Happy lunar new year to you, Ryan!
Sincerest apologies for the late reply. Propertyguru doesnt prompt me when there's a reply to my post. Probably it will be better we communicate via email or mobile in future.
I do understand that you will like to withdraw CPF funds when both of you reach 55 years old in 12 years' time. The max amount you can withdraw will be higher of:
1) $5,000; or
2) Savings above the Full Retirement Sum ($161k in OA + SA as of 2016).
Let me weigh the options for you so you can retire comfortably.
1) Sell current flat and purchase a BTO (4 or 5rm flat) in full. Purchase a private property after it MOP.
- you will be subject to $40k resale levy (your unit is 4rm flat)
- let say you are able to book a ready move in BTO now, you will be 48 years old when it MOP. By then, I am not sure whether do you still want to be financial burdened to invest in a private property. You will only able to obtain 17 years loan tenure, higher monthly mortgage repayment due to shorter loan tenure.
2) sell current flat and purchase a new EC. Sell it off after MOP and downgrade.
- i think this option is quite good.
- you can choose to purchase balance units from those new ECs that dont need to pay resale levy. With that, you will save $40k on resale levy and still able to enjoy subsidised price of a condo.
- Based on your figures, you will have around $590k in cash and CPF OA funds after sale of current flat.
- you might want to consider to obtain a minimum loan so you will pay a lower monthly mortgage.
- Sell it off and downgrade. With this, you will definitely more than enough funds for retirement!
But I am afraid to inform you that those EC that you dont have to pay resale levy are usually in Woodlands, Sengkang or Punggol.
Even if you have to pay resale levy of $40k to purchase a new EC, I will still feel it's worth it as ECs are usually priced 10% to 20% below those surrounding condos.
For instance, I bought an EC myself with the intention of using it as a stepping stone to move to a better located place or cashing out more funds in future.
3) purchase a condo as investment property
- you will subject to 7% additional buyer's stamp duty as Singaporean
- you can afford a $835k condo with your $250k finances on hand provided you can obtain 80% bank loan.
- Can be considered if you have a tenant paying the monthly mortgage for you. As good as someone pays for the unit but the unit is under your name!
Hope my sharing is beneficial to your decision making.
Probably you can share more information with me so I will be in a better position to advise you further.
Hear from you soon!
Warmest Regards,
YT Tan
Vice President (Agency)
R043025D
Property Avenue Pte Ltd
Estate Agent no. L3010650D
Blk 420 North Bridge Road #03-30 North Bridge Centre S188727
(M):
+65 9111 5171
(E): yt.lovelyhomes@gmail.com
(W): www.yttan.com
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