IN Singapore, we always joke and say “BTO AI MAI ?” is the best and most effective way to propose to your girlfriend. 💍
But it’s actually true.
Balloting for a good BTO queue number may take months or even years. Then, it takes up to 6 months or more for you to secure your unit.
Subsequently, you wait 3-5 years for completion of the project you balloted for and then another 5 years of the Minimum Occupation Period (MOP) before you and your partner can sell off your flat.
So all in all, you are locked in with your partner (and your BTO flat) for a good 10 – 12 years.
I mean if that doesn’t scream commitment to you, I don’t know what does lah. 👫🏻
Having been with her JC Sweetheart for years, my daughter and her partner were ready to start embarking on their journey to finding a property for own stay.
So that’s why my daughter decided to ballot for her first BTO flat the year she turned 21 which is the minimum eligible age to apply.
However, she was in a bit of a dilemma.
Should she commit to a BTO or save for a good 5-6 years after university to afford the hefty condo down payment or wait to select a good resale unit after graduation?
Though it was for personal use, I have always urged her, as I do with my clients, to consider how each and every property can act as a potential investment for you with substantial monetary returns.
She first considered the best option in terms of investment: private property.
However, thinking ahead, she quickly realized that without financial help from family, this option seemed daunting and out of reach for a fresh graduate.
She then asked me for some advice.
After hearing what I had to say, she quickly realized a resale unit would provide the least capital gains in her case.
So, she ruled that out.
I explained how asset progression works and how she could make property work for her rather than working relentlessly for a private property.
If she were to invest in a BTO flat in a good location, she could then sell it after her MOP period for a premium price.
The capital gains acquired from the sale and the savings built over the years after her graduation would be sufficient for a decent 2-bedder condo unit.
After hearing this, her choice was clear.
Upon balloting, she managed to get a good BTO queue number on her first attempt.
Very lucky hor ?
As a mixed-race couple, the racial quota odds were in their favour.
But what if you are not so lucky?
Maybe you are a first-time buyer in your mid to late 30s or 40s and can’t wait another 3-5 years for a BTO or you have just attempted several times but you simply can’t get a decent queue number.
Does that mean you can’t make your first property a good investment as well?
Not at all.
I have helped many first-time buyers figure out how they can financially afford a private property or even to select a resale HDB unit that has favorable value progression prospects for a good return.
If you are unsure where to start, it’s normal to feel confused.
Don’t have to feel paiseh, we have all been there.
I’m always available for a quick zoom session or coffee chat if you ever find yourself in this position.
Just remember that it’s never too early to start your property investment journey and it certainly is never too late.
Contact me for all your real estate needs!
Happy to chat over coffee or zoom!
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