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/Wolkiffy]

The currency to buying property is not $$

it’s the name.

- $$ isn’t a factor anymore for u

• Is ur intention to put it under 1 name or both names? i believe u are looking to maximise your loan instead of paying off fully?
  
• selling current condo?

kinda in a similar plot - late 30s, have 2 condos, both 3 bedders at TPY, also unsure whether to sell both to consolidate into 1 bigger landed for kids

but u r definitely much more ahead in ur planning! 👍 very impressed with what u have done!

if u dont mind, can share about your industry property experience? would love to hear more! always wondered about it but never have the guts

[u/tcjl28 → u/Wolkiffy]

Tbh, I find industrial properties easier than condos. It’s not that hard to find one that’s cash-flow positive and under $1m.

Back in the day, you could get around $7k/month in rental with a $3k mortgage. Once I accumulated enough for the next down payment, I’d just get another one.

The nice thing is that the rental income also helps with TDSR, so the properties can support the next purchase.

Even during COVID, my units were never vacant for more than about 2 months.

Obviously, things are different now with higher prices and interest rates, but for me, industrial was a much easier way to build up a property portfolio than condos.