"Full deduction" from HDB when purchasing flat is BEST option?
- Thread starter wmg
- Start date
Hmm.... I think everything has it's pros and cons.
4 room in good location will be more expensive. Likely to be older. Rental may be good in future, but may be hard to find buyers willing to buy an old flat at relatively high price in the future..
New flat is cheap. Buy cheap, sell cheap. Less loan likely needed.
I think it's good enough to just buy a place that you feel comfortable in , whether old or new, and whether you are prepared to pay the additional interest to bank/HDB/back to your own CPF account if you buy a more expensive older place in a good location. Most importantly is whether you can imagine yourself staying in that place for at least 5 years... I think it's very cost ineffective to stay in a place for less than 5 years.. it costs $ to renovate, agents' commission, legal fees/stamp duty, house movers,etc.
4 room in good location will be more expensive. Likely to be older. Rental may be good in future, but may be hard to find buyers willing to buy an old flat at relatively high price in the future..
New flat is cheap. Buy cheap, sell cheap. Less loan likely needed.
I think it's good enough to just buy a place that you feel comfortable in , whether old or new, and whether you are prepared to pay the additional interest to bank/HDB/back to your own CPF account if you buy a more expensive older place in a good location. Most importantly is whether you can imagine yourself staying in that place for at least 5 years... I think it's very cost ineffective to stay in a place for less than 5 years.. it costs $ to renovate, agents' commission, legal fees/stamp duty, house movers,etc.
kathy,
if u are looking to upgrade in future, and u do not wanna lose value... the number one rule for the longest time, especially in spore... is Location.
it will always be my number 1 rule. location allows u to liquidate fast in eventuality tat u need the cash as well... u'll always have more buyers than elsewhere... but do note the prices are almost double, so dun buy over your budget and try to stick to 15yr loan.
if u are looking to upgrade in future, and u do not wanna lose value... the number one rule for the longest time, especially in spore... is Location.
it will always be my number 1 rule. location allows u to liquidate fast in eventuality tat u need the cash as well... u'll always have more buyers than elsewhere... but do note the prices are almost double, so dun buy over your budget and try to stick to 15yr loan.
sillyporean
New Member
neko79,
Read the debt trap thread...
Read the debt trap thread...
shuimeixie
New Member
i need to include my name to loan hdb loan for my parent's flat coz they are unable to finance it anymore. i was thinking of dumping all my cpf into the flat, at least i wun be paying so much of interest. what do u guys think?
insurance_guru
New Member
wrong move shumei....
put some aside first.
In case u lost your job etc, u can sell the funds to release it as an emergency get out of jail card.
put some aside first.
In case u lost your job etc, u can sell the funds to release it as an emergency get out of jail card.
i juz got a chance to select a hdb recently. but before that, i've parked away a certain amt of money for investment in various funds, through my insurance agent.
the logic to me is v simple vs the amazing calculations by some of you.
in case (touch wood) we don't have jobs hence no monthly cpf contributions, hdb will come after me for cash since its been all wiped out.
if such situation happens, then i'll dumb back these invested money into cpf, for hdb to deduct.
the logic to me is v simple vs the amazing calculations by some of you.
in case (touch wood) we don't have jobs hence no monthly cpf contributions, hdb will come after me for cash since its been all wiped out.
if such situation happens, then i'll dumb back these invested money into cpf, for hdb to deduct.
hey guys
have got a pressing question to ask all of you regarding a HDB loan. a buyer aged 53 am getting a new hdb flat under the balloting exercise for the first time.
1. he has 30k CPF --> can he use all of them at this age?
2. after using the CPF and HDB loan, he still has a considerable shortfall from the total flat cost --> does the rest have to be paid in oneshot and lumpsum? can negotiate with HDB to pay the lump sum in 3 or 4 instalments OR can delay the lump sum payment date (by how long)?
cos he has several investments that can only be liquified a few months after the Key Collection Date (apparently the Key Colln Date is when you have to pay finish all the shortfall)
have got a pressing question to ask all of you regarding a HDB loan. a buyer aged 53 am getting a new hdb flat under the balloting exercise for the first time.
1. he has 30k CPF --> can he use all of them at this age?
2. after using the CPF and HDB loan, he still has a considerable shortfall from the total flat cost --> does the rest have to be paid in oneshot and lumpsum? can negotiate with HDB to pay the lump sum in 3 or 4 instalments OR can delay the lump sum payment date (by how long)?
cos he has several investments that can only be liquified a few months after the Key Collection Date (apparently the Key Colln Date is when you have to pay finish all the shortfall)
From what I know, HDB 's gonna calculate the maximum loan period based on the owner's age. The older he is, that means loan period will be shorter as well. with the maximum stretch of 30 years. of course, if have cool cash, then you can choose to pay in some instalements. you can discuss with HDB and work out something
Another way is the hold back key colleection until money comes in.
Another way is the hold back key colleection until money comes in.
some issues here cud be clarified.
presently our home is finance by my sister CPF and owned under my father, mother n sister.
my sis is married intends to backed out and finding her new place of her own.
youngest parents is 60 n i m not earning as much.
how do you think HDB can help?
Thanks all.
presently our home is finance by my sister CPF and owned under my father, mother n sister.
my sis is married intends to backed out and finding her new place of her own.
youngest parents is 60 n i m not earning as much.
how do you think HDB can help?
Thanks all.
eneres_babe
New Member
Hi all, I've always tot tat paying as much as possible upfront definitely costs less interests than taking mortgage?
Some of u say the CPF funds parked aside can earn more than 2.6%... yeah maybe but there is no guarantee rite?? Many ppl have wiped out or low remaining CPF value after buying stocks and shares tat fall drastically. At least in paying for the house, there is less monthly installments and interests on the loan?
By the way, if u take HDB loan, they will wipe out your CPF before loaning u the remaining necessary. So unless u've already used the CPF to buy the watever investments in mind, u cannot just set aside the funds like tat.
And, for private loans, not such a good idea, cos there is no bank tat offers 2.6% for the full term of the mortgage.. dangerous!
Lastly, i have the same thinking as silly76, i dun think we will ever see our CPF money back out! There is limited stuff we can use it for and now they revised the law, there is no lump sum pay-outs at age 55-65 unless you have more than wat is required to go into your retirement account. And i heard tat if you dun have enough for retirement acct becos u use CPF to buy ppty, CPF also has interest in ur ppty under some CPF laws, for like in case u cannot support urself for hospital bills, etc. And retirement acct will NOT dispense lump sum money to you when age 65. You have to use it to buy some insurance annuity tat gives you like maybe $450-$800 a month for you to spend. Tat sucks rite?? They are treating us like kids after those stupid old men tat spent their CPF fortune on the China and other hookers.
Of cos they are also preventing old ppl from becoming social burdens la, but it still sucks tat we have to be governed to use our own money.
Some of u say the CPF funds parked aside can earn more than 2.6%... yeah maybe but there is no guarantee rite?? Many ppl have wiped out or low remaining CPF value after buying stocks and shares tat fall drastically. At least in paying for the house, there is less monthly installments and interests on the loan?
By the way, if u take HDB loan, they will wipe out your CPF before loaning u the remaining necessary. So unless u've already used the CPF to buy the watever investments in mind, u cannot just set aside the funds like tat.
And, for private loans, not such a good idea, cos there is no bank tat offers 2.6% for the full term of the mortgage.. dangerous!
Lastly, i have the same thinking as silly76, i dun think we will ever see our CPF money back out! There is limited stuff we can use it for and now they revised the law, there is no lump sum pay-outs at age 55-65 unless you have more than wat is required to go into your retirement account. And i heard tat if you dun have enough for retirement acct becos u use CPF to buy ppty, CPF also has interest in ur ppty under some CPF laws, for like in case u cannot support urself for hospital bills, etc. And retirement acct will NOT dispense lump sum money to you when age 65. You have to use it to buy some insurance annuity tat gives you like maybe $450-$800 a month for you to spend. Tat sucks rite?? They are treating us like kids after those stupid old men tat spent their CPF fortune on the China and other hookers.
Of cos they are also preventing old ppl from becoming social burdens la, but it still sucks tat we have to be governed to use our own money.
happy_daze_ahead
New Member
I agree with Serene, its quite wasteful to keep our finances tied up in CPF. I don't really have that much yet since I've only been working for 4 years odd, but already I find a lot of problems when you need funds yet your money is inaccessible to you.
Personally I would think that taking a mortgage is a option of last resort. But unfortunately most of us are forced by financial circumstances to take that route for our first homes.
Personally I would think that taking a mortgage is a option of last resort. But unfortunately most of us are forced by financial circumstances to take that route for our first homes.
sillyporean
New Member
Five years on after paying 4 room flat in full.
70K in CPF OA
30K in CPF SA
34K in CPF MA
Another 28 years to official retirement age.
70K in CPF OA
30K in CPF SA
34K in CPF MA
Another 28 years to official retirement age.
aracgx9900
New Member
Hi,
Can i pay lumpsum for a HDB flat without having to get a bank loan nor CPF deduction if i have the entire cash at hand?
Can i pay lumpsum for a HDB flat without having to get a bank loan nor CPF deduction if i have the entire cash at hand?
supremecot
New Member
Yes, you can clear all your outstanding loan with your cash.Prepare a cheque n send to them for deduction. No more interest incurred anymore.
Hi everyone,
I'm a Year 4 NUS student from the Department of Real Estate. I need help for my survey for my final year dissertation topic on Factors Influencing Consumers' Buying Behaviour in Choice of Residential Homes: Mass Market Condominiums versus Resale HDB flats. I would greatly appreciate the time and effort for your participation. Please be ensured that the results of this survey would only be used strictly for my research purpose.
This survey is targeted at residents who purchased or currently live in Resale HDB flats (4-room and above) and Mass market condominium units. However, you are still welcome to participate in the survey even if you are not a resident or owner of resale HDB flat and mass market condominium units.
There are 8 links to my survey as each link can only hold up to 30 responses each. (Please help by responding to other links if any of the links are full. Thank you!!!)
Please click on either one of the links to start the survey (all links lead to the same survey):
1) http://vista-survey.com/survey/v2/su...?ID=8375053223
2) http://vista-survey.com/survey/v2/su...?ID=8375057747
3) http://vista-survey.com/survey/v2/su...?ID=8375076946
4) http://vista-survey.com/survey/v2/su...?ID=8375057957
5) http://vista-survey.com/survey/v2/su...?ID=8375011773
6) http://vista-survey.com/survey/v2/su...?ID=8375065362
7) http://vista-survey.com/survey/v2/su...?ID=8375082252
8) http://vista-survey.com/survey/v2/su...?ID=8375054391
Thank you very much!
I'm a Year 4 NUS student from the Department of Real Estate. I need help for my survey for my final year dissertation topic on Factors Influencing Consumers' Buying Behaviour in Choice of Residential Homes: Mass Market Condominiums versus Resale HDB flats. I would greatly appreciate the time and effort for your participation. Please be ensured that the results of this survey would only be used strictly for my research purpose.
This survey is targeted at residents who purchased or currently live in Resale HDB flats (4-room and above) and Mass market condominium units. However, you are still welcome to participate in the survey even if you are not a resident or owner of resale HDB flat and mass market condominium units.
There are 8 links to my survey as each link can only hold up to 30 responses each. (Please help by responding to other links if any of the links are full. Thank you!!!)
Please click on either one of the links to start the survey (all links lead to the same survey):
1) http://vista-survey.com/survey/v2/su...?ID=8375053223
2) http://vista-survey.com/survey/v2/su...?ID=8375057747
3) http://vista-survey.com/survey/v2/su...?ID=8375076946
4) http://vista-survey.com/survey/v2/su...?ID=8375057957
5) http://vista-survey.com/survey/v2/su...?ID=8375011773
6) http://vista-survey.com/survey/v2/su...?ID=8375065362
7) http://vista-survey.com/survey/v2/su...?ID=8375082252
8) http://vista-survey.com/survey/v2/su...?ID=8375054391
Thank you very much!
purpledays
New Member
i also agree abt keeping our finances tied up with CPF. makes things difficult for us
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