5 options to grow your money.

Which one would you choose?

Your choice determines your future!

Click the icons to find out what happens in 5 years time

Keep at home




Real Estate


Keep at home

In times of crisis i.e. Covid-19 or when the economy is bad, fear comes knocking on the door causing most people to think it is safer to keep their money at home.


However, due to inflation and rising cost of goods and services, did you know that if you were to buy the exact same product in 5 years time, it would cost you more?


For example:

Now you have $100,000. 5 years later, you will still have $100,000. 

But the problem 5 years later is that your $100,000 will not be able to buy you the same things you could've bought 5 years ago. 


Let's say you have set aside $100,000 for your child's education which you will need in 5-10 years time. However, in 5-10 years time, your $100,000 remained as $100,000. It did not grow. Can you still afford to pay for your child's education?


"Singapore university costs rise 38% since 2007..."

Source: CNBC


Based on 3% inflation rate, $100,000 today will shrink to $85,873 in 5 years time. See table belowIn layman terms, your "money become smaller".


Imagine you owned a HDB flat valued at $500,000 and the value did not grow for next 10 years. So, 10 years later, your flat still worth $500,000. But the problem 10 years later is that your $500,000 might shrink to $368,710 (refer to table below, use $73,742 x 5) if you choose to hold it. You will have -$131,290 lesser. This has not taken into account of CPF Accrued Interest. That is one of the reason why some after selling their property ends up in Negative Sales and don't have cash.

how-to-upgrade-to condo-inflation-table.

Are you hedged against inflation yet?


Putting your money in the bank can be a safe and good place to store your cash for rainy days. Much better than storing it in biscuit tins or under your mattresses. However, when it comes to larger amounts like $300K, storing it in the bank may not be the wisest choice. 


Fixed deposits in banks may look attractive in tough times (i.e. Covid-19 pandemic).


Let's assume the fixed deposit at 1.5% interest per annum,

$300,000 x 1.5% = $4500 per year

Compounded over 5 years will be $323,185


Profit after 5 years:

$323,185 - $300,000 = $23,185 in interest earnings


The stock market fell drastically due to the Covid-19 pandemic. 


Some would say that stocks are more attractive now due to the current situation. A once in a decade opportunity to buy into stocks.


Yes no doubt stocks are more liquid, you can buy today sell tomorrow. But, is it better to put your money in stocks as compared to property?

Let's take a look at the share performance for DBS,

If you have $300k cash, would you bet all of it on stocks?

Assuming you bought $200k worth of DBS shares and kept $100k cash.

You now make $33,000, will you sell or keep for 5 years?

There is nothing wrong with investing in shares but the catch is that the stock market is VOLATILE, it can swing up or down in a matter of days. It is something you have to monitor very closely. You will also need to trade a few times to increase your profits. 


If you buy the wrong share, it will go against you. Buying shares also means you need to pay 100%, i.e. there is NO LEVERAGE. You need to use your hard earned money and have the knowledge and skills to trade before going into stocks.



Say today you see your friend running a successful F&B business, giving you an idea to invest your money in business too as you have some savings.


To start a business you not only need to generate profit, you probably have to personally oversee operations to ensure positive return on your investment. So, what kind of business can you do with $200k-$300k?


For example:

To open a decent bubble tea shop at a good location can cost over $100,000 (it might cost even more if you franchise a popular brand). Besides your initial investment on equipments, you would also need to purchase high quality ingredients, set aside money for on-going operations and train your staff.


To attract large crowds, you would need to rent a shop at a prominent location with high human traffic. All these cost money and you would probably need to set aside $200k for the first 1-2 years of operation. 


Do be prepared for bad times i.e. Covid-19. Many businesses like retail and F&B have suffered a sudden drop in sales.


"Bleeding badly, F&B operators appeal to PM Lee for urgent help"

Source: The Business Times


A popular karaoke chain was asked to close all outlets due to circuit breaker too. They were faced with a huge overhead of $500k per month.


But don't get me wrong here, I am not saying that people shouldn't invest in business. If you are passionate and have a good business and marketing plan, by all means pursue your dream. 

Real Estate

For property, mid to long term planning is recommended. Speculation is not involved. We calculate risks and rewards using the Financial Evaluation Method (FEM). 


Let's take a look at 2 different scenarios, Resale and New Launch property.


#1 - Resale Case study: Assumption

I will share with you how a $1mil resale property can double your savings in today's market. 


Purchase price $1,000,000

Loan 75% is $750,000

Interest rate at 1.5% for 30 years loan, 

Monthly mortgage at $2,588


Down payment: $1,000,000 x 25% = $250,000

Buyer's Stamp Duty is $24,600

Legal fee $3,000

Total Outlay: (Cash + CPF) = $277,600


Assuming the property is rented out since day 1.

Rental at $3500 per month

5 years rental collection $3500 x 12 x 5 = $210,000

$3,500 (rental) - $2,588 (mortgage) = $912/month (cash)


Take 3% capital gain for 5 years and you manage to sell at $1.15mil

Outstanding mortgage at end of 5 years is $647,203

After selling at $1,150,000 less $647,203 = $502,797

Total Return: $502,797 + $54,720 = $557,517


Return on Equity is $557,517 / $277,600 = 2.0 or 200%

After 5 years your saving DOUBLED!


In this illustration, you can see that it is possible to double your investment in a 5 years period in today's market.


By putting your money in real estate, you have the advantage of:

  1. Leveraging, you put 25% you can borrow max. 75% (*subject to loan assessment)

  2. Using OPM, Other People Money to pay for your mortgage

  3. Safe and consistent growth

  4. Hedge against Inflation

  5. Low volatility

  6. Tangible Asset


#2 - New Launch Case study: Assumption

My friend asked me for advice. They own a 4 room flat in Jurong. After discussion and understanding their needs and dreams. I applied the Financial Evaluation Method (FEM) to show them their risks and rewards if they were to proceed on buying a New Launch. Today, their savings has doubled.


Purchase price $1,382,000

Loan 75% is $1,036,500

Interest rate at 2.0% for 30 years loan, 

Monthly mortgage at $3,831


Down payment: $1,382,000 x 25% = $345,500

Buyer's Stamp Duty is $36,060

Legal fee $2,800

Total Outlay: (Cash + CPF) = $384,360


They bought the property for own stay. Last year, their neighbour sold a similar unit at $1.75mil.

For illustration purposes, assuming they can sell at $1.7mil.

Outstanding mortgage at end of 5 years is $903,873.

After selling at $1,700,000 less $903,873 = $796,127.

Total Return: $796,127 (Cash + CPF proceeds)


Return on Equity is $796,127 / $384,360 = 2.07 or 207%

Their savings DOUBLED! in 5 years.


Different options give you different results. My recommendation is to do an assessment and Property Evaluation to work out a plan which is suitable for you and your family. Don't act rashly just because your friends have made money in the stock market, or your colleague runs a successful business or someone/FB advertisement told you that property can make you money. Understand your options first and choose wisely!

Your choice determines your future!

Double your savings in 5 years!

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