22 May 2011

Learning to buy Singapore private property using CPF

It is always a dream for me to buy a property in Singapore. Weekly magazine 'The Edge Malaysia' just showed that the rental in Singapore private property is starting at SGD2,5000.00. It is not ridiculous as the rental in 3-room HDB is also starting from SGD2,000.00 as well.

As I am always keen on learning investment, I start to learn from various channels, such as the On-line Property Websites (e.g. The Edge Property, iProperty, PropertyGuru etc) as well as from magazines (e.g. The Edge) and newspapers (e.g. Business Times, Today, MyPaper etc). 

As a Singaporean PR, I also like to know how to fully utilize my CPF (a compulsory saving scheme imposed by Singapore government so that the Singaporean citizen/PR can take out the money after
the retirement or after the age of 62) to invest in residential property.

There is a very useful calculator in CPF website - http://www.cpf.gov.sg/cpfhsg/cal_input.asp to help you to calculate whether you are able to fully utilize your CPF OA & SA to support your monthly mortgage loan repayment.

As many developers advertise in newspapers, Singaporean citizen/PR can purchase the private property by putting 5% deposit in cash and 15% in cash/CPF. The rest 80% can be paid using CPF.

An advantage of purchasing private property is I am not necessarily to sell off my property in Iskandar Malaysia if I would buy a re-sell HDB in Singapore. Besides that, some private property is in freehold status. It is good to purchase a property in 'Freehold' status as compared to 'leasehold'. However, if you are a 'cash flow' player, 'leasehold' maybe a better choice for you as the rental yield could be higher compared to the earlier.

I would closely monitor the property market in Singapore. Hopefully I will get a bargain in next 1 year.

What's your view? Try to give me your comments here.


  1. Buying a property in singapore really not an easy job...especially they got COV, and without 40k-70k SGD, no need to dream about it...

  2. Hi Jeff,

    Ya, it is not an easy job. I will also look for my friend who is working as a property agent to find out more.

  3. Superb content!! I am very happy to get it. Thanks a lot....

  4. This comment has been removed by the author.

  5. Thanks so much for a great post about how to buy the private property in real estate market and which property is beneficial for you .

    Investment Property UK .

  6. Thank you for taking the time to publish this information very useful! Trademark


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  8. Good posting and very nice article, and this site give a interesting information. singapore vale register now

  9. Interesting topic for a blog. I have been searching the Internet for fun and came upon your website. Fabulous post. Thanks a ton for sharing your knowledge! It is great to see that some people still put in an effort into managing their websites. I'll be sure to check back again real soon. Whistler Grand CDL

  10. Hey Jack, using CPF to buy property have some pros and cons. Pros is less cash outlay, however we are missing out the interest that CPF is giving at 4%, yet we have to pay 2.5% accural interest ourself...a total of more than 5% gone! Whistler Grand

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