Using Cpf For Second Property

[estella83 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.

plus $100 on hdb early redemption. thanks for ur info, have thought of paying back hdb as i do not have grant and subside or watsoever.

Edited July 9, 2010 by estella83

[Warrior88 0]

So, you found out ms include investment.

My opinion, do not do any captial repayment. Unless you old liao, coming 55

getting your cpf soon.

[estella83 0]

yesssss...... 50% min sum is inclusive of cpf investment. can call up cpf to double confirm

[bepgof 20]

yesssss...... 50% min sum is inclusive of cpf investment. can call up cpf to double confirm

My wife's cpf investment got menu sign (-5k), so "add" or "menu" this amount, or null ? to compute the MSS?

Note: - sign meant made profit, and profits already returned to cpf (OA or SA?)

Edited July 10, 2010 by bepgof

[chia90 0]

yesssss...... 50% min sum is inclusive of cpf investment. can call up cpf to double confirm

yup, i think the 50% ms is inclusive of cpf amount (OA and SA) withdrawn for investment.

[bepgof 20]

Anyone care to comment if my calculation is correct:? The amount both husand & wife could use in OA.

Take note: wife's investment shows -$5K+.

http://img412.imageshack.us/img412/5180/mms2ndproperty.jpg

Edited July 10, 2010 by bepgof

[wildfaye29 0]

Got this from the FAQ:

Q: Can I use my CPF to pay for 2 properties?

A: Yes. However, the restrictions on the use of CPF for multiple properties will apply if you buy a second property with your CPF savings after 1 July 2006. This means that you have to first set aside half of the prevailing Minimum Sum in your Ordinary and Special Accounts (including savings invested under CPF Investment Scheme for Special Account) if you are below 55 years or your Minimum Sum cash component shortfall if you are aged 55 and above. Only excess savings in your Ordinary Account may be used to finance the purchase of the new property. Withdrawals for the new private property will be subject to a Withdrawal Limit of 100% Valuation Limit for properties with at least 60 years of lease, and the applicable Withdrawal Limit for properties with remaining lease of less than 60 years but at least 30 years.

[estella83 0]

My wife's cpf investment got menu sign (-5k), so "add" or "menu" this amount, or null ? to compute the MSS?

Note: - sign meant made profit, and profits already returned to cpf (OA or SA?)

better call up cpf

Edited July 13, 2010 by estella83

[Warrior88 0]

My wife's cpf investment got menu sign (-5k), so "add" or "menu" this amount, or null ? to compute the MSS?

Note: - sign meant made profit, and profits already returned to cpf (OA or SA?)

Think those minus sign are the Singtel Shares dividend or something like that.

Wah, your account par par. Must find you when your are 55.

You SA almost like mine, but my OA is pathetic

Yes, after pledging the 1st property, just half the MS, you have like $139K that you can use.

Enough to pay down payment for a 800k hse ( 15% )

[vowsh 1]

Think those minus sign are the Singtel Shares dividend or something like that.

Wah, your account par par. Must find you when your are 55.

You SA almost like mine, but my OA is pathetic

Yes, after pledging the 1st property, just half the MS, you have like $139K that you can use.

Enough to pay down payment for a 800k hse ( 15% )

After pledged the 1st property, you juz need to top-up some to make up 50% MS of $61.5k. Bare in mind, the MS is adjusted every July. MS can also come from OA + SA + Investment CPF monies.

Btw, CPF cannot service 2 housing loans if you are not aware

[Warrior88 0]

Btw, CPF cannot service 2 housing loans if you are not aware

See meh, both my house use 100% cpf for monthly installment !

[vowsh 1]

See meh, both my house use 100% cpf for monthly installment !

Unless you and your wife service the loan separately otherwise is not possible.

[Warrior88 0]

Unless you and your wife service the loan separately otherwise is not possible.

Got combine loan service meh. Like those your combine in income tax.

Something new to me

[bepgof 20]

Btw, CPF cannot service 2 housing loans if you are not aware

Don't scare me leh, 2 private bank loans can not meh? Are you refering to "concurrently"? I'm very blur.

[vowsh 1]

Don't scare me leh, 2 private bank loans can not meh? Are you refering to "concurrently"? I'm very blur.

After you have aside the 50% of the MS, you can use the excess + future CPF monies for the 2nd property. Normally CPF ppl will advise not use CPF for loans unless you fully paid the 1st one or cash rich. Btw, 2nd property capped at 100VL.