Have You Done Your Planning?

More people stays in private property than HDB compared to last time. Why does more and more people upgrading from HDB to private property these days? And even some household straight away upgrade to two properties. The concept of upgrading and even sell-one-buy-two getting more popular nowadays.

While the latter is exciting in terms of seeing the potential gains “roll” faster, it makes sense to some families, but to some other families, it can prove to be risky as well. I do not encourage people to invest beyond their means and how do we able to determine what is beyond or within the means, not only we need a systematic approach, we also need to make sure the client understand his/her/their own Customised Uniqued Property Strategy.

In this article I would like to explore why people do this? Is it because of status quo, life style or greed? While I can’t be speaking for all but I learned one thing:

There are very strong reasons why people choose upgrade their HDB to private and they do it with good intentions for their families.

And below is one of the reason I would like to share:

Consider a scenario of a family of 4, with two young children, staying in a 4 room HDB. The couple, let’s name them Jack and Ann. As filial asian child of their own parents, they provides financial support to their old aged parents. It is tough considering the fact that, 2 of them provide to 4 elderlies, it is even tougher in today’s cost of living in Singapore. Not only Jack and Ann need to provide for themselves, they also need to provide to their kids. (From my experience, financial part is the main reason people are discouraged to have kids s)

The situation Jack and Ann are in is pretty common now and will continue to spiral. Refer to the diagram below

In 2005, the ratio of citizen above 65 years old was 1 in 11, today 2020, is 1 in 6. By 2030 will be 1 in 4. How does it impact the next generation? Here one of the key ones I would like to highlight.

Many old folks intends to pass down their hdb to their children, however, many find out it is not possible when their children also have owned their hdb. The regulation says that a family is not eligible to own more than one Hdb. Thus, will result in HDBs with deceased owners to be sold in the open market.


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