facebookIf I were to have cash on hand ($30k) and cpf-oa @ 2.5% ($30k) and am taking up a bank loan at 1.5%, would it be advisable for me to clear my housing loan or let the cpf remain in OA or invest in ? - Seedly

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Anonymous

09 Mar 2020

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If I were to have cash on hand ($30k) and cpf-oa @ 2.5% ($30k) and am taking up a bank loan at 1.5%, would it be advisable for me to clear my housing loan or let the cpf remain in OA or invest in ?

Better returns investments? I am willing to take up to high-middle risks, aged around late 30s to 50s.

No dependants.

Discussion (7)

What are your thoughts?

Zuhdy Farhan

Zuhdy Farhan

03 Mar 2019

Level 4Β·Real Estate at National University of Singapore

Using your CPF for housing will deplete your cash proceeds from the sale of your flat in future.

Because:

Sale proceeds = Sale price - outstanding loan - CPF used - CPF accrued interest

The more CPF you use, the less cash you receive = more money locked up in CPF.

Therefore unless you are sure that you will be staying in this flat for the rest of your life, it is more advisable to not use it for housing wherever possible.

Feel free to contact me for more information.

View 1 replies

I prefer to clear your housing loan first as before you can even invest, you should clear up any loans and debts you currently have.

Lim Boon Tat

Lim Boon Tat

01 Feb 2020

Level 10Β·Mathematics at Cambridge University

Are you late 30s or late 50s? When do you anticipate retiring, and not having a stable income? If yo...

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