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Hi Alan,

Yep you are equipped with the right info. You need to set aside 83k (Current OA + SA combined to at least 83k), before any excess OA can be used for 2nd property. May I know your overall plans for the 2nd property and any project in mind? May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude

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Hi Alan

Yes, OA + SA need $83k and balance can be used for property purchase. Do contact me at 97970200  to discuss more

Mark, your RIGHT choice
MCG Read More

Hi Alan,

You will need to fulfill half the Minimum Sum in your OA and SA before you are allowed to use the rest in your OA account for the purchase of your 2nd property. The current sum that is required to be set aside is $83,000. Let me give you an example. You have:

OA - $50,000
SA - $50,000
Total - $100,000

$100,000 - $83,000 = $17,000.

You may use the $17,000 in your OA to purchase your 2nd property.

Please feel free to clarify with me if you have further questions!

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS)
Cert-in-REA
(E) nick96444854@gmail.com
(W) www.nick-tan.com

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Hi Alan,
Half of the min sum is 83K and loan only on OA. Please drop me an email for me to share more.

To assist and advise you more in details, kindly drop me an email for me to share.

I am contactable at my mobile or email.

CK Ang
 9046 3808 
res.ckang@gmail.com Read More

Hi Mr Alan,

You apparently done your homework.

There are couple of questions remain unanswer:
1) CPF half-minimum sum aka Basic Retirement Sum (BRS), from now till 31 Dec 2017 is $83,000.
This sum will be revised to $85.5K on 1 Jan 2018. This sum is revised with a step of $2.5k on every 1 Jan till 2020 according to CPF board.

2) This sum is tabulated from the amount you have in both Special Account (SA) & Ordinary Account (OA).
For example, if you already have $100k in SA, then all the amount in your OA can use for the 2nd property.
There are no other minimum sum needed to retain in OA.

The amt under SA also inclusive of the amt withdrawn for investment.
For example, you have $70k in current SA, but you had also withdrawn $20K for investment, then it is considered you have $90k in your SA.

There are 2 terms you need to understand other than the above queries:
(1) Valuation Limit (VL) is the purchase price or the value fo the private propert at the time of purchase, whichever is lower.

(2) Withdrawal Limit (WL) is 120% of the VL. The is the max amt of CPF you can use for the private property.

Meaning your CPF can use up to the amt of 120% of VL according to the rule of WL. So as you are aware how much cash top up is needed later.

If you decided to joint name with your spouse for the purchase, both you & your spouse's CPF (OA + SA) must meet the BRS condition as well.

Note: All the above is from the assumption that your property intended to invest is 60 years or more. It is different story if the property intend to purchase is below 60 years old.

Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com

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Hi Alan,

You are mostly right on the financial payments towards owning a second property.

As for CPF Half-Minimum Sum, it is tagged to your Retirement Sum. As of today, the amount is set at $166,000. Half of that is $83,000. This means that you will have to set this $83,000 aside (in your OA+SA), before you can utilize the balance monies in both you and your spouse's CPF-OA to pay for your second property.

Let me quote you an example:
Your OA $35k
Your SA $60k
Your wife's OA $20k
Your wife's OA $50k
Based on the above figures, you can utilise up to $12k from your CPF-OA to pay for your second property, while your wife does not meet the $83k requirement, hence she will not be able to utilise the $20k in her CPF-OA to pay for the second property.

On a side note, would you be keen if I can draft out a plan for you, where you can still own 2 properties, but you can save on the 7% ABSD, loan up to 80% for your second property, and yet have reserve funds for rainy days?

The above is very much possible, as I have assisted many of my clients on this journey of asset progression. I would love to have the opportunity to share with you how you can embark on this journey together with me too.

Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you and your partner in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More

Hi Alan,

You are mostly right on the financial payments towards owning a second property.

As for CPF Half-Minimum Sum, it is tagged to your Retirement Sum. As of today, the amount is set at $166,000. Half of that is $83,000. This means that you will have to set this $83,000 aside (in your OA+SA), before you can utilize the balance monies in both you and your spouse's CPF-OA to pay for your second property.

Let me quote you an example:
Your OA $35k
Your SA $60k
Your wife's OA $20k
Your wife's OA $50k
Based on the above figures, you can utilise up to $12k from your CPF-OA to pay for your second property, while your wife does not meet the $83k requirement, hence she will not be able to utilise the $20k in her CPF-OA to pay for the second property.

On a side note, would you be keen if I can draft out a plan for you, where you can still own 2 properties, but you can save on the 7% ABSD, loan up to 80% for your second property, and yet have reserve funds for rainy days? What's more, you do not have to set aside this Half Minimum Sum, and you can utilise your full CPF funds for your second property too!

The above is very much possible, as I have assisted many of my clients on this journey of asset progression. I would love to have the opportunity to share with you how you can embark on this journey together with me too.

Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you and your partner in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More

Hi Alan,

For your CPF, you will need to fulfill the Basic Reirement Sum (BRS) of $83,000 before you can utilise the excess for your 2nd property. Of course the good news is that this BRS can be fulfilled using both your OA and SA. Basically a lot of other gurus have already answered your question too.

What I am most concerned about is your second purchase plans. From your message, you mentioned you are intending to loan 50% for the purchase while paying the other 50% using your CPF and cash. The issue here is, is that really the best move for you? Personally I really would not encourage you to take that step. In my mind now I actually have another solution for you. What I would suggest is that we can probably meet up for a chat to discuss about this. No worries as there are no obligations at all and we just take it as a chat. And after we do some calculations for you, maybe we can propose better solutions for you.

My partner and myself have pride ourselves as realtors that constantly puts our clients' interests first and we were also very honoured to be featured in the Council of Estate Agents (CEA) newsletter for Great Client Service. I also won the SAEA Real Estate Excellence Silver Award for Best Client Service in 2014. We believe we will be able to provide the same level of service to you and hopefully even better.

Looking forward to hear from you soon. Cheers!

Best Regards,

Jeffrey Heng
Associate District Director (Sincerus Division)
NAVIS Living Group - A group in Orangetee & Tie that believes in Technology, Training & Teamwork (3Ts)

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