Page 1 of 3 123 LastLast
Results 1 to 10 of 25

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

  1. #1
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    8,179

    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.

  2. #2

    Default

    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

  3. #3
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    8,179

    Default

    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.

  4. #4

    Default

    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

  5. #5
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    8,179

    Default

    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

  6. #6
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    8,179

    Default

    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; 1st May 2018 at 09:03 AM.

  7. #7
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    8,179

    Default

    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

  8. #8

    Default

    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?

  9. #9
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    8,179

    Default

    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.

  10. #10
    Join Date
    May 2012
    Posts
    3,955

    Default

    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.

Page 1 of 3 123 LastLast

Similar Threads

  1. Another firesale in Lorong 14!!! 400K for 2 bedder!!!
    By xtreme_46 in forum Singapore Private Condominium Property Discussion and News
    Replies: 14
    -: 27th January 2017, 11:46 AM
  2. After you got married ...
    By 玉格格 in forum Coffeeshop Talk
    Replies: 37
    -: 6th January 2014, 03:26 PM
  3. What will U do with 400K cash (not CPF) if you cannot buy any residential till 2019
    By Kokono in forum Miscellaneous Discussion and News (HDB, EC, commercial and industrial property; general business/eco
    Replies: 25
    -: 15th October 2013, 05:38 AM
  4. 400k 1br?
    By missotah in forum Singapore Private Condominium Property Discussion and News
    Replies: 19
    -: 1st April 2013, 11:13 PM
  5. Get married, have babies
    By phantom_opera in forum Miscellaneous Discussion and News (HDB, EC, commercial and industrial property; general business/eco
    Replies: 181
    -: 17th August 2012, 11:02 PM

Posting Permissions