CPF Accrued Interest for HDB flat

[SexOClock]

This is only for illustration

Let's say total selling price for a new BTO flat is $100,000

You paid $50,000 using CPF OA, balance $50,000 paid by cash.

In this case zero loan, BUT 2.5% accrued interest will be impose on your CPF OA $50,000 continously from the first day you make the withdrawal till the day you sell your flat.

5 years later you sold your flat at $150,000, CPF Board send you a letter saying total principal withdrawal is $50,000 and accrued interest is $30,000.

$150,000 - [$50,000 + $30,000( principal + accused interest)] = $70,000 cash return to me?

 

[SexOClock]

Anybody can help whether this equation is correct?

 

[Lizzert]

Yes, the mechanics are correct,,but the calculation of accrued interest may be a bit more complicated.( compounding and the duration btw drawdown and repayment)

 

[Leongsam]

$150,000 - [$50,000 + $30,000( principal + accused interest)] = $70,000 cash return to me?

Yes you can pocket the capital gains tax free after paying the accrued interest. That's why the CPF scheme is so wonderful and beats many other pension schemes hands down.

I bought a condo unit in 1985 for less than $200,000. I paid the 10% down payment with cash but serviced the loan 100% from my CPF contributions.

I sold it a decade later and after paying back the accrued interest, I banked almost half a million dollars. Without CPF to take care of the cash flow, I would never have been able to make this sort of money.

I am truly grateful to the PAP for creating these sorts of opportunities for Singaporeans to thrive and prosper.

 

[Papsmearer]

Yes you can pocket the capital gains tax free after paying the accrued interest. That's why the CPF scheme is so wonderful and beats many other pension schemes hands down.

I bought a condo unit in 1985 for less than $200,000. I paid the 10% down payment with cash but serviced the loan 100% from my CPF contributions.

I sold it a decade later and after paying back the accrued interest, I banked almost half a million dollars. Without CPF to take care of the cash flow, I would never have been able to make this sort of money.

I am truly grateful to the PAP for creating these sorts of opportunities for Singaporeans to thrive and prosper.

And now u renting in bedok south? hahahhahahaha. u stupid fuck.