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Lee Kuan Yew: Hard Truths To Keep Singapore Going

Sgnick

By Sgnick,
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Piyopico

Piyopico

Supercharged
  On 1/24/2011 at 1:34 PM, Summer69 said:

 

Great link. Let me produce the whole article here.

 

Bear in mind that this only applies to those who switch from a HDB to a bank loan. Not sure if it affects those who took a loan from a bank straight away. Someone pls clarify.

 

..........................

(Sunday Times, 27 Nov 2005)

Are you nearing your CPF home limit?

If you switched from HDB loan to a bank loan, do check when your deadline is

 

By Leong Chan Teik

 

MOST Singaporeans with a mortgage pay it through automated Central

Provident Fund (CPF) deductions.

But for more than 600 home owners, their monthly instalments are done the

old-fashioned, painful way: with cash.

And it is not because that is their choice.

They have reached a little-known limit that kicks in, to do with using CPF

savings for the mortgage. This limit and another two types of limits might seem

mystifying - but are there to ensure one has enough for retirement, which,

after all, is the ultimate purpose of those savings.

Many home owners do not realise it, but make no mistake: Most of them will

one day reach any of these limits, which vary from individual to individual.

If you have no idea when your time is, you can check it out at the CPF website.

For many, the day of reckoning is a decade or two away. For others, it is

lurking just around the corner.

Whichever it is, you would want to prepare way in advance for the time when

you have to pay instalments with cash. Typically, for most people, it is a

significant sum.

The recently enhanced CPF calculator, which works out when you'll reach the

limit, is available at www.cpf.gov.sg

You do not require a password to use it.

Just key in the required information regarding your mortgage, including the

amount of CPF savings that you and any co-owner of your property have used

up so far.

If you do not have this information, you can retrieve it by logging into your

personal account at the CPF website but, of course, that requires a password. If

you do not have the so-called SingPass password, you can apply for it online at

the CPF website.

Alternatively, you can apply at various government and grassroots offices,

whose names and locations are provided on the CPF website.

Do not bother to find out the CPF limit, however, if yours is a new HDB home

bought with a concessionary loan from the HDB, as you are not subject to the

CPF housing withdrawal limits.

The limits apply if you have switched your loan to one from a bank, though.

 

2

That would be the case for HDB home owners who made the switch in the past

few years when bank mortgage rates plummeted to as low as 1.2 per cent.

The HDB concessionary rate did not budge below 2.6 per cent as it was pegged

at 0.1 percentage point above the interest rate payable on CPF Ordinary

Accounts. The latter rate, in turn, was fixed at a minimum of 2.5 per cent.

As an aside, interest rates on bank loans have now risen sharply, whereas the

HDB concessionary rate has not crept up at all.

For those who regret switching, there is no avenue that allows them to switch

back to HDB loans.

CPF mortgage limits

THERE are three types of CPF limits on mortgage repayment:

 

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KARTer

KARTer

2nd Gear
  On 1/24/2011 at 5:59 AM, Ncss said:

First of all, MM cannot replace Mr Horse... must ask his elder son [laugh]

2nd, Mr Horse is going to propose to built the largest "Shopping Mall" in S'pore... Tampines ppl will like him very much.

 

Dont we have enough shopping mall in tiny sgp??..... the Horse is using prescious land to buy votes for himself.... what a shame!!! .... it's high time to retire the useless horse..... but the million-dollar salary is holding him back, too good to give up!!!

 

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Tarzan666

Tarzan666

2nd Gear

Its not even a shopping centre..it's a "lifestyle hub"..got town council, cc, theatre etc..

Tampines already have 3..

 

y pple love when Hdb property go up, I can think of following reason.

 

1. Lotsa $ for children after parent pass away, my frd only child. Got $500k+ when parents passes away & he sold their marine parade flat.

 

2. Easier for current owner sell their current flat & get a unit they like.

 

3. Cash out, migrate..

 

4. Pple always have a feel good feeling when their investment appreciate. Like when u buy a car when Coe was low

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Atonchia

Atonchia

Supersonic
  On 1/24/2011 at 2:21 PM, KARTer said:

Dont we have enough shopping mall in tiny sgp??..... the Horse is using prescious land to buy votes for himself.... what a shame!!! .... it's high time to retire the useless horse..... but the million-dollar salary is holding him back, too good to give up!!!

 

 

Haven't you been to any shopping centre that is not crowded with people and need to crawl at least 15 minutes before on can enter the carpark?

 

Where got enough shopping malls?

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Atonchia

Atonchia

Supersonic

Many also took loan that still continue after they are older than 55yrs old.

 

After 55 yrs old the Ordinary account will cease to exist. Only the Special and Medisave account remains. Both cannot use to pay loan.

So any unpaid loan will have to be paid by cash.

 

Better clear all loan before turn 55yrs.

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Piyopico

Piyopico

Supercharged
  On 1/24/2011 at 3:03 PM, Atonchia said:

Many also took loan that still continue after they are older than 55yrs old.

 

After 55 yrs old the Ordinary account will cease to exist. Only the Special and Medisave account remains. Both cannot use to pay loan.

So any unpaid loan will have to be paid by cash.

 

Better clear all loan before turn 55yrs.

 

 

Ya this is one big shi tty problem many people will have in the near future.

 

You see those BTO pricing and the so called affordability index thingy? It is always based on 30 years loan and they can conclude that it is affordable. Whatz gonna happen to those who buy at age 25 onwards? Do theyH even get 30 years to pay cos they would reach 55 before that??? How many people buy a flat at age 25? The amount of misinformation is astounding.

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Theoldjaffa

Theoldjaffa

Hypersonic
  On 1/24/2011 at 5:29 AM, Ken4555 said:

so fast kanna 2warning liao? thought everybody just got their warnings erased..

 

and didnt know now is 3warnings and bye bye liao.... :huh:

He got warning for failing to do spell check haha

 

If I got him correctly the word should end with d right [:p]

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Darthrevan

Darthrevan

Supercharged
  On 1/24/2011 at 2:06 PM, KARTer said:

The horse was hand picked by MM when he became the first horse in any parliment.... (the horse lost to Chiam See Tong way back in potong pasir, can someone please confirm this)

 

lost to Chiam in 1984 [laugh]

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Friendstar

Friendstar

Supercharged
  On 1/24/2011 at 5:18 AM, Sgnick said:

Anyone read the book or watch the video? This thread is for the discussion/review of this book.

 

I only have time to watch the video, some part quite confusing

 

In the video dId MM says that HDB flats are sold to us MINUS land cost? Is it true?

 

 

i bought already.

 

but no time to open it yet.

 

zzzz

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Turbonetics

Turbonetics

2nd Gear
  On 1/24/2011 at 8:25 AM, Itsec said:

okie.. .. all the while.. i have doubt about our flat valuations.... allow me to pour it out.. correct me if i'm off track...

 

my ex-colleague bought a flat more than 600k, taking 30 yrs loan, with 500k of loan... excluding the interest!!! I believe at the end of the repayment period..... his CPF OA shall be very min. - assuming he stay on his job.. not many promotions... not job-hopping...

 

Is that our dear 'horse' promoting AFFORDABLE housing!!!!

 

My thoughts -> Are we are the slaves to our property... 30 yrs later.. we are left with no $$$..gov earn us via their so-called valuations and compound interest and we had to sell our flat back to them or pass down to our kids...

 

Its as good as i'm the tenant of this plot of land.. raised the price... and u lend $$$ from me.. with interest... then 30 yrs later.. u sell the house back to me.. and i pay u monthly bit by bit till u die!!! In short, the $$$ is always in my pocket... [laugh]

 

now back to the current situations... the resale of my unit had increase more than 150%.. Hence, simply value the unit with approx 150% profit.. meaning our gov is filthy filthy rich.. and inflation does not increased by 150% more... same goes to our salary... :angry:

 

correct my analogy if i'm wrong...

 

 

how much does your colleague earns per mth?

i believe he has a choice of cheaper flats.

 

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KARTer

KARTer

2nd Gear
  On 1/24/2011 at 3:00 PM, Atonchia said:

Haven't you been to any shopping centre that is not crowded with people and need to crawl at least 15 minutes before on can enter the carpark?

 

Where got enough shopping malls?

 

Got lah..... not all shopping malls are popular

 

But this is beside the point:- Shopping is not exactly a very menaingful life style.... why not build something more meaningful?

 

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Darthrevan

Darthrevan

Supercharged
  On 1/24/2011 at 5:11 PM, KARTer said:

Got lah..... not all shopping malls are popular

 

But this is beside the point:- Shopping is not exactly a very menaingful life style.... why not build something more meaningful?

 

most pple dun like meaningful life style..why force it on their throat? meaningful means no TV, reading, family time and living healthily..u think most pple want? [laugh] pple wants to shop, i say give it to them!

 

anyway, lots of defunct shopping malls..or those which are not popular.

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Latio2005A

Latio2005A

Turbocharged
  On 1/24/2011 at 3:32 PM, Darthrevan said:

lost to Chiam in 1984 [laugh]

horse talked big everytime...if only he goes back and standalone to fight with chiam to settle old scores of 2 - 0 once and for all. Otherwise no respect from me, a back door mp-made-ministar only

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