MrsKiasu:

Nebbermind:

[quote=\"starlight1968sg\"]Another way is to use spare cash to pay back the CPF used as this will \"increase\" the amount of sales proceeds obtained ?

What do you mean?

think she is referring to the locked up portion. used more cpf need accrue more interest.[/quote]Once you used cpf for loan, accrued interest kick in. To minimise accrued interest, make lump sum payment for the loan. But this means less cash on hand for emergency and other investments.

starlight1968sg:

Cloud Cloud:

Yes, must keep cash for emergency. Hence, we only used cpf to make lump sum payment. This will also reduce the accrued interest but some may not find it an issue as it is still going back to the cpf account.

This is the part I find it hard to swallow.
The accrued interest is paid by me. Ok, that is the price to pay for using CPF for housing.

Understand... it reduced my cash proceeds when I sold a property this year. Good in the sense that Hubby cannot use it for car or exp holidays. A lot of pple forgot the accrued interest part. Good to check before one proceed to sell. In some case, the sales proceeds is lesser than the accrued interest. In my case, I had to let go my third property because I stopped working.

Yes, must keep cash for emergency. Hence, we only used cpf to make lump sum payment. This will also reduce the accrued interest but some may not find it an issue as it is still going back to the cpf account.


It is true some people just cannot manage their finances. I have an Uncle who sold his 4 room flat and used up the cash within 5 years. As he was self employed, there was minimum cpf in his account. He is now relying on his children as he is too old to work.

starlight1968sg:

OT: job market not rosy? I have 2 colleagues just tendered their resignation and both are close to age 50.

Hope your colleagues have found a job or can do without the income.

Dinner tonite will be stir fried spinach and chicken with tofu. Kiwi and apples also.

TheAnswer:

When buying property, it is important not to drain finances otherwise when approaching retirement or retrenchment, it can become a huge pain. Think long term. Dun simply max out. In this time and age, jobs are not forever so be wise about spending. Better buy what we can comfortably afford.

Yes, jobs are not secured nowadays. Look at the retrenchment news. It is no longer a matter of whether we want to work but whether we are allowed to. With bto which is about $100k lower, it is possible to clear loan within 10 years with proper financial management.

Our family car coe is expiring in 4 years time. Trying to convince Hubby not to buy another car. His work location is quite central. The money can be put to better use like buying an annuity plan for retirements. We go for holiday within Asia. Europe too ex.

TheAnswer:

Cloud Cloud:

I still feel first property should buy direct from hdb. Even with grant for resale, price of new flat still much lower. Means can clear the loan faster. Then, buy a second property or focus on increasing cpf sum. New flat also means longer tenure.

Not everyone wants to or can buy BTO. In terms of finance, some are really much much more well-off than others. Among my friends, it’s normal to take a vacation once every 2 months or a weekend trip. Many also work flexi hours.

Live by our means while setting aside for retirement and investments.

No need to do what others do.

Agree. Everyone case is different. I am looking at a typical singaporean couples whose parents only have enough savings for their own retirements. This may not apply for everyone. I have friends whose combined income exceed limit for bto and have to buy ec. Also have friends whose parents can pay for their down payment for condo. Some choose to buy resale because of location or timing issues.

My sis bought resale 20 years back. Today, she is still paying her loan. Capital gain won’t be much after levy. Of course, she choose to keep her cpf in the account rather than make lump sum payment. Another sis bought bto. She made lump sum payment. Besides higher capital gain, she is now loan free.

So considering between bto and resale, I still prefer bto.

I still feel first property should buy direct from hdb. Even with grant for resale, price of new flat still much lower. Means can clear the loan faster. Then, buy a second property or focus on increasing cpf sum. New flat also means longer tenure.

slmkhoo:

floppy:

[quote=\"starlight1968sg\"]Tks. I can consider selling one to buy a small flat

You can’t.

If you sell your pte, you can’t buy another HDB because you can’t own two at the same time.

If you sell your HDB, you can’t buy another HDB because you own a pte property.

You will have to sell both: first, sell your HDB 5-rm, stay in your pte property until you get the HDB 3-rm, then sell it within 6 mths. And you can't buy another pte property until you fulfil the MOP (1 or 2.5 yrs depending on whether you have an HDB loan).[/quote]MOP has been increased to 5 years....

Wow $400k profit! Nowadays, probably only around $150k before levy.


Most of my friends managed to clear their mortgage within 10 years and bought a private property.