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Family And Upgrader

Couple with a plan to secure a 4-bedroom penthouse before 50 years old ​(objective achieved), with the goal of fully paying off the property before they ​turn 65.

Client Profile: Family And Upgrader

Estimated Net Worth: $2.7M freehold 4-bedroom penthouse (excluding ​capital growth and inflation).

Profession: GM of shipping firm (husband) and Sales in Plastic Materials (wife)
Age: 48 (husband) and 34 (wife) as of 2024
Family: Couple with two boys and expecting 3rd child (2024)
Net Worth: 4-bedroom new condo at Pasir Ris, valued at approximately $1.85M

Target Net Worth (Real Estate) upon Retirement:
Fully paid down 4-bedroom penthouse along Keppel to Kent Ridge areaM in retirement funds

Immediate Needs:

  • To cash out from the capital made from the condo
  • To upgrade into a penthouse

Budget:
$2.8M, with sufficient cash and CPF monies for a 25% down payment and ​buyer stamp duty estimated at $850k.

Concerns & Challenges:

  • Prefer freehold for long term stability but also open to leasehold to keep within ​budget
  • Extension of stay after selling the Pasir Ris condo to allow time to renovate the ​penthouse
  • Must not be too far a driving distance from ACS
  • Prefer Keppel to Kent Ridge area

Solution Implemented (After Audit):

  • Purchased a 2,150 sqft 2-storey leasehold 4-bedroom penthouse for $2.7M near ​Kent Ridge (2023)
  • Upon selling the Pasir Ris condo (2023), they move to pet-friendly service ​apartment for 6 months and kept their bulky items in a warehouse with storage ​facility

Shortfall from Target Net Worth:

  • Target Property Cost: minimally $2.8M for a leasehold 4-bedroom penthouse at ​desired location
  • Required Down Payment and Stamp Duty: $850k in cash and CPF monies
  • They owned a 4-room HDB flat in Tampines worth $450k, advised to sell and buy ​a 4-bedroom new launch in Pasir Ris at $1.3M and profited around $550k from ​the sale.
  • Shortfall: $850k – $850k = $0 (no shortfall)

Future Solutions:
They just want to fully pay down the house before they turn 65 years old. Do not ​intend to buy any investment property.

By following this strategy, the couple aims to achieve their target net worth upon ​retirement. They plan to secure a 4-bedroom penthouse before 50 years old ​(objective achieved), with the goal of fully paying off the property before they ​turn 65.

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