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How To Grow Your Wealth Through Real Estate Investment?

I have been sharing a few articles in my blogs recently, explaining why you should invest in Singapore property and how property investment can grow your wealth through systematic, strategic planning.

Let me share with you how I had helped my client, Mdm Tan to grow her wealth.

I came to know Mdm Tan in the year 2007. She is the mother of my Brother-in-law’s campmate, Mr Lim.

She was renting half a shop in an HDB shophouse near where she is living in Ang Mo Kio Avenue 5, selling stationary and provide photocopying services and photo development.

When she heard that the shop owner had the intention to sell the shop, she was worried that the new owner might either increase the rental or even worse, vacate them after the tenancy expired. She approached me to assist her on the procedure in buying over the unit.

Mdm Tan had already utilised her CPF in her HDB 3 room flat and had about S$50K cash in hand. She has 2 sons, one is a civil servant and the other was helping her on her business.

Both had funds in their CPF account. Back in the year 2007, Singapore Citizens were still able to buy a commercial property using their CPF funds.

After a more in-depth conversation and understanding of their financial status, I proposed that they buy over the HDB shophouse with living quarters (A HDB 3 room flat on the second level of the shop).

The price of the HDB shophouse unit was $600K back then! A down payment of 20% was $120K which was easily managed with her $50k cash and funds from her son’s CPF account. And the rest of 80% was settled with a bank loan with a 30-years mortgage!

And she only had to pay $1,250 monthly without worrying landlord having to increase her rental when the market picked up.

HDB shophouse in Ang Mo Kio
HDB shophouse bought by Mdm Tan back in 2007

What did Mdm Tan benefit from this purchase?

Her rental was $1500 before the purchase, now she had saved $250 monthly!

Not forgetting she continued the tenancy with the existing tenant who used it as a hair salon on the other half shop at a rental price of S$1,750.

They kept the residential component on the 2nd floor for their own use.

Mdm Tan then had a positive income of S$2,000 monthly after paying the mortgage instalment and a residential component for her usage!

Things didn’t stop here! Over time, we built a friendship on top of that business relationship! We could talk about everything from her work to her family.


One day, after a conversation with her, she mentioned her HDB 3 room flat is a bit small for her family now that the kids are older and needed their own privacy.