ASK MELVIN NOW

Attention:

To those HDB owners who flat have fulfilled or near Minimum Occupation Period (MOP) of 5 years

How can you and your spouse upgrade/buy a new condominium unit and create an extra $1.1M wealth in your retirement fund without touching your savings?** 

 

**Note: If your combined household income is at least $8,000 and do not own any other private property. 

Jason & Mary are married with 2 children. They are now living a 4-room HDB Flat in Seng Kang and the flat has just met its MOP. Jason & Mary are considering to buy a new condominium. They both have a combined household income of at least S$8,000 per month.

However, their plan was to upgrade to bigger HDB unit as the children are growing up fast and they could enjoy bigger house. 

Eventually, they decide a new condominium as they think it will be a better choice for them. As Jason & Mary still prefer the young housing estate of Seng Kang, they are considering to buy a nearby new condominium.

Which one to choose?

Most of the people think that they can't afford to buy private property due to the much higher financial commitment like 5% cash downpayment when booking a unit, 20% upfront payment via cash or CPF before 75% bank loan kicks in etc. 

So, which one to choose?

A S$550K 5-room HDB Flat or 3-Bedroom condominium less than $1.5M in the nearby area.

What made their final decision?

Both Jason & Mary are 40-year-old this year. They will reach the retirement age of 65-years old in 25 years time.  

If they choose to buy and own $550K 5-room HDB flat which will be fully paid after 25 years, the flat price remains flat due to ageing. They downgrade to 2-room flat (let's say is S$300K) for them to live after retirement. They will get back $250K in cash (assuming after deducting the CPF money used & incurred interest).

With monthly expenses of $2351 per month expected during their retirement life, it can only last for 8 years. What will happen next?

What if they choose to buy a private condominium?

Assuming the condominium price also remain flats after 25 years. The housing loan will almost be fully paid. After downgrading to 2-room flat, there will have est. $1.0M which will last for many more years.

In the long run, the private condominium will continue to appreciate due to supply & demand while HDB will depreciate sharply after 40 years old.

With a combined household income of at lease S$8,000...

Jason & Mary can purchase a private property of more than $1.0M, assuming 25 years tenure and 2.5% interest rate. 

 

There are a few new condominium developments in District 19 now. 3-bedroom units at Parc Botannia, Riverfront Residences, The Florence Residences, Affinity @ Serangoon, The Garden Residences etc which are affordable to Jason & Mary.

 

Based on the $1.0M property, the upfront cash will be around $276,600 plus the legal fee of about $3,000. Jason & Mary can utilise the cash proceeds from selling their 4-bedroom HDB flat, together with fund of CPF. With that, they probably can purchase a new condominium without forking out savings. 

 

Copyright © 2019. All Rights Reserved by Buynewlaunchnow. Disclaimer: Buynewlaunchnow does not guarantee the accuracy, timeliness or reliability of the information, pictures, images within this website. Buynewlaunchnow shall not be responsible for any liability arises from reliance of any information or use of this website for dealings with any third party.

Melvin Wong (65) 91694922 | melvinwong@outlook.com | CEA Reg.No: R050893H | Huttons Asia Pte Ltd  | Licence No: L3008899K |