2 or 3 bedder unit for capital gain.

After Restructuring

After working through a Detailed Financial Assessment. They realized that the ABSD that they were ready to pay could be used more wisely. As they do not like the idea of moving into a resale unit, what we proposed in the end was to cash out of their current BTO first, buy a new launch for ownstay, decouple 3 years later before going for their 2nd investment property under Chermaine’s name.

Using our Decoupling Calculator, we worked out for them the most efficient % each of them should hold for the new launch for ownstay so that minimal cash will be involved when it comes to decoupling 3 years later. What they held in that property was a 67%/33% share (why not 99%/1%? talk to us to find out the reason why the plan would have failed if they went for 99%/1%).

Going as planned, they are currently reaching the end of the 3rd year in this ownstay new launch and Chermaine will soon be decoupling out of this property and fulfil their dream of owning a 2nd property for investment.

Why Did We Advised Them So?

✅ They do not like the idea of moving into a resale unit
✅ At their age, they value investment more than lifestyle or convenience
✅ They are investors who prefer a more concrete plan instead of chance (when we bring up the strategy of going for undervalue properties)
✅ They were open to the idea of decoupling and holding a property each
✅ They were both financially strong and capable of financing a property each
✅ They were looking for a strategy which focuses on capital gain instead of cashflow

Are you also in a situation whereby you’re unsure what your next best option is? Make an appointment with us and who knows you will finally be able to move on and strengthen your property portfolio in ways you never knew was possible.

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