Lousy article by tan oei boon on straits times 3 Jan

[dork32]

what a lousy article. this is one example that people only look at the positive aspect and ignore the negative portion. a typical salesmen talk.

it states that 2x ers = 550k at 55. that will give a payout of 4.6K per month.

you buy a property of 550k and collect rent, it is unlikely that you collect rent of 4.6k per month.

is he correct? yes, but he left out the negative portion of cpf.

if you buy a property at 55, you collect rental at 55. if you put into ers there is no return for the first 10 years.

if you are on standard, you die at 80, you leave nothing for your kids. if you die at 80 with your property, it is definitely worth a few hundred thousand, maybe more than the 550k that you put in.

i am not saying the cpf is no good. there are pro and cons. he should have laid out everything and let the people decide which is best for themselves.

the again, this is the state's times. i doubt any writer dare to say bad things about our state's system.

 

[reddevil0728]

what a lousy article. this is one example that people only look at the positive aspect and ignore the negative portion. a typical salesmen talk.

it states that 2x ers = 550k at 55. that will give a payout of 4.6K per month.

you buy a property of 550k and collect rent, it is unlikely that you collect rent of 4.6k per month.

is he correct? yes, but he left out the negative portion of cpf.

if you buy a property at 55, you collect rental at 55. if you put into ers there is no return for the first 10 years.

if you are on standard, you die at 80, you leave nothing for your kids. if you die at 80 with your property, it is definitely worth a few hundred thousand, maybe more than the 550k that you put in.

i am not saying the cpf is no good. there are pro and cons. he should have laid out everything and let the people decide which is best for themselves.

the again, this is the state's times. i doubt any writer dare to say bad things about our state's system.

Can share the article?

 

[htngwilliam]

CPF is safe...recession or not, u get money.

Property is risky. Anything can happen..recession, no tenant, tenant default, you need to refurbish property etc...

 

[wira]

would CPF be the better option in this case, ie both husband and wife set aside ERS at CPF and upon reaching 65 yo, receive mthly payout of $2300 x 2 every month until the day you pass away ?

if lets say you use this $550K to buy a property , rental for such "Mickey Mouse" property would max only fetch $2K/mth. after deducting maintenance fees, property tax, income tax, probably left with only $1.5K/mth.

Of cos property has chance of capital appreciation.

 

[polyglob]

what a lousy article. this is one example that people only look at the positive aspect and ignore the negative portion. a typical salesmen talk.

it states that 2x ers = 550k at 55. that will give a payout of 4.6K per month.

you buy a property of 550k and collect rent, it is unlikely that you collect rent of 4.6k per month.

is he correct? yes, but he left out the negative portion of cpf.

if you buy a property at 55, you collect rental at 55. if you put into ers there is no return for the first 10 years.

if you are on standard, you die at 80, you leave nothing for your kids. if you die at 80 with your property, it is definitely worth a few hundred thousand, maybe more than the 550k that you put in.

i am not saying the cpf is no good. there are pro and cons. he should have laid out everything and let the people decide which is best for themselves.

the again, this is the state's times. i doubt any writer dare to say bad things about our state's system.

550k can buy HDB cannot private right? Suppose buy 5-year MOP, then live from 55 till 80, that means 30 years lease gone, 69 years remaining. Can fetch > 550k in 25 years time?

Even if 550k can buy private, likely to be 99 year lease hold with short lease left.

 

[lordofthering]

I think TS is wrong.

It grow at 4-5% no matter what. If you die and didn't manage to spend all, your children get money back

of course, real estate can grow at higher than 4-5% but that not risk free

 

[dork32]

I think TS is wrong.

It grow at 4-5% no matter what. If you die and didn't manage to spend all, your children get money back

of course, real estate can grow at higher than 4-5% but that not risk free

wat i am saying is if you die at 80, your kids get nothing back if you are on cpf life standard. ir you die at 80, you definitely leave something for your kids with a property.

and just for your info, for standard, your money stops growing for 15 years, from 65 to 80. your lack of knowledge of cpf leads you to think that your cpf is growing all the while. you die at 80, the average return is less than 3%.

another important point you stated is that property could grow by 4=5% with risk. this is about the same as cpf. then whether you put in cpf or property it is more or less the same. cpf gives out higher dividend, property has higher capital preservation.

 

[dork32]

would CPF be the better option in this case, ie both husband and wife set aside ERS at CPF and upon reaching 65 yo, receive mthly payout of $2300 x 2 every month until the day you pass away ?

if lets say you use this $550K to buy a property , rental for such "Mickey Mouse" property would max only fetch $2K/mth. after deducting maintenance fees, property tax, income tax, probably left with only $1.5K/mth.

Of cos property has chance of capital appreciation.

better or not, i would not comment. it is right only if you state both the advantages and disadvantages.

yes property has a chance of capital appreciation.

 

[dork32]

one point that all the cpf supporters did not want to bring out is cpf life does not give anything for the first 10 years, property gives rental immediately upon purchase.

look here, i am not saying cpf is bad. i myself have close to 600k stashed up in cpf. but you must be fair in your analysis.

 

[dork32]

550k can buy HDB cannot private right? Suppose buy 5-year MOP, then live from 55 till 80, that means 30 years lease gone, 69 years remaining. Can fetch > 550k in 25 years time?

Even if 550k can buy private, likely to be 99 year lease hold with short lease left.

i bought my property for 600k when it was 5 years old. 20 years later it is 1.2 mil. mine is a 99 yr property

go ask people that bought their hdb resale 25 years ago what the value of the home is today vs then

i am not saying the property price will double again in the next 20 years. saying that it maintains the 550k is not too unfair.

 

[Sinkie]

Anyone has the full article to sic?

 

[polyglob]

i bought my property for 600k when it was 5 years old. 20 years later it is 1.2 mil. mine is a 99 yr property

go ask people that bought their hdb resale 25 years ago what the value of the home is today vs then

i am not saying the property price will double again in the next 20 years. saying that it maintains the 550k is not too unfair.

You got good deal. I got good deal with my properties from 20+ years back too.

My reply was future outlook from 2021 onwards, like what you wrote in last para.

 

[fr33d0m]

one point that all the cpf supporters did not want to bring out is cpf life does not give anything for the first 10 years, property gives rental immediately upon purchase.

look here, i am not saying cpf is bad. i myself have close to 600k stashed up in cpf. but you must be fair in your analysis.

Doesn’t CPF RA have 4%-6% interest rate before starting CPF LIFE payout?

Better die before starting CPF LIFE...LOL.

 

[dork32]

Doesn’t CPF RA have 4%-6% interest rate before starting CPF LIFE payout?

Better die before starting CPF LIFE...LOL.

i am tokking about cash flow. the cash flow is 0 for the first 10 years.

 

[fr33d0m]

i am tokking about cash flow. the cash flow is 0 for the first 10 years.

So a property is guaranteed to be rented out all the time?

When it suits, it is about capital appreciation; when not, it is about cash flow?

Add probability and make it actuary accurate at least.

 

[dork32]

So a property is guaranteed to be rented out all the time?

When it suits, it is about capital appreciation; when not, it is about cash flow?

it definitely takes me less than 10 years to rent out my unit.

you are right. both are advantages of property investment over cpf.
there is opportunity for capital appreciation.
there is positive cash flow during the first 10 years.

the advantage of cpf is higher cash flow after 10 years.

 

[sanzhu]

Cpf u know where its going

 

[reddevil0728]

Cpf u know where its going

Where?????

 

[dork32]

Cpf u know where its going

you are also right. there is less uncertainty in cpf, so less risk

 

[dork32]

Where?????

it just means that it is more accurate to make projections with cpf