Am at age 26 soon and going to use my cpf to pay for housing, curious to ask was your house funded by OA in cpf and how long did you take to save back the Amt used in OA? ? - Seedly

Investments

CPF

AMA 1M65

Asked by Anonymous

Asked on 03 Nov 2018

Am at age 26 soon and going to use my cpf to pay for housing, curious to ask was your house funded by OA in cpf and how long did you take to save back the Amt used in OA? ?

Also, what are some of your recommended investment vehicles beside cpf?

0

Answers (4)

Sort By

Most Upvote

  • Most Upvote
  • Most Recent

My flat is funded fully from CPF, I have zero cash outlay for it.

Recommended investment vehicles besides CPF:

Risk averse investor:

SSB, STI ETF, FDs

Moderate investor:

Mid cap, small cap and blue chip stocks

High risk investor:

CFDs, Forex, Options trading

Ask yourself first, what is the time horizon you're looking at to set aside the money? What is the amount that you're trying to achieve through investments? Are you reliant on your investments to generate income for the long term? Do you have any emergency funds parked aside outside of your investments portfolio?

That way, you can determine which investment vehicle is most suitable for you.

3 comments

1

See all 3 comments

Jim Ng
Jim Ng

26 Dec 2018

Great points See Hwa! What you said is 100% accurate. I am comfortable having the cash flow to generate greater returns by touching alternative instruments. You are right, I am also incurring 2.6% interest on the loan that I have taken as well. However, I am more than happy for that interest to accrue because it is a risk I am willing to undertake to invest with the excess cash flow, confidently generating more than 2.6% annually.
Teo See Hwa
Teo See Hwa

04 Jun 2019

Congrats
Ryan Ong
Ryan Ong
Level 2. Rookie
Answered on 04 Jun 2019

I haven‘t used my CPF at all for my house (I transfer my OA to my SA and pay in cash for the 4% interest). Paying for the house in cash is quite manageable if you buy modestly for your first home.

0 comments

0
Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Answered on 07 Nov 2018

It all depends On my phase of life.

The most important point is : Don’t Over Stretch Yourself in your home purchase.

I have always stayed in a HDB flat. Started with a small one and gradually move to a bigger one. We are still staying in one after all these years. Clearly I don’t believe in properly investment (but that just me) .

When i I was young and starting out, I use more CPF OA, soon, I discovered 1M65 so I moved to less CPF and More cash. It was easier then as I don’t have a big flat. I believe that housing loan is quite a ”healthy loan”, i.e. I can put money into SA and get up to 5% and housing loan charges only 2.5%.

0 comments

0
Teo See Hwa
Teo See Hwa, MArketing Associate at Propnex
Level 3. Wonderkid
Answered on 05 Nov 2018

One need to know how much is in the housing and for how long.

Alway restructure your property portfolio to get the appreciated value out for reinvestment.

0 comments

0