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Old 07-10-2013, 06:45 PM
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This is the best answer to my brother's problem. Yes, he doesn't need to downgrade to a HDB flat, it will be too big an adverse impact on his social status and esteem. Quite surprised to find that there are still many condos selling below $1m. He has to sell his prized condo and settle for a cheaper one. I think he also needs to cut his expenses. Selling his 3 series would be a good start. And stop the maid's employment too. He just has to learn to do the household chores, no more ordering around.

Thanks everyone for your ideas.


Quote:
Originally Posted by Unregistered View Post
Your brother's situation is not so bad as he still has his condo, which is a big asset for him, especially since there is no more mortgage. He need not go all the way to the extreme of downgrading to a HDB flat, which understandably will be a big blow to his ego and status. Living in a HDB flat is of a lower standing, in society's view. This is a fact. What he can do to lessen the impact of society's perception is to downgrade to a cheaper condo. There are still many condos selling at $1m or less, he can go to propertyguru and set the search parameters and do the search. He can then sell his $1.7m condo and buy a $1m condo. This condo may be smaller or older or located is a lesser district but it is still better than staying in a HDB flat, which has a much, much lower status for him and his family. He can then invest $700k in a 5% dividend stock, which gives him $35k pa. Together with his wife's income and perhaps reducing his total expenses, his family will still be able to function well financially, without impacting much their social status. I think this is a more "middle of the way" approach. He can then continue to focus on his job search. With the new employment policy, he now stands a better chance of getting employed again.


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