Retirement is decided by what you start now.
Most of the choices at 55 and 65 depend on how long you have held your home and how much of it you already own. Change the numbers below to see how much of that comes from starting early.
Same home, bought at 30, 40 or 50
If you buy at
30
- Years you hold the home
- 35
- Home value at 65
- $1,406,931
- Loan still owed
- $0
- What you own (equity)
- $1,406,931
- Cash you put in (down payment plus repayments)
- $658,488
- Equity less cash put in
- $748,443
If you buy at
40
- Years you hold the home
- 25
- Home value at 65
- $1,046,889
- Loan still owed
- $0
- What you own (equity)
- $1,046,889
- Cash you put in (down payment plus repayments)
- $658,488
- Equity less cash put in
- $388,401
If you buy at
50
- Years you hold the home
- 15
- Home value at 65
- $778,984
- Loan still owed
- $184,163
- What you own (equity)
- $594,821
- Cash you put in (down payment plus repayments)
- $445,093
- Equity less cash put in
- $149,728
Monthly repayment on a 25-year loan: $1,778. At 3.0% a year, a home's value roughly doubles in 24 years (the rule of 72). Buying at 30 gives that doubling room to happen once, and part of a second time.
Illustration, not a forecast. Prices can fall as well as rise, and an HDB flat's value is affected as its lease shortens. The figures leave out stamp duty, upkeep and what rent would have cost instead, and every column uses today's price, so they understate what waiting costs when prices rise. Change the growth rate to 0% to see the cautious case.
Why it works
Time shrinks the loan
Every repayment moves more of the home from the bank to you. Start earlier and the loan is gone by the time you reach your 50s.
Time lets growth compound
Price growth builds on earlier growth. The same 3% a year does far more over 35 years than over 15.
A paid-up home opens choices
At 55 and 65 you can right-size, use Lease Buyback or help your children, from a position of strength rather than need.