Family And Upgrader

Estimated Net Worth: $5.5M (terrace house) + $1.83M (condo) = $7.33M (excluding capital growth and inflation).

Profession:  Bank Analyst (husband) and Finance (wife)
Age: Early Forties as of 2024
Family: Couple with two young daughters (2024)
Net Worth: 4-room HDB flat in Redhill, valued at approximately $700,000

Target Net Worth (Real Estate) upon Retirement:
Fully paid terrace house along Upper Bukit Timah and an investment property

Immediate Needs:

• Property within 1km radius of Pei Hwa Presbyterian Primary School
• Open to either freehold or newer leasehold
• Prefer a 4-bedroom condo with at least 1,400 sqft and above

Budget:
$2.8 million, with sufficient cash and CPF funds for a 25% down payment ​and buyer stamp duty (estimated total of $800,000)

Concerns & Challenges:

• Price Sensitivity: Concerned about $PSF (price per square foot)
• Need a property that is ready to move in, including any necessary renovations, ​immediately after selling their HDB flat

Solution Implemented (After Audit):

• Property Purchase: A resale freehold 4-bedroom condo within 1km of their ​desired primary school, priced under $2.5 million (2018)
• Coordinated a careful financial timeline to buy and sell concurrently
• Negotiated for a 3-month HDB extension of stay to allow time for renovating the ​new place
• The 4-bedroom should be bought under husband’s name while the wife ​continue to save for the next 3-4 years to purchase an investment property

Shortfall from Target Net Worth:

• A terrace house along Upper Bukit Timah, costing approximately $5-5.5 million
• Required Funds: Approximately $1.5 million in cash and CPF funds for down ​payment and stamp duty
• Current Shortfall: $1.5 million – $800,000 = $700,000

Future Solutions:

• Investment Strategy: The wife will purchase a highly investable and rentable ​new launch property in a good location to achieve better capital growth. Bought ​a 2 plus study condo in an integrated development for $1.83M (2024)
• Forced savings over a 5-year period through rental income and savings from ​CPF/cash
• Option 1: Sell both properties (the 4-bedroom condo and the investment ​property after 5 years holding period) to purchase the landed home
• Option 2: Sell the 4-bedroom condo and keep the 2+study investment property

By following this plan, the couple can strategically increase their capital and ​achieve their goal of owning a terrace house.