Gen 2 & Gen 3 emphasis on property & upgrading. May still be better off than leaving in CPF. Just that now the headache is how to monetise the capital stuck inside brick & mortar, without affecting their current lifestyle? Most solutions will require some downgrade of living standard.
Big jump from Gen 3 to Gen 4. I suspect due to higher education & hence salaries, as well as reduced emphasis on upgrading or investment properties unless household income is well above 70th percentile.
Right now with rental yields of most new condos from 2.5% to 3%, and enbloc potential becoming harder, CPF offers much better risk-reward. Hopefully govt doesn't amend the CPF Act soon! Haha!
With the 1st timer grants, BTO pricing & average starting salaries of graduates, I think the affordability of HDBs is now almost back to early 1990s or late-1980s level.
I won't be surprise if Gen 5 OA+SA median balance by 2029 will be $250+K.
I am Gen 4. I think we should not put too much money in a flat since capital gain is questionable unless you intend to monetise it by renting out after enjoying all the free money cpf grants when purchasing time.
We can see the reason why last few years CPF Top up are hot articles in the investment and financial cyber space in Singapore
ReplyDeleteFor CPF OA; it should have another chart showing outstanding housing loan with accrued interests in their 40s
ReplyDeleteUncle 8888
DeleteHow and what about the lease buy back scheme?
Is CPF reading our comments? LOL!
DeleteCPF should provide charts for all CPF related money to give us complete picture of retirement planning
Hi Uncle8888,
ReplyDeleteGen 2 & Gen 3 emphasis on property & upgrading. May still be better off than leaving in CPF. Just that now the headache is how to monetise the capital stuck inside brick & mortar, without affecting their current lifestyle? Most solutions will require some downgrade of living standard.
Big jump from Gen 3 to Gen 4. I suspect due to higher education & hence salaries, as well as reduced emphasis on upgrading or investment properties unless household income is well above 70th percentile.
Right now with rental yields of most new condos from 2.5% to 3%, and enbloc potential becoming harder, CPF offers much better risk-reward. Hopefully govt doesn't amend the CPF Act soon! Haha!
With the 1st timer grants, BTO pricing & average starting salaries of graduates, I think the affordability of HDBs is now almost back to early 1990s or late-1980s level.
I won't be surprise if Gen 5 OA+SA median balance by 2029 will be $250+K.
CPF Is not our money when we are still alife is PAP control money so to control their sit and salary
ReplyDeleteCPF is a necessity when it comes to raising a family
ReplyDeleteafter deducting interest given by govt the remain if excess of basic retirement sum then will be able to withdraw out.
ReplyDeleteI am Gen 4. I think we should not put too much money in a flat since capital gain is questionable unless you intend to monetise it by renting out after enjoying all the free money cpf grants when purchasing time.
ReplyDeleteTrue. Buying flat two or more level below our means will put more money in CPF to compound and bigger cpfis as war chest
Delete