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-   -   BEWARE: CPF Accrued Interest (https://forums.hardwarezone.com.sg/homeseekers-homemakers-74/beware-cpf-accrued-interest-5904347.html)

catlover24 19-09-2018 12:55 PM

BEWARE: CPF Accrued Interest
 
https://www.99.co/blog/singapore/hdb-sale-proceeds-cpf/

Quote:

If you buy a resale HDB flat today and take a CPF Family Grant of $50,000 for your purchase, your principal plus accrued interest on this grant amount alone would be $107,991.81 after 30 years more than double of the grant amount you originally took!
There's a chart in the article that shows the effects of CPF Accrued Interest too, quite shocking.

So, if you're confident your property will appreciate, the lesson is to avoid grants and pay mortgage installments using CASH intead?

fotoudavid 19-09-2018 01:19 PM

Unavoidable to use CPF... Grant plus CPF accrued interest will take out all money

Wk7777 19-09-2018 01:44 PM

Quote:

Originally Posted by catlover24 (Post 116583916)
https://www.99.co/blog/singapore/hdb-sale-proceeds-cpf/



There's a chart in the article that shows the effects of CPF Accrued Interest too, quite shocking.

So, if you're confident your property will appreciate, the lesson is to avoid grants and pay mortgage installments using CASH intead?

erm.... if u r eligible to get a grant of $50K, why should you reject the handout??
anyway nowadays, people don't stay in the same HDB flat for 30 years anymore...

if you are so worried about the accrued interest of the CPF Grant, you can choose to sell your house after MOP. Then this $50K + accrued interest goes back into your CPF for your next property purchase...

If you are really looking to stay for 30 years kind...Alternatively, you can check with CPF Board after the purchase, tell them that you will like to refund the CPF monies paid from your OA, they will tell you an amount + any accrued interest to date, then you give them a cheque of that amount.....

https://www.cpf.gov.sg/Assets/member...FORM_HSDVR.pdf

TADAH, you get extra money in your CPF already...

kindaichi83 19-09-2018 03:45 PM

why would you not want the grant

it is credited back to your cpf account for future use, whether it is to buy another house or for your retirement account

senseless article

Sakagamii 19-09-2018 04:55 PM

end up all go back to ur cpf acct wad. wad is the article trying to say

Gixxerfied 19-09-2018 05:29 PM

Worry only if you planning to sell your house.

If you planning to die in the same house like me then dont bother about this but instead on how fast you can clear the mortgage before you get restricted on using your O/A.

endlssorrow 19-09-2018 05:36 PM

Grant interests should keep at least 10% to stop people from really buy and sell to make money

Storm7979 19-09-2018 06:27 PM

The accured intrest is eventually going back to ur cpf ma.
If the concern is eating into the cash proceeds when selling then if i use cpf to pay and accumulate my cash, isn't it the same?

XGZ1503 19-09-2018 06:46 PM

Quote:

Originally Posted by Gixxerfied (Post 116589383)
Worry only if you planning to sell your house.

If you planning to die in the same house like me then dont bother about this but instead on how fast you can clear the mortgage before you get restricted on using your O/A.

Let say when reach 55yrs and OA have more than min sum, will we still be required to return all the $$ to CPF after we sell the flat?

windwaver 19-09-2018 10:28 PM

Quote:

Originally Posted by catlover24 (Post 116583916)
https://www.99.co/blog/singapore/hdb-sale-proceeds-cpf/



There's a chart in the article that shows the effects of CPF Accrued Interest too, quite shocking.

So, if you're confident your property will appreciate, the lesson is to avoid grants and pay mortgage installments using CASH intead?

Do you really understand what's accrued interest?

What's the big worry?

GeraldineT 19-09-2018 10:50 PM

Quote:

Originally Posted by XGZ1503 (Post 116590871)
Let say when reach 55yrs and OA have more than min sum, will we still be required to return all the $$ to CPF after we sell the flat?

if u reached 55 and ur OA + SA account is more than retire minimum sum, u can chose to cash out a certain amount.

if u haven't reach 55 and u used ur OA every month for the HDB contribution, when u sell the house, the $$ would be what they say in the article. however if ur monthly installment u use cash to pay, then u will get back more cash.

kindaichi83 19-09-2018 11:10 PM

Quote:

Originally Posted by Gixxerfied (Post 116589383)
Worry only if you planning to sell your house.

If you planning to die in the same house like me then dont bother about this but instead on how fast you can clear the mortgage before you get restricted on using your O/A.

but if u take the govt money and then used it to buy private ok what

after all even if u pay the accured interest back to cpf, you can still use it to offset the 20% downpayment

not take is stupid

henrylbh 20-09-2018 12:14 AM

I may more than glad that they want me to return CPF used plus interest when selling my house. Else the money with me will earn pittance from the bank. The money goes back to CPF earns min of 2.5% and can be withdrawn in any amount and at any time from 55, if one meets BRS which is achievable for most. The money returned can still be used to buy the next property shares etc.

catlover24 20-09-2018 02:13 AM

Quote:

Originally Posted by henrylbh (Post 116596716)
I may more than glad that they want me to return CPF used plus interest when selling my house. Else the money with me will earn pittance from the bank. The money goes back to CPF earns min of 2.5% and can be withdrawn in any amount and at any time from 55, if one meets BRS which is achievable for most. The money returned can still be used to buy the next property shares etc.

Either bank or CPF? That's a false dichotomy right there. If you can't be bothered to research on investment vehicles or participate in them, if you can't be bothered to take charge and responsibility of your hard-earned money, then that's your businesses, but don't treat everyone else as idiots...

Gixxerfied 20-09-2018 11:32 AM

Quote:

Originally Posted by kindaichi83 (Post 116595832)
but if u take the govt money and then used it to buy private ok what

after all even if u pay the accured interest back to cpf, you can still use it to offset the 20% downpayment

not take is stupid

不拿白不拿。。。tio boh???

my grant only 15k before all the changes to shg a few months after i apply for my flat..

Apply May 2013 launch. Aug 2013 NDR changes came out and only backdate to july 2013 launch..


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