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Dear Sir/Mdm

Good day to you!
I’m Daniel Tan from PropNex Realty.

I will usually recommend my client that using of CPF OA funds is not a case of wiping out, or spending all the CPF OA money away; but it is generally a way of investment. Changing of investment class, from Cash/CPF to Real Estate investment.

Real Estate is a good form of investment to counter inflation in today's market.

Therefore using all the OA to reduce monthly instalment, will allow you to increase your monthly cashflow. This will be a good option if I was the one doing the purchase.

Looking to buy an apartment soon? Feel free to contact me and allow me to share with you more.

Any other queries?
Please always feel free to contact me for a non-obligated discussion on how I can assist you with your real estate needs.

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Have a wonderful day ahead.

Best Regards

Daniel Tan
PropNex Realty Pte Ltd

(+65) 9477 5100 
daniel.tck@propnex.com
www.danieltanpropnexrealty.com
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Hi there ,

Perhaps you could share with me your finances on hand so that I can generate the succinct financial calculations and timeline which will allow us to assess the feasibility and the options you can consider without over stretching yourself. A preliminary discussion will always be effective.

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D Kumar
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Hi,

This always happen in your early career, try to leverage on anything you could find to balance.

(1) There are 2 schools of thoughts, new against old. However, you might want to look into your investment plan in the next 5 or 10 years, and what you intend to achieve.

New thought:
Utilizing CPF lost huge amount of interest, and prove to increase huddles in achieving long term plan to use money to work for you.

Old thought:
Utilizing CPF can ease current financial status and minimise interest lost to bank. Can use the cash for other investment purpose.

(2) Do note that using the idea hand down by the elder put you into a more relax status and let you forgo furture opportunity that could only achieve within our short span of life.

(3) As you may already know every investment has the same "Up" & "Down" cycle. And each cycle last for a few years, if you take 5 years as a cycle, you will only can invest once in 10 years; 5 years "Up", 5 years "Down".
How many 10 years you have in your whole life span.

(4) The other thing to note is age plays a very big factor on how much you can make use of others' money in your investment plan.
The younger you are, the more you could borrow!

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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This is what I usually term it, financial flow, where every individual benefit differently from the same scenario because of their distinct lifestyle and background.

Factually, interest rates which CPF pays out if you leave the funds in your account is higher than the mortgage interest rates, therefore dollar for dollar and cents for cents perspective, it makes more sense not to use the CPF funds.

Nevertheless, many middle income Singaporeans are skeptical about being able to withdraw the funds at the end of the day from CPF, therefore they prefer to use the CPF and free up more cash for their livelihood.

Both ways are correct but which is more applicable? If your plan is between short to medium term, where you need more fluidity, perhaps clearing off the CPF now can help you manage better before you look into how to better leverage financially on the interest rates, while restructuring your real estate and investment assets in future.

This is a short to medium term planning, and I will be glad to walk you through the entire process with our recently launched BREW program (Building Real Estate Wealth).

Feel free to get in touch with us in private for more detailed discussion as we are not alerted to any form of responses here. Thank you and have a pleasant weekend ahead!

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Geryl LIM
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Global Alliance Property (L3010679B) - Century 21
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Good afternoon,

Perhaps you can share more about your situation so I will be in a better position to advise you further.

Usually I will advise my clients not to clear their CPF OA funds at one go.

Reason being that if you never use CPF OA funds, you will enjoy 2.5% interest rate. If you use, you lose this 2.5% and have to pay 2.5% to yourself for using your own money. 5% opportunity cost.

And moreover nowadays, bank interest rate is still below 2%. You could still earn at least 0.5% for not wiping out the OA.

Thirdly, OA will only reset when you sell a property if not the accrued interest will accumulate and will reduce the supposed sale proceeds (cash) that you are able to enjoy if you sell at the same time (if you never wipe out the OA).

4) If you never clear your OA, this funds will act as emergency funds and you will have an idea you will have $ to pay monthly mortgage. Not to be offended, if you lose your job, you wont have to worry.

But if you reduce the mortgage installment to what you feel its comfortable right now with all your CPF OA funds, what if you lose your job? Will you panic?

"Your Freehold Ally, Leasehold Tactician"

YT TAN 陈永达 | ACCA Graduate, RES
R043025D
Propnex Realty Pte Ltd

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