Huh? The details of the story don't match up. $99,000 for a HDB 5-room flat? What world are you living in? Even at BTO prices with maximum grants, a 5-rm flat would still cost upwards of $200,000. Even if they paid the difference in cash upfront and the $99k is the loan amount, the CPF accrued interest wouldn't have come up to over $300k. It wouldn't even reach $99k. CPF interest rate and loan shark interest rate is very very different. And if $99k is the actual purchase price of the flat, then this story more likely occurred in the 70s or 80s. And the buyer would be of retirement age by now. Would have fully paid off the flat + CPF accrued interest decades ago since it was only $99k. And the loan period was for over 40 years? Tell me, who offers HDB housing loans at 40-years tenure? No one! Because it's not allowed. Maximum tenure is 25-years for CPF loan and 30-years for bank loan. Either the buyer was lying when telling his/her story, or you're lying in your video in order to sensationalize this content for whatever reasons you might have. Either way, you should know better. Stop spreading false information. Your video had nothing revealing of the story nor the title. Clickbait. You were just essentially giving financial advice when using CPF monies for a property purchase. I might say that you could even be falling foul of the new rules on posting financial advice online.
The story happened in the 1980s. I got this story from another video. Just wanted to bring the message across on how to effectively use CPF funds when buying a property. By the way do take note that even when you fully pay your hdb with CPF funds, the interest will still keep rolling
Totally agreed . And misleading to cause hate to the govt . HDB and CPF are good things govt do for people for them to own their own house and also have a decent retirement. Facts should not be twisted to stir up social unrest .
I am 58 and I am returning my CPF housing loan in full with the accrued interest to earn 2.5%. The OA is now the main saving account. My bank savings account will limit to $5000 for emergency access.
You are right. I saw this story from another video who shared this figures. But the purpose of this video is really about how CPF Accrued interest affects us when we use it to buy properties. And how we can use it wisely. Thks for pointing out and appreciate it
Whatever he earns every month from his salary goes INTO CPF and then OUT again to pay for the flat. That means more money and interest owed. Plus we don't know if he took a HDB loan or private loan along the way any changes. It is entirely possible to go up to 368k. Based on 2.5% interest yearly, a 90k loan will balloon to 282k in 20 years. And that is disregarding the additional monies which came in and went out again.
Why not we look from a different perspective. It is true that CPF is for retirement. But it is allowed to be used for property purchase. So it is a choice. If CPF is not allowed for property purchase, we will also face another problem that Singaporeans might not be able to afford properties.
Hi, i have a question regarding this issue, if the owner pass away, does he need to pay back the 350k? What will happen to those accumulated sum if the owner pass away.
I just curious, but lets around up to 100K for the 5 room flat fully paid with CPF, using component interest calculation even after 40years at the interest of 2.6% the accrued interest don't even exceed 280K. So how did the CPF $368K interest come about?
You are right. I saw this story from another video and I thought I wanted to use this story to highlight some key important message when using CPF to purchase property. Thks
agree, please calculate before using numbers from other sources. The flat owner in this case would need to return to his own CPF account no more than 280k from the sale proceeds of this flat. Also, I think as long as the flat is sold at least at market valuation, if the sale value is insufficient to pay back to your own CPF, there is not need to top up in cash. E.g. say hypothetically the market is very bad and the flat was valued and sold at 200k, then all 200k will go back the owners' CPF accounts, but there is no need to top up the shortfall.
The accrued interest is the monies that you ought to earned should you not take them out for housing. In anyway at the end of the day, when you reached 55 yr old and sell your housing unit, the monies will foremost go to fulfil the Full Retirement Sum (FRS), any balance will be returned to the Ordinary Account (OA) to cross out the accursed interest which is basically your own monies.
Majorities of Singaporean don't plan ahead for their future retirement seriously at young age. People’s lifespan also continues to extend, our retirement cannot be postponed. So our SG govt has a sense of urgency and sense of mission to plan to save at least your CPF OA for your old age so that it will not be a burden to their children and the Govt. 人无远虑, 必有近忧. If one has no long-term considerations, he can hardly avoid troubles every now and then.; He who has no anxious thoughts for the future will find trouble right at hand.; If a man is not farsighted, he is bound to encounter difficulties in the near future.; Those who do not plan for the future will find trouble at their doorstep.
firstly $99k x 0.026 x 40 years the accrued interest is $103k. after 55 years old if you sold your property, all the accrued interest will still be your money. if your HDB value has appreciated, the earning though need to deduct accrued interest, they are still your money. yes agreed, if you have extra cash and earning nothing from it, one can use it to pay HDB home loan instead of using CPF. this way one can make 0.026% interest. but if one day you need money, the HDB cannot be remortgage for cash, and you will need to borrow money from bank at much higher interest rate.
Fake account? Just created 6 days ago? Hater? Please focus on the story not uttering bullshit without knowing. I watch it a couple of times to understand. The numbers can be off but it is a fact. Bro Singapore content also want to attack. Go live elsewhere lah!😂
I don't understand. Why not show how $99,009 becomes accured to $368,000 ? Too much words but no demonstration cannot bring the message across ?
Thanks for pointing this out. Will keep in mind when doing my future videos
Huh? The details of the story don't match up. $99,000 for a HDB 5-room flat? What world are you living in? Even at BTO prices with maximum grants, a 5-rm flat would still cost upwards of $200,000. Even if they paid the difference in cash upfront and the $99k is the loan amount, the CPF accrued interest wouldn't have come up to over $300k. It wouldn't even reach $99k. CPF interest rate and loan shark interest rate is very very different.
And if $99k is the actual purchase price of the flat, then this story more likely occurred in the 70s or 80s. And the buyer would be of retirement age by now. Would have fully paid off the flat + CPF accrued interest decades ago since it was only $99k.
And the loan period was for over 40 years? Tell me, who offers HDB housing loans at 40-years tenure? No one! Because it's not allowed. Maximum tenure is 25-years for CPF loan and 30-years for bank loan. Either the buyer was lying when telling his/her story, or you're lying in your video in order to sensationalize this content for whatever reasons you might have. Either way, you should know better. Stop spreading false information.
Your video had nothing revealing of the story nor the title. Clickbait. You were just essentially giving financial advice when using CPF monies for a property purchase. I might say that you could even be falling foul of the new rules on posting financial advice online.
The story happened in the 1980s. I got this story from another video. Just wanted to bring the message across on how to effectively use CPF funds when buying a property. By the way do take note that even when you fully pay your hdb with CPF funds, the interest will still keep rolling
this is exactly why the regulator is stepping in, because of the subpar quality of data presented, without any consequences today.
I am sorry for that. Promise to do greater content for my audience
Totally agreed . And misleading to cause hate to the govt . HDB and CPF are good things govt do for people for them to own their own house and also have a decent retirement. Facts should not be twisted to stir up social unrest .
??? Why did my video caused hate to the govt? I really don't understand.
I am 58 and I am returning my CPF housing loan in full with the accrued interest to earn 2.5%. The OA is now the main saving account. My bank savings account will limit to $5000 for emergency access.
Wow! Happy for you
hmm... get the maths right, even after compounding for 50 years.. it doesnt go to 368k
You are right. I saw this story from another video who shared this figures. But the purpose of this video is really about how CPF Accrued interest affects us when we use it to buy properties. And how we can use it wisely. Thks for pointing out and appreciate it
Whatever he earns every month from his salary goes INTO CPF and then OUT again to pay for the flat. That means more money and interest owed. Plus we don't know if he took a HDB loan or private loan along the way any changes. It is entirely possible to go up to 368k.
Based on 2.5% interest yearly, a 90k loan will balloon to 282k in 20 years. And that is disregarding the additional monies which came in and went out again.
@@Drakeo-l8sExactly. Pretty obvious. Don’t use CPF.
@@PropertyMadeSimpleso you are basically admitting that this is not based on facts ! CPF is designed for retirement, not for buying property.
Why not we look from a different perspective. It is true that CPF is for retirement. But it is allowed to be used for property purchase. So it is a choice. If CPF is not allowed for property purchase, we will also face another problem that Singaporeans might not be able to afford properties.
Hi, i have a question regarding this issue, if the owner pass away, does he need to pay back the 350k? What will happen to those accumulated sum if the owner pass away.
No need to pay accrued interest for his share of the property.
If you look from another perspective, the $350k is actually the owner's money.
Don’t need to worry about accrued interest. As long as u have met your FRS and sell after 55yo.
Still short sighted
Since when this acrude interest started?
The moment you use it to purchase a property
@PropertyMadeSimple I mean when was this ruling was started enforce. Which year?
I just curious, but lets around up to 100K for the 5 room flat fully paid with CPF, using component interest calculation even after 40years at the interest of 2.6% the accrued interest don't even exceed 280K. So how did the CPF $368K interest come about?
You are right. I saw this story from another video and I thought I wanted to use this story to highlight some key important message when using CPF to purchase property. Thks
agree, please calculate before using numbers from other sources. The flat owner in this case would need to return to his own CPF account no more than 280k from the sale proceeds of this flat. Also, I think as long as the flat is sold at least at market valuation, if the sale value is insufficient to pay back to your own CPF, there is not need to top up in cash. E.g. say hypothetically the market is very bad and the flat was valued and sold at 200k, then all 200k will go back the owners' CPF accounts, but there is no need to top up the shortfall.
How many out of 10 can use cash to pay their housing loan ….😢 the interest will go back to yr account…
Because he also worked and contributed and took out the monies along the way to pay for the flat. Those are additionally 'owed'.
Asset rich, cash poor.
Does that mean withdrawing from CPF comes with interest charge? Can't understand much from the video since I'm newbie
Stay tune to my next upcoming video. You will understand it better
The maths does not add up.
Nvm just focus on the advice.
Those buying million using CPF now? How? 😅
The accrued interest is the monies that you ought to earned should you not take them out for housing. In anyway at the end of the day, when you reached 55 yr old and sell your housing unit, the monies will foremost go to fulfil the Full Retirement Sum (FRS), any balance will be returned to the Ordinary Account (OA) to cross out the accursed interest which is basically your own monies.
Majorities of Singaporean don't plan ahead for their future retirement seriously at young age. People’s lifespan also continues to extend, our retirement cannot be postponed.
So our SG govt has a sense of urgency and sense of mission to plan to save at least your CPF OA for your old age so that it will not be a burden to their children and the Govt.
人无远虑, 必有近忧. If one has no long-term considerations, he can hardly avoid troubles every now and then.; He who has no anxious thoughts for the future will find trouble right at hand.; If a man is not farsighted, he is bound to encounter difficulties in the near future.; Those who do not plan for the future will find trouble at their doorstep.
Thanks for sharing your thoughts. I totally agree with you that one has to be farsighted and plan their retirement properly.
firstly $99k x 0.026 x 40 years the accrued interest is $103k. after 55 years old if you sold your property, all the accrued interest will still be your money. if your HDB value has appreciated, the earning though need to deduct accrued interest, they are still your money. yes agreed, if you have extra cash and earning nothing from it, one can use it to pay HDB home loan instead of using CPF. this way one can make 0.026% interest. but if one day you need money, the HDB cannot be remortgage for cash, and you will need to borrow money from bank at much higher interest rate.
If one meet the FRS at age 55, and his sold flat sold, does all the CPF money he used to buy the flat + accrued interest go back to his OA?
That why the million dollars flat must sell at 2 millions.
Legit. Make sense. That's why must outperform mah the 2.5%
What about those millions paying interest to banks? 😢 what is reality check when CPF is for retiring purposes?
Cock and bull story. Math is all wrong. And who says they "owe" CPF? What sort of rubbish is this?
Fake account? Just created 6 days ago? Hater? Please focus on the story not uttering bullshit without knowing. I watch it a couple of times to understand. The numbers can be off but it is a fact. Bro Singapore content also want to attack. Go live elsewhere lah!😂
Thanks so much! Appreciate it!
Do your research
Waiting for this video to be pofma 😂
lolz..keep on talking round n round..dont understand what u talking
I apologies for that. Will aim to do better content so that it is easier for audience to understand
u may want to be more serious and do your homework more professionally before going on video. or u got other agenda??
I apologies for that. Will aim to do better content for my audience
Quite unhelpful actually Lol
I am sorry. Hope to bring better content soon.