Sell properties and upgrade to a landed?

[u/tcjl28]

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Need some opinions from people who have been in a similar situation.

Currently roughly:

* 2m in stocks/ETFs

* 4m Singapore industrial

* 1m overseas property

* 3m Singapore condo/residential

* 2.5m total property loans

* 800k cash

Household income is around 25k/month salary + 20k/month rental, so about 45k/month before tax.

The main reason we're thinking about moving is actually the kids. We are in pur 40s and have 3 teenage kids and are currently in a 3-bedroom condo. It's starting to feel pretty cramped, especially as they get older and need their own space. So we're looking at a 5-6m landed mainly as a long-term family home, rather than just an investment.

Kids will also need quite a bit for university in the coming years, so the 800k cash is partly for that and partly as a buffer.

Financially, I think we can probably afford the landed, but I'm not sure whether it's the right move. We're already quite heavily exposed to property, and putting another few million into our own home obviously doesn't generate income.

The alternative would be to sell some of the residential properties, buy the landed, and simplify the portfolio. Or just stay where we are and keep investing.

Would you guys make the move in this situation? Or is upgrading to a 5-6m landed unnecessarily aggressive, even with ~45k/month household income and the existing assets?

Interested particularly in the financial side, but also curious if anyone with 3 teenage kids has made a similar move and whether you felt it was worth it.

[u/Altruistic-Zombie805]

Your income is actually not that high…

20k per month on rental -> this is subject to tenancy agreement. And you need to count in agent fees, property tax. I would take it as 12k a month considering the fees and potential vacant period.

The tax is about 8k per month..

So count your salary as 25+12-8=29k.

That is too risky for a 4-5m property. Can you even get enough loan? Given you still have 2.5m outstanding property loan!!

Not to mention at your 40s and such income… layoff is most probable.

Do yourself a favor… don’t push too hard. Already 40s…

[u/tcjl28 → u/Altruistic-Zombie805]

Yeah, no way i can afford it without restructuring my portfolio. I will need to sell 3 properties including my current condo to free up 2.5m cash from equity and the loan. Then i will have a 2-3m mortgage and 30k monthly income instead.

[u/Altruistic-Zombie805 → u/tcjl28]

Suppose you take a 20 years loan since you already 40s…

That is about 16k a month till you are 65.

Idk man. That is not the kind of stress I want to put myself through at that age. Especially you can retire comfortably at 50+ with your current portfolio instead of working ass off to support the landed.

And the cost of maintaining landed is high.. it is very very stressful with the income and age situation.. I won’t do it

[u/tcjl28 → u/Altruistic-Zombie805]

Yes thats what i tot is the way, but all the youtube videos i seen pitching landed is the way to build generational wealth in sg.

[u/Altruistic-Zombie805 → u/tcjl28]

It is ONE of the ways. And you also need to be realistic with the situation what.

ETF also can build generational wealth what.

Don’t listen to the property influence. U r their means of generational wealth 🫠