Getting a condo. Objective advice appreciated

[MrCoconut]

What’s everyone formula to apportion cash and cpf to monthly repayment?

I am thinking of maxing out cpf (my monthly contribution hit ceiling liao) so that it will keep my cash outlay low. Any pros and cons for doing that?

What does it mean your monthly contribution hit ceiling? I personally do not think it's wise to max out your CPF because that's your retirement fund afterall.

 

[MrCoconut]

My plan is to keep reducing the loan by lump sum until it is below my cpf contribution, think OA is 2.2 per month. So once the mortgage goes below that, I can build up some buffer again.

Speaking of lump sum, should I do the same for my HDB loan? Initially I thought to drag the tenure (30 years) because would move house AFTER MOP but now looks like I'm gonna stay for a few more years at least. Hence, it would be wise to pay off the loan quicker?

 

[runforyourlife]

12k now. Preferably I do not wish to max out my CPF monthly OA for the mortgage. So still need at least 1 or 2k top up in cash. Which I think may be quite a stretch. Especially if the loan is till 65, I need to ensure I earn at least 8k by 65 year old to be comfortable.

12k for 1.5M condo? How old are u?

Give up your plans ba.

 

[Forever84]

What does it mean your monthly contribution hit ceiling? I personally do not think it's wise to max out your CPF because that's your retirement fund afterall.

You can do voluntary top up to reduce tax and increase CPF savings. Also SA will have monthly inflow. Plus, you shouldn't rely on your CPF for retirement, it is grossly inadequate.

 

[Polar Bear King]

12k for 1.5M condo? How old are u?

Give up your plans ba.

Actually hor
Once can pay down payment and the loan repayment is enough then can upgrade lar
Ultimately is career progress,income trend and future family plans
I know many people just want to upgrade to condo to show off for some years then eventually will sell off the place loop the profit downgrade back to HDB for retirement

 

[Passerboy]

What does it mean your monthly contribution hit ceiling? I personally do not think it's wise to max out your CPF because that's your retirement fund afterall.

Make yearly contribution of 7k to your CPF SA could be a better way to build up that retirement nest, also contribute have an SRS account and make yearly contributions with investment could help.

In that way, you could max out OA for housing needs

 

[ralphlauren]

Check out here

https://blog.moneysmart.sg/budgetin...-guide-interest-rates-minimum-sum-calculator/

What does it mean your monthly contribution hit ceiling? I personally do not think it's wise to max out your CPF because that's your retirement fund afterall.

 

[Eraval]

What does it mean your monthly contribution hit ceiling? I personally do not think it's wise to max out your CPF because that's your retirement fund afterall.

Monthly contribution hit ceiling means the pay above 6k liao, the max of 1.2k contribution nia every month

I'm not sure if that has changed recently but if your combined income 12k then you should have known this, cause at least one of you must be above 6k le mah

I think maybe you could just look out for the ECs best, still got grants and stuff to cover you abit if it might seem like a stretch for you financially, stay there 5-6 years can sell off for a small profit if things go well

 

[Polar Bear King]

Monthly contribution hit ceiling means the pay above 6k liao, the max of 1.2k contribution nia every month

I'm not sure if that has changed recently but if your combined income 12k then you should have known this, cause at least one of you must be above 6k le mah

I think maybe you could just look out for the ECs best, still got grants and stuff to cover you abit if it might seem like a stretch for you financially, stay there 5-6 years can sell off for a small profit if things go well

Yar loop 2nd HDB in the form of EC first lor
TS have too much time and not enough money for now
Just nice get a EC jump over fulfill another MOP 5yrs

 

[MrCoconut]

Monthly contribution hit ceiling means the pay above 6k liao, the max of 1.2k contribution nia every month

I'm not sure if that has changed recently but if your combined income 12k then you should have known this, cause at least one of you must be above 6k le mah

I think maybe you could just look out for the ECs best, still got grants and stuff to cover you abit if it might seem like a stretch for you financially, stay there 5-6 years can sell off for a small profit if things go well

Oh I didn't know there's a cap! So say income is 6k, 37% contribution ie $2220 goes to CPF, of which 23% of it goes to OA ie. $1380. So ideally monthly mortgage from CPF shouldn't be more than $1380 right. Personally I feel shouldn't even be more than $1000 to saveoney inside to earn the 2.5%.

Miserly amount but still pretty good. I understand OA will not be enough for retirement and have to depend on other sources.

 

[MrCoconut]

Yar loop 2nd HDB in the form of EC first lor
TS have too much time and not enough money for now
Just nice get a EC jump over fulfill another MOP 5yrs

But ec grants have income limit. I'm already over the limit lolx

 

[MrCoconut]

Check out here

https://blog.moneysmart.sg/budgetin...-guide-interest-rates-minimum-sum-calculator/

Useful info!

 

[MrCoconut]

Make yearly contribution of 7k to your CPF SA could be a better way to build up that retirement nest, also contribute have an SRS account and make yearly contributions with investment could help.

In that way, you could max out OA for housing needs

SA interest is attractive but I'm apprehensive about being able to take out the monies when the time comes lol

 

[Polar Bear King]

But ec grants have income limit. I'm already over the limit lolx

EC income ceiling $15k right?
You want to save the chance til your retirement ar?
Grant don’t bother lar
Your practical use is priority

 

[Eraval]

EC income ceiling $15k right?
You want to save the chance til your retirement ar?
Grant don’t bother lar
Your practical use is priority

$16k
I think the grants he mean are the income grants which he won't get bah.


Personally I would choose to max out the OA to pay, the CPF rules keep flipping and flopping, when I'm eligible in 30-35 years also don't know what new government ruling come out liao

Cash on hand I can use to invest in other tangible things, stocks like Sheng Shiong have not let me down since I started 5 years ago, I know I am prudent by nature so I don't have to worry about CPF for retirement, any CPF withdrawal in future is a bonus.

@MrCoconut
Let me know what you decide in the end for reference haha, currently in same situation such as yourself

 

[MrCoconut]

$16k
I think the grants he mean are the income grants which he won't get bah.


Personally I would choose to max out the OA to pay, the CPF rules keep flipping and flopping, when I'm eligible in 30-35 years also don't know what new government ruling come out liao

Cash on hand I can use to invest in other tangible things, stocks like Sheng Shiong have not let me down since I started 5 years ago, I know I am prudent by nature so I don't have to worry about CPF for retirement, any CPF withdrawal in future is a bonus.

@MrCoconut
Let me know what you decide in the end for reference haha, currently in same situation such as yourself

Can explain this 15k 16k grant thing? I took reference from here https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/schemes-and-grants/cpf-housing-grants-for-ecs

You also thinking of upgrade but cannot afford downpayment ABSD and need to sell off HDB first? Haha.

 

[Eraval]

Can explain this 15k 16k grant thing? I took reference from here https://www.hdb.gov.sg/cs/infoweb/r...schemes-and-grants/cpf-housing-grants-for-ecs

You also thinking of upgrade but cannot afford downpayment ABSD and need to sell off HDB first? Haha.

U above 12k no need see, no grant for you

the 16k is the income ceiling to be eligible for ECs, meaning your household income cap is there. Combined more than 16k then need appeal or go buy PC/Resales

If can nobody want to pay ABSD la lol but the cash is there if need to lor
More importantly, its the quality of life la so we want to make sure that we can upgrade but still go on 2 holidays a year, spend on kids tuition (******* exp) and other little necessities to keep the family happy

Space is a concern cause ideally everyone should get their own room, so if end up our family of 4 squeeze into a 2 bedder is a no no, if get a HDB jumbo also better, cheaper but bigger, so condo is not a must, just an option

that is why it would be interesting to see what other people in similar scenario do

 

[MrCoconut]

U above 12k no need see, no grant for you

the 16k is the income ceiling to be eligible for ECs, meaning your household income cap is there. Combined more than 16k then need appeal or go buy PC/Resales

If can nobody want to pay ABSD la lol but the cash is there if need to lor
More importantly, its the quality of life la so we want to make sure that we can upgrade but still go on 2 holidays a year, spend on kids tuition (******* exp) and other little necessities to keep the family happy

Space is a concern cause ideally everyone should get their own room, so if end up our family of 4 squeeze into a 2 bedder is a no no, if get a HDB jumbo also better, cheaper but bigger, so condo is not a must, just an option

that is why it would be interesting to see what other people in similar scenario do

Icic. I also concerned about space with a growing family. Personally I don't mind HDB (get a jumbo or mansionette) but the misus is a sucker for nice views and condo facilities. ABSD is ok because will be refunded anyway but still it's more than 100k of cash, not withstanding the 20% downpayment another 200k.

Wow you still can go for 2 holidays and ya, children expenses are massive. Looks like a lifestyle compromise is inevitable unless we earn 66k a month. Lol.

 

[Dixon.]

Oh I didn't know there's a cap! So say income is 6k, 37% contribution ie $2220 goes to CPF, of which 23% of it goes to OA ie. $1380. So ideally monthly mortgage from CPF shouldn't be more than $1380 right. Personally I feel shouldn't even be more than $1000 to saveoney inside to earn the 2.5%.

Miserly amount but still pretty good. I understand OA will not be enough for retirement and have to depend on other sources.

How old are you?
Once you hit 35 years old, your OA contribution is 21%.
45 years old onwards drop to 19% for OA IIRC.

 

[MrCoconut]

How old are you?
Once you hit 35 years old, your OA contribution is 21%.
45 years old onwards drop to 19% for OA IIRC.

Not 35 yet. Hence I am also concerned of taking the maximum tenure of 30 years. This means I have to ensure a good income for a good 30 years.