How to Upgrade from an 4 Room HDB to a $2-Million Dollar Condo in 5 Years

How to Upgrade from an HDB to a $2-Million Dollar Condo in 5 Years

In Singapore, 80% of Singaporeans live in HDB flats. After the 5-year Minimum Occupancy Period (MOP) requirement of their HDB, they can upgrade to private property of their choice. Meanwhile, some will sell their HDBs and buy private properties not for their own use, but for investment purposes. 

Singapore has always been viewed as an investment destination by many. What remains true despite the pandemic is that Singapore is a good place to invest. Nevertheless, one must consider few important things, such as when to buy a property? Another thing to remember is to choose not just the best, but rather the right property that will give you profits in the future. 

Five years ago, we were active in the Fernvale area. One of our clients there initially wanted to upgrade but in the end, he decided not to. A few weeks later after marketing his property, he decided not to continue with selling and told us that he planned to stay put. He did not see properties as investments but he had an income of around $6,000.

We ran the numbers for him and determined that his property would continue to generate money. Now, it’s 2021 and I was wondering how his journey would look if he continued to gain assets, so that’s why I want to show you his possible path.

If he went according to plan, his net worth would be close to $2,000,000 and it’s a huge amount considering his household income was only $6,000.

To illustrate, here is how he would have progressed through his property portfolio:

Step 1: Sell HDB, Buy High Performing Property

  • Sell the Fernvale HDB for $455K and receive $125K profits
  • Buy High Performing Property using the Review, Overcome, and Invest (ROI) method
  • High Park Residence for $1.092M in September 2015
  • Rent a unit at Seletar Park Residence for $2,500/month

Step 2: Sell High Performing Property, Buy a Higher Performing Property

  • Sell the High Park Residence unit and receive $300K profits
  • Buy a higher-performing property using the Review, Overcome, and Invest (ROI) method
  • Use a portion of the $300,000 profits to buy a unit in Tampines Treasures – a property that has a bigger square footage

Step 3: Sell High Performing Property, Buy a Higher Performing Property

  • Sell the Tampines Treasures
  • He could have continued on this trajectory as he was already very comfortable at Seletar Park.

The next property to invest in would be Normanton Park. Repeat Steps 2 and 3. 

This was the planned asset progression for him. If he continued on his current path, he could have made an $850K profit after 5 years.

So, what’s the common denominator among these steps? It’s the Review, Overcome, and Invest (ROI) method. This method has been proven to identify high-performing properties that will help you in your asset progression journey. The target was to sell at a peak price based on the laws of supply and demand.

If you want to know more about this method and how you can use it to your advantage for your asset progression journey, contact us and we will help you make the first step.

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