With all the talks about CPF and it's compounding interest, am I right to forgo the possibility of a BTO in a mature estate and buy a BTO in a non mature estate to maximise my grant and reduce OA usage? - Seedly

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Seedly PFF 2019

Asked by Anonymous

Asked on 02 Mar 2019

With all the talks about CPF and it's compounding interest, am I right to forgo the possibility of a BTO in a mature estate and buy a BTO in a non mature estate to maximise my grant and reduce OA usage?

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Jim Tay
Jim Tay
Level 2. Rookie
Answered on 05 Mar 2019

It's a complex question with no straightforward answer. The upsides of having a house in a mature estate is possibly much more than the costs of the additional CPF interest.

I would advise to most importantly not overstretch your finances especially for a first home.

Upgrade later as necessary.

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Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Answered on 05 Mar 2019

It is a complex question for your first house. Proximity to parents, Affordability, income, family size. I would suggest thinking Thru all these as a package Before deciding.

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Dawn Fiona
Dawn Fiona
Level 5. Genius
Answered on 03 Mar 2019

Depends on your objective with your house purchase. Buying a house is not just down to the quantitative aspects. If you're looking to sell your house later (eg. many Singaporeans sell their BTOs after MOP) then the location of your house will determine how attractive it is to future buyers.

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