And then recently came across an interesting video, its say” I just don’t need to own a home on the way up. Instead, I need to own assets that pay me passive income on the way up! 

To ensure the upkeep of the flat over the next 10 years, a total of $ 456,160  in  cash will be needed. 

Additionally, a total of $2,097,382 is required just to  break even,  including both bank interest and CPF accrued interest. 

(This works up to be a  yearly appreciation rate of 3.41% from the purchased price of $1.5 million) 

What  I appreciate about real estate

it serves as a means of " force savings,"  meaning even if you're buying a property for your stay, your initial payment and costs over time will potentially recover back when you sell with the holding power.

Because Real Estate value will appreciate over time. 

✅This provides that you to set aside the amount you desire to save, and direct the rest toward other expenses.

✅Unlike regular spending 1st and save what is left over  

‼️Why not consider investing your money in real estate as a first step to grow your passive income ?

You can then utilize the generated cash flow from your Real Estate Estate for a car, a home, or a nice holiday?

Well, let's dive into the numbers now,  – it's going to be eye-opening!

Consider three options:

Option 1️⃣

Owned a $3.5 million landed property in your 40s and saved a balance of $886,000 as your safety net for a rainy day.

Option 2️⃣

Husband and wife each buy a property at $1.35 million with an initial downpayment of $757,200 and rent out both units at $5k

With a balance of $1.152million, you can fully pay for a 2-bedroom condo for your stay

3 properties with total assets of about $3.8 million  without  any monthly cash outlay by age 40 to 45.

or

Option 3️⃣

Husband and wife each buy a property at $1.35 million with an initial downpayment of $757,200 and rent out both units at $5k

fully paid a $700k

1 Bedder condo under "Trust", rent out @ $3k per month, the balance of $452k to buy a Resale HDB using your parent's name or others if any.

  So, not just your 2 condos' monthly installment paid by tenants, you can have a fully paid HDB flat to stay with also monthly passive income cash flow rental of $3k from your fully paid Condo, that's allow you to pay for a nice yearly holiday, car installment, etc.....

"If given the choice, I'd opt for options

2️⃣ or 3️⃣– owning assets worth $3.8 million by 40, with no additional cash top-up. 

Factoring in a 2.5% yearly inflation, by age 60, the assets could potentially be valued around $6.3 million. 

In case of a sale, after deducting an estimated $890k in outstanding loans, I could have $5.4 million for retirement with only an initial cost of $422,100. 

‼️The example provided is tailored for a young couple starting at the age of 30 to 35, with both on regular jobs contributing $1.25k each monthly to the CPF Ordinary Account over the last 10 years.

‼️Do take note that there is no one-size-fits-all strategy, as individual circumstances vary.

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