View Full Version : Advice on lump sum CPF repayment
Dear friends. I have just moved in to my EC with a loan of 680K for 25 years (@0.625% fixed perennial + Sibor). I have also sold off my HDB and thus have $400K CPF now. A novice on finance. Is the CPF interest more attractive than the loan interest? Should I transfer the CPF money towards loan repayment and shorten the tenure?
Arcachon will have great advice for you.
How much interest can you get compare to the rate of money printing the World is doing now.
2006 - 2 Bedroom at Southbank SGD 535,000.
SOUTHBANK NORTH BRIDGE ROAD Apartment 07 RCR 99 yrs lease commencing from 2006 Resale 1 1,450,000 - 958 Strata 21 to 25 1,514 Sep-15
https://www.ura.gov.sg/realEstateIIWeb/transaction/search.action
Still don't believe, put your money in the Bank and check 10 years later.
The question was whether to pay more to cover the capital sum so as to reduce loan or keep in cpf to earn 2.5%. I guess.
It all depends u know how to invest in your cpf and u have spare cash if u lose your job. If loan interest higher than cpf than u may consider gradual lump sum repayment. Is better to pay up than lose all your money if you do not know much abt investment thru cpf
Dear friends. I have just moved in to my EC with a loan of 680K for 25 years (@0.625% fixed perennial + Sibor). I have also sold off my HDB and thus have $400K CPF now. A novice on finance. Is the CPF interest more attractive than the loan interest? Should I transfer the CPF money towards loan repayment and shorten the tenure?
Can u buy Pte condo for investment if u own an EC? probably with the cpf, u can wait for property crash and u can buy one with the Cpf, ..... I remember I do lump sum payment , wen in 2006, I don't have bullets to buy anything...
Dear friends. I have just moved in to my EC with a loan of 680K for 25 years (@0.625% fixed perennial + Sibor). I have also sold off my HDB and thus have $400K CPF now. A novice on finance. Is the CPF interest more attractive than the loan interest? Should I transfer the CPF money towards loan repayment and shorten the tenure?
Keep in CPF , wait for opportunity
When Property price down, wait of it go down some more.
When property price up, wait for it to go down.
???????
Advisor101
20-10-15, 18:36
Is the CPF interest more attractive than the loan interest?
My reply: It depends. CPF is paying 2.6% interest. The SIBOR as of today is about 1.1%, on your spread total about 1.75%. At this point, CPF interest is more attractive.
Point to note: What if SIBOR jumps to 3-4% in 2006 or even 7% during the asia financial crisis in 1997?
Should I transfer the CPF money towards loan repayment and shorten the tenure?
My reply: The question above are talking about two separate matters.
i) It depends on your priority. Interest savings or cash flow more important to you?
ii) If your loan interest rate is below 2%, shorten the loan tenure helps u save about 20% of interest payable over the course of 20 years. this is based on experience.
PM me for more advice.
Point to note: What if SIBOR jumps to 3-4% in 2006 or even 7% during the asia financial crisis in 1997?
Asia gong gong don't know can just print money.
flagship74
21-10-15, 08:13
Can u buy Pte condo for investment if u own an EC? probably with the cpf, u can wait for property crash and u can buy one with the Cpf, ..... I remember I do lump sum payment , wen in 2006, I don't have bullets to buy anything...
hEARSAy, if u own pte you could also own HDB now:hornybastard:
Yes its possible. But better for one to find out himself how rather than post over forum.
Some can get overly emotional about it. The manner of the holding can also be quite different from what is believed.
Where there is a will there is a way.
hEARSAy, if u own pte you could also own HDB now:hornybastard:
hEARSAy, if u own pte you could also own HDB now:hornybastard:
How to own a HDB now? I have sold off everything to finance the landed. I want to get a 3 room HDB if possible?
How to own a HDB now? I have sold off everything to finance the landed. I want to get a 3 room HDB if possible?
Your case is so special.
You can get a resale HDB, sell off the landed, and wait 5 years to buy again.
The alternative is to find a place that can check for delusions. Maybe you have never sold your HDB but somehow regard it as a landed property (maybe ground floor unit or something)?
wildfaye29
21-10-15, 21:03
hEARSAy, if u own pte you could also own HDB now:hornybastard:
Pls teach Sir.
Me and wife sold off HDB in 2013, now each own a rental condo and staying in parent's property. Pls pm if not convenient to reveal.
Thank you.
hEARSAy, if u own pte you could also own HDB now:hornybastard:
I thought if you own a pte property first, you cannot buy a HDB but if you own a HDB first, you can buy pte property. I find it so weird leh.
You never try, you never know.
What I know is Private can buy HDB but must sell Private with 6 months.
HDB can buy private after MOP.
People will have all type of can and cannot, even if you go HDB HQ they also got a lot of can and cannot.
Can
4 In addition, elderly citizens aged 55 and above can choose to buy a 2-room Flexi flat on short lease as a monetisation option, regardless of whether they have enjoyed housing subsidies previously or own a private residential property. This includes elderly who are not eligible to buy a 99-year 2-room Flexi flat, viz. first-timer singles earning more than $5,000, second-timer singles, households who have enjoyed two housing subsidies, and private property owners1. The purchase and ownership conditions are set out in Annex A.
http://www.hdb.gov.sg/cs/infoweb/press-release/joint-press-release-by-mnd-and-hdb---two-room-flexi-scheme
Must sell within 6 months
Must dispose of their private
property within 6 months after
collection of keys to 2-room Flexi
flat.
http://www.hdb.gov.sg/cs/infoweb/img/19aug_annexa.jpg
Conclusion : can buy but must sell private within 6 months.
Lot of people like to read only what they want to know.
http://www.np.edu.sg/library/resources/subjectguides/wci/Documents/05.09.10sc.pdf
You never try, you never know.
What I know is Private can buy HDB but must sell Private with 6 months.
HDB can buy private after MOP.
People will have all type of can and cannot, even if you go HDB HQ they also got a lot of can and cannot.
Ya lor, if private owners want to buy HDB must dispose their private ppty but HDB owners want to buy private ppty, need not dispose their HDB ??????
Private ppty to HDB = need to dispose the private ppty
HDB to private = need not dispose the HDB (ie can keep both)
No wonder resale HDB prices are expensive also, the demand is there, as most people can hold on to it and at the same time invest in private ppty.
i find it funny too, why people want to mix HDB public housing with private property..
Ya lor, if private owners want to buy HDB must dispose their private ppty but HDB owners want to buy private ppty, need not dispose their HDB ??????
Private ppty to HDB = need to dispose the private ppty
HDB to private = need not dispose the HDB (ie can keep both)
No wonder resale HDB prices are expensive also, the demand is there, as most people can hold on to it and at the same time invest in private ppty.
We explained before le this point.
Current HDB qualification include serving 5 year MOP. Cannot own private in this period. Even giving up opportunities that come your way. One simply cannot have your cake and eat it.
Because Public housing is not that Public, it more like Private after MOP.
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