How can you forced saved through real estate & why should you

Buying a home provides a strong sense of security, and is considered an effective means of wealth creation.

Homeownership is known to be an excellent way of forcing oneself to save, through the monthly mortgage paid out. It in turn forces us to be more frugal in spending, as a significant portion of income goes towards that mortgage. At the same time, we can enjoy substantial capital gain from property appreciation over time.

Other benefits include a strong retirement foundation, as paying off the mortgage during working years will result in a fully-paid asset that can be cashed out at any time.

Let’s take a look at a genuine case study:

We met Ms Tan, a career woman, at a dinner event. She was 31 years old then, a high flyer working in a multinational company. Through our conversation, she realised that she was unable to make any savings. After explaining and going through various calculations and evaluations, she decided to purchase her 1st property at Coco Palm by using her CPF. When she was 35, she sold her unit when it reached TOP. Looking at the results, she was completely convinced by the idea of forced savings. Immediately after selling her first property, she re-entered the market again with our recommendations. This time round, she used more cash than CPF, safe in the knowledge that she would be able to recover her cash upon selling her property. 

Buying a property is a major commitment, but the benefits are well worth the cost. 

Real estate is not only an investment, it is also extremely rewarding. After all, achieving homeownership is about more than just buying a house - it’s about settling into a home.

Want to find out how you can build forced savings through real estate investment? What are some of the properties that are worth your big-ticket purchase? We are Pamela & Shirely from Wonderhomes.sg! Click comment below or drop us a PM & we will get back to you soonest!