Question on CPF

[hitmen]

What Can CPF Be Used For Other Than Buying Properties

Buy gold and stock need 200k inside, how is that feasible?

If buy property then my money locked for 5 years, like that very risky.

 

[Dividends Warrior]

Dun waste ur time with CPF.....

 

[henrylbh]

What Can CPF Be Used For Other Than Buying Properties

Buy gold and stock need 200k inside, how is that feasible?

If buy property then my money locked for 5 years, like that very risky.

What talking you

If you leave money in CPF, you earn 2.5% interest but the interest remain in CPF.

If you invest your CPF money in property, the rental income will go directly into your pocket as well as capital gain, if any.

The CPF Board should make all gain on use of CPF to go back to CPF similar to gain on shares.

 

[Darkzi0n]

What talking you

If you leave money in CPF, you earn 2.5% interest but the interest remain in CPF.

If you invest your CPF money in property, the rental income will go directly into your pocket as well as capital gain, if any.

The CPF Board should make all gain on use of CPF to go back to CPF similar to gain on shares.

maybe he meant buying hdb... den first 5 years cannot sell cannot rent out.

 

[henrylbh]

maybe he meant buying hdb... den first 5 years cannot sell cannot rent out.

Buy a 3rm hdb for about 320k and rent out the master bedroom for about 1k. That's more than 3% return in cash and still get to stay in other room. After 5 years, sublet whole flat for more than 6%

Too bad I cant buy another hdb flat to sublet.

 

[lcpteck]

Buy a 3rm hdb for about 320k and rent out the master bedroom for about 1k. That's more than 3% return in cash and still get to stay in other room. After 5 years, sublet whole flat for more than 6%

Too bad I cant buy another hdb flat to sublet.

Sorry for being off topic but within the first 5 years we can rent out all but 1 room right? Only after 5 years then we can sell or rent out whole unit, is that right?

 

[Darkzi0n]

yea loh.. interested to find out also... let say a 4 room flat... how many room and how many ppl can i sublet to during first 5 years?

 

[Muachee997]

CPF = tax .. period.

 

[therat]

Sorry for being off topic but within the first 5 years we can rent out all but 1 room right? Only after 5 years then we can sell or rent out whole unit, is that right?

correct
But u only can sublet 3 yrs

yea loh.. interested to find out also... let say a 4 room flat... how many room and how many ppl can i sublet to during first 5 years?

max 2 rooms, 9 ppl(* includes owners, authorised occupants and subtenants)
U only can sublet 3 yrs


Read this
HDB InfoWEB: Guidelines for Renting Out Rooms : Renting A Flat : From Open Market

 

[henrylbh]

CPF = tax .. period.

I can move 53k from my cpf to my father RA and that 53k will earn 5% pa. From RA, my father can have a monthly drawdown of $1200!!! If I move 130k he will get 2k plus per month. But excess of 60k earns only 4%.

 

[cscs3]

Buy a 3rm hdb for about 320k and rent out the master bedroom for about 1k. That's more than 3% return in cash and still get to stay in other room. After 5 years, sublet whole flat for more than 6%

Too bad I cant buy another hdb flat to sublet.

Provided you do not need to take any loan and no other expenses.

 

[henrylbh]

Provided you do not need to take any loan and no other expenses.

If eligible to buy and sublet at gross yield of 6%, it worth borrowing any amount, especially this time when interest is barely 1.2%.

 

[hitmen]

Buy a 3rm hdb for about 320k and rent out the master bedroom for about 1k. That's more than 3% return in cash and still get to stay in other room. After 5 years, sublet whole flat for more than 6%

Too bad I cant buy another hdb flat to sublet.

hi henry, the 320k is pay through CPF or bank loan? Is it subsidised flat or non-subsidised flat?

How you calculate the 3% ??

 

[cscs3]

What talking you

If you leave money in CPF, you earn 2.5% interest but the interest remain in CPF.

If you invest your CPF money in property, the rental income will go directly into your pocket as well as capital gain, if any.

The CPF Board should make all gain on use of CPF to go back to CPF similar to gain on shares.

Actually this is a good suggestion. Another way to clam the property market.

 

[cscs3]

If eligible to buy and sublet at gross yield of 6%, it worth borrowing any amount, especially this time when interest is barely 1.2%.

You may want to check sublet is still allowed?
Or you just want to take a risk to sublet it out?

 

[cscs3]

CPF = tax .. period.

It all depend. If you happen to live in country where they use retirement sch. You will know if you happen to get laid off before retirement. You basically get nothing.

So which way you preferred? Take a risk or save as you work?

 

[knightdreamer]

Hi,

Will CPF interest rate change?
From yesterday newspaper, it mention that SMRA will revise to minimum 2.5%

 

[Dividends Warrior]

Provided you do not need to take any loan and no other expenses.

And also provided can find tenants.

 

[lzydata]

Hi,

Will CPF interest rate change?
From yesterday newspaper, it mention that SMRA will revise to minimum 2.5%

This is not correct. Actually the floor rate of 4% was extended for another year, to 31 Dec 2014. Eventually they want to move to a floating rate of 10-year SGS yield plus 1%, with minimum 2.5%, but with the low interest rate environment likely for many years to come, this becomes more and more unlikely. Will the government want this to become an issue in the next GE? The question answers itself.

Actually, considering the SMRA is the long-term return for Singaporeans' retirement savings, they should just make 4% the minimum. For the government, a 4% nominal return over the long run is hardly onerous.

CPF Board - Minimum 4% interest rate for Special, Medisave and Retirement Account monies to be extended until 31 December 2014 - my CPF 1

 

[knightdreamer]

This is not correct. Actually the floor rate of 4% was extended for another year, to 31 Dec 2014. Eventually they want to move to a floating rate of 10-year SGS yield plus 1%, with minimum 2.5%, but with the low interest rate environment likely for many years to come, this becomes more and more unlikely. Will the government want this to become an issue in the next GE? The question answers itself.

Actually, considering the SMRA is the long-term return for Singaporeans' retirement savings, they should just make 4% the minimum. For the government, a 4% nominal return over the long run is hardly onerous.

CPF Board - Minimum 4% interest rate for Special, Medisave and Retirement Account monies to be extended until 31 December 2014 - my CPF 1

Thanks for your clarification. I was thinking that the government may revise it after 2014.