Estimated Net Worth: xxxxxxxxxxxxxxxxxxxxxxx with at least $200k cash.
Profession: Full-time Grab driver (husband) and Homemaker (wife)
Age: Mid-fifties as of 2024, wife just started kidney dialysis
Family: Couple, no children (2024)
Net Worth: Staying with uncle and then mother before 2015
Target Net Worth (Real Estate) upon Retirement:
Fully paid down 3-room HDB flat with at least $200k cash for daily and medical expenses.
Immediate Needs:
- To own a HDB flat for own stay instead of living under someone’s roof
- Think of how to raise the $200k funds with a fully paid down flat when they reach 65 years old
Budget:
$180k, with sufficient cash and CPF monies for 10% down payment and buyer stamp duty of a resale flat estimated at $300k (2012).
Concerns & Challenges:
- Low income with poor credit ratings, difficulty in securing loan
- Wife having chronic illnesses, thus, difficulties finding a job
Solution Implemented (After Audit):
- Apply for 3-room BTO flat at $230k, collected keys in 2015, sold in 2021 for $450k, est. $220k profit
- Apply for 3-room BTO flat at $250k under Sale of Balance Flat scheme in 2021 and pay a resale levy. Receiving keys 3Q2024 after delays in completion due to covid-19.
- Plan to sell at $450k to $500k upon reaching its 5-years MOP, est. profit $200k-$250k (2029)
- Xxxx for a xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx fully paid down and keep the cash proceeds into xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx.
Shortfall from Target Net Worth:
No shortfall based on the above plans.
By following this strategy, the couple is able to capitalize from the proceeds of their HDB flat to achieve their target net worth upon retirement i.e. a fully paid down roof over their heads and cash for daily and medical expenses.
