How A Couple Can Realistically Own Up To 2 Singapore Properties Predictably & Confidently During Their Most Productive Working Years

Property Clarity Series. Jan 14, 2019

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Are you Upgrading or Hunting For Your New Home? With the latest cooling measures & conflicting market hearsay – is there a definitive research backed approach for you to identify hidden gems (be it old or new units) & reap more of the potential upside, while the masses drown in uncertainty & confusion in a rapidly maturing 1st-World Property Market?

With the ever-rising base cost of Singapore’s most scarce resource: land, resulting in the current enhanced government cooling measures and the En-Bloc fever finally tapering off (for now), how can you best utilise your precious savings (using fact based insights and a unique data driven approach) to carefully identify value-buy properties with realistic potential that can elevate you towards your life-goals in a shorter time-frame? (read our full sample illustration, on our 5-step methodology below)…

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Due to the overwhelming amount of information and choices in the market, many home hunters lack 100% clarity in their upgrading or 1st private property selection process (with serious doubts as to the sustainability of a ‘2nd Property', despite the hear-say of friends, colleagues and relatives - many of whom, already struggle to own one property let alone two properties. (We recently handled one such case - of a couple looking to grow their portfolio with the correct 1st private property - read our full numerically illustrated example, by our Head of Research, below this page).

Most people forget that there is an unspoken " Golden Window of opportunity" to put their property plans into motion.

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This has a-lot to do with loan tenure and the power of proper and prudent leveraging. Over-leveraging is when your monthly instalments to own an asset is more than you can manage, thus turning your property from an asset to a liability. In the Singapore system many people use their CPF(OA) funds to pay off their mortgages. Given this equation, a safe 'cash-top up' threshold would be 10% of one's household income.

If you are between 27 - 44 years of age, and earning a decent amount of 'active income' you are at your most optimal golden window to gain a complete bird’s eye view over all your available options, with a detailed pros and cons matrix analysis and the potential implications of each choice, such as what we are about to analyse here in the illustrated example below.

Most people don't plan their property portfolio systematically, hence a poor first step hinders all 'future moves'. 

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There are many claims these days that you can magically own more on as little as a combined household salary of $6,000, for prudence's sake it would be safer to only proceed on such a dream, if you have between $8,000 - $10,000 or more in monthly household income.

The following summarised 5-step-illustration below, shows a brief version: regarding how a couple earning a combined income of $10,800 might want to plan their portfolio after a series of detailed in-depth discussions with our Head of Research via our FOC non-obligatory process (see below) which lets property hunters to decide if our methodology and recommendations truly meet their needs:


Step 1) Personal Profile Analysis:

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Step 2) Financial Modelling & Due Diligence Process

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Despite being able to afford a max property price of aprx. $1.6 million, we advised them from over-leveraging to provide leeway in the event of unexpected life circumstances. We also set out firm parameters of the ideal attributes the chosen property needed to fulfil before even proceeding to any viewing, so as to save time and heartache. Property should not be an emotional rollercoaster ride, but a series of clear steps, with predetermined plans and a confident framework.


Step 3) Effective Property Ownership Execution (Planned Springboard Today In The Present, To Own More In The Future)

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Step 4) Prudence & Effective Positioning: Irregardless of Whether The Potential Market Goes Up, Down Or Remains Stagnant

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Step 5) Effective property roadmap structuring and planning:

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After going through our FOC property evaluation approach, and seeing a detailed and clear breakdown of the timeline, execution steps and financial due diligence down to the last dollar -> Adrian & Serene have not only gained confidence and clarity in their property ownership journey - but have gained an insight to how best to scale their wealth during this limited golden window: of their most productive working years. 

In this current era, the key why some continue to make leapfrogs in financial standing and some get left out is dependent on how one applies realistic strategies, research and a proper framework to create an effective pivot to elevate one's savings to attain achievable wealth. Looking to solve your property questions? (Take our FOC 5-Min property clarity checklist today).