Quote:
Originally Posted by Unregistered
Out of a HH income of $160kpa, we manage to save $30k pa. Our home is just a simply furnished 3-bedder unit in a condominium project. It's valued at $1.1m and we have an outstanding loan of $200k on it. We should finish paying the loan in 10 years time when we reach 55. Our retirement plan is to sell our condo unit at 55 and buy a studio condo unit. We would buy a unit in a condo project located next to an MRT station for convenience of travel. This provides a good reason for us not to own a car during our retirement years. |
Poor retirement plan.
Why do you want to downgrade yourself at the age of 55? By this time, you would be very comfortable living in your current home. If you move to a new locality, everything will be different. The people you meet, the shopkeepers everyone will be different and you will be treated differently.
Instead, stay where you are. After you have paid off the outstanding loan then invest in a studio apartment next to
MRT (if possible, buy from the market) and rent it out immediately. The rent will take care of the monthly repayments and by the time you are at the retirement age, you can use all your
CPF to pay off the remaining money.