Property News Update, CNA 13 July 2020: New CPF and HDB Loans Rules starting 16 July 2020
With effect from 16 July 2020, there will be some changes in regulations regarding usage of CPF usage and HDB Housing Loan.
In my opinion, these tweak of rules is looking into concerns of Singaporeans’ retirement adequacy (CPF retirement scheme) and Singaporean overly using CPF to purchase properties for own-stay and investment.
Beside Mandatory CPF retirement shemes like your OA and SA/RA, retirement planning requires comprehensive planning with your wealth planner using traditional solutions like insurance to achieve your retirement goals.
As for property investment (2nd property), a very conventional view is to invest in another asset class for investment purposes (maybe shorter term of 5 years), for risk diversification from market risk.
Can we combine Property investment into your retirement plans?
I would believed that with proper planning, resource allocation and sound advice, Investments in Property, when doing it correctly (with much longer term time horizon), would be one of the tools that can help clients to achieve their Retirement goals as well.
What do you think?