Archive for July, 2008

Mid Career Switch

Sunday, July 6th, 2008

Recently, I made the decision to join ERA, one of the big names in real estate, and to become an agent. I chose this path mainly because of 2 reasons:

1) Although I’m not making too bad in my current freelancing job, I foresee there is a limit as to how much I can earn a month, and honestly speaking, I don’t think I would be satisfied with that limit 3 years down the road.

2) I want to reach financial freedom, and personal investment and rental of real estate is one such way. I previously posted an article, on how a Canadian couple managed to put down $10k on an ‘income property’, which basically had two units. By renting out one of the units and staying in the other, they managed to collect enough in rental to pay almost all of the monthly mortgage for the property as a whole. alf mentioned in a comment that it’s impossible today, to get a property with a downpayment of $10,000, much less a property that you can live in and rent out.

Not completely impossible though: with a capital of about $50k though, it’s still possible in some areas to find HDB flats where 2 units have been combined together via a ‘door in the wall’. For example, a current 3 room flat owner might have learn his neighbour is selling his 3-room, and chooses to buy it from him. Under HDB laws, that is permissible, and the 2 units would thereafter be combined under 1 address, 1 owner and therefore, 1 loan. In theory, it would then be possible to live in one unit, and rent out the other, since they still would have their individual doors!

But situations like that are rare. My intent is to be able to save up a capital of about $120,000, and invest in a condo that is under $500,000, purely for investment purposes. That would mostly limit the purchase to studios, but surprisingly, it’s still possible to get a 2-3 room condo in areas like Yishun and Yew Tew! In most cases, the rental collected for the property each month is sufficient, or close to sufficient to cover the monthly mortgage. In essence, someone else is paying for my increasing networth, and pushing me one step closer to financial freedom. When that property is finally paid for, every month’s rental collected becomes pure income.

I decided to join as an agent, because being involved with real estate would help me raise that capital, while at the same time allow me to be close to the market and help me in my decision on properties to invest in.

I’ve started a new blog concerning real estate advice and news. If you enjoy reading this blog, maybe you might enjoy reading my new blog too. Hop down to, and if you need help selling your house or finding a home of your own, do let me know if I can be of service. 🙂