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Home Upgrading Explained: 3 Big Reasons Why People Do So

Joshua Tan Realty—In the market, we know that people upgrade their homes for a range of reasons.


So today, we dive into the 3 main reasons why people do so, and hopefully if you want to upgrade but are currently unsure how, this article can help.


Singapore home upgrading explained, the 3 big reasons why
Singapore Home Upgrading Explained: The 3 Big Reasons Why

[Home Upgrading] Reason #1: Upgrading to Higher Value Property to Grow Net Worth & Build Capital


One of the most common reasons for home upgrading is to shift to a higher value property.


This can be done once, or many times, depending on your financial affordability, circumstances, and government regulations that apply.


In Singapore's context, the rationale for such an upgrade is to ride on the market sentiment that prices of property will increase in the long term.


Usually, Singaporean upgraders that fall under this category use home upgrading as a means of investment and growing their net worth.


[Home Upgrading] Reason #2: Upgrading to a Larger Space or Location of Their Preference


Another type of home upgrading is to move to a larger spaced unit, or to a preferred location.

This can be due to the need to accommodate with a growing family, or ageing elderlies in the household, and such a move usually leans toward the direction of family-planning, own-stay & enjoyment purposes.


Depending on the type of asset you choose to enter into, such an upgrade may also allow you to reap investment advantages at the same time. Because, if it's possible, why not have the best of both worlds?


[Home Upgrading] Reason #3: Upgrading to Advance in Financial Position


The third type of home upgrading we are going to talk about is to advance in a person's financial position.


And for the context of this article, financial positions vary and is subjective.


For example, in a simple form of explanation:


If your goal is to be mortgage/debt free: Then to advance in financial position can be to clear off your existing housing loan or debt earlier, so you spend less time working to pay liabilities & can focus on family or other important things.


If your goal is to make money as an investor: Then to advance in financial position can be to continue leveraging debt to grow your net worth & capital.


I hope this article has helped you understand upgrading better.


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Disclaimer: While every reasonable cause is taken to ensure the accuracy of information provided or presented here, no responsibility can be accepted for any loss of inconvenience caused by any error or omission. The ideas, suggestions, general principles, examples and other information presented here are for reference and educational purposes only. This presentation is not in any way intended to provide investment advice or recommendations to buy, sell or lease properties or any form of property or financial investment. Joshua Tan Realty, Joshua Tan, its officers and successors shall have no liability for any loss or expense whatsoever, relating to investment decisions made by the audience. All copyrights reserved.

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