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    Property Views

    Scheduled Pinned Locked Moved Money Matters
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    • lee_ylL Offline
      lee_yl
      last edited by

      CPF logic is that the money is meant for your retirement and when used to pay for your house, the opportunity cost is the interest not earned, thus, for your own peace of mind during retirement, the interest should be paid to your CPF account.


      No loss as the money could be used to buy the next property.

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      • starlight1968sgS Offline
        starlight1968sg
        last edited by

        thanks lee_yl

        It is just that am paying for the interest whereby cpf is supposed to pay if my money were with cpf.
        I understand there is no free lunch even am using my cpf money, am supposed to pay interest.

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        • J Offline
          jetsetter
          last edited by

          Nebbermind:
          starlight1968sg:

          [quote=\"MrsKiasu\"]

          My own understanding, in short the money in CPF got to keep growing, for our future retirement use. CPFB use the money to invest, they will pay u interest and if you use the money to invest, you got to pay the interest.

          The longer you keep the HDB/pvt using CPF, they more interest you got to pay.

          Yes, this is what I have gathered too.
          So I avoid using cpf on housing.

          It's still your money....just you cannot touch it until it's time for you to withdraw (in parts or whatever) from cpf.[/quote]Many pp actually deliberately don't touch their CPF monies inside the CPF a/c in order to grow their retirement wealth. This is because the current CPF interest rate 2.5% is higher than banks' prevailing loan rate 1.x~2%. You don't need to touch your CPF if your ppty's downpayment & instalments can be paid upfront - comfortably - with cash. CPF rate is definitely more attractive than any FD rate right now. You have to play by ear...

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          • lee_ylL Offline
            lee_yl
            last edited by

            starlight1968sg:
            thanks lee_yl

            It is just that am paying for the interest whereby cpf is supposed to pay if my money were with cpf.
            I understand there is no free lunch even am using my cpf money, am supposed to pay interest.
            Yes, CPF is supposed to pay you provided your money stays in the account untouched otherwise, CPF can't pay you your interest on money which is not there right?

            Oh, For those who lost money in property investment, \"double whammy\".

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            • starlight1968sgS Offline
              starlight1968sg
              last edited by

              lee_yl:
              starlight1968sg:

              thanks lee_yl

              It is just that am paying for the interest whereby cpf is supposed to pay if my money were with cpf.
              I understand there is no free lunch even am using my cpf money, am supposed to pay interest.

              Yes, CPF is supposed to pay you provided your money stays in the account untouched otherwise, CPF can't pay you your interest on money which is not there right?

              Oh, For those who lost money in property investment, \"double whammy\".

              Totally agreed on \"CPF can't pay you your interest on money which is not there right?\"

              But when I sell the flat, some proceeds will return to cpf. this amt includes the earlier loaned with interest (in my example,200k and 1k interest which otherwise I would receive fr cpf).

              So it gives me a feeling that am paying 1k as interest to my cpf a/c.

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              • P Offline
                pirated
                last edited by

                Yes you top it up with your own money as if the money was not used

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                • N Offline
                  ngl2010
                  last edited by

                  jetsetter:
                  pirated:


                  Not first time buyer. Is first housing loan borrower without EXISTING housing loan. If previous loan fully paid, new loan is first loan

                  Ok strictly spkg, U r more accurate in terminology

                  I think we are talking about 2 things here.

                  ABSD will take into account all your existing properties regardless whether they are fully paid or not.

                  TDSR only takes into account your properties that are not fully paid yet.

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                  • P Offline
                    pirated
                    last edited by

                    ngl2010:
                    jetsetter:

                    [quote=\"pirated\"]
                    Not first time buyer. Is first housing loan borrower without EXISTING housing loan. If previous loan fully paid, new loan is first loan

                    Ok strictly spkg, U r more accurate in terminology

                    I think we are talking about 2 things here.

                    ABSD will take into account all your existing properties regardless whether they are fully paid or not.

                    TDSR only takes into account your properties that are not fully paid yet.[/quote]We talking about housing loan

                    First housing loan 80%,

                    Second housing loan 50%

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                    • P Offline
                      pirated
                      last edited by

                      TDSR takes into account ALL your regular monthly installment payments - car loans, credit card installment, consumer credit, rental etc etc

                      1 Reply Last reply Reply Quote 0
                      • N Offline
                        ngl2010
                        last edited by

                        ngl2010:
                        jetsetter:

                        [quote=\"pirated\"]
                        Not first time buyer. Is first housing loan borrower without EXISTING housing loan. If previous loan fully paid, new loan is first loan

                        Ok strictly spkg, U r more accurate in terminology

                        I think we are talking about 2 things here.

                        ABSD will take into account all your existing properties regardless whether they are fully paid or not.

                        TDSR only takes into account your properties that are not fully paid yet.[/quote]
                        pirated:
                        We talking about housing loan

                        First housing loan 80%,

                        Second housing loan 50%
                        Earlier posts were talking about decoupling to avoid ABSD. See below.
                        jetsetter:
                        pirated:

                        [quote=\"jetsetter\"]Decoupling is the best way to avoid ABSD. But you need to make a calculated move and discuss with your spouse lor...If he puts the landed one or pte condo one under his name, you \"lugi\", in the event that...

                        But if you put yours for the more valuable ppty, make sure your income can afford to service the mortgage, if the ppty isn't fully paid up yet.

                        Most DW will put their name under the more expensive one 🙂

                        HDB ownership rule can allow decoupling ?

                        In china the decoupling of ppty ownership ended up with real divorce

                        Not divorce but removal of one occupier's name only. I think it's possible.

                        http://jkfund.blogspot.sg/2014/06/hdb-decouple-topic-spr-sc-household.html


                        The impt thing is to get your spouse become a first-time buyer.[/quote]

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