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Anonymous

Edited 26 Dec 2021

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Is it worth to cash out your stock portfolio as down payment for property?

And to start the stock investing portfolio from scratch again after purchasing property for home stay.

Reasons:

Personal goal to buy and stay in own place and
Stock portfolio’s purpose is to solely grow savings instead of a bank’s low interest rates. (Young self able to stomach relatively more risk than just parking it in the bank)

Assumptions:
1. Stock portfolio worth 200-300K
2. Individual is well below 35 years old (e.g. 26-27 y/o by then)

If not, what alternatives are there?

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1M45

Edited 27 Dec 2021

Cashing out small portion of portfolio,is ok if $$$ not enough for the downpayment. But not all. However, most importantly you must be comfortable with the instalment.

Alternatively, u can start with a 1 bed room condo if money not enough. Rent it out, use cpf and rental pay for the instalment. Sell it after 3- 4years.

Then upgrade a bigger one with the profit from the 1st, repeat the process. So basically, ur capital outlay is just the downpayment from the 1st condo. No need to fork out cash from your pocket.

however is best do it before 35 years old. The loan tenure is 30years not exceeding 65years old. If loan tenure reduce your monthly instalment increase.

If you had done it a few time before ur 35 years old, u should have a fat profit sitting in the bank. Your monthly instalment can then pay by rental, cpf and portion of the profit.

If you decided to stop playing the game then just down grade to a resale hdb then just pay it off. U should have excess $$$ and a free hdb.

Like any investment, u need to understand the rule of the game. The power of leverage.

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Wrong Sean

25 Dec 2021

Why?

Did you just happen to want to buy a property as a result of FOMO?

What was the initial goal for the stock portfolio?

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