29-12-2010, 04:51 PM
Hi guys,
I'm sure you know of the CPF requirement that when you use CPF to pay for the instalment, when the house is sold, after deducting bank loans, the total CPF amount being drawn out has to be returned to the CPF account + accrued interests.
1. The compounding effect of this accrued interest will be huge when we are talking about 20,30 yrs down the road;
2. HDB flats have to be selling higher and higher year-on-year to ensure that the people will not be losing out after deducting all these principals +interests;
3. Will HDB breach 1m in future? I think based on CPF policy, we can take for granted that it is a given
4. However, if we are talking about a 20 yr old flat now valued at 600k, in 20 yrs' time, it'll be 40 yrs, with remaining lease of 59 yrs. Will it be able to fetch 1m? If so, will the buyer be able to take up a bank loan?
Will some excel-zai brothers here be able to run out some scenarios for everyone to ponder the million-dollar-flat question?
I think there are really a lot of questions that are unanswered which has influenced my decision to defer that flat purchase...............
I'm sure you know of the CPF requirement that when you use CPF to pay for the instalment, when the house is sold, after deducting bank loans, the total CPF amount being drawn out has to be returned to the CPF account + accrued interests.
1. The compounding effect of this accrued interest will be huge when we are talking about 20,30 yrs down the road;
2. HDB flats have to be selling higher and higher year-on-year to ensure that the people will not be losing out after deducting all these principals +interests;
3. Will HDB breach 1m in future? I think based on CPF policy, we can take for granted that it is a given
4. However, if we are talking about a 20 yr old flat now valued at 600k, in 20 yrs' time, it'll be 40 yrs, with remaining lease of 59 yrs. Will it be able to fetch 1m? If so, will the buyer be able to take up a bank loan?
Will some excel-zai brothers here be able to run out some scenarios for everyone to ponder the million-dollar-flat question?
I think there are really a lot of questions that are unanswered which has influenced my decision to defer that flat purchase...............