Why Many Get Stuck At Their First Home — And How Some Quietly Build Capital Instead
Recently, I had a conversation with a friend that made me reflect deeply.
He reminded me why so many Singaporeans get stuck after buying their first home — and why others, quietly but steadily, keep progressing.
It’s not luck.
It’s not magic.
It’s a matter of perspective — and how you use four quiet forces working in the background.
Today, I want to share about the 4P Capital Building Concept — and how it can change your future, even if you’re starting small.
Most people only think about buying one property and staying there.
But those who manage to grow their property wealth understand there are four forces quietly working for them:
- Promotion — growing your income and loan eligibility over time
- Principal Saving — building hidden equity through every mortgage repayment
- Personal Saving — setting aside cash savings alongside CPF
- Property Appreciation — letting the market help you grow your asset value
If you can get these four working for you, even a modest first step can snowball into serious capital over time.
Let’s dive in.
Why Some Choose To “Stay Comfortable” Instead of Building Capital
A good friend of mine is currently serving in the military.
He bought his Tampines North 5-room BTO a few years ago for less than $500K.
Today, it’s worth over $900K. We were chatting, and he was asking about buying Aurelle recently.
You might think, “Wah, confirm will upgrade already!”
But no — he has decided to stay put.
His reasoning?
“ After you deduct:
- Interest costs
- Agent commissions
- Buyer stamp duty
- Maintenance fees
The real net profit isn’t that much”
He shared that even those who “make” $300K–$400K on paper often only cash out less than $150K after everything.
Instead of upgrading, he plans to deploy his CPF money into his Special Account — letting it grow at 4% compounded — aiming for a strong CPF Life payout.
As of today, at the age of 36, he and his wife have enough in their OA today to clear their entire HDB loan.
And honestly, it’s a smart and stable plan — if your priority is defense and stability.
But it’s very different from those who aim to actively grow capital through property.
Why Others Choose To Progress and Build Bigger Capital
In 2019, a former senior of mine from Geylang NPC (where I served my National Service) reached out to me after watching some of my property videos.
(Side note: I’ve always felt very blessed. Over the years, many brothers and seniors from the police force — who followed my journey since I was just 21 — have placed their trust in me.)
Back then, this young couple was earning about $8,000/month combined.
Buying a 4-bedroom condo felt like a distant dream.
In fact, the same 4-bedder they eventually bought for $1.7M in 2025 was selling for just $1.25M in 2019.
Almost half a million dollars cheaper.
Yet they couldn’t buy it — because:
- Their income wasn’t strong enough to get a big enough loan
- They didn’t have enough savings for the downpayment
They simply weren’t ready yet.
Instead, I kick-started with what they could afford:
A 3-bedroom resale condo in Pasir Ris for $950K — their maximum safe budget.
It wasn’t glamorous.
But it was a solid first step.
What Happened Next (Real Results)
Fast forward to 2024–2025:
- They sold their 3-bedder in Pasir Ris for $1.48 million.
- After paying off their outstanding loan of $600,000, and deducting selling costs,
they walked away with about $808,000 in combined cash and CPF proceeds.
(And importantly, they didn’t even need to touch their separate cash savings for the next step.)
Now, upgrading to the $1.7 million 4-bedder meant needing:
- $425,000 for the minimum 25% downpayment
- Around $60,000 for stamp duties and legal fees
In total, about $485,000 upfront.
But here’s the important part:
Instead of just paying the minimum required downpayment,
they chose to deploy more capital into their new purchase.
They deposited more than necessary —
reducing their final loan to just above $1.1 million —
as part of their long-term strategy to increase their holding power.
This means:
- Lower monthly mortgage obligations
- Higher cash flow flexibility
- Greater ability to ride out market cycles safely
It wasn’t just about upgrading.
It was about upgrading with strength.
The Key Lesson: Quiet, Strong Progression Pays Off
Without that first stepping stone — the $950K 3-bedder —
they would never have been able to catch up with the market.
It wasn’t perfect timing.
It wasn’t luck.
It was capital building through action:
- Promotion — Their combined salary grew from $8K/month to a higher amount now 🙂
- Principal Saving — Every mortgage repayment quietly built ownership
- Personal Saving — Good saving habits added resilience
- Property Appreciation — Turned a modest first step into a major leap forward
Because they moved carefully — and fortified their position each time —
they didn’t just chase bigger homes.
They built real security for the next stage of their life.
A Brutal Truth About Waiting
I’ve seen this pattern again and again over the years.
The ones who move early — even when it’s uncomfortable — get access to bigger options later.
And those who wait?
They watch the market move away from them…
and they end up paying tomorrow’s prices with yesterday’s savings.
By the time they realise it,
the gap is too wide to catch up.
The longer you wait, the more you are not just standing still —
you are quietly falling behind.
How Capital Builders Quietly Progress: Breaking Down The 4P Concept
Let’s revisit the 4P concept — but this time, with real-world meaning behind each part:
- Promotion
Your salary rarely stays stagnant forever.
Like my Pasir Ris clients — growing from $8K to a larger income naturally boosted their loan eligibility. - Principal Saving
Every mortgage repayment quietly chips away at your loan.
You’re building “invisible savings” without even feeling it. - Personal Saving
Even while paying off their property, my clients saved $500–$1,000/month separately — strengthening their position for their next move. - Property Appreciation
Their condo appreciated from $950K to $1.48M — giving them the “capital boost” they couldn’t have saved through salary alone.
When you stack these four forces,
you create momentum that opens bigger doors every few years.
What Happens If You Don’t Move? (The Comfort Trap)
If you:
- Keep fixating on interest costs
- Fear small fees like stamp duties and agent commissions
- Delay “until you feel ready”
You’ll wake up 5–7 years later, and realise:
- Entry prices have moved beyond your comfort zone
- Inflation has eroded your cash flow
- Your property value stayed stagnant
Comfort feels nice short-term.
But comfort often costs capital long-term.
Real Capital Growth: What 10 Years Could Look Like
Here’s a realistic, achievable growth pathway:
| Stage | Starting Capital | Property Quantum | New Capital After Sale |
|---|---|---|---|
| Stage 1 | $250K–$350K | $900K–$1M condo | $500K–$600K |
| Stage 2 | $600K | $1.6M condo | $800K–$900K |
| Stage 3 | $900K | $2M–$2.5M bigger home or landed | $1.1M–$1.4M |
The key?
Start before you feel ready.
Grow as you go.
Let the 4Ps work quietly for you.
A Note of Gratitude: Inspired by Matt Lam’s 4P Concept
Before I end, I want to acknowledge that the “4P Capital Building Concept” was inspired by Matt Lam’s (my inspiring work boss!) original 4P framework. ( watch Video here : https://www.instagram.com/mattlamhy/reel/C3H-5WiSH8p/)
In Matt’s explanation, the 4Ps represent:
- Promotion — salary and career growth over time
- Principal Saving — building hidden equity through monthly mortgage payments
- Personal Saving — disciplined cash savings alongside property ownership
- Property Appreciation — passive gains from asset price movements
When these four forces come together, they can create a powerful roadmap to move you further ahead — even from humble beginnings.
If This Story Resonates With You…
If this article helped you think differently about your property journey, I’m really glad.
Because the truth is:
The best time to plan your next move is before you’re forced to.
Not when the market has already moved.
Not when financing rules change.
Not when opportunities dry up.
If you want someone to walk through the possibilities with you — calmly, clearly, and without pressure —
I’m always happy to chat.
You can WhatsApp me anytime at 9759 7125.
Sometimes one small conversation today…
can save you years of regret tomorrow.
Shall I do a video version of this topic?
