“It’s all about picking the right home to buy at the right time of your life" - Derek Tay (Picture: Samuel Isaac Chua/The Edge Singapore)
When realtor Derek Tay was growing up, having a father who was able to comfortably retire early in his 50s and still provide well for the family was something he was grateful for. Now, not only did this experience inspire him to become a real-estate agent; having a secure retirement plan for home property owners is also part of the mantra.
Tay draws inspiration from his family's property gain progression, which serves as a blueprint for the strategic real estate decisions and advice he gives to his clients.
"When we were young, we grew up in a five-room HDB flat in the east," Tay reminisces, setting the stage for his family’s relocation journey that was marked by calculated moves.
Eventually, the family upgraded to a three-bedroom condo unit in the same area, laying the groundwork for future success. "After selling the condo, my father upgraded to a landed property in the east."
Father & son portrait, taken in 2024. (Picture: Derek Tay)
Tay’s father also invested in two commercial units in the Core Central Region (CCR).
"As his children grew up, my dad had the foresight to purchase two commercial (retail) units in the CCR at a very good value," Tay shares. This bold move exemplifies how astute investments can shape a family's financial trajectory, providing a solid foundation for the years to come.
His father’s commitment to maximising gains and making informed choices lay the foundation for the family’s wealth and well-being. Among other luxuries, Tay was able to pursue hospitality studies in Switzerland. In addition, his father was able to spend quality time with the family instead of having to work.
“When my father decided to retire, he right-sized to a fully-paid, four-room HDB flat, and thus he now no longer has to think about mortgage repayments,” Tay says. “What’s more, he now lives with my sister’s family in her condo unit, so his own flat is rented out for income!”
The upward trajectory of his family’s financial background thus had a tremendous impact on Tay's experience: that real estate ownership can be a powerful vehicle for an accelerated and comfortable retirement.
"Making the right property investment decisions was what allowed my father to retire at an early age, with substantial retirement funds to lead a comfortable and carefree lifestyle," Tay emphasises. He believes it’s not just about acquiring properties but also about making decisions based on sound research that align with one’s financials and long-term investment goals.
Tay receiving Preeminent Group Top Achievers award for Q3 2023. (Picture: Derek Tay)
Even while he was working in the hospitality sector, Tay had always had an active interest in real estate, doing thorough research and reading to keep himself updated on market trends. This fact was well-known among his friends who would go to him for advice whenever they were considering a home purchase or investment; whatever he told them all turned out to be sound advice.
Thus, it was a natural transition for him to officially become a real estate professional when he was put on no-pay leave during the Covid years, leaving his hotelier days behind him.
Tay receiving Top Achievers award for Aug 2023. (Picture: Derek Tay)
However, for someone who has worked for luxury hotels and resorts such as Shangri-La and the Langham, as an agent, Tay prefers to sell the benefits of a particular home before looking at its physical features.
"Focusing on the emotional connection and benefits a property can offer fosters a sense of belonging for prospective buyers," Tay explains.
By emphasising the benefits of a home such as its investment potential and how it can support lifestyle needs such as nearby schools and amenities, he seeks to connect with a buyer’s aspirations and desires, making the property more than just a physical space.
Tay’s past experience in hotel sales and marketing comes in handy as well, especially when it comes to helping sellers stage properties in an appealing way. This skill set has helped some of his clients to sell some particularly challenging units at prices above valuation.
It is no wonder then that he has been consistently recognised as one of the Top Achievers of his agency, ERA.
Tay receiving Project Achievers award for The M. (Picture: Derek Tay)
A testament to Derek's commitment to quality investments is a recent success story with a client. "A year ago, I sold my client's four-room HDB flat in Sengkang with cash proceeds of $350,000," Tay recounts. The client then initially wanted to buy two resale condos but was constrained by a budget.
Tay explains: "With their budget, we were not able to find any properties that would give us good capital appreciation." He recommended the client to focus on a single property with maximum capital appreciation potential instead, which proved to be sage advice.
"In the end, they bought a two-bedroom unit at a new-launch condo in the CCR which has appreciated almost $400,000 in the past year,” shares Tay. “If the focus of the real estate investment journey had been on property count instead of capital appreciation potential — which is more important — they might find themselves buying two inferior properties with little to no capital appreciation."
Tay receiving ERA Rising Millionaire 2023 award. (Picture: Derek Tay)
This perspective underscores the importance of quality over quantity, a principle that Tay believes is crucial for achieving the desired results in real estate.
"We can still achieve the same results of having an accelerated and comfortable retirement by focusing on purchasing the right properties with the maximum capital appreciation potential rather than just looking at property count alone," Tay says.
Now married with a 12-year-old son, the Rising Millionaire and five-time Diamond Award Achiever applies the same principle to his property ownership portfolio, with an eye on making capital gains for future retirement.
"As newlyweds in 2013, my wife and I purchased a new four-room flat in Ang Mo Kio, which we sold in 2017 with gains of $250,000," recalls Tay, noting that he preferred this move over buying a private property from the get-go.
The substantial gains he made within a relatively short timeframe allowed him to upgrade to a three-bedroom condo unit in Novena the same year. The unit’s market value has since increased by $1 million. Now, he is in a good place to upgrade to yet another bigger and more advantageous property.
“It’s all about picking the right home to buy at the right time of your life,” Tay says. “The right property choices will contribute significantly to capital appreciation and your ability to continue gaining.”
Father & son portrait, taken in 2024. (Picture: Derek Tay)
Tay shares that his own retirement plan doesn’t divert much from his father’s.
"[My goal] to be able to fund my child's overseas university studies and travel the world,” states Tay modestly. To do so, he envisions being able to rent out his Singapore property while spending retirement years in a nomadic fashion with his wife, exploring neighbouring Southeast Asian countries.
This multifaceted approach blends financial prudence with experiential richness, reflecting Tay's belief that retirement should be a fulfilling chapter, instead of a time when money and energy has run dry.
For prospective home buyers who wish to stay prudent instead of overleveraging their finances, Tay's narrative offers hope and a fresh approach towards investing. His advice transcends the traditional boundaries of property transactions, offering a holistic guide for families who are seeking both financial security and fulfilled dreams.
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Senior Marketing Director (R000220D)
ERA REALTY NETWORK PTE LTD