CPF Minimum Sum

CPF Minimum Sum

1) Do you know you are required by law to keep a minimum sum in your CPF account?
2) Especially if you apply for a new hdb flat and you do contra, 1st charge is HDB and 2nd charge is the CPF Board which can retain your sales proceed if you have a shortfall in your CPF minimum sum.
3) The same occurs when you buy a studio apartment (30 years leasehold).
4) It also happens when you take a $20K grant for seniors.
5) By that time, it will be almost the same as a 3rm resale flat, if you buy a 3rm resale flat, the above will not happen.
6) That is the reason why the Government do not want to build any new 2rm/3rm flats so as to keep flat prices high. Is it time to talk to our ministers to complain?
7) If you have a lot of cash from your hdb sale proceeds, do not contra for the same reasons, it is cheaper to get a bridging loan.
8) Do you also know if you apply for a $40K grant from HDB to stay near your parents, you will be penalised in future if you downgrade to a rental flat by paying “market” rates?

– Contributed by Oogle.

Author: Gilbert Tan TS

IT expert with more than 20 years experience in Apple, Andriod and Windows PC. Interests include hardware and software, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader.

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