6 facts you need to know about your CPF


By Jarrad Brown, consultwho.sg

1. You’ll earn an additional 1 per cent on the first S$60,000
There are base interest rates set for your CPF accounts, which are 2.5 per cent for your Ordinary Account (OA) and 4 per cent for your Special Account (SA) and Medisave (MA). On the first $60,000, you’ll therefore earn 3.5 per cent in your OA (up to $20,000) and 5 per cent in your SA. This is reasonable for a conservative investor, however it’s important that you ensure this level of expected risk and return is appropriate for your risk profile and financial goals.

2. Your contribution allocations will change as you become older
Your contributions at 35 years old and below will be 37 per cent of your income (up to the mandatory cap) with 23 per cent going to your OA and just 6 per cent going to your SA. This climbs to 11.5 per cent between ages 50 – 55 as greater emphasis is placed on your retirement. For many, this won’t be sufficient to allow you to live the retirement lifestyle you desire, so be sure to crunch your retirement numbers and save additional funds where necessary.


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Singapore Budget 2016

Singapore Budget 2016: 11 things that stood out in Heng Swee Keat’s Budget | straitstimes.com

SINGAPORE – Finance Minister Heng Swee Keat’s maiden Budget speech in Parliament on Thursday (March 24) was a business-minded one.

He spent some time addressing the current economic slowdown and giving help to those who continue to be displaced by economic transformation, but his overarching theme was preparing for the future.

He began his speech by harking back to the first Budget speech of 1965, and ended his two-hour address with a call for Singaporeans to contribute to the “Singapore story” for the next 1,000 years.

These are 11 announcements that stood out.


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If You’re Single and You Just Turned 35… Should You Apply for an HDB Flat?


As someone born in the 1980s, it’s often easy to forget just how far we’ve come as a country. No, I’m not just talking about all the glorious achievements we’ve been harping on, especially during SG50. But I’m talking about the tiny steps we’ve been taking to make our country a little more inclusive. For singles, in particular. Did you know that before 1991, single Singaporeans couldn’t even buy an HDB flat?


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4 estates in Singapore where HDB prices are higher than condos


SINGAPORE : The Singapore dream used to be about the 5Cs. It consists of having a car, a country club membership, credit cards, cash and a condominium.

Given the fact that HDB resale prices in some housing estates in Singapore have increased significantly over the past few years, one can start considering adding the acquisition of a HDB resale flat in certain mature estate as part of the Singapore dream.

And why not? Especially since a HDB flat in these places may cost more than a condominium unit elsewhere.


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Is a home price crash of over 20% possible in Singapore?


SINGAPORE : Local home prices had already dipped 8% since 4Q13.

Domestic private property prices staged a strong recovery post 2008 financial crisis, thanks to strong activity in the mass market segment. The story however does not end there.

According to OCBC Investment Reseach, mass market prices rebounded 63.2% from its crisis troughs, while the luxury segment (CCR) put up a more muted 36.1% increase. Private home prices reached an inflection point, however,in 3Q13 after the latest round of property curbs implemented in June 2013, which included the landmark Total Debt Servicing Ratio (TDSR) requirement. A broad-based slow bear market subsequently ensued, and prices fell 8.0% over eight consecutive quarters from 3Q13 to 3Q15.
Will the downtred continue?


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HDB, private apartment rents down in February: Property index

The number of HDB flats rented dropped 20.1 per cent in February compared to the previous month, while rental volume for private apartments declined 17.5 per cent, with an estimated 2,797 units rented.

SINGAPORE : Rental prices for Housing and Development Board (HDB) flats and non-landed private properties continued their downward trend in February, led by five-room HDB flats and homes in the city fringes.

Rental prices for Housing and Development Board (HDB) flats dipped 0.9 per cent from the previous month in February, according to a local property index.


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Singapore prime homes a good buy now: JLL


SINGAPORE : A new JLL report is extolling the virtues of buying a prime residential property in Singapore now, given how “affordable” they have become compared to other global cities in the last four years. This is in spite of the loan curbs and tax burdens in place.

The real estate consultancy estimates that the average luxury prime residential price of S$1,991 per square foot (psf) in the fourth quarter of 2015 is about 20 per cent off the peak in 2011.

This is the biggest correction across domestic asset classes in the last four years. Office, retail and industrial property prices have fallen 4-6 per cent; suburban residential prices are down 12 per cent.


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