crossposting from r/singaporefi ($ in SGD, flat = apartment, BUC = building under construction, cpf = government forced retirement savings)
Looking for external no filter comments on what to do with our money. We’re lucky enough to be in a situation where our income far exceeds our needs and lifestyle. Have been invested in FIRE for a long time, and actively saving/investing as much money as possible since we started working >10 years ago. Currently trying to balance options around housing such as continuing to rent, buy a resale flat or buy a BUC condo.
Details (will expand in comments if asked)
Who: DINK mid-30s \ Jobs: Tech \ Monthly net income (less forecasted tax and cpf): $25,000 \ Rent: $3,000 \ Other expenses: $3,000 \ Monthly ETF-based portfolio contributions: $15,000-20,000 \ Portfolio (ETF, CPF, Cash): $1,250,000 \ Liabilities: $3,000 / month rent
Background (will expand in comments if asked)
The growth in our portfolio has largely been driven by the markets incredible performance the last 10 years, with the majority of our holdings in NASDAQ. Of course, we can’t discount the incredible savings rate, which was not always the case. We’ve progressed in our careers substantially over the last 10 years which increased our earnings from $8,000 combined to $25,000 combined over a 10 year period.
Option 1 - Do nothing
Continue investing our substantial left overs on a monthly basis until we reach FIRE accounting for rent into old age. Haven't seriously considered the impact on financials with old age long term care costs.
Option 2 - Resale Flat
Buy an HDB with cash, depleting investments but securing a long term household into retirement. Cons: Investments are a snowball effect and we would be losing a lot of momentum in future gains. Pros: not treating housing as an investment but rather securing a market independent retirement (rental fluctuations be damned).
Option 3- Condo BUC
Buy a new build that will TOP in 4 years. Our jobs are fairly secure and income is growing, we can afford to take on additional risk. Cons: depletes investments in the same way that Option 2 does, but extends the hurt into a long tailed mortgage repayment. It also treats housing as an investment which we are vehemently against. Pros: quality of life increases with choice of location, development’s amenities, etc. Into retirement, this is something we would be prioritising however we acknowledge that this option pushes retirement out to a significantly later date.
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