Why Asset Progression Is Important ?
Bills, bills and more bills!
With so many bills to pay, is it even possible to grow our wealth?
Can our generation even break through the financial barrier?
This is Mr Lee and Mr Lim, your average same-block HDB neighbors who drew a household income of approximately $8,000 per month.
Mr Lee understood the need to grow his wealth prudently while Mr Lim held a more reserved mindset.
Mr Lee knew very clearly the longer he held onto his HDB flat the more likely his flat would have a negative sale.
This is no surprise especially with HDB prices staying stagnant for the past decade and the cpf accrued interest snowballing but one thing was for sure his HDB flat was able to sell out of substantial sales proceeds today.
Mr Lee made the decision to sell his 4 room HDB flat with a sales proceeds of $385,000 and upgraded to a $1.2 million 3 bedder condominium with $0 cash required from his personal savings.
For Mr Lim he did not see the need to go through the trouble of upgrading his property and held reservations of upgrading to a condominium like most.
Truth is always truth, private property prices whether facing a global financial crisis or pandemic, have grown a significant 157% in the past decade.
Over a short span of 6 years, Mr Lee’s condo has appreciated to $1.55 million today.
Did they overstretch their finances?
The answer is No.
Mr Lee saw the need to build his wealth especially in his prudent years.
They sold their 3 bedder condo, purchased a newer 3 bedder condo in the city fringe and invested in a 1 bedder condo as their passive income. All without forking out a single cent from their savings!
At the end of the day, do you think that Mr Lim could save $1 million in a decade?
Mr Lee could by leveraging on the bank’s money to grow his wealth, he has never forked out a single cent.
Mr Lee like many of us started from a humble HDB flat.
Find out how much your HDB flat is worth today!
Exactly when your HDB flat will be a negative sale, and how to profit the most out of your flat today.