The 3 Stages of Property Investment

Everyone wishes for financial freedom to enjoy a comfortable early retirement. There are many ways on how you can attain financial freedom, and one of the best ways is through property investment. 

Last updated: 

March 31, 2021

We all work as long and as hard as we do to one day enjoy a happy and comfortable retirement. But to achieve the financial freedom to do so can seem like a faraway dream. In reality, it is not! All it takes is some careful planning—and sooner rather than later. There are many ways you can attain financial independence, but one of the most effective is by making the most of your property investments. 

If you want to integrate your property into a well-crafted retirement plan successfully, the key first step is to make sure you understand the investment cycle. From building your portfolio to growing your investments, you can systematically make your money work harder for you and save up for the retirement you deserve.

It is never too early to start planning. To help you through the process, and better understand the investment cycle from start to finish, here is PropNex Executive Director Kelvin Fong's guide to the three major stages of property investment. 

1. First stage: Start 

When getting started, the first thing you need to identify is the type of investment you plan to make (long-term or short-term) and then narrow down your investment goals. Doing so will help you decide which kind of properties you should be looking to buy (HDB, Executive Condominium or Private Property) and allocate your budget accordingly.

 The first stage of property ownership is all about accumulating properties to expand your portfolio. In Phase 2 of your life (roughly 21 to 40 years old), you are at the peak of your career, young and full of energy. This is the best time to plan for your retirement and gradually grow your wealth. Here, you can start saving up both cash and CPF funds for your first and subsequent investment plans.

During the accumulation stage, you should focus on buying properties that will increase cash flow and appreciate over time. You don't have to worry about renovating at this stage, only property maintenance. 

2. Second stage: Advance

Once you have made some money by purchasing, selling, or even renting out your properties, you can then focus on growing your investments. 

By now, you've entered Phase 3 of your life (41 to 60 years old) and have made several property transactions. You will still need leverage on different financial tools to support you in your purchase. At this point, you want your money to start doing the talking for your retirement plan. 

Since you won't have as much time for renovations in the 'Start' stage, you should be spending it on buying properties instead. However, in the 'Advance' stage, you can add value to your properties through renovation This is also the point where you need to start thinking about paying off your loans.

Another important aspect is taking note of property prices. If you are unsure of the current state of prices in the market, you can always consult with our property agents, who can help you focus on one area or district of your choice at a time. Always invest based on facts and figures; avoid making emotional judgments.

3. Third stage: Yield

Welcome to Phase 4 of your life! At this stage, you should be enjoying a comfortable retirement with a healthy cash flow from the multiple properties that you own. 

Here, all your properties are fully paid for, and your primary focus will be on capital gains—improving cash flow or rental yield. One thing about property investment is that you can diversify your savings to generate income. For example, if you own only local residential properties, why not invest in commercial or overseas properties? 

It's almost impossible to grow your wealth just by saving. Instead, invest the money wisely and make it work for you to achieve your financial freedom! Remember, we can't work for the rest of our lives. If you start planning early, you won't have to. 


Investing in property is time-consuming and requires financial commitment, but with the correct strategy and mindset, you can obtain big returns. Knowing the 3 stages of property investment will surely help you achieve your financial freedom. If you need any assistance, contact Property Giant Singapore and our agents will be happy to help!

The above article is written with reference from SPS2020 webinars, organized by PropNex in collaboration with Mediacorp and 99co.

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