Hi guys, currently in my final year in university. I aim to purchase my own condo in 5 years after I graduate. Currently have liquid assets worth 250k. Any suggestions how to grow?

Hi there,

First question to consider is, as a young adult, why do you want to purchase a condo as your first property?

The reason for my question is because of the term, opportunity cost. I’m with the idea that a young couple should buy a BTO as their first property and flip it as they go along in life. Use the excess cash for savings and investment into higher risk securities. There is no need to rush for a condo. Although, you may have a different circumstance .

Gone were the days where property are considered “good” investments. My Guess is the average appreciation for an average condo is roughly 2-4% give or take? Take away that with the accrued interest for your home loan, taxes and CPF payback. You’d realise the gains may actually be Low to none in some cases.

Comparatively, if you put a certain amount of cash into, say, the S&P etf, you will probably be looking at about 5-12% annual growth in the foreseeable future. That’s the opportunity cost you’d lose if the money is committed into a condominium.

But, with that said, everyone has their own goals and circumstances. What I think is best for me may not be what’s good for you. Just my 2 cents worth.

Good luck!

Do your numbers before you embark on investing. Down payment, cash flow management, income analysis, etc.

You need to determine if the 250k is integral for the investment on your condo.

If it is, you will be hard-pressed to risk the capital given the time frame. If it isn't, you have more flexibility to invest them as you are not depending on the funds for down-payment.

More risk = higher allocation to equity

Less Risk = higher allocation to cash/money funds/bonds

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