Estimated Net Worth: $3.4M condo (excluding capital growth and inflation).
Profession: Consultant in telecommunications (husband) and Homemaker (wife)
Age: 61 (husband) and 57 (wife) as of 2024
Family: Couple with two teenage daughters (2024)
Net Worth: Freehold terrace near RGPS (Bt. Timah area) worth $5.1M
Target Net Worth (Real Estate) upon Retirement:
Fully paid 3-bedroom condo in the East Coast area.
Immediate Needs:
- Cash out capital raised from the landed house
- Purchase a 3-bedroom condo in the East Coast area near to the beach
- Minimum 1,500 sqft space
- Do not want small boutique developments
Budget:
$3.5M, with sufficient cash and CPF monies to fully pay down the property without a loan.
Concerns & Challenges:
- Must be freehold as they intend to hold this property indefinitely (capital preservation)
- Property must be in good condition and cannot be more than 12 years old
- Plan to move into the new property immediately after selling their landed house
Solution Implemented (After Audit):
- Sold the landed house for above $5.1M (2021)
- Purchased a resale freehold 3-bedroom condo with a private lift and unblocked sea views in their desired location for under $3.4M in (2021)
- As the purchased property is tenanted, they rented an old apartment in River Valley for 1 year
Shortfall from Target Net Worth:
- Target Property Cost: $3.4M for a 3-bedroom freehold in the East Coast area
- Shortfall: $3.35M (Purchase Price) – $3.5M (cash, CPF monies and capital raised from selling of landed property) = $0
Future Solutions:
- Plan to stay in the 3-bedroom condo indefinitely
- Invest remaining funds in financial instruments with good dividends and capital protection
- The wife might purchase a brand new 2-bedroom condo near town area later on to collect rent. This purchase is also a contingency plan in case both daughters are married, they will only require only a 2-bedroom condo to stay.
By following this strategy, the couple achieved their target net worth before retirement, securing their desired condo in their fifties and fully paying off the property. The sale of their landed home, benefiting from its scarcity and capital appreciation potential, was instrumental in this process.
