The Background Question
Recently, I met an owner of a Housing Development Board (HDB) flat in the Ang Mo Kio estate that is worth $500k. They chose not to take any actions even though they knew that I had given them a very good investment plan.
I gave them a plan that could easily have given them a six figure amount in returns in just five years. I also got their funds ready to pay for the installment for the next ten years without them having to worry.
There were however some reasons why they still chose not to do it.
Reasons Why People Prefer Not To Move
One of the reasons was that they could not bear to move out from the very convenient location of their HDB flat.
But if you really delve deeper, during the first few months after you move into your new house, it would also not be the perfect house that you would initially want, right?
It is a matter of being used to it. That is precisely why you would feel that moving anywhere else is not viable. Even if I moved you to a better location you would still feel the same in the first few months. After all, you would have stayed at the same place for so long.
But after that, say 10 years later, you would feel the same for your new place as how you would have for your old place. This is known as habit.
It is because you become so used to living at your old place that moving to anywhere else becomes undesirable.
The truth is – only your “comfortable” mindset is stopping you.
Whenever this sort of issue happens, it really hurts me a lot.
Why is it Upsetting?
It is because I have always felt this – If only many years ago, if my parents had a chance to talk to someone who could have given them an investment plan like this, today theirs and (and maybe my own childhood) would have been so much better.
Imagine that you had a few properties 10 to 20 years ago. Would you be wealthier today?
Bear in mind that the plan I gave them would have kept them safe from paying instalments using their monthly income for 10 years. This is extremely safe if you know what our government direction towards property in Singapore is.
Also, when you know how to create saving plans using property, would this skill be likely be passed down to your children in future?
Would their lives be better in the future?
From Parents to their Offspring
I find one very common thread behind this issues.
Most of these owners who do not feel like moving even though they truly know that doing so would be the best thing to do and yet they still choose not to move — is due to the reason that their parents have usually stayed in the same flat for the past 30 years or so.
This is what happens most of the time if we follow what our parents do.
Although they are the ones who teach us most of the things we know, are they wealthy? Do you want to be like them in the future?
Hence, by following what they do – you will get the same results.
Maybe slightly better if you are lucky… this is the standard “cause and effect” theory.
What Should You Do Then?
So, if you do not want the same things that happened to your parents…. happen to you as as well, then what should you do?
Currently you will definitely have 2 kinds of friends.
The former kind are the ones who have been moving around. Once they meet the HDB’s five years MOP, they start to sell and upgrade.
Within 15-20 years they move more than two times.
The latter kind stays at the same place all the way.
Now looking back, is it true that the friends who are moving a lot are more wealthy then the other kind?
Is it because their wealth are built by working hard or from their property?
You know the answer to that question yourself.
So come, take action and do the right thing today. Not tomorrow, not the day after, but right now.
It is very simple.
You can start off by arranging to do an assessment and reviewing your property portfolio.
Know this, if you feel unsatisfied with the information you are getting here, there is a reason for that.
In my blog, I am only able to share my general expertise. But the truth is, I have gleaned a lot of knowledge depth thanks to over 10 years of handling and managing Singapore property transactions.
You won’t know what you don’t know – unless you start to find out what you might be missing out.