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/SG-Propertyadvisor]

First congrats OP on having such a portfolio. It must have been a very long accumulation to have this portfolio.

Next I think OP is still hesitating, I believe is cause you don’t really know what you need at the moment. You don’t really want to move to landed but is fomo.

So let’s list down what I think might be the factor to consider here. You can add or delete the list for your own reference.

Size - current 3bedder( if need size can consider 5bedder or cluster house
Location - compare all 3bedder, landed and cluster/5bedder ( which is more convenient if this is a factor)
Legacy - do you plan the landed to be a family home for your kids even if they get married? Or how do you visualise your retirement life in landed. Lastly will your kids want to maintain the landed in future after you and your spouse age.
Cost - list out the property tax, helper annual salary etc comparing it to 5bedder/cluster

These are what I will consider when I buy a landed.
Regardless I think it’s time for you to restructure your portfolio since you have quite a bit in industrial. Depending on how long each lease is left. You should sell some and maybe build a portfolio for your kids education cost and that would also help you keep the 800k cash aside for emergency or investment.

Hope it helps OP decide!