Den Irya REAL ESTATE SERVICES
Planning to upgrade to a bigger property
But concerned about the Huge Stress
that comes with it?
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Let's Dive into This Real case study
One of my clients, let's call her Jane, who has three children and two helpers, has been comfortably living in her current Executive Condominium with her husband for more than five years.
After we went through detailed analysis and careful calculations, Jane decided to sell her resale Executive Condominium in the West.
I facilitated the sale at a high price and the next step was to search for another property to purchase.
Jane sold her Executive Condominium for $1.25 Million.
Jane can purchase another property at $2 Million.
Looking at Jane and her husband's current financial standings and current age of both at 45 years old, they are able to get a 75% loan of $1.5 million.
This means that their bank loan instalment will come out to be $7,575 per month at an interest rate of 2% per annum.
Jane was concerned that the monthly loan instalment together with the family's daily expenses might be too stressful for her and her husband. She asked if downgrading to a HDB flat might be better?
Is this something that some of you are facing?
Or should we downgrade to a HDB with a lower monthly instalment?
Monthly bank instalment at $7575
The fear of taking on a Huge Financial Obligation and fearing that it will be too much of a burden for you?
We have done detailed analysis on 2 scenarios for a better visualisation of the future finance situation for Jane and her husband at the end of 25 years, upon completion of mortgage.
Scenario 1
If Jane and her husband were to choose the route of owning a HDB.
Possible Outcome
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Jane and her husband would most likely live in a HDB flat forever.
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Their children would eventually go on to purchase their own properties when they are ready.
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They would then right-size to a smaller HDB.
Points to Note
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HDB resale prices in today's current market are at an all time high.
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With government interventions on HDB regulations and prices, there is a huge risk entering the resale HDB market.
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Their profits and savings would have diminished as HDB prices tend to decline with a decreasing lease.
Scenario 2
Since Jane and her husband are gainfully employed, they can view upgrading to a bigger property as a form of investment for the future.
Possible Outcome
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Jane and her husband will live in the condo that’s carefully curated and selected under our framework.
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Their children would eventually go on to purchase their own properties when they are ready.
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They can then cash out from this property with their retirements secured and right-size to a smaller condo/HDB.
Points to Note
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There are 2 important steps that they need to take, which will make the upgrading less stressful.
Step 1: Refinancing their bank loan and extending the loan tenure from 22 years to 28 years to lower the monthly installment. By doing so, they can lower their installment from $7,500 to potentially $5,800.
Step 2: Using their combined CPF of $2,300, and if both of them can fork out $1,500 each from their monthly income and the remaining $500 from their reserved funds of $150,000. These reserved funds can act as a buffer and service the bank loan instalment for the next 300 months!
In Conclusion
If Jane and her husband had chosen to go ahead with their HDB plans, they will be left with a HDB flat worth $700,000 or lower. On the other hand, if they had taken our advice to purchase a $2 million condominium (carefully curated by us), even if it did not appreciate in prices, they will still have a house that is fully paid and saved $1.3 million more in savings.
It is not an easy feat to be able to save $1.3 million, while holding to a $700,000 HDB in the next 25 years. This is the reason why many of my clients buying properties push themselves to save more and make sure that they are growing their wealth through properties safely and securely.
What I'm trying to bring across to Jane was that being empowered with the right knowledge, right planning and courage to take the 1st step forward, she will realise that property upgrading is not such a scary nor stressful process. If one does not know the strategies and efficient methods to aid you in your property upgrading journey, you will be faced with a lot of unnecessary obstacles and fears that prevents you from upgrading, which also means that you may miss a lot of great opportunities to create wealth through properties.
If you are in a similar situation as Jane or facing any other dilemmas, I warmly welcome you to reach out to me for any property related enquires and I'm committed to make our non-obligatory discussion a fruitful one.
My Strategies and How it can Help You
Customised Planning is part of a Larger, Comprehensive Strategy
As all of us come from different walks of life and have different needs and objectives, customised planning is needed to determine the most suitable options. What may work for another family, may not necessarily apply to all families, hence, I will listen and understand your all concerns and goals.
After our consultation, I will analyse and use various tools to form the best strategy to achieve your needs and objectives. The customised planning and strategy will empower you to make the best decision for your family and yourself.
Assisted many Homeowners
Generating wealth through properties safely
Over the years, I have assisted many clients on their home buying and investment journeys, using my Signature approach. Clients have generated wealth though their property transactions, which enables them to realise their aspirations and dreams.
Some clients have gone on to upgrade their lifestyle and build their legacy by buying into Landed properties, while some have right-sized their properties, thereby realising their retirement funds and some have purchased investment properties to build on their financial and retirements needs.
Meet Den Irya
Client-Focused, Meticulous and Passionate
Den’s caring nature for clients is a result of his previous experience in the medical profession. The nurse clinician made the switch to the real estate industry 13 years ago, bringing with him a duty of care and concern for all his clients. Den’s focus and understanding of clients’ needs and objectives can be seen in all his interactions.
In his 13 years being a realtor, the meticulous and passionate realtor has helped many families build their nests and find their dream homes in HDBs, ECs and Condominiums. With more than 200 completed transactions, Den has amassed unique experiences and knowledge to help his clients invest, right-size and upgrade their properties.
Testimonials from Satisfied Clients
I am very honoured to have receive many appreciation notes from clients
Show high commitments towards clients and prompt follow up upon request. Really good service.
- Effendy Ahmad
Recognition of Achievements
Consistent Awards Achiever
With his passion and professionalism, Den has been consistently achieving the best for his clients. These achievements are depicted by the numerous awards that he has been receiving from the PropNex management.
Den has received the Top HDB Transactor and Top Individual Producer on multiple occasions.These awards are complemented by his numerous monthly Gold Achiever awards. The awards are a hallmark of commitment and excellence of Den’s real estate service.
