1st a disclaimer. Before, I start off, let me say this up front . If you are looking for a get rich quick scheme, this is not the place. Asset progression is for those who want to use property as a vehicle to either grow their wealth, fund their children’s education or as a retirement option.
Time Horizon
The time horizon, is at least 4 years ( since there is a penalty if you sell within 3 years ). Also due to government measures, property prices spiking up wildly as in the 90’s is most likely a foregone conclusion. Therefore, you need time, patience and most importantly knowledge to execute your plan.
If you are clear on that, lets get down to the nitty gritty
The last few years, that term, has become quite well know. In part, Thanks a lot to Propnex, who were the pioneers in this journey. Unfortunately, there has also been a lot of what Trump would call “fake news “ .
Understandably some people are even scared into even looking into it. So what is it exactly ? So here it is in simple terms .
” Its examining, whether , it makes sense for you currently to change your HDB flat ,into Private property so that, it can be used as a “fund” for your childrens education or a means of retirement for you “
Lets Examine, if thats , what you should be looking at :
Since 2013, there has been a drop of 11.2 % for hdb prices, In other words, the values of your hdb could actually be going down. Not to scare you, however, when you wait too long and do decide to sell, you could be hit by a double whammy of low prices and a negative sale due to accrued interest .
Look at the graph on the left for hdb & Private property prices . What do you see ? Private property prices are doing much better and are much more resilient to shocks and downturns. Unless you are “lucky” and had bought in “hot” central areas, most likely your hdb is not doing so well . So what do most HDB Owners do ? They wait, they hope , that they would be as lucky as their parents . Is waiting and hoping a workable statergy ? So what has change for hdb ? if you have been reading the news diligently, you would have picked up this :
The slew of measures to moderate hdb prices, from loan tenure’s, financial metrics (MSR ) to goverment actively supplying to ,moderate prices. In other words. if you are thinking that your HDB will be just as good or can match .. you could be sorely dissapointed .
Is Private property a better option ?
How does Private private property stack up ? See graph on left . Besides from having a stronger hold value. Private property also allows you to do something HDB cant , that is gear up,or borrow on its appreciation. Which can be used your children education . Something that you cant do with a hdb flat.
Definately , A single page or article might not be enough to explain all the merits. A personal face to face analysis would provide you with more information and with that, its up to you to decide .
If your interest is piqued, and you would like to know, whats required. Here are the basic steps, that we will take before you have that coveted keys in hands of your financial freedom
I have a simple 5 step process ( As indicated ) At any time, You have the control and you can just says, Stan, I dont think i want to do this .
First , however ,We have to begin by analyzing your current situation . I do what is called “R.A.M ( Risk Analaysis Method ), An importnat and crucial step We will also do a simple calculation, which you can do it yourself, (if you want to )
1. Go to CPF homepage check both yours and your wife cpf. Look under Housing loan. Look up (a) The amount withdrawn to pay for your flat and (b) Accrued interest
Once you have the estimate price, deduct your possible selling price (d) from (a+b+c) . Whats the balance ? is it a positive or negative number . Having a positive number is great, that means, you can use that amount to fund your next purchase . Alternatively, you can fill up the query form at the end of this page and i can send you , a more accurate assesment .
Whats if it a negative ? If its negative,You just got a cold shower, you are awake, get out of the shower and warm yourself up. More the reason, you should be even more interested in getting back into green , for the sake of yourself and your family .
After doing this through analysis. I wont be pushing you to make a decision,
In fact i will leave and leave benind a report, for you to think over carefully and come to your own conclusion with your family . Then you make the call and we will go to the next step .
Take a look at the image at the left. This is where you create a plan based on your needs. With inputs like yr age, income, probable future financial situation, your obligations , your wants . We will come up with a few options, that way, you have the choice that is most doable but also importantly most comfortable, that gives you the peace of mind that you need .
Different Person, Different Plan , Different Objective
Everyone is different. Each one of us, are at a different state of your life, you could be a couple with no kids, or with kids that are young or even maybe , you might have children that are already in secondary school.
Therefore, each one of us, have different needs and require a different plan and that’s what i will be coming up for you
The 3rd importanat step is to do a stress test. This is done with a few what if scenarios. Scenarios, that most people are not comfortable talking about , deep in everyone’s mind, they are there.
Scenario’s like :
We will cover that, so that, once its done. You have a clear picture of what to do, if any of those scenarios crop up. Importantly , the plan we craft will take care of these scenario’s
Once you have done the above steps. Not only would you be comfortable with your financial situation but you will also get a clear idea, how investing in private property can help you . You would know , a scenario, that covers up to 15 years and what to expect.
Now , here is the fun part, choosing what you want . Contrary, to what you may think. This is about the most importnat step. Investing in property is not about, buying the development with the most shining brochure or pool . My 5 Star, property checklist will guide you, on what to look for and what you can expect.
Whether, its resale or new launch, the decision maker is , still you. I will provide the right information but you make the decision. It will also entail studying a few developments that fit your needs and check list , going through things like floor plans, facing, stacks , size etc etc.
It can be tedious, but hang in there, the rewards would be worth, the work
By this time, your finances, loans , your offer from your bankers are all done and you are busy looking at all the projects that fit your profile and needs. It can take time. If its resale unit. We would need to do a through check up of that unit and make sure, we have everything in order. Right from checking the bottom of the kitchen sink, the cupboards to the aircon.
We might also need to get an estimate about renovations that need to be done and if needed, we would need to factor this in, to the downtime . There could be some negotiations involved and the need to be emotionally detached from the outcome .
If it’s a New launch , then the program would be different.
This is just a summary of what we will be going through. This is not a 1 day process, as it involves changes, financial and emotional. You need to give yourself the time to prepare and I understand that . The 1st step is the hardest, asking yourself the question, should you do it ? and going through the pro’s and cons’ . By this time, I hope, the facts, that I will provide, will convince you and the step and the process, that we go through together will give you that confidence to take the 1st step.
For a more comprehensive report on your current property prices . I offer a free 5 page report on your property. Fill up the form below and press send, withing 2 days, I would have the report send to you.
If you like to, You can also do your own calculations, just to get a feel. Look at the form below and choose
The Basic ins & Outs of Commercial Investments
For a rough guide, on what you home could be worth. Add your postal code and see, whats the probable value.
For a more detailed breakdown and analysis. I can send you a 5 page report .
Under 1 roof, get the pricing, floor plans and if you like any, book a viewing and i will arrange the show flat vist. Thats how easy, I am making it for you