Selling Condominium, Buying HDB
Mr Chee and Mrs Chee are both 65 years old retirees.
They have been staying in a 3 Bedroom condominium around Hillview Area for 20 years.
Their children have married and moved out of their unit and they don’t require such a huge space.
The Chees are thinking of staying somewhere around Bukit Panjang area where it is nearer to their children’s place.
Their Private Property Finances are:
Current market value: $ 1,500,000
CPF OA + Accrued Interest: $700,000
Housing loan : $0 (Fully paid)
$300,000 in their CPF OA account.
Selling Private Property
Agent fees and legal fees can be deducted directly from the sales proceeds.
Misc fee such as moving house is not included
Buying a HDB
For their next purchase, The Chee's decided to not take any CPF or loans.
They found a HDB 5 Room flat at Bukit Panjang and decided to buy there. The 5 room HDB is bought for approximately $500,000.
From cashing out their Private condominium and moving to a HDB, The Chee's have approximately $250,000 extra Cash in hands. Not only that, they are able to unlock $700,000 from their CPF!
With $700,000 CPF returned their property and another $300,000 from their CPF account, Mr Chee and Mrs Chee will have around $500,000 CPF each.
For $500,000 each in your CPF Funds, you can unlock a passive payout of MORE THAN $2,300 a month.