Picture this: You’re sitting down with a property agent, discussing your long-term financial goals. You mention your desire to build your wealth through property investment, and the agent’s eyes light up.
Yes, property asset progression can be a lucrative way to build your wealth, but it’s not without its risks. This is problematic for progression, as you must pay an absolute minimum of five per cent of your next home in cash. Negative cash sales can end up stalling your upgrade for anywhere between months to a few years, depending on how quickly you can save up the minimum cash down.
We have a detailed explanation of negative cash sales in this article, and here are the estimated gains you’ll need to minimally attain in order to avoid such a situation:This usually refers to the price gap between HDB flats and condos, but it can also refer to the price gap between ECs and private condos, or private condos and landed housing .
There’s a possibility that you’ll have to liquidate one of the two properties, and it may be the larger one. This means an end to rental income; and in some cases, it even means a complete reset .