How I helped a client overcome his fear and buy his first private property

Turning fear into confidence: A step-by-step guide to smart property investment
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By Khalil Adis

A condominium development in Singapore. Photo by Khalil Adis.

Buying your first private property can be nerve-wracking — especially when big numbers are involved.

Recently, I worked with a client, John (not his real name), who wanted to invest in his first private property but had serious concerns about affordability.
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Meet John

John and I visited various developments within a 2 week period. Photo by Khalil Adis.

John is 39 years old, earns $13,000 a month and has no outstanding debts.

Over the years, he has managed to accumulate $400,000 in his CPF Ordinary Account (OA) and has $100,000 in cash savings.

He also diligently sets aside $3,000 every month towards his savings, with his CPF OA contribution at around $1,554 monthly.

Crunching the numbers, I found that he could afford a $1.6 million resale 2- or 3-bedroom condominium.

However, despite his financial strength, John had his doubt.

His biggest fear? Not being able to afford the monthly mortgage payments.

Here’s how I helped him overcome those fears.
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Easing the fear: A more comfortable price point

Working out his budget using Propnex Business Suite. Photo by Khalil Adis.

Instead of stretching his budget, I suggested a more conservative approach.

We looked at a resale 2-bedroom condominium priced at $1.3 million, where the average rental income was around $3,000 per month.

With this price point, John’s financials broke down as follows:

• Downpayment (25%): $325,000
  • 5% in cash: $65,000
  • 20% from CPF: $260,000
• Buyer’s Stamp Duty: $46,600 (paid via CPF)
• Remaining CPF OA balance: $93,400
• Mortgage repayment: $4,278 per month (over 26 years)

This ensured that John stayed well within his Total Debt Servicing Ratio (TDSR) limits.
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Building a safety net with CPF reserves

Screengrab from CPF's website showing John's monthly CPF contribution.For privacy reasons, I had omitted John's CPF OA amount.

One of John’s biggest worries was, “What if I lose my job or can’t find a tenant?”
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To put his mind at ease, I pointed out that his CPF OA still had $93,400 after the purchase. With his CPF OA monthly contribution of $1,554, he had a built-in buffer of:

• 22 months of mortgage payments ($4,278 per month) if he lost his job.
• An additional buffer of 73 months if he rented out the unit at $3,000 and only had to top up $1,278 per month.

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Additional backup: Tapping into savings

What I really admired about John is his savings habit. Photo by Khalil Adis.

Since John was already saving $3,000 a month, I reminded him that if worst came to worst, he could rely on his savings to cover mortgage payments.

On top of that, his CPF contributions would provide an extra $34,188 buffer over 22 months.

The final decision: Making the move

Photo by Jakub Zerdzicki: https://www.pexels.com/photo/hand-holding-keys-to-a-new-house-real-estate-residential-27522902/

After walking through the numbers, John started to feel more confident.

With his fears addressed, he finally put in an offer for a 2-bedroom condo.

The best part? We found a unit that was sold with tenancy at $3,200 per month—even better than expected!

​This meant he only had to top up $1,078 per month, which could be covered by his CPF contribution, keeping his reserves untouched.

The takeaway

Another property that we had viewed. Photo by Khalil Adis.

John could have gone for a $1.6 million condo, but my goal was to ensure he felt comfortable and secure in his decision.

By keeping his budget conservative and addressing his concerns with solid financial planning, he felt reassured and ready to take the leap into property investment.

At the end of the day, property investment is not just about numbers— it is about confidence, security and making informed decisions that align with your comfort level.

For John, this was the perfect first step.

Thinking about buying your first private property but feeling uncertain? Let’s chat and work through the numbers together!