#21: Price Movement of the Landed Market Upgrading | NOTG S2 E21

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♪ Taylor Swift – Shake it Off ♪

2[Melvin Lim]
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– All right, welcome back to our next episode

3[Melvin Lim]
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of Nuggets On The Go.

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So today, we’re going to talk about a few key important answers

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to some of the questions that you guys have sent in

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through our [email protected] email.

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We welcome you to send in more questions for us,

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because we love to answer your questions

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on Nuggets On The Go.

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So, let’s go.

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– All right, so for this particular episode,

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we’re going to answer a few questions

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that we have from our audiences.

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Before we dive into some of these key questions,

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I’m going to show some very cool charts

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that our PLB tech team has developed over the past weeks.

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So, the first one will be these cooling measures

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vis-a-vis the property price indexes,

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and we’re going to make this available

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on PropertyLimBrothers.com.

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There’s going to be a segment called analytic tools.

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You can then head in to play around

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with some of the key features of this.

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So some of them are interactive charts.

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For example, like this one, this is an interactive one.

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What we want to showcase over here by our PLB Nucleus Team

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is basically all the cooling measures

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that has started since day one.

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So, for example, you get SSD 1,

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LTV 1, and then you get LTV 2,

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and then you can track all the way until the latest one,

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which was commenced from 16 December 2021 to interview one.

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ABSD 4, LTV 7,

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and then TDSR 3.

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We have also inserted the duration

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of previous cooling measures,

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like how long they lasted before a brand new one kick-start.

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That is also in core relation with the different indexes.

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So for indexes over at PLB,

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we always like to look at these four indexes,

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basically the landed index,

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the non-landed private property index,

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basically condos and apartments.

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We also like to look at overall

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all private residential properties,

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which is a combination of landed plus condo and apartment,

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and we also want to look at the correlation

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of private properties vis-a-vis HDB apartment properties.

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Over here, of course,

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one way of looking at a cooling measure

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is that technically speaking,

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what has happened in Singapore is that even though

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with rounds and rounds and rounds of cooling measures,

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and all in now, we have like,

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10 over rounds of cooling measures.

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So what has happened to the price index,

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even amidst the introduction of cooling measures?

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So the very first perspective is that the very onset

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and the neediness of having cooling measures

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in the first place

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was because there was so much hype and speculation

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and activities and interests in our Singapore properties.

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And which was why

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our government decided to introduce cooling measures,

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to ensure that we do our best

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to try and lower down the level of speculation,

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the level of flipping of properties,

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which was why SSD came out, and then ABSD came out,

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because there was so much foreign interest

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from foreign investors that want to buy our properties.

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So, technically speaking,

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the neatness of cooling measures

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was because of the fact that if we don’t do that,

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price appreciation is going to be out of hand.

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And what that might cause for our future generation

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is that probably, the income inequality gap

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is going to be so huge

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that only the rich and the top tier people,

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the top class people,

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are only able to buy properties, private properties.

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And then the gap is so high that private properties

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are likely going to be out of reach for Singaporeans.

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And thus, cooling measures in the sense

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is to prevent over-speculation and overly fast-paced appreciation.

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But I think the core message is that

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our government still wants our property price

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to gradually increase.

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And I think the bare minimum for real estate to perform

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is that it must keep pace with inflation

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because if property prices don’t keep pace with inflation,

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what this will mean is that,

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when your property price (stays) stagnant,

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and we always have this mantra here in PLB is that,

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risk is at its highest point when you purchase a property

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that does not appreciate over time.

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And the appreciation has to at least

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be able to fight inflation.

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And thus, if your property

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don’t even appreciate with inflation,

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if inflation is at a certain percentage year-on-year,

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compounding all the way over the next 10 to 25 years,

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if it doesn’t keep pace with that,

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then, technically speaking,

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this particular property is not a good purchase.

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It’s not a good investment, it’s not a good choice.

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I think the bare minimum coming back

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is to keep pace with inflation.

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But of course, the best thing is that your property price,

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if it outpaces inflation,

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it appreciates much faster than that

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in a shorter timeframe.

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Now, of course, there’s a lot of things that you can do.

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One of the things is that you can extract equity

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to enjoy the value of a property without selling it.

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The other one is that,

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of course, you can divest your property.

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You can purchase a new one under your name or spouse name,

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or you can invest in commercial properties

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and things like that.

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And of course, you get also extract equity

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in a sense of divesting your current property,

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and buying a bigger property.

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So coming back to this graph,

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what you will also notice is that

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even though there’s so many rounds of cooling measures,

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the price trend right now of where we are,

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across board was higher than the last peak,

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which happened in 2013.

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So, a quick recap,

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if you have not been following Nuggets On The Go,

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is that there was an episode

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that we talk about the 2013 difference,

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and the key reason why TDSR

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technically changed the psychology

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and changed the behaviour of condominiums

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and apartments’ configuration since 2013,

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because of TDSR and because of the quantum effect.

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So you can click on this to look at that particular video

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where we talk about TDSR effect.

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Coming back to this, price has superseded the last peak,

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even though we have so many rounds of cooling measures,

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and actually, cooling measures in another perspective

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is quite a beauty.

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Why is it a beauty, is that,

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it technically is a protection

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and a moat around the Singapore property segment.

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When it comes to residential property,

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why is it a moat, is because,

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it has technically made real estate stable in Singapore,

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but it’s still appreciating gradually.

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And of course, with the recent trigger event

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that happened in 2020 because of the COVID-19 pandemic,

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it has then even triggered more different kinds of behaviour

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that propel a lot of families to look at bigger properties.

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And of course, that push plus construction shortage

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on the base level for HDB apartments and BTOs

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has also pushed HDB apartment prices

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upwards in the resale market,

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which then further pushed the OCR condos, RCR, CCR,

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and the landed properties as well.

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So why is it a moat?

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Back to the question,

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is that it has made real estate purchase

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and sale more stable

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because the moment somebody buys,

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they’re coming in with a mindset to hold it

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for at least three years

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because of the Seller’s Stamp Duty,

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and the base effect is that, if anything were to happen,

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for example, right now in,

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at the time of shooting is March,

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and course there’s war ongoing currently in Ukraine.

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For example, if something were to happen to the markets,

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property price indexes start to drop, for example.

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What is going to happen, technically speaking,

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is that our local government can then release

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and relax on the existing cooling measures

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because we have so many rounds of cooling measures

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that we can technically tweak them to relax it,

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to resuscitate the property market.

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So in a sense, cooling measures from this perspective

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is a form of a moat around the Singapore real estate market.

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Now, let me just bring on this particular chart as well.

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So this is very suitable if you’re very interested

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in a landed property in 2022.

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So what we have done is that we have toggled

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between freehold and leasehold based on this two graphs.

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We have also toggled, the moment you click on it,

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you’ll be able to see the volume

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vis-a-vis the price index right here,

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You are also able to see leasehold in terms of its volume

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vis-a-vis its price indexes.

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And on the right hand side,

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you can also toggle between strata homes

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and pure landed homes.

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So you just need to toggle these two buttons.

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You can see in terms of the medium price index

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vis-a-vis the volume as well,

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and then you can further segmentize into planning zones.

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Whether you want to look at freehold, leasehold behaviour,

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you want to look at brand new from developers

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or sub-sale or resale.

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And of course, the terrace, semi-detacheds, right?

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Let me just have a look at this chart together with you.

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So what technically happen is that,

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if we were to look at leasehold

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and freehold in terms of relationship,

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the very first thing is,

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we can look at this portion right here.

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So when freehold price escalates and increase,

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especially after the Lehman Brothers crisis,

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you’ll notice that it hits like an uptrend

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in the very short time period

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all the way from 2009, and the burst up towards like, 2013.

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In this just short four years, basically,

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in terms of the average, median PSF price

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was from $719 all the way to about $1,295.

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So it appreciated in a very short time span, very quickly.

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But what happened to the 99-year landed properties?

220[Melvin Lim]
00:08:43,240 –> 00:08:46,120
Basically, what happened was that it followed suit,

221[Melvin Lim]
00:08:46,120 –> 00:08:48,960
and it also escalated upwards all the way from 2009.

222[Melvin Lim]
00:08:48,960 –> 00:08:50,720
In terms of its price index

223[Melvin Lim]
00:08:50,720 –> 00:08:53,800
From about $606 PSF averagely,

224[Melvin Lim]
00:08:53,800 –> 00:08:56,000
all the way to $1,000 PSF

225[Melvin Lim]
00:08:56,000 –> 00:08:57,600
averagely in terms of leasehold.

226[Melvin Lim]
00:08:57,600 –> 00:08:59,880
And maybe you might be wondering, “Hey you know,

227[Melvin Lim]
00:08:59,880 –> 00:09:01,880
I thought when buyers buy landed property,

228[Melvin Lim]
00:09:01,880 –> 00:09:03,800
they always hunt for freehold or 999-year.”

229[Melvin Lim]
00:09:03,800 –> 00:09:05,000
Now, that’s not very true

230[Melvin Lim]
00:09:05,000 –> 00:09:08,320
because landed properties also cater to families

231[Melvin Lim]
00:09:08,320 –> 00:09:11,960
that want to work within a set of quantum budget.

232[Melvin Lim]
00:09:11,960 –> 00:09:13,040
So some of the families,

233[Melvin Lim]
00:09:13,040 –> 00:09:14,680
they might love the landed property.

234[Melvin Lim]
00:09:14,680 –> 00:09:16,520
They want the amount of bedrooms and size,

235[Melvin Lim]
00:09:16,520 –> 00:09:18,520
and they like the concept of living in a landed home,

236[Melvin Lim]
00:09:18,520 –> 00:09:20,240
multi-generation and all that.

237[Melvin Lim]
00:09:20,240 –> 00:09:22,320
However, they have a fixed set of budget

238[Melvin Lim]
00:09:22,320 –> 00:09:24,600
and affordability quantum.

239[Melvin Lim]
00:09:24,600 –> 00:09:28,080
And thus, 99-year landed always follow suit

240[Melvin Lim]
00:09:28,080 –> 00:09:30,320
in terms of price movement uptrend

241[Melvin Lim]
00:09:30,320 –> 00:09:32,280
based on the movement of freehold properties.

242[Melvin Lim]
00:09:32,280 –> 00:09:34,800
If freehold drops, then naturally,

243[Melvin Lim]
00:09:34,800 –> 00:09:37,720
leasehold property prices will also follow suit as well.

244[Melvin Lim]
00:09:37,720 –> 00:09:39,760
So, when we look at that,

245[Melvin Lim]
00:09:39,760 –> 00:09:42,360
you also need to look at the amount of volume

246[Melvin Lim]
00:09:42,360 –> 00:09:45,520
in terms of its percentage relationship.

247[Melvin Lim]
00:09:45,520 –> 00:09:47,720
So naturally speaking, you are right.

248[Melvin Lim]
00:09:47,720 –> 00:09:48,560
If you are saying

249[Melvin Lim]
00:09:48,560 –> 00:09:50,360
that a lot of people love freehold properties

250[Melvin Lim]
00:09:50,360 –> 00:09:53,320
or 999-year property more than 99-year,

251[Melvin Lim]
00:09:53,320 –> 00:09:55,320
because if you were to look at the relationship

252[Melvin Lim]
00:09:55,320 –> 00:09:56,600
between two of them,

253[Melvin Lim]
00:09:56,600 –> 00:09:57,760
you would definitely see

254[Melvin Lim]
00:09:57,760 –> 00:10:00,680
that the blue bar is much larger than the yellow bar.

255[Melvin Lim]
00:10:00,680 –> 00:10:04,840
Based on 2021, both 99-year and freehold

256[Melvin Lim]
00:10:04,840 –> 00:10:07,560
has seen an upsurge in terms of transaction volume.

257[Melvin Lim]
00:10:07,560 –> 00:10:09,440
The key rationale is because

258[Melvin Lim]
00:10:09,440 –> 00:10:11,520
there was so much interest in landed homes

259[Melvin Lim]
00:10:11,520 –> 00:10:14,760
that you see this surge since 2019,

260[Melvin Lim]
00:10:14,760 –> 00:10:16,280
all the way upwards till today.

261[Melvin Lim]
00:10:16,280 –> 00:10:17,960
And in terms of volume,

262[Melvin Lim]
00:10:17,960 –> 00:10:20,920
it escalated from 2020 to 2021.

263[Melvin Lim]
00:10:20,920 –> 00:10:24,720
The 99-year landed disparity effect,

264[Melvin Lim]
00:10:24,720 –> 00:10:27,840
you can still buy pure 99-year landed

265[Melvin Lim]
00:10:27,840 –> 00:10:29,960
from I think about $1.X …

266[Melvin Lim]
00:10:29,960 –> 00:10:31,880
If I’m talking about the Loyang region,

267[Melvin Lim]
00:10:31,880 –> 00:10:34,480
you can still buy something at $1.4 mil to $1.6 mil region.

268[Melvin Lim]
00:10:34,480 –> 00:10:36,120
If you talk about some of the other 99-year

269[Melvin Lim]
00:10:36,120 –> 00:10:37,640
pure landed properties,

270[Melvin Lim]
00:10:37,640 –> 00:10:40,640
you can still buy them for close to about $1.6 mil to $1.8 mil

271[Melvin Lim]
00:10:40,640 –> 00:10:43,000
in other OCR region as well.

272[Melvin Lim]
00:10:43,000 –> 00:10:45,680
Right now, it’s almost impossible to find

273[Melvin Lim]
00:10:45,680 –> 00:10:49,680
any landed properties at 99-year below $2 mil.

274[Melvin Lim]
00:10:49,680 –> 00:10:50,720
It’s almost impossible.

275[Melvin Lim]
00:10:50,720 –> 00:10:53,320
Everybody is asking for $2 mil upwards.

276[Melvin Lim]
00:10:53,320 –> 00:10:54,720
And why is that so?

277[Melvin Lim]
00:10:54,720 –> 00:10:57,760
It’s because same behaviour happens.

278[Melvin Lim]
00:10:57,760 –> 00:10:58,960
If let’s say, example,

279[Melvin Lim]
00:10:58,960 –> 00:11:01,600
if I were to be owning a 99-year landed property,

280[Melvin Lim]
00:11:01,600 –> 00:11:04,120
and I’ve been seeing news and looking at the charts

281[Melvin Lim]
00:11:04,120 –> 00:11:05,040
of all the freehold properties

282[Melvin Lim]
00:11:05,040 –> 00:11:07,280
that are escalating upwards in pricing,

283[Melvin Lim]
00:11:07,280 –> 00:11:08,720
and maybe my aspiration is that,

284[Melvin Lim]
00:11:08,720 –> 00:11:11,160
I might want to exit from a 99-year landed

285[Melvin Lim]
00:11:11,160 –> 00:11:13,680
and shift to a freehold landed property for my family.

286[Melvin Lim]
00:11:13,680 –> 00:11:15,640
And when I see that shooting upwards,

287[Melvin Lim]
00:11:15,640 –> 00:11:20,040
I naturally will not want sell my 99-year landed property

288[Melvin Lim]
00:11:20,040 –> 00:11:22,320
at $1.6 mil anymore.

289[Melvin Lim]
00:11:22,320 –> 00:11:24,600
I would naturally want to challenge the price.

290[Melvin Lim]
00:11:24,600 –> 00:11:26,320
I want to see how much I can challenge

291[Melvin Lim]
00:11:26,320 –> 00:11:28,640
to shift it upwards to a higher bar.

292[Melvin Lim]
00:11:28,640 –> 00:11:31,120
And of course, when I look at one tier below me,

293[Melvin Lim]
00:11:31,120 –> 00:11:33,200
and I look at some of the 99-year condominiums

294[Melvin Lim]
00:11:33,200 –> 00:11:34,400
around my estate,

295[Melvin Lim]
00:11:34,400 –> 00:11:36,960
starting to ask in terms of their 4-bedder pricing

296[Melvin Lim]
00:11:36,960 –> 00:11:38,880
and the new launch pricing of 4-bedder,

297[Melvin Lim]
00:11:38,880 –> 00:11:41,200
inching upwards the $2 mil mark.

298[Melvin Lim]
00:11:41,200 –> 00:11:42,440
Naturally speaking,

299[Melvin Lim]
00:11:42,440 –> 00:11:44,920
I also don’t want to sell anything below $2 mil.

300[Melvin Lim]
00:11:44,920 –> 00:11:47,640
So now, what is happening in the 2022 market

301[Melvin Lim]
00:11:47,640 –> 00:11:50,040
is that 99-year pure landed properties

302[Melvin Lim]
00:11:50,040 –> 00:11:53,680
has already moved up in terms of overall quantum pricing.

303[Melvin Lim]
00:11:53,680 –> 00:11:56,120
And thus, that then bust the myth

304[Melvin Lim]
00:11:56,120 –> 00:11:58,360
of whether 99-year landed property

305[Melvin Lim]
00:11:58,360 –> 00:11:59,480
can see appreciation or not,

306[Melvin Lim]
00:11:59,480 –> 00:12:02,800
because it all depends on whether the upper tier

307[Melvin Lim]
00:12:02,800 –> 00:12:04,800
kind of asset, has moved up or not.

308[Melvin Lim]
00:12:04,800 –> 00:12:09,440
So there’s always something pulling up the other party.

309[Melvin Lim]
00:12:09,440 –> 00:12:10,480
So in this scenario,

310[Melvin Lim]
00:12:10,480 –> 00:12:13,040
pure landed property has pulled up the pricing.

311[Melvin Lim]
00:12:13,040 –> 00:12:15,480
And thus, the net effect is that

312[Melvin Lim]
00:12:15,480 –> 00:12:16,720
99-year landed property

313[Melvin Lim]
00:12:16,720 –> 00:12:19,000
are thus being pulled up together as well.

314[Melvin Lim]
00:12:19,000 –> 00:12:22,800
But there’s always a gap in between two of the pricing

315[Melvin Lim]
00:12:22,800 –> 00:12:24,160
for the market to make sense,

316[Melvin Lim]
00:12:24,160 –> 00:12:26,760
because all buyers and sellers are savvy in the market.

317[Melvin Lim]
00:12:26,760 –> 00:12:28,320
Now, of course we’re in a free economy.

318[Melvin Lim]
00:12:28,320 –> 00:12:30,560
The market will balance off itself

319[Melvin Lim]
00:12:30,560 –> 00:12:33,200
in terms of our behaviour and choice-making behaviour.

320[Melvin Lim]
00:12:33,200 –> 00:12:34,840
So these two charts,

321[Melvin Lim]
00:12:34,840 –> 00:12:37,800
I’ll leave it to you to enjoy on our website.

322[Melvin Lim]
00:12:37,800 –> 00:12:40,360
I think we will make it available within the next 30 days.

323[Melvin Lim]
00:12:40,360 –> 00:12:41,520
You should be able to access it,

324[Melvin Lim]
00:12:41,520 –> 00:12:43,120
if you head onto PropertyLimBrothers.com.

325[Melvin Lim]
00:12:43,120 –> 00:12:44,320
Today, we’re going to talk about

326[Melvin Lim]
00:12:44,320 –> 00:12:45,760
this particular question that we have.

327[Melvin Lim]
00:12:45,760 –> 00:12:46,720
Let’s have a look at this chart.

328[Melvin Lim]
00:12:46,720 –> 00:12:48,320
We have one question coming in

329[Melvin Lim]
00:12:48,320 –> 00:12:51,360
from one of our audiences writing to [email protected].

330[Melvin Lim]
00:12:51,360 –> 00:12:52,200
So once again,

331[Melvin Lim]
00:12:52,200 –> 00:12:53,320
if you have any questions,

332[Melvin Lim]
00:12:53,320 –> 00:12:54,760
I’ll be very happy to answer them.

333[Melvin Lim]
00:12:54,760 –> 00:12:56,560
You can just email us straight on,

334[Melvin Lim]
00:12:56,560 –> 00:12:58,320
and then we’ll try to answer in our next few episodes.

335[Melvin Lim]
00:12:58,320 –> 00:12:59,840
So basically the question goes like this.

336[Melvin Lim]
00:12:59,840 –> 00:13:03,000
The particular audience has been contemplating

337[Melvin Lim]
00:13:03,000 –> 00:13:04,800
to move to a private property.

338[Melvin Lim]
00:13:04,800 –> 00:13:07,880
This family, based on husband and wife’s combined income,

339[Melvin Lim]
00:13:07,880 –> 00:13:11,040
they have the ability to move to a private property,

340[Melvin Lim]
00:13:11,040 –> 00:13:13,160
basically also back in the same estate.

341[Melvin Lim]
00:13:13,160 –> 00:13:15,320
So they have been living in the first HDB property

342[Melvin Lim]
00:13:15,320 –> 00:13:17,240
that they bought from HDB.

343[Melvin Lim]
00:13:17,240 –> 00:13:19,720
It was a BTO flat, they waited for the keys,

344[Melvin Lim]
00:13:19,720 –> 00:13:22,240
after about three to four years, MOP-ed in five years,

345[Melvin Lim]
00:13:22,240 –> 00:13:25,000
and they continue staying there for another five years.

346[Melvin Lim]
00:13:25,000 –> 00:13:26,320
So right now their HDB property

347[Melvin Lim]
00:13:26,320 –> 00:13:28,680
is hitting its 10-years-old mark.

348[Melvin Lim]
00:13:28,680 –> 00:13:30,280
Of course, something to know about HDB

349[Melvin Lim]
00:13:30,280 –> 00:13:32,520
versus private condo is that your tenure

350[Melvin Lim]
00:13:32,520 –> 00:13:34,320
only starts from the date that you collect the key.

351[Melvin Lim]
00:13:34,320 –> 00:13:36,200
So it’s very different from private properties,

352[Melvin Lim]
00:13:36,200 –> 00:13:37,040
whereby your tenure starts from

353[Melvin Lim]
00:13:37,040 –> 00:13:40,680
the date the land was being given and awarded the 99-year.

354[Melvin Lim]
00:13:40,680 –> 00:13:43,640
That’s one small little benefit that HDB apartments have.

355[Melvin Lim]
00:13:43,640 –> 00:13:44,480
So right now their

356[Melvin Lim]
00:13:44,480 –> 00:13:45,720
HDB apartment is 10 years old.

357[Melvin Lim]
00:13:45,720 –> 00:13:47,440
Over the past few years they’ve been contemplating,

358[Melvin Lim]
00:13:47,440 –> 00:13:50,880
“Hey, should I move up to an OCR condominium?”

359[Melvin Lim]
00:13:50,880 –> 00:13:53,640
And they’re also looking at either a 3- or 4-bedder.

360[Melvin Lim]
00:13:53,640 –> 00:13:56,880
So two questions, should they move? Dual income,

361[Melvin Lim]
00:13:56,880 –> 00:13:59,560
they are able to afford, they’ve already checked with their bankers.

362[Melvin Lim]
00:13:59,560 –> 00:14:02,640
They can loan up to a range, 3-bedder

363[Melvin Lim]
00:14:02,640 –> 00:14:04,440
or 4-bedder, max loan quantum.

364[Melvin Lim]
00:14:04,440 –> 00:14:05,760
They can loan up to $2 mil,

365[Melvin Lim]
00:14:05,760 –> 00:14:06,880
which means that if I were

366[Melvin Lim]
00:14:06,880 –> 00:14:08,440
to use this very simple calculation,

367[Melvin Lim]
00:14:08,440 –> 00:14:10,400
take $2 mil, base it off 75%.

368[Melvin Lim]
00:14:10,400 –> 00:14:12,440
They can buy something around,

369[Melvin Lim]
00:14:12,440 –> 00:14:14,720
maybe in the range of about $2.4 mil, example.

370[Melvin Lim]
00:14:14,720 –> 00:14:17,000
So coming back, what should they do?

371[Melvin Lim]
00:14:17,000 –> 00:14:18,280
I think at the end of the day,

372[Melvin Lim]
00:14:18,280 –> 00:14:20,680
if you’re talking about your own stay property,

373[Melvin Lim]
00:14:20,680 –> 00:14:23,080
the very first advice that we always give is that,

374[Melvin Lim]
00:14:23,080 –> 00:14:24,560
make sure that this move is something

375[Melvin Lim]
00:14:24,560 –> 00:14:26,440
that your family is agreeable.

376[Melvin Lim]
00:14:26,440 –> 00:14:28,920
Your family is happy with the move

377[Melvin Lim]
00:14:28,920 –> 00:14:29,760
because at the end of the day,

378[Melvin Lim]
00:14:29,760 –> 00:14:31,320
you don’t want to force through a decision

379[Melvin Lim]
00:14:31,320 –> 00:14:32,720
that both spouses don’t agree.

380[Melvin Lim]
00:14:32,720 –> 00:14:34,040
So of course, we want to make sure

381[Melvin Lim]
00:14:34,040 –> 00:14:35,560
that the family is happy first, right?

382[Melvin Lim]
00:14:35,560 –> 00:14:38,040
Then the decision will come in on many,

383[Melvin Lim]
00:14:38,040 –> 00:14:39,640
many different factors, right?

384[Melvin Lim]
00:14:39,640 –> 00:14:43,280
So moving up can be a partial investment decision

385[Melvin Lim]
00:14:43,280 –> 00:14:44,880
because technically speaking,

386[Melvin Lim]
00:14:44,880 –> 00:14:48,240
when we look at the context of where we are in Singapore,

387[Melvin Lim]
00:14:48,240 –> 00:14:50,400
we look at many various different factors.

388[Melvin Lim]
00:14:50,400 –> 00:14:52,640
One factor that we always look at is that

389[Melvin Lim]
00:14:52,640 –> 00:14:54,840
what is going to happen in the next eight years?

390[Melvin Lim]
00:14:54,840 –> 00:14:57,400
When we look at this, in about eight years time,

391[Melvin Lim]
00:14:57,400 –> 00:14:59,800
there’s going to be 1:1 ratio

392[Melvin Lim]
00:14:59,800 –> 00:15:01,120
for Singaporeans and foreigners.

393[Melvin Lim]
00:15:01,120 –> 00:15:04,520
And of course, when we then look at this chart again,

394[Melvin Lim]
00:15:04,520 –> 00:15:06,400
when we look at the amount of HDB properties

395[Melvin Lim]
00:15:06,400 –> 00:15:07,960
that we have in the entire island,

396[Melvin Lim]
00:15:07,960 –> 00:15:10,800
which currently is at about 1.2 mil HDB properties.

397[Melvin Lim]
00:15:10,800 –> 00:15:12,600
And then condominiums is occupying

398[Melvin Lim]
00:15:12,600 –> 00:15:14,360
about 340K right now,

399[Melvin Lim]
00:15:14,360 –> 00:15:16,120
landed property is 73K.

400[Melvin Lim]
00:15:16,120 –> 00:15:18,280
And in terms of its ratio right now,

401[Melvin Lim]
00:15:18,280 –> 00:15:20,480
when you look at that, the only category

402[Melvin Lim]
00:15:20,480 –> 00:15:22,560
that everybody is eligible to purchase,

403[Melvin Lim]
00:15:22,560 –> 00:15:25,800
of course, we don’t bring ABSD into the question,

404[Melvin Lim]
00:15:25,800 –> 00:15:27,520
is condominiums and apartments.

405[Melvin Lim]
00:15:27,520 –> 00:15:29,560
So basically it’s private residential properties,

406[Melvin Lim]
00:15:29,560 –> 00:15:31,760
landed properties or mainland reserved for Singaporeans,

407[Melvin Lim]
00:15:31,760 –> 00:15:34,600
HDB reserve for Singaporeans or PRs

408[Melvin Lim]
00:15:34,600 –> 00:15:35,920
that have gotten PR for three years

409[Melvin Lim]
00:15:35,920 –> 00:15:37,200
and married and things like that.

410[Melvin Lim]
00:15:37,200 –> 00:15:39,680
However, based on all the population in Singapore,

411[Melvin Lim]
00:15:39,680 –> 00:15:44,160
by 2030, 7 mil, this category right over here

412[Melvin Lim]
00:15:44,160 –> 00:15:46,560
is the only category that everybody

413[Melvin Lim]
00:15:46,560 –> 00:15:48,760
can purchase without much restrictions.

414[Melvin Lim]
00:15:48,760 –> 00:15:51,560
When we look at the demand and supply context,

415[Melvin Lim]
00:15:51,560 –> 00:15:54,000
what is essentially going to happen in eight years time is that

416[Melvin Lim]
00:15:54,000 –> 00:15:57,440
if you will want your asset, your real estate

417[Melvin Lim]
00:15:57,440 –> 00:15:59,880
is technically one of the largest assets in your life.

418[Melvin Lim]
00:15:59,880 –> 00:16:01,720
You’re going to service the mortgage

419[Melvin Lim]
00:16:01,720 –> 00:16:04,000
in terms of principle interest every single month,

420[Melvin Lim]
00:16:04,000 –> 00:16:06,280
this is going to be the largest investment in your life.

421[Melvin Lim]
00:16:06,280 –> 00:16:10,120
Would you want an asset that belongs to an asset class

422[Melvin Lim]
00:16:10,120 –> 00:16:12,840
with a more limited amount of supply

423[Melvin Lim]
00:16:12,840 –> 00:16:14,000
at about 300K+,

424[Melvin Lim]
00:16:14,000 –> 00:16:16,040
maybe by the time we’re hitting 400K

425[Melvin Lim]
00:16:16,040 –> 00:16:18,400
or would you want your asset to be something

426[Melvin Lim]
00:16:18,400 –> 00:16:21,400
that’s in the 1 mil+ kind of range

427[Melvin Lim]
00:16:21,400 –> 00:16:24,120
in terms of overall supply in the overall market.

428[Melvin Lim]
00:16:24,120 –> 00:16:25,960
So which one would you want to be in?

429[Melvin Lim]
00:16:25,960 –> 00:16:28,200
And looking at supply, 340K,

430[Melvin Lim]
00:16:28,200 –> 00:16:30,080
1.2 mil, looking at demand,

431[Melvin Lim]
00:16:30,080 –> 00:16:32,160
this is a full on 7 mil people.

432[Melvin Lim]
00:16:32,160 –> 00:16:34,360
Of course, there are micro permutations

433[Melvin Lim]
00:16:34,360 –> 00:16:36,000
because, out of the 7 mil, of course,

434[Melvin Lim]
00:16:36,000 –> 00:16:38,000
not everybody can afford private properties.

435[Melvin Lim]
00:16:38,000 –> 00:16:39,480
We need to disclaim that as well.

436[Melvin Lim]
00:16:39,480 –> 00:16:42,520
And of course, over here, mainly will be Singaporeans

437[Melvin Lim]
00:16:42,520 –> 00:16:45,960
and PRs that are eligible to purchase HDB properties

438[Melvin Lim]
00:16:45,960 –> 00:16:47,600
with further restrictions as well.

439[Melvin Lim]
00:16:47,600 –> 00:16:50,960
Just a very simple, basic demand and supply concept.

440[Melvin Lim]
00:16:50,960 –> 00:16:52,320
That might be one of the decision factors

441[Melvin Lim]
00:16:52,320 –> 00:16:53,560
that you might want to look at,

442[Melvin Lim]
00:16:53,560 –> 00:16:54,600
in terms of demand and supply,

443[Melvin Lim]
00:16:54,600 –> 00:16:56,720
because economic fundamental is that

444[Melvin Lim]
00:16:56,720 –> 00:16:59,160
when there’s lesser supply, but there’s more demand,

445[Melvin Lim]
00:16:59,160 –> 00:17:01,480
price appreciation tends to happen

446[Melvin Lim]
00:17:01,480 –> 00:17:02,720
at a higher possibility rate.

447[Melvin Lim]
00:17:02,720 –> 00:17:04,360
And of course, the next thing that we want to look at

448[Melvin Lim]
00:17:04,360 –> 00:17:06,160
is that, there’s this concept

449[Melvin Lim]
00:17:06,160 –> 00:17:08,320
that I want to draw in this graphic right here,

450[Melvin Lim]
00:17:08,320 –> 00:17:09,960
is that, if you have the capability

451[Melvin Lim]
00:17:09,960 –> 00:17:11,360
to move onto your private property,

452[Melvin Lim]
00:17:11,360 –> 00:17:13,200
and we need to also disclaim

453[Melvin Lim]
00:17:13,200 –> 00:17:14,680
that we always share with our clients that,

454[Melvin Lim]
00:17:14,680 –> 00:17:17,640
we don’t want any families to overexert yourself

455[Melvin Lim]
00:17:17,640 –> 00:17:19,560
in terms of monthly servicing our mortgage.

456[Melvin Lim]
00:17:19,560 –> 00:17:21,440
Because take note that your monthly mortgage

457[Melvin Lim]
00:17:21,440 –> 00:17:22,880
is something that you must make sure

458[Melvin Lim]
00:17:22,880 –> 00:17:24,320
that you are able to substantiate.

459[Melvin Lim]
00:17:24,320 –> 00:17:27,960
It’s always good to have a buffer, 12, 15, 24 months of

460[Melvin Lim]
00:17:27,960 –> 00:17:30,120
maybe CPF funds or maybe balance cash funds

461[Melvin Lim]
00:17:30,120 –> 00:17:31,760
to ensure that you don’t have to worry

462[Melvin Lim]
00:17:31,760 –> 00:17:33,520
for the next two years, in the event

463[Melvin Lim]
00:17:33,520 –> 00:17:35,200
if you were to be out of job for a little while,

464[Melvin Lim]
00:17:35,200 –> 00:17:36,600
while hunting for a new job,

465[Melvin Lim]
00:17:36,600 –> 00:17:38,640
or unfortunately you were retrenched

466[Melvin Lim]
00:17:38,640 –> 00:17:39,600
and things like that, right?

467[Melvin Lim]
00:17:39,600 –> 00:17:41,120
So you want to make sure that your family is safe

468[Melvin Lim]
00:17:41,120 –> 00:17:41,960
and taken care of.

469[Melvin Lim]
00:17:41,960 –> 00:17:44,400
However, if you do have the ability,

470[Melvin Lim]
00:17:44,400 –> 00:17:47,560
the second key consideration is to make an observation

471[Melvin Lim]
00:17:47,560 –> 00:17:49,120
in terms of HDB apartments,

472[Melvin Lim]
00:17:49,120 –> 00:17:52,320
because HDB apartments were built for the main purpose

473[Melvin Lim]
00:17:52,320 –> 00:17:53,760
as an own stay property,

474[Melvin Lim]
00:17:53,760 –> 00:17:56,160
It’s not for the purpose of an investment property.

475[Melvin Lim]
00:17:56,160 –> 00:17:57,880
And there’s a direction that our government

476[Melvin Lim]
00:17:57,880 –> 00:18:00,080
wants everybody to understand as well.

477[Melvin Lim]
00:18:00,080 –> 00:18:03,120
Any paper gain that you’ve made from the day that you purchase,

478[Melvin Lim]
00:18:03,120 –> 00:18:04,800
your BTO or your resale HDB,

479[Melvin Lim]
00:18:04,800 –> 00:18:09,640
even if you appreciate $250K, $350K, $450K,

480[Melvin Lim]
00:18:09,640 –> 00:18:12,440
that is technically trapped paper gain

481[Melvin Lim]
00:18:12,440 –> 00:18:14,360
within your HDB property.

482[Melvin Lim]
00:18:14,360 –> 00:18:17,000
So that paper gain amount gets trapped

483[Melvin Lim]
00:18:17,000 –> 00:18:20,360
underneath your HDB property, and you cannot release it.

484[Melvin Lim]
00:18:20,360 –> 00:18:22,520
The only way to release it is to sell it.

485[Melvin Lim]
00:18:22,520 –> 00:18:24,840
However, when it comes to a private property,

486[Melvin Lim]
00:18:24,840 –> 00:18:27,840
you can release the equity through other means.

487[Melvin Lim]
00:18:27,840 –> 00:18:30,000
If the property would appreciate, for example,

488[Melvin Lim]
00:18:30,000 –> 00:18:31,440
if you were to purchase a private property

489[Melvin Lim]
00:18:31,440 –> 00:18:32,640
for $1.5 mil,

490[Melvin Lim]
00:18:32,640 –> 00:18:33,840
it appreciates to $2 mil,

491[Melvin Lim]
00:18:33,840 –> 00:18:37,520
you can extract the equity without selling the property,

492[Melvin Lim]
00:18:37,520 –> 00:18:39,320
without killing the golden goose.

493[Melvin Lim]
00:18:39,320 –> 00:18:41,320
You can extract it through equity arrangement

494[Melvin Lim]
00:18:41,320 –> 00:18:43,240
with the bank, you don’t have to sell the property.

495[Melvin Lim]
00:18:43,240 –> 00:18:45,240
You can continue to stay in the property

496[Melvin Lim]
00:18:45,240 –> 00:18:47,160
when the equity is being extracted.

497[Melvin Lim]
00:18:47,160 –> 00:18:49,920
That’s technically as if you were to sell it

498[Melvin Lim]
00:18:49,920 –> 00:18:52,400
because you’re extracting the paper gain out of it,

499[Melvin Lim]
00:18:52,400 –> 00:18:53,880
because your monthly mortgage will increase,

500[Melvin Lim]
00:18:53,880 –> 00:18:56,200
but you’re technically extracting the capital

501[Melvin Lim]
00:18:56,200 –> 00:18:57,640
without selling your property.

502[Melvin Lim]
00:18:57,640 –> 00:18:58,880
However for HDB apartments,

503[Melvin Lim]
00:18:58,880 –> 00:19:01,040
you must sell it to enjoy the gain.

504[Melvin Lim]
00:19:01,040 –> 00:19:03,240
And that’s a key fundamental difference.

505[Melvin Lim]
00:19:03,240 –> 00:19:05,080
And when we talk about real estate investing,

506[Melvin Lim]
00:19:05,080 –> 00:19:08,320
in the event, let’s say if you are in another country,

507[Melvin Lim]
00:19:08,320 –> 00:19:10,120
for example, let’s say if you’re in US,

508[Melvin Lim]
00:19:10,120 –> 00:19:11,800
there’s no additional Buyer’s Stamp Duty.

509[Melvin Lim]
00:19:11,800 –> 00:19:14,960
Technically speaking, what a lot of real estate investors

510[Melvin Lim]
00:19:14,960 –> 00:19:16,960
are doing is that, they don’t sell their property.

511[Melvin Lim]
00:19:16,960 –> 00:19:18,680
They hold onto their real estate.

512[Melvin Lim]
00:19:18,680 –> 00:19:20,360
When they appreciate, they extract equity,

513[Melvin Lim]
00:19:20,360 –> 00:19:22,880
they purchase more property and they hold

514[Melvin Lim]
00:19:22,880 –> 00:19:24,640
their real estate because real estate

515[Melvin Lim]
00:19:24,640 –> 00:19:29,040
is definitely, through history, outperforming inflation,

516[Melvin Lim]
00:19:29,040 –> 00:19:31,040
and they will let their real estate continue

517[Melvin Lim]
00:19:31,040 –> 00:19:32,480
to appreciate gradually.

518[Melvin Lim]
00:19:32,480 –> 00:19:34,960
And when they accumulate 3, 4, 5 properties,

519[Melvin Lim]
00:19:34,960 –> 00:19:36,520
it appreciates at the same time,

520[Melvin Lim]
00:19:36,520 –> 00:19:39,560
that is a huge difference between HDB apartments

521[Melvin Lim]
00:19:39,560 –> 00:19:41,480
and private residential property in Singapore.

522[Melvin Lim]
00:19:41,480 –> 00:19:43,800
So that’s the second thing that you can think about.

523[Melvin Lim]
00:19:43,800 –> 00:19:45,120
You can talk about it,

524[Melvin Lim]
00:19:45,120 –> 00:19:47,040
discuss and make sure that your family is comfortable.

525[Melvin Lim]
00:19:47,040 –> 00:19:50,080
And of first we ourselves also will try to think through

526[Melvin Lim]
00:19:50,080 –> 00:19:51,800
what are some of the roadblocks sometimes

527[Melvin Lim]
00:19:51,800 –> 00:19:52,800
where it comes to a decision

528[Melvin Lim]
00:19:52,800 –> 00:19:54,640
whether to switch from a HDB apartment,

529[Melvin Lim]
00:19:54,640 –> 00:19:56,080
if you have the ability to do so,

530[Melvin Lim]
00:19:56,080 –> 00:19:59,160
is that, if you want to have like a play safe

531[Melvin Lim]
00:19:59,160 –> 00:20:01,960
kind of scenario, very easily, you can come up

532[Melvin Lim]
00:20:01,960 –> 00:20:04,560
with a time horizon. What do I mean? For example,

533[Melvin Lim]
00:20:04,560 –> 00:20:05,920
let’s say if you and your spouse right now,

534[Melvin Lim]
00:20:05,920 –> 00:20:08,240
you are 35 years old, draw a timeline,

535[Melvin Lim]
00:20:08,240 –> 00:20:10,080
draw a timeline and ask yourself,

536[Melvin Lim]
00:20:10,080 –> 00:20:12,640
what is the age that both of you

537[Melvin Lim]
00:20:12,640 –> 00:20:15,640
will want to tone down in terms of your lifestyle?

538[Melvin Lim]
00:20:15,640 –> 00:20:18,240
That means you want to tone down at a period whereby

539[Melvin Lim]
00:20:18,240 –> 00:20:20,760
maybe most of your kids, they are already in university.

540[Melvin Lim]
00:20:20,760 –> 00:20:23,360
They are starting to get their own occupation,

541[Melvin Lim]
00:20:23,360 –> 00:20:24,480
planning for marriage and things like that.

542[Melvin Lim]
00:20:24,480 –> 00:20:27,880
What is the age? Will it be 55, 60 or 65?

543[Melvin Lim]
00:20:27,880 –> 00:20:29,920
Let’s say, for example it’s 55.

544[Melvin Lim]
00:20:29,920 –> 00:20:32,720
Then make a decision at 55 in advance

545[Melvin Lim]
00:20:32,720 –> 00:20:35,360
that from 35 to 55, you will do your best

546[Melvin Lim]
00:20:35,360 –> 00:20:39,240
to service and move into your private residential property.

547[Melvin Lim]
00:20:39,240 –> 00:20:41,920
But at age 55, you can choose to divest,

548[Melvin Lim]
00:20:41,920 –> 00:20:43,640
sell off your private property

549[Melvin Lim]
00:20:43,640 –> 00:20:45,760
and move back to a HDB apartment.

550[Melvin Lim]
00:20:45,760 –> 00:20:47,560
So you can still move back to a HDB apartment,

551[Melvin Lim]
00:20:47,560 –> 00:20:49,600
is just that, it’s 20 years later.

552[Melvin Lim]
00:20:49,600 –> 00:20:51,560
Or maybe you can choose another scenario,

553[Melvin Lim]
00:20:51,560 –> 00:20:54,000
is that, you can plan for age 65,

554[Melvin Lim]
00:20:54,000 –> 00:20:55,920
because at age 65, that’ll be the year

555[Melvin Lim]
00:20:55,920 –> 00:20:57,960
that your private property is fully paid.

556[Melvin Lim]
00:20:57,960 –> 00:21:01,160
And by then, using the amount that you have already fully paid

557[Melvin Lim]
00:21:01,160 –> 00:21:02,640
off the whole apartment, assuming you bought it

558[Melvin Lim]
00:21:02,640 –> 00:21:04,720
at $1.5 mil and worst case scenario,

559[Melvin Lim]
00:21:04,720 –> 00:21:06,400
20 over years later,

560[Melvin Lim]
00:21:06,400 –> 00:21:08,760
let’s say it doesn’t appreciate, worst case,

561[Melvin Lim]
00:21:08,760 –> 00:21:10,080
just do a worst case scenario,

562[Melvin Lim]
00:21:10,080 –> 00:21:12,120
and it’s still at $1.5 mil, touch wood for you.

563[Melvin Lim]
00:21:12,120 –> 00:21:13,720
All right, but based on inflation,

564[Melvin Lim]
00:21:13,720 –> 00:21:15,800
it should be by $2 mil by then at least, right?

565[Melvin Lim]
00:21:15,800 –> 00:21:18,520
So if it’s like, still at $1.5 mil,

566[Melvin Lim]
00:21:18,520 –> 00:21:20,320
but your property is fully paid,

567[Melvin Lim]
00:21:20,320 –> 00:21:22,080
take the $1.5 mil,

568[Melvin Lim]
00:21:22,080 –> 00:21:24,800
take out $600K, pay off a HDB apartment,

569[Melvin Lim]
00:21:24,800 –> 00:21:27,480
live in it, happily ever after.

570[Melvin Lim]
00:21:27,480 –> 00:21:29,120
Of course, you still have $900K

571[Melvin Lim]
00:21:29,120 –> 00:21:31,040
in terms of your balance reserve

572[Melvin Lim]
00:21:31,040 –> 00:21:33,880
to substantiate your lifestyle for the next 20, 30 years

573[Melvin Lim]
00:21:33,880 –> 00:21:34,960
through your retirement years or the years

574[Melvin Lim]
00:21:34,960 –> 00:21:37,280
that you want to slow down a little bit more.

575[Melvin Lim]
00:21:37,280 –> 00:21:40,000
So that is the third way of looking at it.

576[Melvin Lim]
00:21:40,000 –> 00:21:41,760
What is the fourth way of looking at it?

577[Melvin Lim]
00:21:41,760 –> 00:21:45,200
The fourth way is to understand that our time horizon

578[Melvin Lim]
00:21:45,200 –> 00:21:48,720
to be able to invest in the private residential property

579[Melvin Lim]
00:21:48,720 –> 00:21:50,480
is very short, why is it short?

580[Melvin Lim]
00:21:50,480 –> 00:21:53,880
Because your best years in terms of income ability

581[Melvin Lim]
00:21:53,880 –> 00:21:57,280
and loan tenure longevity, happens to happen

582[Melvin Lim]
00:21:57,280 –> 00:22:00,080
when you are young and it happens to happen

583[Melvin Lim]
00:22:00,080 –> 00:22:03,800
when you are in the age bandwidth of ~20 years old,

584[Melvin Lim]
00:22:03,800 –> 00:22:07,120
to ~30 years old and of course to about 40 years old,

585[Melvin Lim]
00:22:07,120 –> 00:22:10,400
the moment you step into a later bandwidth,

586[Melvin Lim]
00:22:10,400 –> 00:22:13,480
and let’s say, if you decide to enter your private property,

587[Melvin Lim]
00:22:13,480 –> 00:22:16,520
you will then find that in terms of the monthly mortgage,

588[Melvin Lim]
00:22:16,520 –> 00:22:18,840
the difference is so huge.

589[Melvin Lim]
00:22:18,840 –> 00:22:21,760
So let’s take a comparison right now, on these two charts.

590[Melvin Lim]
00:22:21,760 –> 00:22:23,320
If somebody at their age 35,

591[Melvin Lim]
00:22:23,320 –> 00:22:26,080
decided to purchase $1.5 mil property,

592[Melvin Lim]
00:22:26,080 –> 00:22:29,160
they can still loan 30 years because we take 65 minus 35,

593[Melvin Lim]
00:22:29,160 –> 00:22:30,560
that’s the maximum loan tenure,

594[Melvin Lim]
00:22:30,560 –> 00:22:31,880
based on $1.5 mil.

595[Melvin Lim]
00:22:31,880 –> 00:22:34,120
They take a 75% loan, based on the current interest rate

596[Melvin Lim]
00:22:34,120 –> 00:22:38,520
of let’s say 1.4%, and then compared to somebody at age 55,

597[Melvin Lim]
00:22:38,520 –> 00:22:40,680
and they want to invest in a private property

598[Melvin Lim]
00:22:40,680 –> 00:22:41,680
or move to a private property.

599[Melvin Lim]
00:22:41,680 –> 00:22:43,160
They only have 10 years tenure,

600[Melvin Lim]
00:22:43,160 –> 00:22:44,400
they can stretch to 75%,

601[Melvin Lim]
00:22:44,400 –> 00:22:46,760
but they have to down pay a higher percentage

602[Melvin Lim]
00:22:46,760 –> 00:22:49,680
in terms of loan, let’s say, if they want to take a 75% loan,

603[Melvin Lim]
00:22:49,680 –> 00:22:51,960
they have 10 years, have a look at the key difference

604[Melvin Lim]
00:22:51,960 –> 00:22:53,960
in terms of the monthly instalment.

605[Melvin Lim]
00:22:53,960 –> 00:22:55,440
And when we further break it down,

606[Melvin Lim]
00:22:55,440 –> 00:22:57,400
into principle, interest, principle, interest,

607[Melvin Lim]
00:22:57,400 –> 00:22:59,480
the fundamental key difference right here as well.

608[Melvin Lim]
00:22:59,480 –> 00:23:00,800
So with that, what does this mean?

609[Melvin Lim]
00:23:00,800 –> 00:23:03,520
Is that, if you were to enter earlier on,

610[Melvin Lim]
00:23:03,520 –> 00:23:06,320
technically your monthly servicing in terms of your mortgage,

611[Melvin Lim]
00:23:06,320 –> 00:23:10,080
is less stressful than if you were to enter later,

612[Melvin Lim]
00:23:10,080 –> 00:23:13,200
assuming both persons right here in both scenarios

613[Melvin Lim]
00:23:13,200 –> 00:23:16,400
want to take on the 75% mortgage leveraging

614[Melvin Lim]
00:23:16,400 –> 00:23:18,360
because of the fact that we’re limited

615[Melvin Lim]
00:23:18,360 –> 00:23:19,800
by our tenure longevity.

616[Melvin Lim]
00:23:19,800 –> 00:23:22,920
This is the fourth thing that you can think about,

617[Melvin Lim]
00:23:22,920 –> 00:23:25,000
what should be the fifth thing that we need

618[Melvin Lim]
00:23:25,000 –> 00:23:26,680
to think about, and probably I will end off

619[Melvin Lim]
00:23:26,680 –> 00:23:28,640
after the fifth thing right here, is that,

620[Melvin Lim]
00:23:28,640 –> 00:23:31,480
the final choice is always yours, on top of looking

621[Melvin Lim]
00:23:31,480 –> 00:23:34,040
at all these different factors, fundamental factors,

622[Melvin Lim]
00:23:34,040 –> 00:23:36,200
economic factors, or maybe mindset factors,

623[Melvin Lim]
00:23:36,200 –> 00:23:37,880
is that, will your family be happier

624[Melvin Lim]
00:23:37,880 –> 00:23:39,680
if let’s say you were to move into a property

625[Melvin Lim]
00:23:39,680 –> 00:23:41,840
with some facilities for your kids to enjoy

626[Melvin Lim]
00:23:41,840 –> 00:23:44,000
while they’re still in their school-going years,

627[Melvin Lim]
00:23:44,000 –> 00:23:45,800
because maybe in the weekends,

628[Melvin Lim]
00:23:45,800 –> 00:23:47,680
you can bring them out to the pool and things like that.

629[Melvin Lim]
00:23:47,680 –> 00:23:48,760
You can work out in the gym.

630[Melvin Lim]
00:23:48,760 –> 00:23:51,640
And of course, if you look at some small minor differences,

631[Melvin Lim]
00:23:51,640 –> 00:23:54,360
for example, for a couple that probably, I don’t know,

632[Melvin Lim]
00:23:54,360 –> 00:23:55,480
maybe you have two cars,

633[Melvin Lim]
00:23:55,480 –> 00:23:57,840
that is under HDB apartment estate.

634[Melvin Lim]
00:23:57,840 –> 00:24:00,600
Maybe you’re already paying like close to $200

635[Melvin Lim]
00:24:00,600 –> 00:24:02,440
for your season parking, and of course,

636[Melvin Lim]
00:24:02,440 –> 00:24:04,080
when you look at getting into condominium,

637[Melvin Lim]
00:24:04,080 –> 00:24:07,000
the MCST fees include one to two parking (lots)

638[Melvin Lim]
00:24:07,000 –> 00:24:08,360
and things like that, so small little things

639[Melvin Lim]
00:24:08,360 –> 00:24:11,240
for you to do some comparison, but at the end of the day,

640[Melvin Lim]
00:24:11,240 –> 00:24:13,800
of course, do your fundamental financial analysis

641[Melvin Lim]
00:24:13,800 –> 00:24:14,920
to make sure that you’re prudent,

642[Melvin Lim]
00:24:14,920 –> 00:24:17,240
that you have planned forward for at least

643[Melvin Lim]
00:24:17,240 –> 00:24:18,520
the next couple of years,

644[Melvin Lim]
00:24:18,520 –> 00:24:20,040
to ensure that you can substantiate.

645[Melvin Lim]
00:24:20,040 –> 00:24:21,760
And don’t overstretch yourself,

646[Melvin Lim]
00:24:21,760 –> 00:24:24,160
in terms of the maximum loan quantum as well.

647[Melvin Lim]
00:24:24,160 –> 00:24:26,040
Do some planning, do some buffer

648[Melvin Lim]
00:24:26,040 –> 00:24:27,920
and ensure that your family is comfortable

649[Melvin Lim]
00:24:27,920 –> 00:24:29,480
to proceed. At the end of the day,

650[Melvin Lim]
00:24:29,480 –> 00:24:31,800
I think the important thing is also to refer back to

651[Melvin Lim]
00:24:31,800 –> 00:24:33,280
one of the episodes previously,

652[Melvin Lim]
00:24:33,280 –> 00:24:34,200
I think it was four episodes before

653[Melvin Lim]
00:24:34,200 –> 00:24:36,960
that we talk about the eight inherent characteristics

654[Melvin Lim]
00:24:36,960 –> 00:24:39,960
of a true real estate as a form of asset.

655[Melvin Lim]
00:24:39,960 –> 00:24:42,000
And we hope that this particular episode

656[Melvin Lim]
00:24:42,000 –> 00:24:44,440
in NOTG will benefit you.

657[Melvin Lim]
00:24:44,440 –> 00:24:45,720
Thanks for staying tuned with us.

658[Melvin Lim]
00:24:45,720 –> 00:24:48,480
If you are listening to this on the road, on Spotify or

659[Melvin Lim]
00:24:48,480 –> 00:24:49,520
Apple podcast, thank you

660[Melvin Lim]
00:24:49,520 –> 00:24:51,040
for supporting PropertyLimBrothers

661[Melvin Lim]
00:24:51,040 –> 00:24:52,440
NOTG over the years,

662[Melvin Lim]
00:24:52,440 –> 00:24:53,440
and I hope that you’ll drive safe

663[Melvin Lim]
00:24:53,440 –> 00:24:54,720
and we’ll see you on the next episode.

664[Melvin Lim]
00:24:54,720 –> 00:24:55,800
Meantime, take care.