Calin Chong Property Clients

Asset Progression for Young Couple

I met Mr and Mrs E during my door knocking activity at Punggol. I personally love to do door knocking as it gives me a chance to meet new friends, understand their property concerns and help them to answer any doubts on property matters directly.

E and P and their initial objectives in housing needs

Mr and Mrs E are a young couple in their 30s. Their young age do not stopped them from looking towards the future and having financial freedom (with passive income from their properties). So they are keen to do two things. One is to move out of the current property to realise the profits from the flat (as it has just met the minimum occupation period, MOP). Two is to start an asset progression plan to upgrade to a condominium. These were their initial objectives.

“Sell one, buy two” for the appropriate scenario

After sitting down with Mr and Mrs E and doing very detailed calculations (based on their assets, salaries, CPF and savings), Calin Chong Property designed a “sell one, buy two” scenario for them. This is the right solution for them based on their needs and their financial abilities.

I need to emphasis that this asset progression plan is possible for them due to their current HDB flat being able to create ample sales proceeds for them, their relatively good salaries and their inherent desire to create a passive income. All these elements are needed in most cases for a “sell 1, buy 2” scenario to work. Rather than just simply trashing “sell 1, buy 2” as a bad idea (like some bloggers did), you really need to know that it does work for certain segments of the market. It works for the right client.

A good Singapore property agent knows when to recommend this “sell 1, buy 2” solution and when it is not a very good idea for his clients.

Selling his HDB flat in Punggol

Once we worked out a financial plan, and a time line (to sell his HDB flat and buy a condo), I proceeded to list his unit on property portals and also executing a digital marketing plan to sell his flat.

For this sale, I used “group viewings” as a method to sell. Group viewings are good, effective and fast if you are comfortable of handling multiple buyers at the same time as well as confident of your unit’s sale-ability.

At the last group viewing, we had THREE buyers bidding for the unit. That same night, closed the unit way above the selling price. Happy customer. Happy agent.



Finding their dream home for asset progression

With the sale of flat assured and hence, avoiding the need for Additional Buyers Stamp Duty (ABSD), we proceeded to find their dream home. This is where the clients are clear about their objectives is a huge help to an agent.

They wanted a place nearer to their work place. They wanted a condo lifestyle. They also wanted to make sure their new place provides them with an opportunity to grow their asset values in the future. Frequently buyers allow their “love” for a place that they overpaid for their “dream home” that in the future, they don’t get to taste enough of the asset appreciation. Mr and Mrs E have no such an issue. They were clear on buying the right place at a right price. For the future.

We found a GREAT place and we worked out the financial funding for this place. At this point, they decided to use both parties’ cash and CPF proceeds from the sale of HDB flat to finance the purchase of the condo. That would create a slight hiccup for “sell 1 buy 2” plan.

However, I worked out a creative financial plan with the bank and the lawyer to do so. This allows them to buy the current condo and yet very easily (in the future) to buy a second property.

Arranging for financing and the correct timeline planning to meet three parties are next on the agenda. This means making sure the buyers of their HDB flat, Mr and Mrs E (the middle party in the deals) and the seller of the condo are all well taken care of during the completion of these transactions. This is a key skill for property agents and one that many clients are not aware of. An agent can be good at selling your property but bad at timeline planning. Such an agent will actually cause lots of distress during such a critical period of time.

The completion of the deals for Mr and Mrs E was executed successfully. They have since moved to the new property which, is closer to their work place, and provides them with an asset that will appreciate in the future and gives them the condo lifestyle they desired. Happy buyers. Happy agent.




Next Steps

With their condo flat secured, Mr and Mrs E allowed themselves a period of time for settling down. After six months, they are now ready to start the search for a small one bedroom that would offer them a huge property value appreciation in the future. I would be helping them to shortlist to a unit for their investment. They can do so as they have sold their MOP HDB flat for a good profit and we have proper financial planning. With a clause in their loan agreement to ensure they can do so.

I look forward to helping them to succeed in achieving a good passive income now and a good property profit in the future.