Case Study

Right-Sizing from Landed to Dual Fully-Paid Properties for Retirement Income

Introduction:

Mr. and Mrs. Lim, both in their early 60s, had lived in their freehold landed property for over 25 years. With their children now married and having their own homes, the landed house had become oversized and increasingly difficult to maintain. They were exploring options to simplify their lifestyle while preserving wealth and creating passive income for retirement without needing to touch their existing cash savings or investment portfolios. With a shared passion for travel, they also wanted a more manageable home base that allowed them to spend extended periods overseas comfortably.

Situation Overview:

Landed Property Details:

Freehold landed terrace home
Purchased 25 years ago at $950,000
Current market value: $4,200,000
No outstanding mortgage

Cash savings & other assets: Fully intact, not required for this transition

Dave's Approach:

We structured a plan focused on right-sizing while preserving full ownership and liquidity safety. The objective was to:

Sell the landed home to unlock maximum equity
Purchase a right-sized private condo fully paid for own stay
Use remaining funds to purchase a second fully paid investment property for passive rental income
Maintain their current financial buffer completely intact
Ensure flexibility for extended travel while preserving long-term financial safety

Execution Plan:

1. Sale of existing landed property at $4,200,000

Agent & legal costs: ~$50,000
Net sale proceeds: ~$4,150,000

2. Purchase of primary residence (right-sized private condo):

Freehold 3-bedroom condo (District 15)
Purchase Price: $2,300,000
Buyer Stamp Duty: $82,600
Legal & Misc: $5,000
Total Cost: $2,387,600
Fully paid using sale proceed

3. Purchase of investment property:

Freehold 2-bedroom condo (City Fringe)
Purchase Price: $1,450,000
Buyer Stamp Duty: $48,600
Legal & Misc: $4,000
Total Cost: $1,502,600
Fully paid using remaining sale proceeds

Remaining Funds After Transactions:

Net sale proceeds: $4,150,000
Total outlay: $3,890,200
Balance cash surplus: ~$259,800 (retained as additional retirement buffer)

Rental Income Potential:

2-bedroom investment unit rental: ~$4,500/month
Annual gross rental income: ~$54,000
Fully passive, fully owned, supplementing their semi-retirement lifestyle and allowing for frequent overseas travel

Final Plan & Outcome:

Mr. and Mrs. Lim successfully right-sized from landed to dual fully-paid properties without touching their existing financial reserves. The transition simplified their living situation, eliminated ongoing landed upkeep costs, and established a new stream of stable rental income. Importantly, they preserved full ownership of both properties with zero leverage, ensuring maximum holding power and peace of mind in retirement while giving them flexibility to travel freely.

Client Profile:

Age / Life Stage: Early 60s, Empty nesters, semi-retired

Family Situation: Children independent with their own homes

Property Type / Ownership: Fully-paid freehold landed home

Main Concerns: Reduce upkeep burden, free up idle equity, build stable retirement income, preserve overall wealth, allow flexibility for frequent travel

Key Takeaways:

Right-sizing allows retirees to monetise appreciated landed assets without sacrificing security

Fully paid property structures provide stable income without financial stress

Equity recycling can be done safely without compromising existing cash or investments

Preserving holding power is paramount, even when debt-free

Right-sizing allows greater lifestyle flexibility, including extended travel