Besides a terrace house my family stay ( has been fully paid off)
I have following investment mainly on local properties

Unit A: value 900K, fully paid off. collecting rental : 2500/M
5RM HDB from 2nd hand market many years ago, fully paid off, rental 2000/M
Unit B: Market value 1.5M, outstanding loan 600K. rental 3800/M.
Unit C: Market value 1.25M, Outstanding loan ,700K. rental 4000/M

For Units B & C, we are paying total 7K monthly for instalment with floating interest at 2%+-, leaving us about 5.5K as net passive income from these two units after deducting 2.3K interest for the bank loans.

We are planning to retire in 3 years time after I am 60 years old. my question is :

If I have accumulated 1.8M cash in hand by the time I come to retirement ( 3 years later) , should I fully settle my outstanding loan ( i.e 1.3M) for Units B and C to enjoy gross 12K monthly income for my family expenditures without any debt ? or I could add another unit worth say 1.2M (Ucall it nit D, paid fully by cash) in my investment portfolio.

As a result, the Unit D will say collect aprox. 2500/M rental that would be able to cover the interest amount incurred by Unit B and C. My passive income will still be 12K/M at the same time I might have potential chance to win some capital gain to be generated by unit D?


What do you think would be a better way ?