CPF Accounts Value thread

[cal3135]

Save the ca$h.. not advisable to upgrade condo. Continue work n explore on more hobby / social work.
Can sleep 🛏 soundly with no debt.

Thanks. About 500k. Going at the condo prices now, certainly need to get into debt and hurt the finances a fair bit.
Not forgetting my career lifespan is getting short

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[crimsontactics]

Save the ca$h.. not advisable to upgrade condo. Continue work n explore on more hobby / social work.
Can sleep � soundly with no debt.

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Young single people can try to take on some debt to grow their income.

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[JuniorLion]

Check with u guys.
I'm near 50 years now (time really flies before u know it).
OA 103k
SA 213k
MA 57k

HDB fully paid, no investment done from cpf money and no debt.

Wife is asking if we could upgrade and buy a condo.
I'm thinking it may not be wise to go back into debt when this time should focus on building up the reserves for retirement.
She's not working since over 10 years ago.

What's your opinion?

Healthy-SA. What's your wife's CPF amount? If it's less than ideal, then should forget about this upgrading business.

 

[greddy88]

Healthy-SA. What's your wife's CPF amount? If it's less than ideal, then should forget about this upgrading business.

Thanks. My thoughts too.
She's not working. Very little in her Cpf left after we bought our first HDB.

 

[BBCWatcher]

She's not working. Very little in her Cpf left after we bought our first HDB.

Please fix that! There are a surprising number of people sitting on fat CPF balances who have spouses with CPF balances at or near zero, or at least not collecting maximum bonus interest. That’s not good.

 

[henrylbh]

Check with u guys.
I'm near 50 years now (time really flies before u know it).
OA 103k
SA 213k
MA 57k

HDB fully paid, no investment done from cpf money and no debt.

Wife is asking if we could upgrade and buy a condo.
I'm thinking it may not be wise to go back into debt when this time should focus on building up the reserves for retirement.
She's not working since over 10 years ago.

What's your opinion?

Condo means upgrade? To me, it's a downgrade, if it's in heartland and no bigger than a HDB flat

I bought a resale EA in mid 2007 for 425k. In early 2011, I booked a EC for 642k.

When my EC top in 2013, I sold my EA for 700k within 3 months.

After a few months, I felt I have downgraded in space (from 143sm to 77sm, the latter included aircon ledge) but upgraded in property tax and maintenance fee and a little privacy. Though size of EC was half, the property tax was double. S&C and season parking was less than $200 compared to $300 for EC which is ever increasing. For 'upgrading' I missed on all the government's rebates

In Sep 2018, I sold my EC for 880k and upgraded to a 122sm resale HDB flat for 440k and now I am glad that I got enough space to breath, even though I am living alone

 

[The_Davis]

Sbc & the other member on top? The MA 57.2K yalll so fast CPF updated liao or still at 54.5 then you ownself manually update for us here one?

Davis, your MA got reflect 57.2 after the 2.7 you threw in on 1/1?

already reflected days ago

 

[The_Davis]

Check with u guys.
I'm near 50 years now (time really flies before u know it).
OA 103k
SA 213k
MA 57k

HDB fully paid, no investment done from cpf money and no debt.

Wife is asking if we could upgrade and buy a condo.
I'm thinking it may not be wise to go back into debt when this time should focus on building up the reserves for retirement.
She's not working since over 10 years ago.

What's your opinion?

move to malaysia condo maybe can consider.

 

[hwmook]

Check with u guys.
I'm near 50 years now (time really flies before u know it).
OA 103k
SA 213k
MA 57k

HDB fully paid, no investment done from cpf money and no debt.

Wife is asking if we could upgrade and buy a condo.
I'm thinking it may not be wise to go back into debt when this time should focus on building up the reserves for retirement.
She's not working since over 10 years ago.

What's your opinion?

Thanks. About 500k. Going at the condo prices now, certainly need to get into debt and hurt the finances a fair bit.
Not forgetting my career lifespan is getting short

At your age with the amount you have and the fact that your spouse is not working with little CPF, I do not see how you can afford to dump all your money into a condo.

 

[tkdboi]

You are older than my by a few years, but your cpf account trump my gao gao, moreover you are using OA for your hdb and have a kid

managed to get more momentum over the last few years so jiayou! you can do it too!

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[Calthron]

Looks bit risky since at close 50yrs and wife not working. Probably shd save more and avoid taking up loan? Interest is also going up now ...

Check with u guys.
I'm near 50 years now (time really flies before u know it).
OA 103k
SA 213k
MA 57k

HDB fully paid, no investment done from cpf money and no debt.

Wife is asking if we could upgrade and buy a condo.
I'm thinking it may not be wise to go back into debt when this time should focus on building up the reserves for retirement.
She's not working since over 10 years ago.

What's your opinion?

 

[dork32]

Condo means upgrade? To me, it's a downgrade, if it's in heartland and no bigger than a HDB flat

I bought a resale EA in mid 2007 for 425k. In early 2011, I booked a EC for 642k.

When my EC top in 2013, I sold my EA for 700k within 3 months.

After a few months, I felt I have downgraded in space (from 143sm to 77sm, the latter included aircon ledge) but upgraded in property tax and maintenance fee and a little privacy. Though size of EC was half, the property tax was double. S&C and season parking was less than $200 compared to $300 for EC which is ever increasing. For 'upgrading' I missed on all the government's rebates

In Sep 2018, I sold my EC for 880k and upgraded to a 122sm resale HDB flat for 440k and now I am glad that I got enough space to breath, even though I am living alone

for you floor area is important.

but there are other things in a condo that superior.
-better landscaping
-swimming pool, tennis courts etc
-fence, walls to keep barbarians out.

you need space? move to malaysia. in my wife's kampung, 250 sq m. no season parking charges, lower property tax, no s&c charges, super privacy (one house in the middle of nowhere) less than S$300k. do you consider that an upgrade?

to many people space is not everything.

 

[SBC]

Check with u guys.
I'm near 50 years now (time really flies before u know it).
OA 103k
SA 213k
MA 57k

HDB fully paid, no investment done from cpf money and no debt.

Wife is asking if we could upgrade and buy a condo.
I'm thinking it may not be wise to go back into debt when this time should focus on building up the reserves for retirement.
She's not working since over 10 years ago.

What's your opinion?

1. What’s the expected quantum for the condo? Private price index is still record high, unless you managed to hunt for good fire sale.
2. Your loan duration will only be 15 years. TDSR could be a challenge.
Say loan of 500k, monthly repayment will be $3574. You will at least 10k income.
3. How much space you need?

 

[henrylbh]

Thanks. My thoughts too.
She's not working. Very little in her Cpf left after we bought our first HDB.

If little in her CPF, the lest you could do is to VC or top up her CPF overall balance to no less than 60k to earn the additional interest.

 

[BBCWatcher]

Condo means upgrade?

The rest of this post really resonated with me. In the past, maybe, but HDB units and developments have improved a lot over the past years and decades, and private condos haven’t as much (or have even gotten worse).

One of the important attributes of an owner-occupied primary residence is that it’s a partial hedge against inflation during decades of retirement. But, as Henry has pointed out, that feature is less true of private condos which have higher (and faster increasing) recurring charges. I’m assuming that there’s ample remaining leasehold in the HDB unit, to cover the longest life expectancy.

That said, having a happy spouse is important provided that happiness is reasonably attainable. I do see many HDB leaseholders that underinvest in home remodeling and home furnishings, so the interior space does not reflect their lifestyle aspirations and current abilities. So why not hire an interior designer and upgrade your HDB unit to design magazine standards? If you can afford that and would enjoy it, great.

At your age with the amount you have and the fact that your spouse is not working with little CPF, I do not see how you can afford to dump all your money into a condo.

I wouldn’t totally rule it out financially — it’s possible — but it wouldn’t be fun if we’re talking about purchase.

However, “rental arbitrage” is much more viable. Right now (and for some time now) rents are low relative to private condo valuations. So it would be financially more possible to rent out the HDB unit and use the rental proceeds toward the lion’s share of a private condo rental. There’s no ABSD, no mortgage, and no other such complication. The only “gotcha” is that the rental income is taxable, but that shouldn’t be a big hit, especially when half the rental income is attributable to a non-working spouse.

Both techniques can be combined. For example, sign a 2.5 year private condo lease and move there. Rent out the HDB unit on a 2 year lease. Spend the next 2 years shopping around for interior design features that you like. During the 6 month gap (from the end of the HDB unit rental to the end of the private condo rental), thoroughly remodel the HDB unit. Then move back into a wonderful, hugely upgraded HDB unit. This approach provides both an instant upgrade and a long-term upgrade in interior design/furnishings, but it doesn’t break the bank and doesn’t require a long-term working career.

 

[henrylbh]

for you floor area is important.

but there are other things in a condo that superior.
-better landscaping
-swimming pool, tennis courts etc
-fence, walls to keep barbarians out.

you need space? move to malaysia. in my wife's kampung, 250 sq m. no season parking charges, lower property tax, no s&c charges, super privacy (one house in the middle of nowhere) less than S$300k. do you consider that an upgrade?

to many people space is not everything.

Why pay for better landscaping etc that's outside your pigeon holes that much smaller for double the price. Wall to keep barbarians out? The habits and behaviourof those staying in condos are not much different from those staying in HDB flats.

I planned to rent out my flat and stay in Malaysia when the time comes. With net rental of 2k, it could pay for all basic needs in my including rental of property and a car. I also will save $8.90 or RM27 a day from smoking

 

[dork32]

However, “rental arbitrage” is much more viable. Right now (and for some time now) rents are low relative to private condo valuations. So it would be financially more possible to rent out the HDB unit and use the rental proceeds toward the lion’s share of a private condo rental. There’s no ABSD, no mortgage, and no other such complication. The only “gotcha” is that the rental income is taxable, but that shouldn’t be a big hit, especially when half the rental income is attributable to a non-working spouse.

For those that are playing this game, please be take note of this:

you need a roof over you head 365 days a year.

it is unlikely that your hdb is rented out 365 days a year. there will be weeks where your hdb is empty, when the old tenants moved out and the new has yet to move in. for that period, you have to fork out your own cash to pay for the rental of the condo.

but bbc has a point in that the difference in condo rental and a hdb 5-room rental is not big compared to its prices.

 

[henrylbh]

Check with u guys.
I'm near 50 years now (time really flies before u know it).
OA 103k
SA 213k
MA 57k

HDB fully paid, no investment done from cpf money and no debt.

Wife is asking if we could upgrade and buy a condo.
I'm thinking it may not be wise to go back into debt when this time should focus on building up the reserves for retirement.
She's not working since over 10 years ago.

What's your opinion?

Your CPF balance is good enough for one person. But since your wife is not working and have little CPF, your CPF is barely enough for 2, unless you have lots of savings for retirement. So can still upgrade?

 

[dork32]

Why pay for better landscaping etc that's outside your pigeon holes that much smaller for double the price. Wall to keep barbarians out? The habits and behaviourof those staying in condos are not much different from those staying in HDB flats.

I planned to rent out my flat and stay in Malaysia when the time comes. With net rental of 2k, it could pay for all basic needs in my including rental of property and a car. I also will save $8.90 or RM27 a day from smoking

you have to pay if you want better landscaping. of course if you coup yourself up in your pigeon hole, who cares about landscaping? i do spend time walking around the development to enjoy the landscaping. it is like saying why do you want to pay a few thousand dollars to go on a scenic holiday, you can watch it on tv or internet. different people have different needs.

i stayed in a 3room, 4room, 5room and condo before. i can tell there is difference in 3room and condo dwellers. not only do we have walls, we have border patrols to keep barbarians out.

 

[BBCWatcher]

For those that are playing this game, please be take note of this:
you need a roof over you head 365 days a year.

Yes, although there is a phenomenon known as “couch surfing.” Even in Singapore.

it is unlikely that your hdb is rented out 365 days a year. there will be weeks where your hdb is empty, when the old tenants moved out and the new has yet to move in. for that period, you have to fork out your own cash to pay for the rental of the condo.

Yes, that’s part of “rental arbitrage.” Indeed, the example I provided explicitly described a 6 month period (out of 30 months) without rental income.

but bbc has a point in that the difference in condo rental and a hdb 5-room rental is not big compared to its prices.

That’s correct. If the “problem” is a (non-working) spouse who wants “condo living” (whatever that means — highly overrated, I can testify), OK, no problem, rent a private condo and move into it tomorrow, pimp up the HDB unit (using classic “MTV English” here) in due course, then enjoy a luxuriously outfitted HDB unit with lovely bathroom fixtures, for example. And have money left over for a cute little (or perhaps even not so little) vacation home in another country.