if single n apply for 2rm bto...

[GenerationX]

is it better to fully paid with cash(empty cash savings) or use cpf pay?

my mum say if i no enuff can pay for me but i told her i can use cpf pay, just pay interest to myself only. my fren is say borrow from HLE use HLE money pay.

 

[reddevil0728]

is it better to fully paid with cash(empty cash savings) or use cpf pay?

my mum say if i no enuff can pay for me but i told her i can use cpf pay, just pay interest to myself only. my fren is say borrow from HLE use HLE money pay.

The qns is, can you cash earn more than 2.5%?

 

[havetheveryfun]

is it better to fully paid with cash(empty cash savings) or use cpf pay?

my mum say if i no enuff can pay for me but i told her i can use cpf pay, just pay interest to myself only. my fren is say borrow from HLE use HLE money pay.

u buying for urself right?
if buy for urself just use cpf pay la.. the interest doesnt matter unless u are going to sell the house. if not planning to sell the house forever means the interest doesnt mean much.

but ur mum will prob prefer u find a partner n bto with her better.

 

[GenerationX]

ya buying for myself, single mah

i also duno wan sell or not, since my bto ballot number is very low and most likely will get the ideal unit(high level), i just worry the retirement part, later no have enuff duno what retirement sum thing

 

[BBCWatcher]

i also duno wan sell or not, since my bto ballot number is very low and most likely will get the ideal unit(high level), i just worry the retirement part, later no have enuff duno what retirement sum thing

Using CPF Ordinary Account dollars to pay your home loan allows you to save (and prudently invest) more cash outside CPF toward your retirement. Using unrestricted cash to pay your home loan is the reverse: less cash available to save for your retirement, more CPF.

In both cases you ought to save for retirement. If you aren’t saving enough for retirement (or don’t have a prudent plan for how your retirement savings should be managed) then yes, you’ll have trouble maintaining a particular lifestyle in retirement.

So what’s your plan for retirement savings?

 

[fr33d0m]

Take HDB loan and pay with CPF.

cash can invest in T-Bills, SSB…

 

[matey1982]

ya buying for myself, single mah

i also duno wan sell or not, since my bto ballot number is very low and most likely will get the ideal unit(high level), i just worry the retirement part, later no have enuff duno what retirement sum thing

u want to outright purchase using your CPF savings???

 

[GenerationX]

u want to outright purchase using your CPF savings???

ya, if i can afford. y so many ??? its not a good choice?

 

[lazybee]

In this climate, it is best to use cpf OA to pay since it only give 2.5% interest. The extra cash you no need to fork out can earn higher yield like 3+% for fixed deposit. But highest priority is to reduce loan or not to take up a loan, since home loan interest rate is much higher.

 

[dork32]

Take HDB loan and pay with CPF.

cash can invest in T-Bills, SSB…

this is the best suggestion so far.

to make it better, take max hdb loan and max period. use cpf not used for downpayment to invest in tbills.

 

[dork32]

But highest priority is to reduce loan or not to take up a loan, since home loan interest rate is much higher.

Reduce loan for wat? and who say home loan interest rate is much higher? hdb loan 2.6%. Tbills 4.2%

 

[dork32]

The qns is, can you cash earn more than 2.5%?

you are our expert on tbills. tbills confirm higher than 2.5%

 

[dork32]

is it better to fully paid with cash(empty cash savings) or use cpf pay?

my mum say if i no enuff can pay for me but i told her i can use cpf pay, just pay interest to myself only. my fren is say borrow from HLE use HLE money pay.

the way you put it, you are in the sweet spot now.

i take it that you have enuf cash or cpf to pay for the home. you intend to use either.

the smart thing to now is get the max hdb loan at 2.6%. extend the payment period to the max, 20 years or 30 years or 100 years.

if you do that you would be flush with cash and saddled with a big loan

important thing to remember is that this cash hoard that you have is not your money. it belongs to hdb so dont risk it too much. hoot all of it into tbills which giving an interest much higher than 2.6%

if one day, the interest becomes much higher or tbills return drop, then use all the money that come back from tbills to pay down the loan. it is then that you should have 0 loan.

dont not follow the peace of mind people. they cannot analyze properly.

and i practice what i preach. i am on a 1.2% home loan. i make no effort to pay down the loan. i hoot all my cash and cpf into tbills. when the lock in ends 1.5 years from now, if the interest rates remains high. i will use cash and cpf to redeem the loan and keep the interest that tbills give to me.

 

[8zaoyu]

this is the best suggestion so far.

to make it better, take max hdb loan and max period. use cpf not used for downpayment to invest in tbills.

But for this instance, being 2-rm BTO new flat, can be singles >35 must earn less 7k applying for a 99 year lease or an elderlies >55 applying for short leases up to 45 yrs old (cannot loan).
Some folks like me, won't want to pay a 200k flat, end-of loan life, actually paid double or triple with interest right?

 

[dork32]

But for this instance, being 2-rm BTO new flat, can be singles >35 must earn less 7k applying for a 99 year lease or an elderlies >55 applying for short leases up to 45 yrs old (cannot loan).
Some folks like me, won't want to pay a 200k flat, end-of loan life, actually paid double or triple with interest right?

sorry sometimes people dont understand your posting, i am one of them

i take it that you are saying by taking a loan, i could be paying 300k for a 200k 2room BTO.

and you are totally right in this point.

i am talking about ts. he has enuf to pay for everything. if he chooses a hdb home loan and invest his cash on hand, he will realize that he could have earned 150k. using this 150k to offset payment for the loan, his bto is just 150k

 

[8zaoyu]

sorry sometimes people dont understand your posting, i am one of them

i take it that you are saying by taking a loan, i could be paying 300k for a 200k 2room BTO.

and you are totally right in this point.

i am talking about ts. he has enuf to pay for everything. if he chooses a hdb home loan and invest his cash on hand, he will realize that he could have earned 150k. using this 150k to offset payment for the loan, his bto is just 150k

Earn 150k to offset loans? Stingy or Attitude people like me not so generous. That's why I fully paid off 2 properties soonest, once regretted not having a 3rd property, but maybe lucky not to have with >4% mortage loans as some day need to refinance. Will regret adding in the thousands of renters and take down forests to build housing.

 

[BBCWatcher]

What are you try to say, 8zaoyu? That you would prefer paying off a 2.6% HDB loan faster than required instead of earning 4.0+% interest with a T-bill (for example) on dollars you didn't use to pay off that loan faster than required? If so, why?

 

[reddevil0728]

you are our expert on tbills. tbills confirm higher than 2.5%

for the short term ya lor.

 

[dork32]

for the short term ya lor.

yes enjoy it while it last. for hdb loan there is no lock in. you can redeem anytime with penalty

it is just like i enjoyed the low rates of the banks for many years. every one say when interest rates rise, i cannot play anymore. do you believe it? my home loan was below 2.5% for the past 19 year? i really enjoyed using the bank's money to earn money for these 19 years. yeah yeah, all good things must come to an end.

 

[dork32]

do not use tbills to hedge against the high long term fixed rate . eg dbs 5 years 3.5%. yeah tbills is 4.2%, you win for now.

if after 6 months tbills drop to 2.5% and stay there, then you xiao liao. you kena lock in 4.5 more years at 3.5% but you can only make 2.5% with your risk free instrument.

hdb loan is different, there is no lock in