Asked by Anonymous

Updated on 18 Apr 2019

I make 180k a month, 300k currently in a mid term bond, 150k CPF OA, and 700k cash on hand from recent sale of first home. Looking at properties ranging from 1.7-1.8m or renting at about 3k a month. Which is better? Should I cash out my 300k bond?


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Nicholas Chan
Nicholas Chan,
Level 5. Genius
Answered on 10 Oct 2018

Is your 180k a month a consistent stream of income? Renting is cheaper u save alot. But given your income, I'm surprise u are not paying 20k/mth to rent a good class bungalow instead.



You can play that 700K I. Many different ways. For me, I would use it to buy multiple properties and let time appreciate the capital and let it grow. I'm sure you know, cash is no use without a vehicle to move it up and appreciate it. If you need any further information, feel free to WhatsApp me at 97330777.


Teo See Hwa
Teo See Hwa, MArketing Associate at Propnex
Level 3. Wonderkid
Updated on 10 Oct 2018

Wow 180K a month, you should look at landed property instead.




On your 300K Bond, I could make you $21,000 a year without too much difficulty due to my expertise in fixed income instruments.

If you're looking for passive income, I think there are much stronger bond funds than holding a mid term bond to maturity.

In regards to the property, I'm not sure what your question is, but there are a variety of issues such as the loan unless you intend to buy it fully immediately and insurance for it, tax relief on the various aspects of your life and maximizing the asset that is your new property. These are all things that I can help you with as a Financial Planner, with no obligation to purchase anything.

I think you're fortunate to be in a favorable position, and it's a good idea to look at stablizing your wealth with passive income and protecting it with insurance.

Again, fixed income is my specialty and I do think I could help you make a lot more passive income than you're making now, as well as to save you lots of money over time through refinancing, tax relief, etc.

You can always drop me a message here if you'd like me to examine your situation.


Cherie Julianne Tan
Cherie Julianne Tan,
Level 5. Genius
Answered on 20 Apr 2018

Hey! Thanks for sharing with us! I would not cash out the bonds. But before we get there, there are a few things we should look at first, your CPF balance, the downpayment, additional stamp duty (ADSD).

Your CPF - I’m assuming it is your second property, therefore you will need to set aside the Basic Retirement Sum (presently that’s $85,500) in your OA and SA before you can use the excess savings in your OA.

The downpayment - You are also required to pay about 20% of your property in fees and costs aka your downpayment (you can use your CPF for this). In your case, that would be 360,000 if you are looking at a 1.8M property.

Additional Stamp Duty - Not forgetting ADSD for 2nd property and subsequent property. If you are a Singaporean citizen, that's 7% for your second house and 10% for your third and subsequent property. That’s ranging about 126K-180K.

That amount up to approximately 540K minus your CPF balance. With your current cash at hand, you are able to set aside this amount without cashing out your midterm bond. Also if I were you, I would not rent because it would take up a substantial amount from your pay.

Although not mandatory, hiring a property agent that you can trust will be helpful in guiding you through the whole process.

I hope this helps and I wish you all the best :)