UPGRADING TO A CONDO IS NOT ALWAYS FEASIBLE

She is a 57-year-old single mother with a university-bound daughter. Currently owned a colossal jumbo flat that is worth about $750k.

Had a chat recently with a friend who has indicated she wants to upgrade to a private property.

She is a 57-year-old single mother with a university-bound daughter. Currently owned a colossal jumbo flat that is worth about $750k.

After doing some calculations on the sales proceeds of the flat, assessing her financial resources and checking on her maximum loan amount, we concluded that upgrading to a condo is not the best thing for her to do. It would be too stretching for her.

As in this case, upgrading to a private property is not always feasible for everyone. Why?

Age is one big factor.

At age 57, to take up a housing loan with only 8-year loan tenure will mean high monthly mortgage payment. Loan amount will also be limited.

At age 57, in most cases, it is not the time to build your property portfolio or to upgrade…unless you have a lot of cash to spare.

At that age, it should be harvest time, not sowing time. Age 28 to 45 is the best time for property wealth creation; 45 to 70 for property wealth accumulation; thereafter possibly property wealth distribution.

There is a season for everything.

If my friend were 20 years younger, based on the same monthly income of $5.5k, she would be able to borrow up to $706k, up from $276k. That is a huge difference. Buying a condo would not be a problem.

Property wealth creation should start young.

Danny Han


Danny Han

Associate Deputy Group Director
OrangeTee & Tie Pte Ltd

Danny has been a licensed real estate agent since 2005 and has helped many in Property Wealth Planning.

Do drop him a Whatsapp message or send him an email for a discussion if you are planning to grow your property wealth.

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