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Timeline Planning For MOP Upgraders

Updated: Apr 14, 2020

Wrong Timeline Can Be Very Chaotic For Upgraders



Regardless you are upgrading to EM / EA / EC / Private Property, there are some considerations you have to take into account in the timeline planning. One wrong move can end up with no roof over the head or consume all the hard earned savings.


Sell then Buy? Buy then Sell? Buy Sell At The Same Time?

When you are upgrading from HDB or your MOP property, there are 3 scenarios which you can consider:


i. sell then buy

ii. buy then sell

iii. buy and sell concurrently


Planning Timeline is as important as Financial Planning

Under each option, we will explore the pros and cons. The pros and cons are not limited to just those few listed.


[WARNING]

The timeline charts are drawn for reference purpose only and do practice due diligence when you are following the timeline charts. Timeline planning works hand-in-hand with financial planning. One wrong move will result in grave mistake.


 

Option 1: Sell First Buy Later


Pros:

  • Cash flow certainty

  • No ABSD payable

Cons:

  • Possibly no place to stay or rent temporarily

  • Settle with what is available in the market



 

Option 2: Buy First Sell Later


Pros:

  • Have a place to move to right away

  • Have time to renovate

  • Get to buy the ideal unit without waiting


Cons:

  • ABSD is payable for 2nd property

  • Risk of not meeting 6mth ABSD refund deadline

  • More cash / CPF is needed due to lower Loan-to-Value (LTV)



 

Option 3: Buy and Sell Concurrently


Pros:

  • Get to find ideal unit

  • Have time to renovate

  • Move only once

  • No ABSD payable if plan well


Cons:

  • Must have sufficient to pay for 5%

  • Have sufficient to pay for Buyer Stamp Duty



 



I have highlighted the pros and cons behind each option. However, it may not seem as simple as that. With different financial capability of each family who upgrades, it involves tweak in the timeline.


[WARNING]

The timeline charts are drawn for reference purpose only and do practice due diligence when you are following the timeline charts. Timeline planning works hand-in-hand with financial planning. One wrong move will result in grave mistake.

 

Even More Confused After Looking At The Timeline Charts?


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.

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