Using Cpf For Second Property

[estella83 0]

hi, i'm targeting to finish servicing my hdb loan in 3.5yrs time and should be buying a private property in a yr time. question, let say if i buy private and service it with cash, and upon finishing servicing my first property, can i use cpf to service my 2nd property even if i do not meet the min sum in my cpf and since i am no longer servicing any loan usng cpf? thanks

[Spikey 0]

hi, i'm targeting to finish servicing my hdb loan in 3.5yrs time and should be buying a private property in a yr time. question, let say if i buy private and service it with cash, and upon finishing servicing my first property, can i use cpf to service my 2nd property even if i do not meet the min sum in my cpf and since i am no longer servicing any loan usng cpf? thanks

u still need to meet min sum to service a second property...it would be better not to finish paying off your HDB yet and build up more CPF in order to meet the min sum required to fund your 2nd property

[estella83 0]

yea, but i can never have 60k contribution in one year and my SA is pathetic

[silverfins 0]

yea, but i can never have 60k contribution in one year and my SA is pathetic

I would suggest saving up on the cash to pay for second ptoperty. Use CPF to pay for the HDB. Also depends on your current OA+SA amount.

[estella83 0]

yep, trying to exercise my option i have already check with cpf, it's OA + SA + cpf investment

Edited July 8, 2010 by estella83

[Warrior88 0]

yep, trying to exercise my option i have already check with cpf, it's OA + SA + cpf investment

Think can use SA if OA=0, provided you still meet 50% MS in ( SA+investment ) for your 2nd hse.

So, why use cash ?

[therat 18]

Think can use SA if OA=0, provided you still meet 50% MS in ( SA+investment ) for your 2nd hse.

So, why use cash ?

don't think can use SA any more

http://ask-us.cpf.gov.sg/hybrid/Themes/CPF...&SourceId=0

Q: Can I use the Special Account savings for the payment of purchase price of a property or capital repayment of my housing loan?

A: No. The use of the Special Account savings is to help members meet the shortfalls in their monthly housing payments due to the CPF changes. As such, it cannot be used for purposes other than monthly instalment payments e.g. capital repayments or progress payments.

[therat 18]

http://ask-us.cpf.gov.sg/hybrid/Themes/CPF...&SourceId=0

Q: What are the conditions for me to use the savings in my Special Account to pay my monthly housing payments?

A: From November 2003, you can use your Special Account savings for monthly housing payments, provided you meet the following conditions:

* Your property is bought before 1 October 2003;

* You are eligible to use your CPF savings to pay your monthly housing payments under the rules of the PHS/RPS/NRPS;

* Your Ordinary Account contribution is insufficient to meet the monthly housing payments; and

* The balance in your Ordinary Account has been depleted.

The following dates are used to determine the date of purchase:

For private properties, HUDC flats and non-residential properties

Upon signing the Option to Purchase, or the Sale & Purchase Agreement, whichever is applicable.

For HDB properties

Flat bought direct from HDB : Date of signing the Agreement For Lease (i.e. date 20% downpayment is made)

Flat bought from open market: Date of signing the Sale & Purchase Agreement / Option to Purchase

[therat 18]

Door close.

Cannot touch SA

[bepgof 20]

yep, trying to exercise my option i have already check with cpf, it's OA + SA + cpf investment

Miss, want to buy already, where heh? I'm still in the jungle, see no road, as to ms, vl, 2nd property. I did spend some time to surf hdb/cpf sites on these, still lost. No clear cut answers, seem a lot of "depends", "if", "then", "go to", "re-route" dare not to make a bold move, underground mines put everywhere, watchout hor.

Edited July 9, 2010 by bepgof

[musicbox 0]

For second property, you'll need to maintain the minimum sum, currently $61,500, can made up by OA, SA and CPF investment.

For your case, say you purchase your private first, after HDB flat loan settle then switch to monthly installment of the private by cpf, you'll need to get a lawyer to apply to CPF on this, which need a valuation report of your private at the time of application (lawyer fee about $500, valuation fee not sure). And this is provided you meed the minimum sum requirement.

Alternatively, you can repay all the money you've used from CPF to your HDB flat including the accrued interest, then you'll no need to be restricted by the multiple housing rule for your second property purchased.

[leechaorui 2]

For second property, you'll need to maintain the minimum sum, currently $61,500, can made up by OA, SA and CPF investment.

For your case, say you purchase your private first, after HDB flat loan settle then switch to monthly installment of the private by cpf, you'll need to get a lawyer to apply to CPF on this, which need a valuation report of your private at the time of application (lawyer fee about $500, valuation fee not sure). And this is provided you meed the minimum sum requirement.

Alternatively, you can repay all the money you've used from CPF to your HDB flat including the accrued interest, then you'll no need to be restricted by the multiple housing rule for your second property purchased.

What about using SRS account as minimum sum?

[vowsh 1]

What about using SRS account as minimum sum?

If the 1st property is fully paid, you can get consent from all co-owners of the property to pledge your property in lieu of part of your Minimum Sum. You may pledge your property up to 50% of the Minimum Sum. In the event that the property is sold or otherwise disposed of, you are required to refund the Minimum Sum deficiency, or the principal CPF withdrawn for the property plus the accrued interests whichever is lower.

Agent Joe

[estella83 0]

ar??? i mean to say min sum = OA + SA + any CPF investment.

[estella83 0]

Miss, want to buy already, where heh? I'm still in the jungle, see no road, as to ms, vl, 2nd property. I did spend some time to surf hdb/cpf sites on these, still lost. No clear cut answers, seem a lot of "depends", "if", "then", "go to", "re-route" dare not to make a bold move, underground mines put everywhere, watchout hor.

lol, if buy house is like buying clothes. i have called up cpf board personally, unless due to mis com or mis interpretion.

Edited July 9, 2010 by estella83