View Full Version : CPF usage eligibility
let's say a couple (not married) wants to buy a condo and one of the parents want to pay the 20 % down payment for them using 5% cash and 15% cpf. the remaining 80% cpf will be contributed by the couple.
is this combination allowed? or they would not be able to use their cpf for the payment of the condo.:confused:
let's say a couple (not married) wants to buy a condo and one of the parents want to pay the 20 % down payment for them using 5% cash and 15% cpf. the remaining 80% cpf will be contributed by the couple.
is this combination allowed? or they would not be able to use their cpf for the payment of the condo.:confused:
I believe they only way this could be possible is that the "parents" will be treated as a co-owners of the property. However such arrangement could end up very messy
1) What will happen if the couple decides to go separate ways?
2) What will happen to the parents' CPF money if the couple is unable to service the loan during an economic and property downturn?
I think it is quite impossible unless the parents contribute 20% cash instead of 5% cash & 15% CPF or alternatively, the parents must be one of the owners. Because when the house is sold, CPF has to go back to its respective account unless the parents have already reached the retirement age, then maybe they can take out the cash. It is better to check with the CPF board for better understanding.
kingkong1984
25-07-11, 13:18
3 combo allowed but implications on loan tenure.
Why get into this? U need 3 people to agree to sell at the agreed price... Very messy if anyone objects. Why?
Just buy alone by parent and rent it to the two suckers.
Sorry OT abit.
Lets assume A, B & C are co-owner of an apartment. And if C decided to sell his share of the apartment to a friend D,
1) Can this be done without the blessing of A & B?
2) Does D needs to pay stamp fee?
kingkong1984
25-07-11, 13:26
I suppose the answer lies in manner if holding, joint or tenants in common. If latter, should be possible just like any other transaction.
I suppose the answer lies in manner if holding, joint or tenants in common. If latter, should be possible just like any other transaction.
Does it mean you can change ownership without having to pay stamp fee?
let's say a couple (not married) wants to buy a condo and one of the parents want to pay the 20 % down payment for them using 5% cash and 15% cpf. the remaining 80% cpf will be contributed by the couple.
is this combination allowed? or they would not be able to use their cpf for the payment of the condo.:confused:
If you are referring to yourself, then you must be a very blessed person ;)
devilplate
25-07-11, 13:58
Does it mean you can change ownership without having to pay stamp fee?
Nid to pay
Nid to pay
how much for stamp fee do you pay?
according to a mortgage loan banker, this combination is not allowed. in the sense that if the couple wants to utilise cpf to pay for monthly loan installments, they themselves must be the owners of the house and not with any other family member.
if the family member is involved (3 people), pty can still be bought but no cpf can be used.
devilplate
25-07-11, 15:07
how much for stamp fee do you pay?
Market valuation
but for ur previous eg of a,b,c tenancy in common with one of them selling his share to another person....i m not so sure how much stamp fees....
I believe dun hf to seek the other co owners for permission to sell bcoz i ever heard a story of a divorcee staying wif her ex husband's fren...lol
So for couple better buy wif joint tenancy
Why are they suckers? They haven't got married yet ...
3 combo allowed but implications on loan tenure.
Why get into this? U need 3 people to agree to sell at the agreed price... Very messy if anyone objects. Why?
Just buy alone by parent and rent it to the two suckers.
according to a mortgage loan banker, this combination is not allowed. in the sense that if the couple wants to utilise cpf to pay for monthly loan installments, they themselves must be the owners of the house and not with any other family member.
if the family member is involved (3 people), pty can still be bought but no cpf can be used.
The banker is right! To use cpf, ur scenario has to fall under of the allowable categories. To play safe, go to cpf board to seek confirmation before your purchase
CPF can be used if they are co-owners. Get more details from the CPF website.
Q: Are members allowed to use their CPF savings jointly to buy a property under Residential Properties Scheme (RPS)?
A: Yes. The following group of members can jointly use their CPF to buy a property:
• Members of the immediate family e.g. spouses, parents, children and siblings or
• Non-related singles (unmarried, divorced or widowed) provided that they are currently not using CPF for any existing properties.
The total CPF amount that can be withdrawn (lumpsum and monthly instalments) by all the joint owners should not be more than the withdrawal limit allowed.
The use of cpf is very restrictive to begin with so for anyone using cpf has to be a joint tenant of the unit. If no cpf is used, then loads of other combinations can be explored. :D
my friend went thru this, Father 50%, mum 25%, son 25%. Son found a meimei & decided to take over the unit. Meimei took over 50% (fathers' share) son took over the other 25% (mum's share) so the couple now holds 50/50. Stamp duty base on valuation.
This might be a better option, in case couple breaks up upon TOP. Treat the extra stamp duty as a form of 'insurance'.
Think there's another situation as 'gift', maybe someone can shed some light on this.
my friend went thru this, Father 50%, mum 25%, son 25%. Son found a meimei & decided to take over the unit. Meimei took over 50% (fathers' share) son took over the other 25% (mum's share) so the couple now holds 50/50. Stamp duty base on valuation.
This might be a better option, in case couple breaks up upon TOP. Treat the extra stamp duty as a form of 'insurance'.
Think there's another situation as 'gift', maybe someone can shed some light on this.
Did they pay 100% of the stamp duty just to take over the father 50% and mum's 25%?
Did they pay 100% of the stamp duty just to take over the father 50% and mum's 25%?
Just pay the remaining 75% duty.
kingkong1984
25-07-11, 21:11
how much for stamp fee do you pay?
Prevailing rates on the sales price.
kingkong1984
25-07-11, 21:14
Why are they suckers? They haven't got married yet ...
Thats why they are sucking the elderly dry.
Akira Fudou
25-07-11, 21:29
The real suckers are those who buy with parents' money and yet exclude their names from the ownership
I had come across a case. A very sad case. The retired father bought the house with his son using the father's CPF. Later the son got married and the father transferred his name to the son's wife thinking that he could also stayed in the same house. Something unhappiness happened between the son's wife and the father, so the father wanted to take back the house but the son said if he wanted the house, he must buy it from him. Where is the justice? :banghead:
buttercarp
26-07-11, 09:08
I had come across a case. A very sad case. The retired father bought the house with his son using the father's CPF. Later the son got married and the father transferred his name to the son's wife thinking that he could also stayed in the same house. Something unhappiness happened between the son's wife and the father, so the father wanted to take back the house but the son said if he wanted the house, he must buy it from him. Where is the justice? :banghead:
The moral of the story is not to transfer ownership of something to someone, especially if it is your only property, no matter how you love the someone or no matter how much the other party claims he loves you. Loan him by all means, everything must be in black and white.
If your parents can really afford it they wont need to touch their CPF monies.
The moral of the story is not to transfer ownership of something to someone, especially if it is your only property, no matter how you love the someone or no matter how much the other party claims he loves you. Loan him by all means, everything must be in black and white.
Or, if you love someone so much, consider it a gift and not a loan. So don't ever think about taking it back in future. Not reasonable to take back a gift right?
But if it is just an arrangement to help son to overcome red tape, then black and white is the best.
Do not expect to depend on your children in old age. Property prices will be so so high by then that you cannot expect them to accommodate another person, less staying in harmony with your son/daughter in-law. Prepare yourself now for old age without your children. They may still take from you when you are retired, not in a disrespectful manner but more like really too demanding for them to manage! :p
Or, if you love someone so much, consider it a gift and not a loan. So don't ever think about taking it back in future. Not reasonable to take back a gift right?
But if it is just an arrangement to help son to overcome red tape, then black and white is the best.
Because the couple wanted the old man to shift out but where to stay, of course he needed his flat back. Afterall the flat was fully paid by the father. I think the son should at least pay his father some money for the house if the son still wanted to stay in the same house and insisted his father to shift out. He shouldn't asked his father to buy from him and pay him if the father wanted the house back. That means the father will have to pay two times for the same house. :scared-1: Something made me boiled was that the son and the daughter-in-law were both highly educated. How can they treat an old man like that?:simmering:
I went with a group of friends to his house once during CNY and felt embarrased when his daughter-in-law came out from her bedroom and drawn the curtain between her bedroom and the hall angrily (maybe we were very noisy), the father felt bad and explained to us that she had just come back from a swim with his grand-daughter and they needed to rest but we didn't know that they were sleeping inside.:(
After this case, I come to realise that never transfer the house ownership to any of your children when you are still around. :tsk-tsk: At least when you grow old, you still have a roof over your head.
Just present this story online or in the papers and shame the couple. Let the public decide. :mad:
I have also hear story about young couple selling away their HDB to invest in private property or MM apartment, and then move back to live with their aging parents.
So their elderly parents will never be able to cash out or rent out their HDB for retirement.
This to me is totally wrong.
Because the couple wanted the old man to shift out but where to stay, of course he needed his flat back. Afterall the flat was fully paid by the father. I think the son should at least pay his father some money for the house if the son still wanted to stay in the same house and insisted his father to shift out. He shouldn't asked his father to buy from him and pay him if the father wanted the house back. That means the father will have to pay two times for the same house. :scared-1: Something made me boiled was that the son and the daughter-in-law were both highly educated. How can they treat an old man like that?:simmering:
I went with a group of friends to his house once during CNY and felt embarrased when his daughter-in-law came out from her bedroom and drawn the curtain between her bedroom and the hall angrily (maybe we were very noisy), the father felt bad and explained to us that she had just come back from a swim with his grand-daughter and they needed to rest but we didn't know that they were sleeping inside.:(
After this case, I come to realise that never transfer the house ownership to any of your children when you are still around. :tsk-tsk: At least when you grow old, you still have a roof over your head.
Sad case. Your friend shouldn't have given away the house. He can go to the Tribunal for the Maintenance of Parents (MCYS) to file a complaint and ask for monthly maintenance.
Much as I disapprove the son's action (not even talking about the daughter-in-law) of demanding the father to buy back the house from him, (how did he even bring himself to verbalize those demands?) I was also thinking that his behavior is either reflective of his personal beliefs, whether influenced by his wife, friends or even his own family members or the education system. It takes quite a lot for someone to actually conceive those ridiculous and rudicrous demands less articulating them. :doh: :simmering:
devilplate
26-07-11, 16:17
I have also hear story about young couple selling away their HDB to invest in private property or MM apartment, and then move back to live with their aging parents.
So their elderly parents will never be able to cash out or rent out their HDB for retirement.
This to me is totally wrong.
Not so bad lor provided the yng couple give mthly pocket money to their old folks lor....family bonding too:D i wud encourage ppl to do tat :cheers6:
Not so bad lor provided the yng couple give mthly pocket money to their old folks lor....family bonding too:D i wud encourage ppl to do tat :cheers6:
If you want family bonding, one should invite your parents over to stay with you and rent out their place use it as a source of income for their retirement.
devilplate
26-07-11, 16:34
If you want family bonding, one should invite your parents over to stay with you and rent out their place use it as a source of income for their retirement.
either way :D
If you want family bonding, one should invite your parents over to stay with you and rent out their place use it as a source of income for their retirement.Not so easy... very difficult to have parents staying with wife or vice versa. Not so straight forward. I'd rather spend more money to buy a house and spend 30 years tenure servicing the mortgage than to put up with any potential in-house disputes, fights, cold wars, etc. :D For every 1 couple I find who can stay with parents-in-law, I found another 9 who cannot.
If you want family bonding, one should invite your parents over to stay with you and rent out their place use it as a source of income for their retirement.
Actually this should be the way for family bonding but I have another case which is just the other way round. My colleague's brother-in-law rents out his own house and went to stay with his parents. The rental amount goes to his own pocket.
"Not so easy... very difficult to have parents staying with wife or vice versa. Not so straight forward. I'd rather spend more money to buy a house and spend 30 years tenure servicing the mortgage than to put up with any potential in-house disputes, fights, cold wars, etc. :D For every 1 couple I find who can stay with parents-in-law, I found another 9 who cannot."
Agree. If stay together with the in-laws, sure have some disagreement. All of us come from different background and was brought up differently. So certain habits that we have might be a sore eyes to her and vice versa. That's why before I married, I told my husband that I don't want to stay with my in-laws because I wanted to avoid any unnecessary disputes. :tsk-tsk:
I found that in this way, my relationship with my in-law is better than my 2 other sister-in-laws who stay next door. My husband, me and my 2 children went down to visit my in-law every Saturday. Once a while, we will bring her to overseas to experience other countries' culture. She loves it especially Beijing and Japan. Though she always said that "don't need lah, let you all spend money", but I could tell that she was actually very excited and happy. :D
When my husband gives her allowance, she will sure to give some back to him, my in-law is actually very good and understanding. So not necessary give her money, she will be happy, it is the care that matters, that's what I think.:cool:
BTW, how to put 2 "quotes' in 1 reply.
BTW, how to put 2 "quotes' in 1 reply.Reply two times lor. Just copy the quote from the 2nd reply and paste in the earlier one under edit. :o
Reply two times lor. Just copy the quote from the 2nd reply and paste in the earlier one under edit. :o
Oic, thank you.;)
Actually this should be the way for family bonding but I have another case which is just the other way round. My colleague's brother-in-law rents out his own house and went to stay with his parents. The rental amount goes to his own pocket.
"Not so easy... very difficult to have parents staying with wife or vice versa. Not so straight forward. I'd rather spend more money to buy a house and spend 30 years tenure servicing the mortgage than to put up with any potential in-house disputes, fights, cold wars, etc. :D For every 1 couple I find who can stay with parents-in-law, I found another 9 who cannot."
Agree. If stay together with the in-laws, sure have some disagreement. All of us come from different background and was brought up differently. So certain habits that we have might be a sore eyes to her and vice versa. That's why before I married, I told my husband that I don't want to stay with my in-laws because I wanted to avoid any unnecessary disputes. :tsk-tsk:
I found that in this way, my relationship with my in-law is better than my 2 other sister-in-laws who stay next door. My husband, me and my 2 children went down to visit my in-law every Saturday. Once a while, we will bring her to overseas to experience other countries' culture. She loves it especially Beijing and Japan. Though she always said that "don't need lah, let you all spend money", but I could tell that she was actually very excited and happy. :D
When my husband gives her allowance, she will sure to give some back to him, my in-law is actually very good and understanding. So not necessary give her money, she will be happy, it is the care that matters, that's what I think.:cool:
BTW, how to put 2 "quotes' in 1 reply.
Just remember that what ever we do, we are setting an example for our children to follow.
Just remember that what ever we do, we are setting an example for our children to follow.Words of wisdom. What we do to or for our parents today will be done to or for us tomorrow! :doh:
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