Planning To Upgrade Your Property But...

Dilemmas Faced by Sellers Banner Background (edited).jpg

Planning to upgrade to a bigger property

But concerned about the Huge Stress

that comes with it?

Case Studies

Let's Dive into This Real case study

One of my clients, let's call her Jane, who has three children and two helpers, has been comfortably living in her current Executive Condominium with her husband for more than five years.

After we went through detailed analysis and careful calculations, Jane decided to sell her resale Executive Condominium in the West.

I facilitated the sale at a high price and the next step was to search for another property to purchase.

Jane sold her Executive Condominium for $1.25 Million.

Jane can purchase another property at $2 Million.

Looking at Jane and her husband's current financial standings and current age of both at 45 years old, they are able to get a 75% loan of $1.5 million.

This means that their bank loan instalment will come out to be $7,575 per month at an interest rate of 2% per annum.

Jane was concerned that the monthly loan instalment together with the family's daily expenses might be too stressful for her and her husband. She asked if downgrading to a HDB flat might be better?

Is this something that some of you are facing?

Or should we downgrade to a HDB with a lower monthly instalment?

Monthly bank instalment at $7575

The fear of taking on a Huge Financial Obligation and fearing that it will be too much of a burden for you?

We have done detailed analysis on 2 scenarios for a better visualisation of the future finance situation for Jane and her husband at the end of 25 years, upon completion of mortgage.

Scenario 1

If Jane and her husband were to choose the route of owning a HDB.

Possible Outcome

Jane and her husband would most likely live in a HDB flat forever.
Their children would eventually go on to purchase their own properties when they are ready.
They would then right-size to a smaller HDB.

Points to Note

HDB resale prices in today's current market are at an all time high.

With government interventions on HDB regulations and prices, there is a huge risk entering the resale HDB market.

Their profits and savings would have diminished as HDB prices tend to decline with a decreasing lease.

Scenario 2

Since Jane and her husband are gainfully employed, they can view upgrading to a bigger property as a form of investment for the future.

Possible Outcome

Jane and her husband will live in the condo that’s carefully curated and selected under our framework.
Their children would eventually go on to purchase their own properties when they are ready.
They can then cash out from this property with their retirements secured and right-size to a smaller condo/HDB.

Points to Note

There are 2 important steps that they need to take, which will make the upgrading less stressful.

Step 1: Refinancing their bank loan and extending the loan tenure from 22 years to 28 years to lower the monthly installment. By doing so, they can lower their installment from $7,500 to potentially $5,800.

Step 2: Using their combined CPF of $2,300, and if both of them can fork out $1,500 each from their monthly income and the remaining $500 from their reserved funds of $150,000. These reserved funds can act as a buffer and service the bank loan instalment for the next 300 months!

In Conclusion

If Jane and her husband had chosen to go ahead with their HDB plans, they will be left with a HDB flat worth $700,000 or lower. On the other hand, if they had taken our advice to purchase a $2 million condominium (carefully curated by us), even if it did not appreciate in prices, they will still have a house that is fully paid and saved $1.3 million more in savings.

It is not an easy feat to be able to save $1.3 million, while holding to a $700,000 HDB in the next 25 years. This is the reason why many of my clients buying properties push themselves to save more and make sure that they are growing their wealth through properties safely and securely.

What I'm trying to bring across to Jane was that being empowered with the right knowledge, right planning and courage to take the 1st step forward, she will realise that property upgrading is not such a scary nor stressful process. If one does not know the strategies and efficient methods to aid you in your property upgrading journey, you will be faced with a lot of unnecessary obstacles and fears that prevents you from upgrading, which also means that you may miss a lot of great opportunities to create wealth through properties.

If you are in a similar situation as Jane or facing any other dilemmas, I warmly welcome you to reach out to me for any property related enquires and I'm committed to make our non-obligatory discussion a fruitful one.

Interested to find out more?

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My Strategies and How it can Help You

Customised Planning is part of a Larger, Comprehensive Strategy

As all of us come from different walks of life and have different needs and objectives, customised planning is needed to determine the most suitable options. What may work for another family, may not necessarily apply to all families, hence, I will listen and understand your all concerns and goals.

After our consultation, I will analyse and use various tools to form the best strategy to achieve your needs and objectives. The customised planning and strategy will empower you to make the best decision for your family and yourself.

Assisted many Homeowners

Generating wealth through properties safely

Over the years, I have assisted many clients on their home buying and investment journeys, using my Signature approach. Clients have generated wealth though their property transactions, which enables them to realise their aspirations and dreams.

Some clients have gone on to upgrade their lifestyle and build their legacy by buying into Landed properties, while some have right-sized their properties, thereby realising their retirement funds and some have purchased investment properties to build on their financial and retirements needs.

Meet Your Realtor

Meet Hans Yeo

Committed, Disciplined and Driven

Hans has always lived by the ethos of commitment, discipline and drive. He believes that these characteristics are vital for success in every part of our lives.

Hence, it comes as no surprise that Hans served 11 years in the military, with 8 of those years being part of the elite Special Operations Force (SOF). Hans’s stint in the military has helped to shape him into a person who focuses on mission and success.

With the completion of his contract, Hans decided to join the real estate industry, where he has developed much interest from his younger days.

Providing One Stop Real Estate Solutions

Hans displays virtues of an experienced and successful realtor, with his versatility in all residential property types from Resale HDBs, ECS, Condos and Landed, together with new launch projects.

Besides providing clients with superior service, he believes in providing valuable information, insights and updates regularly. With his commitment to providing the best solutions and going the extra mile for his clients, Hans has built a rather large network of clients and referrals.

Recognition

Testimonials from Satisfied Clients

I am very honoured to have receive many appreciation notes from clients

Hans is an exceptional property agent. His tireless work ethic, resourcefulness, and insightful market knowledge truly set him apart from others. From the outset, Hans demonstrated an unmatched dedication, going above and beyond to ensure the success of my property sale. His unwavering commitment and long hours invested instilled confidence in his ability to deliver outstanding results. In addition to his hard work, Hans possessed a deep understanding of the property market. His valuable insights and up-to-date knowledge allowed me to make informed decisions throughout the process, and his negotiation skills enabled me to achieve an excellent selling price. Overall, I wholeheartedly recommend Hans to anyone seeking a diligent, resourceful, and knowledgeable property agent. His exceptional service and commitment to excellence made my selling experience truly exceptional.

- Mr & Mrs Ee

Recognition of Achievements

Multiple Monthly Awards

Once Hans hit the ground running as a realtor, it was not long before he started to be recognised for his sales achievements. He has received multiple awards with the likes of Gold and Super Gold, which are awarded to realtors who have achieved impressive revenues.

Looking forward, Hans is determined to achieve many more awards and accolades through his commitment and service to all his clients and their real estate objectives.