Pay Full For A Resale Flat

[roytan30 1]

Hi

Need some comment

I am going to purchase a resale flat,and i thinking to use out all my CPF to purchase a resale flat so that i do not need take up any loan or only take a very min loan,is it adviseable?

Thank you

[asianms 0]

For me, if I can pay for my flat without the need to take any loan, that would be great. However, there are those who take out a housing loan because they are investors, and they can generate higher returns by investing their CPF funds then the cost of the interest on a loan.

So it boils down to what you would do with the $ in your CPF account if you do not use it to pay for your house.

[ilmare612 0]

IMO, it's always better to be debt free. It gives you a peace of mind and can sleep better bah. No need to worry about retrenchment etc. Investments are best done when you have lesser commitment as it involves risk. So you have to decide which path you wanna take...

[hihihi 0]

if u have enough CPF, they will wipe out your CPF before considering u for eligability of taking up loan. Unless what some pple do is to use the CPF to invest in something else, then goto collect the keys. Also meaning that u "loss" your chance of concession rate loan from HDB. And to u can only utilise this chance again only if u're to upsize your current pigeon hole.

[popcorn 0]

Looks like you have a substantial amount in your CPF if you can make a full payment.

If I were you, I'll put all the numbers into an excel sheet and see by the time I reach 60, what is the amount I have in my CPF.

Few scenarios, you can work out, 1. Wipe out CPF, 2. Take a 10yr, 20yr or 30yr loan, 3. Invest CPF, 4. Let CPF earn interest.

There will definitely be uncertainties, but the end amount should be able to give you a better understanding before you make a decision.