It seems many people as condo owners have the plan to sell their condos and fund their retirement as they trade down to a BTO, I would like to pose the following issue. Given that there is an increasing proportion of retirees vs those in the work force (unless there is continued increase in foreigners) there will be increasing supply of condos for sale over the next 10-20 years due to this, driving prices lower unless developers stop building and keep supply low.
The only way to guarantee higher prices is to allow more foreigners to come in large numbers. Do you agree?
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Originally Posted by Unregistered
We have worked out our retirement plan. We will retire at 58. First we will sell our condo and get $1.2m. Then we buy a totally brand new 2 room BTO flat for the elderly for $100k, pay in full cash. We invest $1m in high dividend yield stocks giving us 5% dividend yield, $50k pa. Our 3 children will give us allowance of $2k pm in total or $24k pa. Total passive income $74k pa. When we reach 65, we will get $3.6k pm or $43.2k pa from CPF Life. Total passive income at 65 will be $117.2k pa. Our expected spending during retirement will average $50k pa as we no longer need to own a car. We will save and reinvest the balance or spend on round the world holidays. Living in a 2 room flat has many advantages such as utility rebates. We may even get free food if some welfare organisations come to all the 2 room flats to give out food for the elderly as they usually think those staying in 2 room flats are poor. In fact there are many people who live in HDB flats are rich and they own multiple private properties. |