Reach Your Goal of Owning a Flat Before You Turn 35 : Money-Saving Strategies
TLDR Jayson Ang provides valuable insights on money-saving strategies to achieve the goal of owning a flat before turning 35...
Read More
TLDR
Mdm Sim’s decision to trade her four-bedroom house for a two-bedroom condo is explored, highlighting the benefits of right-sizing. The key motivating factors include financial stability, access to amenities for a vibrant social life, legacy planning considerations, and avoiding lengthy wait-out periods. The move to a smaller condo provides Mdm Sim with greater financial peace of mind, enhanced social opportunities, and a strategic approach to legacy planning. Additionally, the advantages of condos over HDB flats in terms of hosting events and the significance of security amenities are discussed. By considering these factors, individuals like Mdm Sim can make informed decisions when right-sizing their living spaces.
When it comes to right-sizing, one might think selling a house to buy a resale flat is the natural route. But this isn’t always the case – we recently chatted to Mdm Sim who made the wise decision to trade her four-bedroom home for a two-bedroom condo. Here’s why that could be the smarter move:
“What are the motivating factors behind right-sizing to a smaller condo?
After consulting with Mdm Sim and other like-minded individuals who have made the switch, the consensus seems to be:
- Peace Of Mind In Terms Of Financial Stability,
- Access To Amenities That Enable A Vibrant Social Life,
- Resolving Legacy Planning Issues,
- And Avoiding Lengthy Wait Out Periods.
1. Peace Of Mind In Terms Of Financial Stability
Mdm Sim asserts that relocating to a more compact condo, instead of an apartment, provides her with greater financial peace of mind. Her rationale for this is:
“If I own private property, I have the option of downsizing in case I need more money after retirement. Selling my property and moving to an apartment would be my only option if I only have an apartment.”
Mdm Sim firmly prefers freehold properties over leasehold ones such as HDB flats; she feels it can help maintain its worth and ensure further gains should she ever decide to sell.
“This statement is partially accurate; freehold properties have the potential to maintain their value more effectively over the long haul, however, it is not certain that they will always out-perform a leasehold condo in terms of value appreciation.”
2. Access To Amenities That Enable A Vibrant Social Life
Many seniors have noticed that, due to the luxuries offered in a condo, their families have become more eager to pay them a visit; and Mdm Sim has had a similar experience.
“Every weekend, it’s a good reason for the whole family to come together; my grandchildren have swimming lessons from their instructor at the local pool, while my son-in-law uses the gym here, since he doesn’t have one near his apartment. As a bonus, it also gives me a chance to see my daughter more often since they usually visit together.”
A fellow right-sizer enlightened us with the fact that, although HDB flats boast an array of modern amenities, condos remain the superior option for hosting large events. The luxuries provided by their clubhouse, he noted, far surpass those of the average void deck, and the BBQ pits in flats are far too cramped to accommodate larger gatherings.
You must select your projects with great care. While newer mass-market condos may boast an array of amenities, having a single swimming pool and tennis court shared among a thousand units could lead to overcrowding on weekends.
Having the condo security guards around certainly makes a difference according to Mdm Sim; they graciously open the door for her if she arrives by taxi, and even lend a hand with her shopping bags when she calls for assistance. This small act of kindness is especially valuable to her and her husband, who is wheelchair-bound.
3. Resolving Legacy Planning Issues
Mdm Sim decided to purchase a condo for a variety of reasons, one being that as the majority of Singaporeans own their own homes, their kids cannot inherit their parents’ HDB flat. This means that when their parents are downsizing or retiring, it is not possible to own two HDB flats; so to avoid having to give up one property, they can opt to buy a private one.
Mdm Sim is keen on passing down the property to her daughter, who already owns a condo unit, thus making a private property the perfect choice. She believes that her daughter’s condo unit would not only appreciate more than a flat, but it would also retain its value much better, ultimately giving her daughter a more substantial legacy.
4. And Avoiding Lengthy Wait Out Periods
Mdm Sim is fortunate that she’s already over the age of 55 and therefore isn’t affected by the September 2022 cooling measures, but Michael and his spouse, both in their late 30s, were unfortunate to have their plans for selling their condo and buying a resale flat thrown into disarray due to the sudden announcement of the policy change.
“After inheriting my late grandmother’s condo, which was quite old, my wife and I decided to sell it and downgrade to a more modern two-bedroom. We chose to purchase this smaller place so it would be near our shop and avoid having to wait out with a 15-month rental contract while trying to run our new business.”
Despite the fact that they had chosen a condo instead of an HDB flat, which resulted in a significantly lower capital for the business, Michael takes solace in the fact that he still owns a condo which is a valuable and growing asset.
Retirees May Be A Hidden Gem Of Potential Buyers For Owners Of Smaller Condos!
It is widely assumed that selling a shoebox unit or two-bedder could prove challenging due to the limited number of potential buyers; however, this is not necessarily the case. Recently, a trend of seniors opting to ‘right-size’ into smaller units has emerged, with many believing it to be a great investment and/or practical gift for their children.
Your children may not be able to move into it, but they can use it as an investment tool! With a fully paid one or two-bedder, they can use the rental income to help cover the costs of their current home loan and possibly become mortgage-free.
Stay up-to-date with all the news and reviews of the home buyer and seller experience by following me on my blog!
I’ll keep you informed of what buyers and sellers are thinking and provide insight on new and resale properties.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Top 5 Bakeries in Singapore for Fresh Bread and Pastries
Singapore, a melting pot of cultures and flavors, is well-known for its diverse culinary scene. Among the many gastronomic delights...
Read More
5 Tips To Spot Winning Investment Properties In Singapore
Investing in real estate is an exciting and potentially lucrative venture. In Singapore, a thriving property market attracts both local...
Read More
Top 5 Best Alternative Music Venues in Singapore
Singapore, a vibrant and bustling city-state, is known for its diverse culture and thriving arts scene. The city's love for...
Read More
Top 5 Thai Restaurants in Singapore
Singapore, a melting pot of cultures and cuisines, is a food lover's paradise. Among the myriad of dining options available,...
Read More
Why Property Investing is the Key to Early Retirement in Singapore
Investing in property is a popular way to build wealth and achieve financial freedom in Singapore. With the right strategies...
Read More
Top 5 Reasons : Why Investing in Singapore’s Property Market Is a Smart Move for Millennials – Expert Analysis!
In recent years, Singapore has emerged as a global financial hub and a prime destination for property investments. The city-state's...
Read More
Singapore Decoupling Guide
TLDR Decoupling in Singapore's real estate refers to the process of separating property ownership to avoid Additional Buyer's Stamp Duty...
Read More
Unlock The Secrets To Successfully Selling Your Home In Just 7 Simple Steps!
TLDR When preparing to sell your house in Singapore, research the average prices in your area to set a realistic...
Read More
How Can Real Estate Investment Help You to Combat Inflation?
TLDR When it comes to real estate investments in Singapore amidst rising inflation rates, consider strategies such as capitalizing on...
Read More
Unveiling 4 Scenarios of CPF Accrued Interest Impact on Property Owners
TLDR When selling your first home, be aware of CPF accrued interest, which is the interest that would have accumulated...
Read More
Discovering the Response of Private Property Owners towards the 15-Month Wait-Out Phase
TLDR The blog post discusses the impact of the 15-month wait-out period cooling measure on private property owners in Singapore....
Read More
What’s Needed For Singapore To Lift Those Cooling Measures?
TLDR The blog post discusses the recent relaxation of real estate restrictions in Hong Kong, contrasting with Singapore's stricter regulations....
Read More
Top 5 Best Hidden Photography Locations in Singapore
Singapore, a vibrant city-state known for its iconic landmarks and bustling urban landscape, is also home to numerous hidden gems...
Read More
Top 5 Emerging Trends in Singapore Real Estate: What Investors Need to Know
The Singapore real estate market has experienced significant growth in recent years, attracting investors from around the world. As the...
Read More
Top 5 Live Music Venues in Singapore
Singapore, a vibrant and multicultural city-state, is well-known for its diverse food scene, stunning architecture, and bustling shopping districts. However,...
Read More
Will New Launch Condos See a Drop in Prices Soon?
TLDR The real estate market in Singapore is experiencing a trend of lackluster bids for prime properties in various locations....
Read More
HDB Owners Missing Out on the “Ultimate Upgrade” to Landed Living
TLDR Over the past two decades in Singapore, the trend of HDB residents upgrading to landed properties has fluctuated. While...
Read More
Which Is Better For You: A 99-Year Leasehold Or Freehold Property Tenure?
TLDR When it comes to the choice between leasehold and freehold properties in Singapore, several factors must be considered. Leasehold...
Read More
Top 5 Factors : Why Singapore’s Luxury Property Market Still Has Room For Growth
Singapore's luxury property market has been experiencing significant growth in recent years, with private home sales in the Core Central...
Read More
