Why Financial Planning Is Important
Nobody hopes to burn a hole in their pocket for the sake of upgrading. Saving accumulation and CPF interest compounding will take years to reach certain amount. Upgrade to private property for better lifestyle or upgrade to bigger spaces such as EA or EM is not an easy process and is not suitable for every aspiring HDB upgraders.
Financial Planning & Timeline Planning
During each meetup with every client, I will be doing both financial planning and timeline planning because these two come hand-in-hand. Not only those plans are for their understanding whether they are overstretch in their budget, those plans prepare them what lies ahead for them depending where they upgrade to.
Financial Planning is as important as Timeline Planning!
Below are just some general examples of different scenario to upgrade to Executive Apartment / Executive Maisonette / Executive Condominium / Private Property by selling existing MOP fulfilled HDB or Executive Condominium.
NOTE:
* Estimated financial calculation differs with each different financial situation
* Estimated financial breakdown used as reference only
* Information contained is general and is not intended to serve as an advice
* No warranty is given in relation to the accuracy or reliability of any information
* Users are encouraged to approach lawyers, bankers or professionals for advice
Selling MOP Fulfilled HDB / EC
- Sales Proceed of Selling HDB (HDB Loan) -
- Sales Proceed of Selling HDB (Bank Loan) -
- Sales Proceed of Selling EC (Bank Loan) -
- Sales Proceed of Selling 4-room HDB (HDB Loan) then upgrade to EC -
Upgrading to Your Choice of Home
Assumptions for general financial calculation:
* No other existing property and no other loan on hand
* General profile: Local husband wife (with Proximity Grant eligible)
* Eligible to get 75% bank loan (interest rate 1.7%) with no debt
- Upgrade to Executive Apartment / Executive Maisonette (Bank Loan) -
- Upgrade to Executive Condominium -
- Upgrade to New Launch Condo -
- Upgrade to Resale Condominium -
Financial planning is not as easy as ABC. It requires a lot of attention to listen to clients' requirement, needs and aspiration. It also involves digesting various figures such as monthly income, monthly CPF contribution, CPF amount in OA, refunded CPF, cash savings, HDB maximum loan, bank maximum loan amount etc.
Wish to do financial planning to understand if you are able to upgrade?
If you have a plan in mind but not sure if it works well – do share with me or let me know.
I will do my best to assist you to make sure you look at your plan from multiple angles and ensure you have a very clear picture on what’s going on.
Drop me a HI! in whatsapp and share with me your top most concern in the property upgrading journey.
JJ Wong is the founder of MOPUpgraders.sg and has been a Property Wealth Planner in the real estate market for the past 6 years. He has helped many clients achieve their aspirations with the right financial planning and sound timeline planning. He is the man behind upgrading case studies of those who are holding on property under 10 years.