As a realtor, a statement I often hear from LGBTQ+ clients in their 30s would be: “Oh, this will be my forever home”. The reality is that most of us will likely not be living in the same home that we first purchase. Think of the childhood home you grew up in. Is that still the home you are living in? The answer is often no.
As LGBTQ+ people, even though starting a family with kids is not as common in Singapore, people’s life circumstances do change overtime. This can be affected by the decisions people make, such as deciding that they would now like to purchase a bigger place and move in with their partner, or going through a break up, or simply finding that the place they are living now no longer suits their lifestyle. Some would like a bigger place because they are welcoming new additions to their families, some feel that the place they are in is way too big for two people, and would like to cash out and retire on the sales of their home. These are all valid reasons to upgrade or downgrade your home.
But what if you are in your early 40s and have bought a resale or BTO flat 5 years earlier, and the flat has finally met its MOP (minimum occupation period)? Is it time for an upgrade to a private property if your financial situation allows you to do so? If your BTO or resale flat has appreciated considerably eg. 15-25%, perhaps it is ideal to consider a private property.
My advice to LGBTQ+ or single HDB upgraders would be that if your financial situation allows you to stretch yourself a little in your late 30s, and through your 40s, do it! Depending on the location of your private property purchase, the potential for capital appreciation can be your retirement plan if and when you decide to cash out of the property 10 to 15 years later when you are 55. You can opt for a HDB resale BTO by then. If you are partnered, you may also consider moving into your partner’s home, working out an arrangement, and renting out your private property as an investment as well.
If you choose to go ahead with an upgrade to a private property, the timing of HDB sale is important, as the proceeds will likely need to be funding the purchase of the condominium. Your realtor will need to time this purchase well, and you may require a temporary extension of stay at your former home. Chat with us at Haus of Pride to find out more, and we would be happy to share more of our insights with you!
By Ching Chia
