About 8 in 10 first-timers who bought resale flats in 2023 could service loans with CPF, little to no cash outlay: MND

[rabies79]

better than no roof over your top at retirement age…worst come to worse, you can generate income by renting out a room…

Rental is always uncertain especially with the rising costs in Singapore. Even commercial spaces owned by Ascendas and capitaland have vacated tenants, two of my biggest ex clients have already exited or intend to slowly exit Singapore, one in changi business park and the other at Metropolis.

 

[popdod]

The goal is not to use CPF at all. This is called affordability.

Single BBFAs don’t mind use CPF rah
Die liao. U wanna leave it to who ??

 

[Ghost_is_here]

accrued interest is just a number if you don’t sell your hdb bought using cpf…

Upgrading

 

[yobyella]

Frankly we shld try not using our cpf to service our mortgage loan. Shld leave the funds intact, earn compounded interest for our retirement. Public housing must remain affordable always. Sigh.....

 

[Kunkka]

Why sell? HDB is a good investment that's practically free. Just hold on to it and rent it out lah

People not from your era with no absd

 

[eAtNeAt]

How abt in say 1990 and 2000? Without comparison how to comment about this topic

 

[dgeralds]

Of course..... Little to no cash outlay. Service by CPF.

The accused interest will kill you.

Recently I went to a clinic. The staff said do you want to take from your medisave, it is free and you don't have to pay cash?

 

[yesman2978]

No retirement savings nia

Can standby retirement career picking cardboard, delivery food

 

[glarerder]

Frankly we shld try not using our cpf to service our mortgage loan. Shld leave the funds intact, earn compounded interest for our retirement. Public housing must remain affordable always. Sigh.....

It's a risk to use cpf to pay for mortgage as one may forget to do refund resulting in part funding their own retirement through the house value. Good times house value increase not much issue. If run into bad times, it may end up eating up the retirement funds if price value goes down. Inb4 housing price keep going up

 

[lupster]

This is why they are increasing CPF contribution. This helps to fuel the public housing price increase and govt can continue their warped narrative that low cash outlay required.

They also dont want to bring up the fact that many homes are funded through dual income nowadays. It's not like the previous gen, where home mortgage and living expenses are taken care of through a single income. Nowadays, both husband and wife have to slog for 20 years or more so that they can continue having CPF contribution to fund their homes

 

[testerjp]

This information is also useless.

If cannot, they won't even be eligible for their loan right.

Just want to divert the attention with a stupid presentation of statistics

 

[hachi]

They get up to $190,000 resale flat grants. Just buy a 3 room flat for $300,000, the net price is $110,000. Monthly installments around $400

540 or so... When I loan 107k for 25y. 530 per month.

 

[hachi]

This is why they are increasing CPF contribution. This helps to fuel the public housing price increase and govt can continue their warped narrative that low cash outlay required.

They also dont want to bring up the fact that many homes are funded through dual income nowadays. It's not like the previous gen, where home mortgage and living expenses are taken care of through a single income. Nowadays, both husband and wife have to slog for 20 years or more so that they can continue having CPF contribution to fund their homes

There are cheaper choices that allow single income to pay... No choice or by choice...

 

[Vincentlow82]

"no conclusive evidence"

guess we need more monitoring.

 

[lupster]

There are cheaper choices that allow single income to pay... No choice or by choice...

Previous gen didn't need to make these choices though. Previous gen could get 4-5 room flat through single blue collar income. Now, if a family only has a single income, they can only go for a much smaller flat.

 

[VEF888]

for those who say cpf will be wiped out, just do the maths:

400K for a 4 room BTO, just say after all grants and subsidies, 400K+ interest = 500K give or take.

500K/99 = 5K a year= 428 a month, and you will be set for life.

assuming 1800 total cpf contribution a month by an individual (based on $5000 salary, lifetime average), 3600 per couple, 3600*30 years that's 1.3m - 500K, still a healthy balance left in cpf without any interest contribution.

anyway, not happy, just vote incumbent out, if can't be done, leave for greener pasture bah.

 

[XiaoJinLing]

Some cannot even b first timers ok....

 

[drkcynic]

Of course..... Little to no cash outlay. Service by CPF.

The accused interest will kill you.

Damn ill-informed.

 

[Godeau]

300k 3rm bto? They only surveyed those buying less than 50years lease resale ar?

 

[glarerder]

for those who say cpf will be wiped out, just do the maths:

400K for a 4 room BTO, just say after all grants and subsidies, 400K+ interest = 500K give or take.

500K/99 = 5K a year= 428 a month, and you will be set for life.

assuming 1800 total cpf contribution a month by an individual (based on $5000 salary, lifetime average), 3600 per couple, 3600*30 years that's 1.3m - 500K, still a healthy balance left in cpf without any interest contribution.

anyway, not happy, just vote incumbent out, if can't be done, leave for greener pasture bah.

Your math works based on both couples holding onto the same job for the 30 years assuming they don't make partial repayment, no increment, not retrenched, no divorce. Flat math. In reality, does the majority situation fit into that scenario?