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estella83

Using Cpf For Second Property

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I invest in good BED, sleep like a pig. Spend ppl money when you are young, sepnd your own money when your old cos nobody want to lend you. Property is my lucky bet, but loss in car everytime.

Remember the old days, Ah Kong buy land and gold. But I didn't listen. Otherwise, I retire liao.

If I don't hit now, next time, really cannot sleep, keep staring at my wife, asking "How Ar ?"

Great man think alike!

Edited by bepgof
 

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Join 46,923 satisfied homeowners who used renotalk quotation service to find interior designers. Get an estimated quotation
not branding you lah. Got $$ can invest property but not overstretch.

Just my view. The interest rate seems to be lower but the interest amount is substantial to eat up all your profits. Let's do some very simple calculations (for discussion sake, and don't include inflation, compounded rate, reducing principles, etc). Say, if you buy a unit at $350K only, and your loan is 2% every year. Your total interest over 30 years of tenure is $210000. Let's say property price went up and you sell it at $450K 5 years later. Your interest for that 5 years should be $35K. Plus the reno costs and whatever fees you need to pay in relation to the sale, you don't earn anything. But note, this is a simplistic scenario. In reality, your loan interest is not 2% forever. So, my view is, service the loan quickly up to a substantial amount so that you have little principal to pay off in the subsequent tenure period.

 

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Hi Cheng03,

Reno not related, whichever way you pay yr loan, must still spend.

interest = 35k. Just compare what you would have gain by using 210k, assuming you have.

If saving interest, investment..etc > 35k, then you gain. If your projection is <35k then go ahead to fully redeem it.

We should constantly review the port folio. Depends on your appetite. Hungry now :) just kidding.

But, if end of the end, its still breakeven, you still gain..

Gain to stay, got a roof over your head for 30years.

 

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Just my view. The interest rate seems to be lower but the interest amount is substantial to eat up all your profits. Let's do some very simple calculations (for discussion sake, and don't include inflation, compounded rate, reducing principles, etc). Say, if you buy a unit at $350K only, and your loan is 2% every year. Your total interest over 30 years of tenure is $210000. Let's say property price went up and you sell it at $450K 5 years later. Your interest for that 5 years should be $35K. Plus the reno costs and whatever fees you need to pay in relation to the sale, you don't earn anything. But note, this is a simplistic scenario. In reality, your loan interest is not 2% forever. So, my view is, service the loan quickly up to a substantial amount so that you have little principal to pay off in the subsequent tenure period.

1. Must remember that we are not actually spending $350k...buying a $350k means using at most $70k in cash.

2. No need to reno.

3. So if sell for $100k profit (minus the stamp duty, lawyers fee etc) for $70k outlay is quite solid don't u think?

Leverage....

 

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Any experts can advise on this.

We've 3 properties. No. 1 is paid by CPF and monthly contribution while no. 2 and 3 are by cash. We've intention to sell this property if the price is reasonable.

When that happens, we intend to divert all our CPF monies from the sale to pay for property no. 2. We should be able to clear off the entire loan fully. Given this situation, we don't need the CPF monies to pay for instalment.

I am wondering if we can then use the CPF monies (eg. monthly contribution) to pay for the instalment of property no. 3????

Are there any implications if the property is paid using CPF? Any watchouts? My spouse is not keen to pay off property 2 with CPF monies as he is concerned with the inability to get back title deed.

 

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Any experts can advise on this.

We've 3 properties. No. 1 is paid by CPF and monthly contribution while no. 2 and 3 are by cash. We've intention to sell this property if the price is reasonable.

When that happens, we intend to divert all our CPF monies from the sale to pay for property no. 2. We should be able to clear off the entire loan fully. Given this situation, we don't need the CPF monies to pay for instalment.

I am wondering if we can then use the CPF monies (eg. monthly contribution) to pay for the instalment of property no. 3????

Are there any implications if the property is paid using CPF? Any watchouts? My spouse is not keen to pay off property 2 with CPF monies as he is concerned with the inability to get back title deed.

I am not an expert.... but here's what I think:

I'm assuming you are selling off No.1 to pay for outstanding loan for No.2

- First of all, you need to pay back the bank loan

- Then you need to put back into CPF (with accrued interest) what you have used for No.1

- Then you can use the "leftover profit" to pay off No.2

CPF is now considered "unused" since you have topped it up. Theoretically, you can use this CPF (in your OA) to now pay for another property (No.3).

I've done this before but that was like 6 yrs ago so not sure if CPF has changed its rules.

I feel that if you want to maximise the use of your CPF for property, you should look at which one has the higher monthly instalments (or outstanding loan). So if No.3 has a higher monthly loan repayment, might be better to use the CPF for No.3 instead of No.2.

I am not aware of any implications if property is paid using CPF, except that if you past 55yrs old and you sell the property, you'll need to top up your CPF to the minimum sum before you can have the "profit" as cash in your hands. So if you are nearing that age, better to do it fast or you'll not be able to use a bulk of the CPF.

Not sure why your spouse is afraid of not being able to get back the title deed... the house is yours so long as you are able to finance the loan for it. And actually, the title deed is held by the bank where you took the loan from :)

 

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Any experts can advise on this.

We've 3 properties. No. 1 is paid by CPF and monthly contribution while no. 2 and 3 are by cash. We've intention to sell this property if the price is reasonable.

When that happens, we intend to divert all our CPF monies from the sale to pay for property no. 2. We should be able to clear off the entire loan fully. Given this situation, we don't need the CPF monies to pay for instalment.

I am wondering if we can then use the CPF monies (eg. monthly contribution) to pay for the instalment of property no. 3????

Are there any implications if the property is paid using CPF? Any watchouts? My spouse is not keen to pay off property 2 with CPF monies as he is concerned with the inability to get back title deed.

Seem complicated.

1. Sell away #1, $ back to cpf.

2. Then Use cpf to fund #2 - can use 120VL or 150VL? depend on the yr u decide to use cpf , considered as 1st property, minimum sum does not apply. cos u use cpf for ONE property only.

3. If use cpf to pay #3 while still holding on #2, then #3 is subjected to minimum sum (61.5k from each party ,cannot use)(61.5k inclusive of OA+SA+inv)whicever lower then u can use. Also subject to 100%VL?

Catch the ball? Must look at the co-owner's financial portfolio as well.

 

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Any experts can advise on this.

We've 3 properties. No. 1 is paid by CPF and monthly contribution while no. 2 and 3 are by cash. We've intention to sell this property if the price is reasonable.

When that happens, we intend to divert all our CPF monies from the sale to pay for property no. 2. We should be able to clear off the entire loan fully. Given this situation, we don't need the CPF monies to pay for instalment.

I am wondering if we can then use the CPF monies (eg. monthly contribution) to pay for the instalment of property no. 3????

Are there any implications if the property is paid using CPF? Any watchouts? My spouse is not keen to pay off property 2 with CPF monies as he is concerned with the inability to get back title deed.

title deed no difference whether your pay by cash or cpf.

title deed difference only for HDB & PTE... For HDB, title deed only got address, no name :)

For PTE, they, keep updating the new owner name.

 

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After reading this topic, i m totaly confused.

I guess best way is to BORN filthy RICH in the 1st place - and you don't have to care all the rules set by govt.

How i wish i m rich to buy any property i like without thinking of all these cpf (put in , put out) rules.

 

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If i'm intending to buy a resale HDB now. Does it mean if my OA+SA is more than 61.5k, i can still use my cpf to service the monthly loans for the two properties?

 

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If i'm intending to buy a resale HDB now. Does it mean if my OA+SA is more than 61.5k, i can still use my cpf to service the monthly loans for the two properties?

Must meet following conditions(And, not or)...

1. Your spouse can provide another 50% his/her. ie (OA+SA+inv)>61.5k

2. (OA+SA+inv)=D, If OA>(D-61.5) can use ONLY the remaining amount(D-61.5)

Edited by bepgof
 

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Must meet following conditions(And, not or)...

1. Your spouse can provide another 50% his/her. ie (OA+SA+inv)>61.5k

2. (OA+SA+inv)=D, If OA>(D-61.5) can use ONLY the remaining amount(D-61.5)

So does it means if currently OA+SA+inv = $145k

Can use 83.5k as deposit for the resale hdb? Spouse doesn't have more than 61.5k for (OA+SA+inv), so only planning only to use one party.

 

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So does it means if currently OA+SA+inv = $145k

Can use 83.5k as deposit for the resale hdb? Spouse doesn't have more than 61.5k for (OA+SA+inv), so only planning only to use one party.

1. HDB resale needs 5K cash(as booking & otp exercise)

2. Another 5% cash - this 5k, +cov, + agent's comm, the remaining can use cpf$ to settle.

3. 2 owners MUST HAVE > 50% in OA. If one meets, while the other one can't meet, then the first one must set aside $123,000 (100%), any balance in OA then can be used. Your spouse can only sit & watch = can't help.

Edited by bepgof
 

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