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I think is misleading. CPF is still our retirement/investment money. And the percent amount is controlled by the government.
Here's my calculation if i understand correctly.
When we use CPF money to pay for housing, we need to return the original taken plus the 4%(for the Initial ceiling) you would have gained from CPF have you not. This works out a span of 8% gap compound you have to pay long term when you sell. This is expensive loan of your own money.
Cory
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You only need to pay back the deferred interest when you sell your flat.
If you are happy and contended with what you have and see no reasons to sell, then you dun need to pay back the deferred interest.
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25-04-2011, 04:54 PM
(This post was last modified: 25-04-2011, 04:55 PM by corydorus.)
This is what i mean. The "deferred interest" original should have been given by CPF to your CPF account. Now you have to pay it out yourself. And you are paying higher flat cost (of the 4%) using CPF money which Mah seems to think is his money.
Isn't this a double whammy as is simply pushing us to higher debt structure ?
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After hearing my CEO (MBT) speech, I extremely worried on my investment in this company. It's time to seriously considering of an divestment.
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26-04-2011, 12:11 AM
(This post was last modified: 26-04-2011, 12:12 AM by Big Toe.)
This thread jolted my noodles suddenly.
This 2.6% we pay for HDB loan using CPF may not be such a good idea after all.
Add this to the 4% which we owe to ourselves on housing withdrawal from CPF and suddenly
it doesn't seem like a good deal after all.
As for affordability of HDB flats, it's up to individual interpretation.
Ah mah seems to think it perfectly fine to pay it off over 30years.
A more innovative scheme would be to have 2 generations pay off the loan.
I.e. Buy a flat at 30, by 60, the kids would already start working and
they could stay together take over the loan. This would further improve bonding, and thus deepening the
relationship between 2 generations.
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Yup, that's why I say we should up the GST to really help the poor;a few percentage points obviously doesn't help much with the widening income gap. Loosen immigration further to boost economic growth/productivity and so we can push asset prices to new heights. It's definitely worth it to pay a premium for a perpetually appreciating asset.