Me & My Property

Buying property with an eye on liquidity

May 31, 2020

Fintech CEO careful not to rely on loans so she can dispose of assets easily

Sue-Ann Tan


Watching her dad make a hard living selling char kway teow from 5am to 10pm was part education and part inspiration for finance executive Tan Bin Ru.

Ms Tan, South-east Asia chief executive of fintech firm OneConnect, told The Sunday Times: "He had no Central Provident Fund and every dollar he earned went into (our) education.

"He paid for all five children's education, including our university school fees, without incurring any personal financial debt.

"He wanted me and my siblings to not have to worry about money and instead focus all our efforts on studying."

That mindset has carried over into her adult life, as she ensures financial stability for her family so her children, aged 18 and 20, can focus on their studies.

OneConnect was started in 2015 and is now a leading technology-as-a-service provider for financial institutions. It serves major banks and insurance companies in China and financial firms across 16 markets, such as Singapore, Indonesia, Malaysia, the Philippines, Thailand, Cambodia and Abu Dhabi.

It has also formed a joint venture in Japan to introduce OneConnect's services to financial institutions and businesses across the country.

Ms Tan, 46, said: "The Covid-19 situation has raised the importance and the urgency for banks to digitalise. Banks should recognise this as an opportune time to go digital and accelerate their digitalisation road map or find quick wins through partnerships and acquisitions."

She noted that despite the outbreak, the company recorded a 30 per cent growth in revenue in the first quarter of the year.

It spent US$135 million (S$191 million), or 41 per cent of revenue, on research and development in the last financial year.

Ms Tan's husband is an engineer at Infineon Technologies.

She holds a Bachelor of Science in statistics and operations research from the National University of Singapore and a postgraduate diploma in supply chain management.
Q Describe your residential property.

A I live at The Interlace - a 99-year leasehold residential development in Depot Road. I bought the unit in 2013, when I moved back from working in the United States to take up a new role at Microsoft.

I bought the unit for $2.8 million, at $849 per square feet - it is well worth the aggregate sum my husband and I paid.

We also deliberately opted for a leasehold unit as we wanted liquidity by paying less but also the ability to flip the property should we decide to downgrade as my husband and I get older or eventually move back to the US should we retire there.

My unit is on the ground floor, with a patio, and it is absolutely perfect for me and my husband, both aged 46, our two kids and my parents-in-law.

The unit is fairly large, about 3,300 sq ft, and has four bedrooms, a generous-sized kitchen to facilitate home cooking - which my mother-in-law is exceedingly good at - a large dining area, living room and two gardens to boot.

Space is something we hold sacrosanct: When we returned from the US, we rented a Housing Board flat for a couple of months while scouting for our new family home.

We also had our furniture shipped from the US and the items are large. So it was quite a squeeze for all four of us and our oversized furnishings from the US.

With a ground floor unit at The Interlace, we have the luxury of space and a generous comfort zone for each of our family members, so that is really nice.

Location is key for us. Considering The Interlace is fairly close to Orchard Road and Raffles Place, I would say what we paid for in total as well as per square foot, we got ourselves a good deal.

Our unit with two gardens - front and back of the unit - exudes a landed property feel but without the hefty price and financial commitment.

My two adorable Yorkshire terriers, Cherry and Blueberry, have absolute free rein, and run, of the house. Their favourite pastime is dashing about in the front and back gardens all day.

The gardens are very well-kept - thanks to my mother-in-law - with potted plants, manicured grass as well as a shelter.

Whenever I am home, I love sitting in the garden as well.

Again, it reminds me of my years in the US, when I worked for Hewlett Packard. We lived in a large house surrounded by lots of greenery. I really do like the flora and fauna and it is my getaway when I am not at work.

At The Interlace, the lush landscaping and the surrounding HortPark and Telok Blangah Hill serve as a green respite for the family. We get to enjoy a lovely vista of Telok Blangah Hill from our front garden.

I like the fact that The Interlace is a fairly isolated development with few surrounding, visible residential apartments, so that's a boon too for me and my family.

Another reason why we opted to purchase this place is (nostalgia) for the neighbourhood.

My mother-in-law lived in the Redhill-Tiong Bahru area, which was my husband's childhood home. So it made a lot of sense to continue living in an area we are all comfortable with.

Staying in this area means my mother-in-law is able to shop at her favourite wet markets and grocery shops. After all, she does cook for us and we absolutely love the dishes she whips up for dinner.
Q What's in your property portfolio?

A I own three private properties and all of them are 99-year leasehold.

My husband and I have two more condominiums and they are for our children.

For my 20-year-old son, we bought a small two-bedroom unit at Fourth Avenue Residences direct from the developer a year back.

I paid $1.6 million for 800 sq ft and it is still under construction. The unit is under my son's name.

For my 18-year-old daughter, we bought a two-bedroom 800 sq ft unit for $1 million last year directly from the developer. It is rented out for $3,000 a month. The unit is under my daughter's name.
Q Describe your property investing strategy.

A In Singapore, buying a house is a major decision. A freehold landed property is less liquid from an investment point of view. On the other hand, it is a good option for family stay as it brings good capital gain in the long run.

Liquidity is key, so I want to also be able to dispose of my home should I eventually move back to the US for work or retirement.

Notwithstanding the recent rounds of cooling measures, housing prices in Singapore will continue to hold in the long term.

Government intervention is a good effort to stabilise and prevent an overheated property market. Selecting the right property with a good location will likely fetch substantial capital gain over a 10-year period. Property investment is also a good way to safeguard the family (wealth) for future generations.

For any savvy investor, liquidity is very crucial. Therefore, I would be very careful of how much I will be able to stretch my cash on hand and not rely on loans so I can dispose of the asset easily.

My husband and I enjoy living in a big family as we appreciate the support that every family member can provide for one another in many different ways.
Q Are you planning to buy in the next three to five years?

A No plans yet though I am keeping my options open.

In the years to come, if I am still earning money, and after having paid off all three properties, then I might consider buying another unit.

I may even consider purchasing an overseas property in South-east Asia but that does require a fair amount of homework on my part.
Q What do you think of the property market now?

A The market now is stable. Over time, I expect prices to increase but you need to invest with a long-term view.
Q My dream home is ...

A A home with lots of indoor and outdoor space for family gatherings, yet ample space to meet every family member's lifestyle needs. Our current home meets all requirements.