Upgrading From HDB
Upgrading from your HDB flat
Do you have plans to upgrade from your humble HDB flat? Should you continue to buy another HDB BTO flat, resale flat or should you go for an Executive Condominium? This is the typical HDB upgrading routes you can explore.
Here are 3 key questions you may ask before you embarked on your next plan!
What is next after my MOP?
After fulfilling your MOP. What are the options available for you? Another BTO, EC or condo?
Can i afford?
You may wonder whether are you able to upgrade comfortably with your current income.
Cash Saving?
After selling and buying your next home, how much cash will you have for raining days?
Should You Upgrade When You Can?
Case 1: The Undecisive HDB Upgrader
Case 2: The Decisive HDB Upgrader
What can we learn from this 2 cases?
- No fix formula for upgrading what type of property type. Its boil down to personal preference.
- If you can upgrade, you should leverage on your loan but yet at the same time do not overstretch. Take calculated risk!
- The choice you make today will determine your family standard of living and your retirement plans down the road.
- Worst case scenario! Sell and profit the gain. What is the worst can happen anyway?
- Always keep 6 to 12 months of living expenses as contingency.
- Been too safe in approach may not always be the best for your family. No pain, no gain!
Successful HDB Upgrading Case Study
HDB To Executive Condominium
Ultimately, they decided to purchase an executive condominium instead after working out a detailed financial planning with them. After paying the booking fees they still have $100,000 in cash saving for raining days. Their executive condominium has since appreciate in value upon TOP.
HDB To 2 Condominiums
Today, they are the proud owners of 2 private properties. They are very comfortable serving the monthly installment for their current home. The other property has been rented out and the monthly installment is fully covered by the monthly rental.
what are the benefits of upgrading?
Property is a good hedge against inflation
Are you aware that property appreciate in value over time. The property your parents bought in the 1980s would be worth multiple time today. Similarly, the property you owned today would appreciate in value in the long term accordingly.
Leverage your property
Leverage is using other people's money to make money for you.... In real estate, you pay 25% of your money to control 100% of a property. When you sell that property or generate monthly income on that property, you're making money on the full value of the investment and multiply your returns.
During the meet up
- I seek to understand your needs before sharing my proposals.
- I will run thru a detail financial calculation to assess your financial status.
- I will share where are the undervalued buys that most buyers ignored.
- The benefits of leverage and how it help to increase your return.
- How to build your wealth and retirement nest through property.
- What are the risks involved and how to mitigate them.
Disclaimer. The above is only suitable for those that have strong stable income. I do not advocate upgrading for the sake of upgrading if clients do not have the financial means. I only encourage upgrading in a comfortable and sustainable manner. After all, I believe we need to sleep with a peace of mind when committing to any property.