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Thread: Cash 400K, CPF 240K Age 41 married.

  1. #1
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    Default Cash 400K, CPF 240K Age 41 married.

    I am very happy someone message me about property but sad to share with him what he could have done. Property be it self stay or investment there are no one size fit all. Do ask for advise what you should do before committing your hard earn money. Make your money work hard for you after you have work hard for the Money. Just to share what would you do if you have the following. Cash 400K, CPF 240K Age 41 married.

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    Quote Originally Posted by Arcachon View Post
    I am very happy someone message me about property but sad to share with him what he could have done. Property be it self stay or investment there are no one size fit all. Do ask for advise what you should do before committing your hard earn money. Make your money work hard for you after you have work hard for the Money. Just to share what would you do if you have the following. Cash 400K, CPF 240K Age 41 married.
    wah 400k cash..i don't even have 40k cash

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    Quote Originally Posted by DMCK View Post
    wah 400k cash..i don't even have 40k cash
    He sold his HDB.

    Posted oversea since 2007.

    10 years of rental income or save his Singapore Salary.

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    Can we have more detail to discuss about this question as I would like to see what you have in mind too . Like his source income and any flats renting out now

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    Quote Originally Posted by Teo38 View Post
    Can we have more detail to discuss about this question as I would like to see what you have in mind too . Like his source income and any flats renting out now
    He bought a PC 880,000

    Need pay levy 45k

    Cash 400K cpf 240k loan 200k

    COLA - Cost of Oversea Living Allowance

    Monthly salary less than 3K

    Age 41

    Married with two kids

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    Advantage :


    Disadvantage :
    1. The PC under two ownership result in ABSD when buying another investment property.
    2RD 7% 3TH 10%
    https://www.iras.gov.sg/irashome/Oth...p-Duty--ABSD-/

    2. 880K property, first property can loan 80% but 640K was used instead.
    LTV is now up to 80 per cent of the property's value but subject to TDSR. It also depends on whether this is your first, second or subsequent mortgage and your loan tenure.

    For example, a buyer looking for a second housing loan, and one that extends beyond 30 years or his retirement age (set at 65), can only borrow up to 30 per cent of the value of the property, subject to TDSR.https://www.straitstimes.com/busines...-and-absd-mean

    3. CPF 240K use mean the property need to generate 2.6% return and it is compound interest.

    4. Sold HDB and keep 45K levy will ensure he never go back to new HDB again.
    5-room flat $45,000 http://www.hdb.gov.sg/cs/infoweb/res...---resale-levy
    However, we recognise that there are some second-timers who had sold their first HDB flat before 2006. Under the prevailing policy then, they were subject to a compound interest of 5% per annum if they chose to defer the payment of the levy until they collect keys to their second subsidized flat. Some of them are now looking to purchase a second flat from HDB, but face high interest on their resale levy accumulated over the years.https://www.mnd.gov.sg/newsroom/news...y-of-hdb-flats
    Last edited by Arcachon; 01-05-18 at 08:03.

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    Advantage :


    Disadvantage :
    1. The PC under two ownership result in ABSD when buying another investment property.
    2RD 7% 3TH 10%
    https://www.iras.gov.sg/irashome/Oth...p-Duty--ABSD-/

    2. 880K property, first property can loan 80% but 640K was used instead.
    LTV is now up to 80 per cent of the property's value but subject to TDSR. It also depends on whether this is your first, second or subsequent mortgage and your loan tenure.

    For example, a buyer looking for a second housing loan, and one that extends beyond 30 years or his retirement age (set at 65), can only borrow up to 30 per cent of the value of the property, subject to TDSR.https://www.straitstimes.com/busines...-and-absd-mean

    3. CPF 240K use mean the property need to generate 2.5% return and it is compound interest.
    https://www.areyouready.sg/YourInfoH...r-Housing.aspx

    4. Sold HDB and keep 45K levy will ensure he never go back to new HDB again.
    5-room flat $45,000 http://www.hdb.gov.sg/cs/infoweb/res...---resale-levy
    However, we recognise that there are some second-timers who had sold their first HDB flat before 2006. Under the prevailing policy then, they were subject to a compound interest of 5% per annum if they chose to defer the payment of the levy until they collect keys to their second subsidized flat. Some of them are now looking to purchase a second flat from HDB, but face high interest on their resale levy accumulated over the years.https://www.mnd.gov.sg/newsroom/news...y-of-hdb-flats

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    I think he should have kept the HDB for sure, and get a smaller older freehold 2 bedder. Since he will be overseas he can just rent out the PC.
    Why this particular example?

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    Quote Originally Posted by tonymontana View Post
    I think he should have kept the HDB for sure, and get a smaller older freehold 2 bedder. Since he will be overseas he can just rent out the PC.
    Why this particular example?
    After he sell and buy then he ask for advise. How can I help him when everything is cast in stone.

    Many a time will listen, think, act without asking for advise just like what I did in 2006 and 2011.

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    Well, not everyone will benefit equally from property. You can teach but the stubborn will never learn. Hard truth.

    Quote Originally Posted by Arcachon View Post
    After he sell and buy then he ask for advise. How can I help him when everything is cast in stone.

    Many a time will listen, think, act without asking for advise just like what I did in 2006 and 2011.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    My guess is without selling his HDB flat he does not have $400k. So cannot buy a PC also. If he do not put his name down in condo he cannot use CPF also. That's why still unable to buy condo if he never sold his hdb... it will be better that he keep the hdb.

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    Quote Originally Posted by Arcachon View Post
    He bought a PC 880,000

    Need pay levy 45k

    Cash 400K cpf 240k loan 200k

    COLA - Cost of Oversea Living Allowance

    Monthly salary less than 3K

    Age 41

    Married with two kids
    Sorry, why need to pay levy of $45k since he sold his HDB, and bought a private condo of $880k?

    Is his spouse working? Or the entire family of 4 is living off his COLA plus salary of less than $3k?

    Looking at his finances, it is very stretched, assuming spouse does not work and there are no other income streams. If I were him, I will sell off the private condo, move back into HDB (4 room resale, in a non mature or non central region that will bring the flat cost at less than $500k). Be debt free. Put the remaining monies into a capital preserved instrument that yields 2-3% per annum, and supplement his income. The whole family sleeps well.

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    Quote Originally Posted by new2mondrian View Post
    Sorry, why need to pay levy of $45k since he sold his HDB, and bought a private condo of $880k?

    Is his spouse working? Or the entire family of 4 is living off his COLA plus salary of less than $3k?

    Looking at his finances, it is very stretched, assuming spouse does not work and there are no other income streams. If I were him, I will sell off the private condo, move back into HDB (4 room resale, in a non mature or non central region that will bring the flat cost at less than $500k). Be debt free. Put the remaining monies into a capital preserved instrument that yields 2-3% per annum, and supplement his income. The whole family sleeps well.
    This is one of the good suggestion I will give him also.

    Most after selling their first HDB chose not to pay levy thinking they will not buy again.

    When years later they will regret but need to pay 5% compound.

    Be debt free. Put the remaining monies into a capital preserved instrument that yields 2-3% per annum, and supplement his income. The whole family sleeps well.

    May not be a good idea when you are young.

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    Quote Originally Posted by Arcachon View Post
    This is one of the good suggestion I will give him also.

    Most after selling their first HDB chose not to pay levy thinking they will not buy again.

    When years later they will regret but need to pay 5% compound.

    Be debt free. Put the remaining monies into a capital preserved instrument that yields 2-3% per annum, and supplement his income. The whole family sleeps well.

    May not be a good idea when you are young.
    On the first point, he should stick with resale HDB thereafter. No point going through the whole BTO process, and paying up the levy. On the 5% compound interest, he can seek waiver of interest after he turns 55, under the administrative concession in waiver of interest for elderly looking to downsize.

    With the clarification that government will not award SERS for HDB flats unless for exceptional, strategic land use circumstances, the price of resale HDB flats will only taper down with time. No point paying for the 45k levy.

    On second point, precisely because he has two kids and a family to feed, he should always put their needs first. Less than 3k salary is not much in Singapore’s context. If he loses his job, the whole family is affected. Better have some monies stashed away, live simply, and if he loses his job, he can be a Grab driver and the family finances will still remain sound. My two cents. 41 years is not young (at least by job market standards) anymore.

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    My take is to buy a condo n fully pay using his wife name .I don't know how long will be b oversea if still alot of years .. he will simply have 2 extra Income . By the time he come back he will still have the ability to get a condo under his Name since he had already purchased a condo .
    So may I know what is your take if you face this .

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    Quote Originally Posted by Teo38 View Post
    My take is to buy a condo n fully pay using his wife name .I don't know how long will be b oversea if still alot of years .. he will simply have 2 extra Income . By the time he come back he will still have the ability to get a condo under his Name since he had already purchased a condo .
    So may I know what is your take if you face this .
    He put two name in the condo.

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    Quote Originally Posted by Arcachon View Post
    He put two name in the condo.
    Some people need to security of name in ownership of assets. Silly but in case of marriage fallout it could be important.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by Arcachon View Post
    He put two name in the condo.
    I'm sorry but just to clarify, have you got this person's permission to share his financial background and story in a public forum?

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    Its just a discussion . He don't even put his name, job scope in this forum. We don't even this guy .. he can b real n fake ..

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    Quote Originally Posted by tonymontana View Post
    I'm sorry but just to clarify, have you got this person's permission to share his financial background and story in a public forum?
    Would you like to know his name address photo NRIC.

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    Quote Originally Posted by Teo38 View Post
    Its just a discussion . He don't even put his name, job scope in this forum. We don't even this guy .. he can b real n fake ..
    Like.

    I am not so creative, most if not all are real.

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    Quote Originally Posted by Arcachon View Post
    Would you like to know his name address photo NRIC.
    No I wouldn't. I'm asking you whether you got his permission to post his personal financial story all over the net. you know, client / friend confidentiality etc?

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    Quote Originally Posted by tonymontana View Post
    No I wouldn't. I'm asking you whether you got his permission to post his personal financial story all over the net. you know, client / friend confidentiality etc?
    How you know I did not modify a bit here or there, or how do you know what I gather is the truth from him or her.

    You sound just like my condo council member talking about PDPA without knowing what they are talking.

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    Another one.

    First flat =$121000 1993 5 room
    Sold in 1998 $379000.
    2nd resale flat =$408000 1999 ES
    Loan for $308000 for 30 yr. Outstanding $138000, monthly interest $300.
    Plan to clear all loan.

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    Quote Originally Posted by Arcachon View Post
    Another one.

    First flat =$121000 1993 5 room
    Sold in 1998 $379000.
    2nd resale flat =$408000 1999 ES
    Loan for $308000 for 30 yr. Outstanding $138000, monthly interest $300.
    Plan to clear all loan.
    After clearing what he intend to do .. if don't then what he intend to do .
    More info for discuss

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