Trust in CPF?

[highsulphur]

am thinking of shifting some monies from OA to SA. but can anyone recommend how much money i should ideally keep in OA? if i intend to buy a house in 7 years time

If you don't have enough cash buffer for your home purchase, I suggest you leave your OA alone first. The opportunity cost is not a lot compared to the OA that can be used for your first purchase of your home if you really need it. You can reassess again after you purchase your home and have an idea what's the monthly mortgage payment

 

[hwmook]

Ask u 1 question. Do you want to own a house? Already bought or want to buy? I am talking about house ownership.

I already bought an HDB flat and staying inside. I am taking hdb loan and at the same time used most of my OA for investment. For most of the people who don't do equities, unit trusts investment will most probably just use the OA to buy another property after paying for the first. That's why I am against the OA for property, let the people decide how to invest their money. If you want to encourage people to buy their first home, just give them a grant to do so. Those singles might not want to buy a house and choose to live with their parents so be it. Those who have higher income and already fully paid for their home can take the money to invest elsewhere, let them do so. In this way, we would unlock a lot of value trapped in property and have a more vibrant economy.

 

[jujuhippo]

depends on ur income, whether u r sharing the bto downpayment with wife, and wat bto price range u r aiming for. then work backward and see how much u can transfer now.

personally, i have set aside 40k which sld be more than enough to cover most of the first bto 5% downpayment. anythin above i jus move to SA

income now is about gross 5K per month. i already have about 60K in OA today and don't have high expections on house. probably looking at 600K flat.

If you don't have enough cash buffer for your home purchase, I suggest you leave your OA alone first. The opportunity cost is not a lot compared to the OA that can be used for your first purchase of your home if you really need it. You can reassess again after you purchase your home and have an idea what's the monthly mortgage payment

how much cash buffer should i prep?

 

[hwmook]

My (fallible) impression is that the PAP government has made ever-rising prices for those 99-year leases a central pillar of the political compact between itself and the citizenry since the early 1990s.


I think we have gone way past the point of no return on this road of overpriced property that there is a large constituency interested in maintaining the status quo, attempts by the so-called 4G politicians to talk some sense into people's expectations on those 'time-decaying' 99-year leases notwithstanding.

There is no need to "talk", action speak louder. The 60 years remaining lease cap on CPF withdrawal already make people realise that there is a 99 years lease on HDB, not freehold as they have expected.

 

[hwmook]

income now is about gross 5K per month. i already have about 60K in OA today and don't have high expections on house. probably looking at 600K flat.



how much cash buffer should i prep?

You are 28 years old? Why 7 years time? If you are buying resales then I suggest you keep 25-30% of the target purchase price in OA. 20% down payment and duties plus buffer for price increase so 25-30% seem reasonable unless you intend to use cash.

 

[jujuhippo]

You are 28 years old? Why 7 years time? If you are buying resales then I suggest you keep 25-30% of the target purchase price in OA. 20% down payment and duties plus buffer for price increase so 25-30% seem reasonable unless you intend to use cash.

that's probably when i see myself slowing down my career and looking to settle down. okay noted on your recommendation to keep 25-30% of target price in OA for resale flats. thanks!

 

[NealKoh]

The likelihood of resale property price crashing?
Would it ever happen?
Hahaha

 

[cscs3]

The likelihood of resale property price crashing?
Would it ever happen?
Hahaha

Nobody know, during Golf war time, property price drop almost by half. House price closely related to country and regional situation.

 

[VEF888]

The likelihood of resale property price crashing?
Would it ever happen?
Hahaha

Never say never .... Happened to stronger economies... The black swan events will happen when it's least expected.

 

[BBCWatcher]

Iral

Never say never ....

It’s happened at least twice in Singapore. The Japanese invasion and occupation of Singapore wasn’t great for property values. The Asian Financial Crisis/SARS double whammy was also quite bad. And we’re (maybe) just coming off a multi-year sagging real estate market in Singapore.

Property markets don’t have to crash to be bad for real estate investors. A languishing property market is also bad for landlords and owners. You can park your money in 10 year Singapore government bonds and get 2.7% or thereabouts, tax free, so growing (and even a bit above inflation) is nothing special. That you can do with a AAA-rated government and with your eyes closed. Real estate investing is MUCH riskier, and you’ve clearly lost if you’re not even beating the lowest risk Singapore dollar bonds.

For the record, Puerto Rico has probably experienced the worst real estate performance within the past couple years. PR real estate values started falling rather precipitously before Hurricane Maria, and then Maria really hammered the island.

 

[dork32]

It’s happened at least twice in Singapore. The Japanese invasion and occupation of Singapore wasn’t great for property values. The Asian Financial Crisis/SARS double whammy was also quite bad. And we’re (maybe) just coming off a multi-year sagging real estate market in Singapore.

it happened more than twice.