Summary of the key points in this article.
1. 13% of owners who sold their property are not able to return the CPF savings together with interest at 2.5% p.a.
2. They are not required to top up the shortfall (lucky for them)
3. They lose the cash that they paid towards the purchase of the property entirely. The amount depends on each individual owner.
4. However, they enjoyed the benefit of living in the property, i.e. they do not have to pay rental.
5. At one time, people think that purchase of a property will lead to a big gain, plus a free stay in the property. This does not apply to 13% of the home owners now. Property investment is not as attractive as it was a few decades ago.
2 comments:
Devils of the housing property mess created by their own people.
Trying to cure the housing mess with cooling measures( cannot remember how many times) also devils from their own people.
The ones who are suffering are the people.
This one I heard from an agent friend. Not very sure if it is true.
This single person has been living with her parents and is in her mid-thirties.
She decided to buy a place of her own.
She told the agent it was her first property as owner.
The agent told her she can use 5% cash, 15% from CPF as a deposit (before the new rules) and the rest from loans. She is drawing an income of $17K. She has her name as a borrower in her parents home but not as an owner( old rules can). Her parents needed to remortgage the house for financial reasons( younger brother going to top uni overseas) so as to prolong the years in repayment. They were only using her name, but she did not pay a single cent or use her CPF for the loan.
Unbeknown to her when she applied for the loan after the 1% cash deposit, the bank told her that she can only get a 45% loan and that all the rest had to be in cash and CPF. She forfeited her 1%. Said agent from ERA.
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