Case Study
Right-Sizing and Equity Release to Support
Next Generation
Introduction:
Mr. and Mrs. Goh, both in their late 50s, had lived in their private condominium for close to 20 years. The property, while still structurally sound, was starting to show its age and would require significant renovation to modernise. In addition, being a 99-year leasehold development, lease decay was starting to weigh on long-term value. With their only son just starting his career and still living with them, Mr. and Mrs. Goh saw an opportunity to right-size their own home while releasing equity to help their son secure a future matrimonial home early, even before marriage.​​
Situation Overview:
Existing Property Details:
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4-bedroom private condo (Central Region, 99-year leasehold)
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Purchased 20 years ago at $1,100,000
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Current market value: $3,000,000
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No outstanding mortgage
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Lease balance: ~79 years remaining
Cash savings & other assets: Reserved for retirement and not to be utilised for this exercise
Dave's Approach:
The plan was structured to:
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Sell the ageing leasehold condo to release accumulated equity while market remained favourable
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Purchase a newer, smaller 2-bedroom plus study private condo fully paid for ownstay, providing comfortable shared living space for the family
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Use remaining equity to partially fund a new launch purchase registered under the son’s name for his future matrimonial home, with the son taking a prudent loan share
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Preserve overall retirement cash reserves fully intact
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Execution Plan:
1. Sale of existing private condo at $3,000,000
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Agent & legal costs: ~$45,000
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Net sale proceeds: ~$2,955,000
2. Purchase of new primary residence (right-sized condo):
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2-bedroom plus study condo at Myra (City Fringe)
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Purchase Price: $2,000,000
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Buyer Stamp Duty: $71,600
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Legal & Misc: $5,000
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Total Cost: $2,076,600
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Fully paid using sale proceeds
3. Purchase of new launch for son’s future matrimonial home:
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2-bedroom new launch condo (OCR)
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Purchase Price: $1,800,000
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Buyer Stamp Duty: $62,600
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Legal & Misc: $5,000
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Total Cost: $1,867,600
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Parents contribute 50% downpayment: $933,800 (from remaining sale proceeds)
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Son takes loan for remaining 50%: $900,000 (within his earning capacity)
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Remaining Funds After Transactions:
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Net sale proceeds: $2,955,000
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Outlay for ownstay: $2,076,600
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Contribution towards son’s property: $933,800
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Total outlay: $3,010,400
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Shortfall: ~$55,400 (can be easily covered from transactional rounding or minor adjustments without significant impact to reserves)
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Final Plan & Outcome:
Mr. and Mrs. Goh successfully right-sized into a newer, lower maintenance home while securing a new launch property for their son’s future matrimonial home, with a balanced structure where their son takes meaningful financial responsibility for his property while receiving early parental support. By exiting an ageing leasehold asset ahead of renovation needs and further lease decay, they simplified lifestyle needs while ensuring early intergenerational property stability. The entire transition was achieved nearly fully within the proceeds of their property sale, with minimal or no drawdown from retirement savings.
Client Profile:
Age / Life Stage: Late 50s, Parents with one working adult son at home
Family Situation: Son living at home, recently entered workforce
Property Type / Ownership: Fully-paid 99-year leasehold private condominium (older development)
Main Concerns: Avoid costly renovation, avoid holding depreciating leasehold asset, simplify living space, secure property asset early for son’s future family, preserve retirement security
Key Takeaways:
Right-sizing allows timely exit from ageing leasehold properties
Balanced parental support structures promote responsible property ownership for children
Equity release can be deployed early while preserving retirement reserves
Simplifying living arrangements provides flexibility for continued multi-generational living
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