Buying a home always seems daunting especially since it is a big-ticket item and the prices for private homes can easily start at a million dollar. But when you have the ability to break down the figures and have a clear overview of your financial capabilities in terms of servicing your monthly mortgages, you’ll realise that owning private homes is actually very within reach.
One huge perk of engaging consultation with me is having proprietary financial tools that can assist you in planning well. The tools help you map out your finances easily and provide a vote of confidence to any upgraders looking to take their next step. You are definitely not jumping in blindly!
Let’s take a look at the case study below. Sam & Jane owns an Executive Condominium (EC) and is looking to sell it and buy two properties.
We can easily work out your finances and determine whether you can afford your target home purchase or you should just be looking elsewhere. It takes into consideration based on your cash on hand and the amount in your CPF, and works out your monthly repayment depending on the purchase price of the property you are looking at.
Understanding clearly what your limits are and how comfortable you are with the monthly payments will empower you to make a more informed decision. As you can see from Jane’s breakdown of figures, at the bottom, it clearly details the monthly mortgage repayment needed in the different phases of construction if it is a new launch.
One more point I would like to make, as a matter of fact, an important point that I have been advocating; it is that no matter how hard we work and save up, we can never beat those who make their hard-earned money work for them through property. This is why I endeavour to equip homeowners with the ability to make informed decisions that will impact their future, both for them and the family! The average income growth is at an abysmal rate of 2.4% annually (Figure 1), comparing that to those who are able to make phenomenal profits of $300,000 in basically within the span of 4-5 years. We can safely assume that you and most people would want to make that profit too, right?
Figure 1: Average household income growth (%) from 2002 to 2019
In Figure 2 below, we see the comparison of two similar unit types of condominium projects, albeit different locations, but are equivalent in terms of targeted market audience. We can see that in just a span of less than 5 years, property prices differ so very much. Therefore, your inaction can actually cost you dearly without you even realising it.
And based on the reality of income growth, bonuses and savings, are you able to even generate any amounts close to such returns? The answer is cruel but real. Now is the optimal time for you to make a life-changing decision, to enjoy a huge leap in this rat race and seize this opportunity to provide your family with the best while you still harness the capacity to work hard, make a decent income and youth to enjoy maximum loan tenure. You don’t have to look at others in envy thinking that they got lucky or are blessed enough to enter the property market and are making a splash, you can be that person too!
Figure 2: High Park Residences (2015) & Parc Clematis (2020) transactions
With so many questions involved, there are many crucial choices to make as a property upgrader. At the end of the day, everyone wants financial freedom, and not to be burdened by monetary issues especially at every stage of one’s life. Attaining financial freedom is definitely possible, with meticulous planning and commitment. There is so much to benefit from when you make the right choices, and the first right choice to make now is to reach out to me via this link to explore your options and see how you can make your hard-earned money work harder for you.
Stay tuned for more property updates, market sentiments and insights!
If you find this article useful, share it with your family and friends.
Hey! I’m Sufy Beetsma, your Asset Progression Advisor. I have specially created these blog articles to help you understand all things property better. If you have any questions, feel free to reach out to me.