[forum456]

https://www.straitstimes.com/singapore/h...up-in-cash

[p1acebo]

Only idiots think that property prices will always go up

I have seen friends easily lose 300k to 400k when they were desperate and needed money urgently to bail out their business in the early 2000s.

Another was a lady fren.  She and her fiance lost money when the guy refused to go ROM and the developer took back the unit, and they forfeited a huge part of their monies.  It was an EC.

[A2Z]

Sellers thank god they can manage to get out of the debt trap , buyers thank god manage to get their long awaited property. Buy with in means will hv no regrets.

[RiseofAsia]

Song Boh! Over priced housing.
Your CPF will be diluted… It will make more ppl even more difficult to retire in future.

[debono]

Song Boh! Over priced housing.
Your CPF will be diluted…

You are right on this score.....

[Bigiron]

Sad sigh

[RiseofAsia]

Sellers thank god they can manage to get out of the debt trap , buyers thank god manage to get their long awaited property. Buy with in means will hv no regrets.

When economy is fine, then no problem.
When economy is bad, this current garment never factored in long term down trend.

Law of Nature taught us the Nature have Yin and Yang forces. When the Yin comes, do you think you can always overcome the Yin force?

[klat]

Usually you will lose money if you sell due to the accrued interest. However, you can take it as you are staying there rental free.

[YummyKing]

https://www.straitstimes.com/singapore/h...up-in-cash

Cannot escape lah! Sooner or later they will know. Then not only you need to return the money into CPF. Plus interest also.And the interest is not current 0.000001 bank interest hor. It’s the CPF rate interest of 2.5%. If you cannot put back, or refuse to put back, they will send lawyer letter, then you have to pay the $200 lawyer letter.

Still if iron teeth, then go to court lor.and if try to say no money liao, very easy. They will sell your current flat. People forget we are living in a communist style of country.

[dynamite]

Like that mean bankrupt?

[[[ForeverAlone]]]

that time I posted here liao .

lol I not sure the seller " act blur " or what

[YummyKing]

Like that mean bankrupt?

Many years ago I sold some shares which I bought using CPF. Lost a lot of money. The next thing, CPF ask me to top up the losses into the CPF. I diddy dally, then came warning letters. I don’t know if other members experience this?

[RiseofAsia]

Many years ago I sold some shares which I bought using CPF. Lost a lot of money. The next thing, CPF ask me to top up the losses into the CPF. I diddy dally, then came warning letters. I don’t know if other members experience this?

I never buy share with CPF except die die they want to sell SingTel Share to me at a discount at that time.
I never encountered such problem before.

[dynamite]

Many years ago I sold some shares which I bought using CPF. Lost a lot of money. The next thing, CPF ask me to top up the losses into the CPF. I diddy dally, then came warning letters. I don’t know if other members experience this?

That made sense. Once you sold, must put back with interest. Those that bought hyflux and lehman bros with CPF not sure how.

[WhatDoYouThink?]

aiya, not all lost money. like buying toto, if any how buy ofc sure lose money

[sgbuffett]

In 2020, around 4,580 people were unable to fully refund the CPF monies used after selling their properties, compared with around 3,960 people in 2019 and 3,380 in 2018.

The Board did not indicate the shortfall in funds for this group of people, nor gave a breakdown of those who bought Housing Board (HDB) flats and private property.

Can someone explain how it can happen?
I can't understand how it can ever happen:

1. Min down payment is 10%.
2. CPF HDB loan is 2.6%..bank is 1.6%  and monthly payments are made for 5 yrs minium before flat can be sold.

When flat is sold it pays down money taken from CPF@2.5% interest on outstanding amount taken plus outstanding debt.

The entire sale price cannot cover the amount taken from CPF is a bit hard to believe because there was 10% down-payment made.

It means th total debt (CPF money taken plus putstanding) was growing faster than price appreciation plus down-payment.

Means that the price appreciation was below 2.5% per year

[debono]

That made sense. Once you sold, must put back with interest. Those that bought hyflux and lehman bros with CPF not sure how.

Those that bought hyflux and Lehman bro. will have a problem, cos their shares are now worthless....

[Tangsen]

Next generation, the children will be taking over the parents mortgages after they kaput …. bery much like Hon Kang

[debono]

Next generation, the children will be taking over the parents mortgages after they kaput …. bery much like Hon Kang

Who is Hon Kang....?

[WhatDoYouThink?]

Can someone explain how it can happen?
I can't understand how it can ever happen:

1. Min down payment is 10%.
2. CPF HDB loan is 2.6%..bank is 1.6%  and monthly payments are made for 5 yrs minium before flat can be sold.

When flat is sold it pays down money taken from CPF@2.5% interest on outstanding amount taken plus outstanding debt.

The entire sale price cannot cover the amount taken from CPF is a bit hard to believe because there was 10% down-payment made.

It means th total debt (CPF money taken plus putstanding) was growing faster than price appreciation plus down-payment.

Means that the price appreciation was below 2.5% per year

not all properties are the same. timing and location, if both are wrong ofc cannot sell at higher prices

go check those that were sold and couldn't pay back

[sgbuffett]

No bullshit lar, see proof below, $320K not enough to refund CPF used plus accrued interests, shortfall about $27K

Bro, means your return below 2.5%? On average property rose by less than 2.5%. That is pathetic.

[Tangsen]

Who is Hon Kang....?

[sgbuffett]

The mathematics is not very clear.

1. If one pays down payment of 10K for a $100K property. Will start off with outstanding $90K loam. If borrowed from HDB will 2.6%.

2. Once you pay this loan with CPF you owe CPF at 2.5%.

3. 25yrs later you owe $90x1.85=$166K.

4. A 100K home would easily fetch upwards of $250K after 25yrs.

5. Will be rare to have short fall.

[[[ForeverAlone]]]

The mathematics is not very clear.

1. If one pays down payment of 10K for a $100K property. Will start off with outstanding $90K loam. If borrowed from HDB will 2.6%.

2. Once you pay this loan with CPF you owe CPF at 2.5%.

3. 25yrs later you owe $90x1.85=$166K.

4. A 100K home would easily fetch upwards of $250K after 25yrs.

5. Will be rare to have short fall.

This is why NOT WISE TO INVEST property , Flip your BTO flat now and in future.

[babygirl]

Cannot escape lah! Sooner or later they will know. Then not only you need to return the money into CPF. Plus interest also.And the interest is not current 0.000001 bank interest hor. It’s the CPF rate interest of 2.5%. If you cannot put back, or refuse to put back, they will send lawyer letter, then you have to pay the $200 lawyer letter.

Still if iron teeth, then go to court lor.and if try to say no money liao, very easy. They will sell your current flat. People forget we are living in a communist style of country.

[babygirl]

Bought resale HDB flat for $123K, sold for $320K still not enough to refund CPF used + interests, true or not, you decide, I show the MATHS below

[babygirl]