The advantage with rich kids? Lots of advantages especially opportunities. They have more financial support too in everything they wish to start as well. Most of the time, they could get into the university they want and the course which they love too. As for how they become rich, it’s usually due to their parents. What else would these rich kids have? Well, besides a nice car and overseas holidays, they may also get a property for free from their parents. A property so expensively priced which most kids would never be able to afford to buy by themselves. Not even when they are earning a currency which is 3x higher than Ringgit Malaysia. Yes, I am talking about rich kids down south.
Article in thestar.com.my A 24-year old university student is now living in a S$1.2mil (RM3.61 million) penthouse, kitted out with a Herman Miller Aeron office chair and Lelit espresso machine. His loft-style apartment was paid for entirely by his mother. The article says that while this is not common but it’s getting higher because many families seek to work around cooling measures, including raised stamp duties on second and third homes, by buying properties for their children.
Christine Sun, head of research and consultancy at OrangeTee & Tie Pte said, “Anecdotally we’ve observed more young home buyers entering the market.” She said that many Singaporeans also see that property as an asset is a good store of wealth.
Alan Cheong, the executive director of research and consultancy at Savills (Singapore) Pte Ltd said, “The high ABSD rate has induced parents to act vicariously, using their children’s names to acquire another private residential property.”
With regards to the children below 21 where they could not actually own the property by themselves, Edmund Leow, a senior partner at Dentons Rodyk & Davidson LLP said, “A trust is a structure whereby a parent can hold a property for their minor child.” He added, “the property belongs to the child, and not to the parent.” Do read the full article in thestar.com.my here.
As a parent, I also hope to give the best to my kids. Unfortunately, I am not rich enough to give my children a RM3 million property each. So, what I could give them would be to ensure they have sufficient education. Perhaps a degree. Then, when they start their career, I hope to give them each a property (since I don’t think they love to stay with me). At the very least pay a huge down payment so that they could take over the mortgage payment themselves. Then, my wife and I could travel a bit more and see the world. For parents who are reading this article, think about it. If it’s not for us, planning ahead is necessary for the children. Happy preparing.
Next suggested article: Low pay and no property investment. How ironic