What's Next For HDB Owners?
Buying a home can be a daunting task especially for first time buyers and upgraders. But when you have the ability to break down the figures and have a clear overview of your financial capabilities, you will realise that owning a private property is actually within reach.
As a PropNex associate I have the proprietary financial tools that can help you get an overview of your affordability. With clarity of your financial capabilities and market conditions, you will be empowered to make your next move.
PropNex Proprietary App
Let’s take a look at the case study below. Sam & Jane own an Executive Condominium (EC) and are looking to sell it and buy two properties. Let’s see how I used my app to get the necessary numbers.
With our PropNex proprietary app, we can easily work out your finances and determine whether you can afford your dream home. It takes into consideration based on your cash on hand, the amount in your CPF, and works out your monthly repayment based on the purchase price of the property.
Understanding clearly what your limits are and how comfortable are you with the monthly payments will empower you to make more informed decision. As you can see at the bottom of Jane’s numbers, it shows the monthly mortgage repayment needed in the different phases of construction if it is a new launch.
Something I observed from different clients is, those who work hard and save hard will never beat those who make their hard earned money work for them through property.
This is why it is always my goal to equip home-owners with the knowledge to make informed decisions that will impact their future. The average income growth is at a rate of 2.4% annually (Figure 1), comparing that to those who are able to make phenomenal profits of $300,000 in basically within the span of 3-4 years. If given the option, will you seize the opportunity grow your wealth through property?
Figure 1: Average household income growth (%) from 2002 to 2019
In Figure 2 below, we see the comparison of two similar unit types from 2 different projects in different locations. We can see that in just less than 5 years, property prices have increased so much. Therefore, your inaction can actually cost you dearly without you even realising it.
And based on the reality of income growth, bonuses and savings, are you able to generate such returns?
Figure 2: High Park Residences (2015) & Parc Clematis (2020) transactions
As an upgrader, you will definitely have many questions and concerns as to whether this is possible or worthwhile for you. I totally understand that and would be happy to guide you through this.
At the end of the day, everyone wants financial freedom and attaining financial freedom is definitely possible with meticulous planning and commitment.
Speak to me to see what’s achievable for your situation as it is different for everyone.
