45 years old, to get a bigger HDB flat or to invest?

During InvestX Congress last month, I said that sometimes, readers who are older would write to me and ask why I always blog about starting young. What about people in their 40s or 50s?

Well, I received one such email recently from J and she asked me:

1.
First, I hope u can give some suggestion or  put yourself in the position
of those who realise the importance of the passive income at their later
age, say 40s. Eg, If I m 45 with small cash and a hdb......so how could i
turn my life instead of ....do nothing. (b4 45.....dont have any depth
financial plan, but with a good job which provide ....still can
survive+small saving income, moderate incurance & etc)

2.
Would you mind to do a comparison on invest in a bigger HDB or use the
money to invest in a condo or maybe factory unit with a cash of $300k? I
hope to know your view/opinion is because currently I own an 3rm HDB,  but
a little crowded as my children already grow. So, my initial plan is to
change a bigger HDB, then invest a condo/warehouse with the balance of the
cash. But, there is a rule that if i own the HDB after 2010 (if I m not
wrong), i must sell my HDB if i invest in a condo. This also mean that I
lost a way to make some passive income by collecting rental.

My reply to J:

Hi J,

If I were 45, I would have to work doubly hard compared to someone in his 20s or 30s to achieve the same result by age 65, all else remaining equal.

However, if that was impossible, for various reasons, then, I would have to moderate my expectations and have a lower passive income compared to younger people, again, all else remaining equal.

In the end, it is really what kind of lifestyle we have and expect to have at retirement. If we have a simple lifestyle and with all our children grown up and supporting themselves, logically, we won't need as much money. No more big ticket items except for possible hospitalisation which should be taken care of by a good H&S policy.

If I were still holding a good job at age 45 and had sufficient savings to last a few years even if I were jobless, I would continue to save as much as possible and be prepared to invest when the opportunities present themselves. It is only a matter of time.

As for your HDB flat, it is for living, not investing. If you need more space because your children are bigger now, you should get a bigger flat. If you want more space when you don't really need it, then, that is different. I believe that there is a 5 years M.O.P. once you move into a bigger flat. I could be wrong because I am not well versed in matters to do with HDB flats.

Generally, I do not think investing in residential or industrial properties in Singapore now is a good idea. A huge surge in supply in the next few years will put a dampener on rentals and prices. However, there could always be offers which are good value for money. It is just harder to find them. I would take a look when there is blood on the streets. All investments are good at the right price, after all.

Remember, I am not offering any advice. Just sharing my thoughts.

If you have any ideas which you would like to share, please do so in the comments section. Appreciate a meaningful discussion, as always. I don't know everything there is to know, I am sure.

Related posts:
1. To retire by age 45, start with a plan.

For someone who is starting at age 45 and retiring at age 65, tweak the numbers.
2. Retiring before 60 is not a dream.
3. Buying an apartment: Considerations.
4. Affordability and value for money.
5. Five points we ignore at our own risk.
6. What should I do? Letter from a 64 year old.
7. A letter from a 66 year old retiree.