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.
It is not actually an owed amount but an amount to return to your CPF account which eventually is in the RA account which you can draw on upon your retirement.
My wife and i used cpf to pay off, 250k, our HDB over 14 years and upon 15th year i check the interest stands at 177k. So even with compounding interest rates ot is not possible to reach 368k from 99k.
The CPF usage of $99,000 could grow to $368,000 due to high CPF interest rates, which were 6.5% from 1974 to 1985. The rates were reduced to around 5% in 1986 and gradually dropped to 2.5% by 1999, where they remain today.
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.
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.
The CPF usage of $99,000 could grow to $368,000 due to high CPF interest rates, which were 6.5% from 1974 to 1985. The rates were reduced to around 5% in 1986 and gradually dropped to 2.5% by 1999, where they remain today.
So you go to HDB to purchase a flat, they can tell you the growth rate? Then how would you know? If you know, how can you be for sure? Probably you have to make an assumption, and this so called growth rate is theoretical. Most people use cpf as you said, then you also said it's good to use a mix of cash and cpf. So how much cash? How much cpf? In percentage terms. How to calculate such an allocation?
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.
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.
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!😂
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.
base on compound interest calculator it's ard $277k, if after 55 from wht i know even if it's negative sale it will use to top up to frs any extra goes to OA which you can withdraw.
The CPF usage of $99,000 could grow to $368,000 due to high CPF interest rates, which were 6.5% from 1974 to 1985. The rates were reduced to around 5% in 1986 and gradually dropped to 2.5% by 1999, where they remain today.
Yes, all the money used to buy the flat + accrued interest will go back to OA but if one meets the FRS at age 55, he can withdraw all the money remaining in the cpf special and ord acc after setting aside the FRS in his RA acc.
Video channel owner should have verified the $368k figure before using it, instead of trusting and not questioning the claim made in the video which he saw.
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.
govenemt please dont worry we will draw out all our CPF and spend all away, we know how to spend our money, also by the time we can draw our money out, the person might not be able to enjoy life anymore!! Goverment, money is to spend not to keep! money in CPF please let us draw some out to spend and some to invest!
You can refer to this article to understand the CPF history. lkyspp.nus.edu.sg/docs/default-source/case-studies/cpf-case_final_feb2015.pdf?sfvrsn=eac0960b_2
Advice? The video totally distorts the "investment" case, and some details do not add up. Opportunity cost of using CPF? What are the alternatives? Do you have a property to live in otherwise? All not factored in. This presenter has no business giving "advice". If you want good advice, go to a qualified nd accredited financial advisor. UA-cam has little quality control over content.
It is possible. The CPF usage of $99,000 could grow to $368,000 due to high CPF interest rates, which were 6.5% from 1974 to 1985. The rates were reduced to around 5% in 1986 and gradually dropped to 2.5% by 1999, where they remain today.
@PropertyMadeSimple yes that i know during our father's time n when police was still running around wearing kaki shorts, baton in hand, whistle in shirt pocket n driving volkswagon bettles.... Let's not confuse then with NOW
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
SORRY NOT ENOUGH EMERGENCY , LEAST 180 DAYS WORTH SALARY
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
Pls use a compound interest calculator and plug in the values. You can get any of these calculators off google
It is not actually an owed amount but an amount to return to your CPF account which eventually is in the RA account which you can draw on upon your retirement.
Yup you are right
My wife and i used cpf to pay off, 250k, our HDB over 14 years and upon 15th year i check the interest stands at 177k. So even with compounding interest rates ot is not possible to reach 368k from 99k.
It’s actually possible to compound to $368,000
The CPF usage of $99,000 could grow to $368,000 due to high CPF interest rates, which were 6.5% from 1974 to 1985. The rates were reduced to around 5% in 1986 and gradually dropped to 2.5% by 1999, where they remain today.
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.
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.
Don’t need to worry about accrued interest. As long as u have met your FRS and sell after 55yo.
Still short sighted
Smart comment! Only returned the accured interest back to OA and retain FRS after 55.
Note the words...after 55! 😆😆😆
Chill ah...must go to another person's reply to attack. @hugohabicht9957
The maths does not add up.
Nvm just focus on the advice.
The CPF usage of $99,000 could grow to $368,000 due to high CPF interest rates, which were 6.5% from 1974 to 1985. The rates were reduced to around 5% in 1986 and gradually dropped to 2.5% by 1999, where they remain today.
So you go to HDB to purchase a flat, they can tell you the growth rate? Then how would you know? If you know, how can you be for sure? Probably you have to make an assumption, and this so called growth rate is theoretical.
Most people use cpf as you said, then you also said it's good to use a mix of cash and cpf. So how much cash? How much cpf? In percentage terms. How to calculate such an allocation?
Thanks for sharing your feedback. I think will have to do another video to show the breakdown will be better.
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'.
owe yourself not hdb as money goes back to your account.
Stay tuned to my next video
Still wondering why ?
As my HDB only about $288k and our cpf and now check we owned cpf over 360k ... Still wondering
As in you are wondering why your cpf owe is over $360k?
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.
The 368k is still the owners CPF account right? not CPF taking back
That why the million dollars flat must sell at 2 millions.
Legit. Make sense. That's why must outperform mah the 2.5%
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
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.
base on compound interest calculator it's ard $277k, if after 55 from wht i know even if it's negative sale it will use to top up to frs any extra goes to OA which you can withdraw.
The CPF usage of $99,000 could grow to $368,000 due to high CPF interest rates, which were 6.5% from 1974 to 1985. The rates were reduced to around 5% in 1986 and gradually dropped to 2.5% by 1999, where they remain today.
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
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?
Yes, all the money used to buy the flat + accrued interest will go back to OA but if one meets the FRS at age 55, he can withdraw all the money remaining in the cpf special and ord acc after setting aside the FRS in his RA acc.
@@edix06 Thank you for the info.
Video channel owner should have verified the $368k figure before using it, instead of trusting and not questioning the claim made in the video which he saw.
Thks. Just verified. It’s possible to hit $368,000
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.
But I think people are dying much earlier than you have thought.
Death accurred most at age 45-55 yrs old m, not like what you said long life.
@@新加坡歌台LIVE直播台 Let’s change our perspective and aim to live longer.
Those buying million using CPF now? How? 😅
lol… Their property value must grow faster to beat the CPF accrued interest of 2.5%
Viewer come and see how the calculation but nothing was show
Thanks for sharing. Will be doing a more detailed calculation in future videos
govenemt please dont worry we will draw out all our CPF and spend all away, we know how to spend our money, also by the time we can draw our money out, the person might not be able to enjoy life anymore!! Goverment, money is to spend not to keep! money in CPF please let us draw some out to spend and some to invest!
Lol
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?
You can refer to this article to understand the CPF history. lkyspp.nus.edu.sg/docs/default-source/case-studies/cpf-case_final_feb2015.pdf?sfvrsn=eac0960b_2
99000x(1.033)^(40)=362783.94
So for 3.3 percent compound interest for 40 years it explain the figures
So dumb saving scheme.
Advice? The video totally distorts the "investment" case, and some details do not add up. Opportunity cost of using CPF? What are the alternatives? Do you have a property to live in otherwise? All not factored in. This presenter has no business giving "advice". If you want good advice, go to a qualified nd accredited financial advisor. UA-cam has little quality control over content.
Thks for sharing your opinion. Will share more in details in future.
Totally agree with @ sweechen9762
@sweechen, totally agree with you
What about those millions paying interest to banks? 😢 what is reality check when CPF is for retiring purposes?
Waiting for this video to be pofma 😂
@@MyVideoHome2012 Omg… will it be?
@@jameschalkwig787 Thanks for sharing. Will bear this in mind
MAK
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
How did it happen? Because the owner did not bother to login to CPF and check his CPF property details for 40 yrs? 😂
@@user_dulcie I checked mine every now and then. Lol
Just get the hell out of Spore & migrate.
OMG... Though I have not been to many countries. I still believe that singapore is one of the best and safest country to live in
Becareful if your facts are not correct. CPF is "cheng hu"..... later kena POFMA😂
It is possible. The CPF usage of $99,000 could grow to $368,000 due to high CPF interest rates, which were 6.5% from 1974 to 1985. The rates were reduced to around 5% in 1986 and gradually dropped to 2.5% by 1999, where they remain today.
@PropertyMadeSimple yes that i know during our father's time n when police was still running around wearing kaki shorts, baton in hand, whistle in shirt pocket n driving volkswagon bettles.... Let's not confuse then with NOW
@@16141st lol… Cause you mentioned facts not correct. So I thought it’s important to share with audience so that they are not confused also. 🤣
@@16141st But thanks for pointing out. Maybe in the next week, will share the calculation
@@PropertyMadeSimple
Thanks !😃
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.
Scam.....
@@shiunang6326 If you think so. I cannot change your perspective