HDB REsales price

[Enye]

Yah, suddenly u feel that there is no housing bubble at all. Everything is still affordable.

 

i think i'll buy 2 condos tomorrow

 

aim to pay off in 30 years

 

[Animian]

I have a different strategy. Since HDB loan is pegged at CPF OA interest rate +0.1%, I keep all the money in OA and wait for suitable time to pick up some shares. The opportunity cost is 0.1% only. Depending on your loan size, it is ~$100-400 per year.

 

 

there are 2 way to see it

 

1) if one is confident investment with return more than enuff to cover interest then no issue

else

2) better pay off whatever ... to incur less interest lor

 

for lousy investors like us ... buy what blue chip and price will go down and nearly heartache ...think better to clear the loan

[BlueOldMan]

I have a different strategy. Since HDB loan is pegged at CPF OA interest rate +0.1%, I keep all the money in OA and wait for suitable time to pick up some shares. The opportunity cost is 0.1% only. Depending on your loan size, it is ~$100-400 per year.

I agree with your view since cpf % is same as hdb might as well

But my 2 nd one can't take loan

[Animian]

I agree with your view since cpf % is same as hdb might as well

But my 2 nd one can't take loan

 

you haben reached min sum har ? that;s why cannot take cpf loan for 2nd property ?

[Scholesy]

I think HDB/URA is doing a pretty good job of estate planning.

Just that overall numbers are challenging ...

 

ya agree, the problem is really too many too fast...

[Scholesy]

I have a different strategy. Since HDB loan is pegged at CPF OA interest rate +0.1%, I keep all the money in OA and wait for suitable time to pick up some shares. The opportunity cost is 0.1% only. Depending on your loan size, it is ~$100-400 per year.

 

but if u use it to buy shares, your opp cost is no longer 0.1% as the amount is out of your CPF and not earning the OA interest.

[Joseph22]

but if u use it to buy shares, your opp cost is no longer 0.1% as the amount is out of your CPF and not earning the OA interest.

it become 2.4% because you loan from it

[Animian]

it become 2.4% because you loan from it

 

then might as well pay loan lolz

[BlueOldMan]

you haben reached min sum har ? that;s why cannot take cpf loan for 2nd property ?

 

There's a rule that half of the profit from my current has to go to new flat so with cpf oreadi covered the full sum of next flat

 

Still tot can see some cash if can take loan again

[Animian]

There's a rule that half of the profit from my current has to go to new flat so with cpf oreadi covered the full sum of next flat

 

Still tot can see some cash if can take loan again

 

wah got such rule

[Othello]

There's a rule that half of the profit from my current has to go to new flat so with cpf oreadi covered the full sum of next flat

 

Still tot can see some cash if can take loan again

 

that is if you take CPF loan IIRC. Take bank loan dun need. check with your fav agent

 

[Raymondism]

wah 300k EA pay off in less than 5 yrs

 

1 million condo pay off in less than 15 yrs

 

very affordable

 

 

 

300k to pay off in 5 yrs is not difficult..

most pple will have a sizeable amount CPF to start with

[Kangadrool]

300k to pay off in 5 yrs is not difficult..

most pple will have a sizeable amount CPF to start with

 

That's the problem!

 

CPF is meant mainly for retirement, but somehow along the way, people minds get muddled and start exploring ways to utilise it and justify the sky high prices of subsidised housing.

[BlueOldMan]

that is if you take CPF loan IIRC. Take bank loan dun need. check with your fav agent

 

That's wat the hdb gal told me half the profit must go into nex flat

But if it's only apply to hdb loan then I will talk to a bank loan when nearer

Tks

 

But if jus pay with profit n cpf then no loan oso ok as I see still will get some balance cash

[Raymondism]

That's the problem!

 

CPF is meant mainly for retirement, but somehow along the way, people minds get muddled and start exploring ways to utilise it and justify the sky high prices of subsidised housing.

 

 

tats why get a small flat and clear off fast

then can start to save up on CPF again

[Scholesy]

it become 2.4% because you loan from it

 

haha no la...its 2.6%. means u loan 2.6% to buy shares.

[Roh96]

300k to pay off in 5 yrs is not difficult..

most pple will have a sizeable amount CPF to start with

 

Am I missing something?

 

Assuming one couple start working at 25, CPF starts from zero.

 

Assuming max CPF contribution from day 1, the max CPF contribution to OA is $2K/mth.

 

To pay off 300K loan without using cash, the couple have to work 150 months, or equal to 12.5 yrs.

 

 

[Kangadrool]

tats why get a small flat and clear off fast

then can start to save up on CPF again

 

but many people are paranoid that they will not be able to use their hard earned money. Plonking it in housing is the next natural step most people will do.