Single Lady

Estimated Net Worth: $750k HDB 3-room flat (excluding capital growth ​and inflation) + $1M cash = $1.75M.

Profession: Teacher
Age: Early Thirties as of 2024
Net Worth: Staying with parents, no property ownership

Target Net Worth (Real Estate) upon Retirement:
Fully paid 3-room HDB flat and have at least $1M in retirement funds

Immediate Needs:

• Invest in private property with capital growth and minimal risk
• Prefer brand new condo as client is afraid of hidden issues with resale units & ​renovation cost
• Prefer 99 years leasehold for affordability

Budget:
$900k, with sufficient cash and CPF monies for a 25% down payment and ​buyer stamp duty estimated at $250k.

Concerns & Challenges:

• 2 bedroom pricing starts from $1.35M
• Insufficient funds for 25% down payment and stamp duty
• Client considered 1+study condo but I advised against it

Solution Implemented (After Audit):

• Secured a brand new 2-bedroom condo for under $1.45M, located next to a mall ​and within 500 meters of an MRT station (2024)
• No monthly maintenance fees and no property tax payable, less Int. payable
• Successfully facilitated the client’s purchase of the property through creative ​solutions

Shortfall from Target Net Worth:

• Future cost of 3-room flat will probably be around $750k in 25 years time ​(accounting for inflation)
• $1M retirement funds plus $750k housing = $1.75M
• Shortfall: $1.75M – $250k = $1.5M

Future Solutions:

• To sell this investment property upon TOP to raise more capital
• Continue investing in high-potential properties (new or resale) with the aim to ​profit another 3 times. The client’s young age allows for longer loan tenure, which ​is advantageous.
• Eventually purchase a 3 bedroom (dual key unit) for own stay, with the studio ​leased out as rental income to pay the interest portion of the monthly mortgage ​loan instalment
• Forced savings over 15 to 20 years through rental income and CPF/cash savings
• Sell the property in early sixties to purchase a 5 year old 3-room HDB flat

Following this strategy will enable the client to achieve a target net worth of at ​least $1M in cash upon retirement, with sufficient CPF monies to fully fund the ​retirement nest.