Thought on setting aside money for housing needs in 10 years time ?

Hi, 25M here and am currently seeking to purchase my own property in 10 years time (once I am eligible for BTO and resale HDB).

Right now, most of my money after deducting for expenses are invested or set aside in CPF/emergency savings for retirement

Was wondering if it is a good idea if I reallocate a portion of this money to a seperate account for the purpose of housing ? I understand that there is the CPF OA that I can draw on, however I feel that it would be wiser to have a portion of the downpayment to be paid in cash so that a substantial portion of my CPF monies can be used for investing/transferred to SA for my retirement needs which will give me less pressure as I would still have funds in OA rather than it being wiped out completely . I plan to start once my emergency fund target is reached (expected by early next year)

I welcome any suggestions and feedback on the feasibility of this plan or on where I can store this funds. Thank you !

Discussion (29)

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Jeremy Yeo

17 Sep 2023

For my case, i tried to use min OA for my downpayment. But finally cleared all OA for housing by VHR within the 2nd year as i find not worth to see the accured int snowball (personal preferrance).

I done this in order to beef up my OA to reach FRS, so that i can do SA shielding in another 10 yrs time.I done this in order to beef up my OA to reach FRS, so that i can do SA1) shielding in another 10 yrs time.

For your case, if u can do the same to trf OA to SA, u reap 2 things:

1) u are getting 4% int instead of 2.5% and letting 10 yrs roll this., u can get a substantial amt.

2) ince ur SA reach FRS and i believe if u can do this, ur BHS also can be reached. Both MA contribution and int from at the end of the year will be channelled to OA and thus beefing up using ur timeline of 10 yrs. ( which may or may not help u out by then to purchase the downpayment for ur flat later on.

Usually for normal income, montjly flow into OA will most likely be about $1500. ( 10 yrs time, u may have about $180k inside OA ready for your flat purchase.

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