Young Family And Upgrader

Estimated Net Worth: $7M semi-detached house (excluding capital ​growth and inflation).

Profession: Both lawyers
Age: Mid-thirties as of 2024
Family: Couple with two toddlers (2024)
Net Worth: 5-room HDB flat in the West, valued at approximately $850,00

Target Net Worth (Real Estate) upon Retirement:
Fully paid semi-detached house along Bukit Timah

Immediate Needs:

• Property within a 1km radius of SCGS with potential for capital appreciation
• Minimal renovation required due to busy schedules
• Prefer freehold property

Budget:
$3.5M, with sufficient cash and CPF funds for a 25% down payment and ​buyer stamp duty, estimated at $950k.

Concerns & Challenges:

• Purchasing an overpriced property
• Finding a ready-to-move-in property upon selling their HDB flat

Solution Implemented (After Audit):

• Sold their 5-room HDB flat for > $860k (2023)
• Property Chosen: A brand new freehold 3-bedroom condo near Newton at ​$3.22M, with TOP slated for mid-2024 (2023)

Advantages:

• Progressive payment by construction milestones, resulting in lower monthly ​interest payable on mortgage loans
• Saved interest used to renovate their parents’ landed house as an interim ​home
• Attractive entry price compared to surrounding new and resale properties, ​increasing potential for capital growth

Shortfall from Target Net Worth:

• A decent semi-detached house along Bukit Timah costs around $7M
• Required Funds: Approximately $2M in cash and CPF funds for down payment ​and stamp duty
• Current Shortfall: $2M – $950k = $1.05M

Future Solutions:

• Current value of the 3-bedroom condo est. $3.45M (+$230k). Plan to raise capital ​from the sale of the condo (after staying for 3 years) and decide next housing ​option
• Save additional funds from CPF and cash over the next 8-10 years
• Use the proceeds (from condo & next housing option) and savings to purchase ​their semi-detached home along Bukit Timah

By following this strategy, the couple aims to achieve their target net worth upon ​retirement and secure their desired semi-detached house before 48 years old.