Typically, young Singaporeans in their mid to late 20s have already found their footing in their career and are looking to settle down. At this stage, they will find themselves seeking out the latest Build-To-Order flat launches to apply with their partner. This is a common practice amongst young Singaporean men to pop the question to their future spouse.
As Singaporeans advance professionally and establish themselves as successful professionals, they will sell their HDB flats and upgrade to either a larger HDB flat or even a private property. Those with higher incomes may choose to own two properties, with one designated as rental income. Furthermore, this is when they will strive to improve the quality of their properties. Typically, savvy couples consult with professional consultants for a general overview of things they need to know about the real estate market in Singapore.
The key is to remember that improving a property’s quality doesn’t mean you must purchase a more expensive one. A property portfolio, which is not increasing in value (taking into account CPF monies used in the property forgoing CPF 2.5% interest), can be restructured by putting the money into another property or asset which can grow much faster in value.
Upon selling their existing properties, they would move into a smaller HDB flat or condo. Their retirement fund will receive the remainder of the sale proceeds.
Sadly, some Singaporeans realise that they cannot carry out their plans at the point when their property is about to be sold – it’s either their property is worth much less or there is not enough left after the CPF accrued interest is paid.