I just did a serious review on my financial status (yes, again and again). I realised if we are to sell away our 4 rooms flat now and buy a 3 rooms flat, we are officially financial independence immediately! So, now the question is, the luxury of having 1 more room worth the extra 3 - 5 years of working full time? The most common answer I can anticipate should be not worthwhile. Ironically, most people will rather work till retirement age to buy as luxury a house as possible.
Alternatively, we can also buy a 4 room BTO flat at around $300,000. We may have to sacrifice on the location and accessibility to amenities compared to my current flat which is beside MRT, shopping centre and future various establishments. For 2nd timers BTO applicant, we will have to keep trying and waiting for opportunity to grab one, which can take many years.
If we want to maximum the effect of profiting from the property, we have to partially cash out it as early as possible. Why? Because the money can provide interest compared to a property stay idle and risk devaluation as lease get shorter and lose it competitive advantages (MRT will be established everywhere in future). However, we are not in urgency to move. We quite enjoy the conveniences that comes along with our current flat.
To make my options even more complicated, I am always a fan of staying near workplace. Since I am not going to work in 2-5 more years (or freelance) and my wife enjoy her work and may work for another 8 to 10 years, I am thinking to move near her workplace. This will save 2 hours of my wife and child’s time, as the childcare will be there anyway.
Summary, if I want to retire immediately:
- Stay in current flat and keep trying BTO (4 room). Downgrade again to 3 room during old age. Bite the cherry twice like what my friend said
- Buy 4 room resale flat near my wife workplace, where I may not have much profit (unless I bought 3 room resale flat). Thereafter, try BTO (3 or 4 rooms flat) years after
My objective is to provide the best for my family. I will keep my options open. What is best for my family than my time and devotion? Here is a video that parents should watch :