Property questions

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Property questions

Postby MMM » Tue Apr 06, 2010 1:00 pm

Hi,

Is it true that in the event that you pay off your house (partial contribution by CPF). You will not be able to get the title deed and CPF will hold on to the title deed???

Anyone heard/ experience that before?

I just find it puzzling as CPF is our hardearned money so it doesn't sound logical.

MMM
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Postby BlurBee » Tue Apr 06, 2010 1:09 pm

:?
I thought should be HDB?
I think u can choose to keep it urself if u want.

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Postby MMM » Tue Apr 06, 2010 1:33 pm

I think owner do get back title deed when the property is fully paid. I remember my mum had the title deed to their old flat. But their era not paid by CPF.

Just wondering how it works. We have thoughts of selling off our rented property if it reaches our desired price. Was telling my hubby that we can divert the CPF from the sale proceed into paying off current house. He mentioned that he is not keen to use the CPF as if we use CPF, we will not be able to get back our title deed. I was like :? I just find it very wierd.

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Postby qms » Tue Apr 06, 2010 2:33 pm

When you sell your property, any amount deducted from CPF previously needs to be credited back, plus interest.

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Postby MMM » Tue Apr 06, 2010 2:44 pm

qms wrote:When you sell your property, any amount deducted from CPF previously needs to be credited back, plus interest.


But what if you use the credited CPF to clear the loan of another property (eg. you've never use your CPF for?) and the other property ended up being fully paid. Can you take back the title deed or CPF holds it?

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Re: Property questions

Postby znzyzyzx » Tue Apr 06, 2010 2:51 pm

MMM wrote:Hi,

Is it true that in the event that you pay off your house (partial contribution by CPF). You will not be able to get the title deed and CPF will hold on to the title deed???

Anyone heard/ experience that before?

I just find it puzzling as CPF is our hardearned money so it doesn't sound logical.


For my case, several years back, CPF gave me back my title deed. I think if I am not wrong, CPF dont keep our title deed anymore.

znzyzyzx
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Postby raynreg » Tue Apr 06, 2010 3:01 pm

I know that if you service your HDB instalments by cash (ie. CPF funds had depleted) by the end of the term, they will write to you to ask if you want to safekeep the title deed yourself or you want them (ie. HDB) to contiune keeping it for you.

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Postby minnie2004 » Tue Apr 06, 2010 3:03 pm

I think you have to pay back CPF before you can get the full title deed, just like paying back the bank as the CPF is also a form of loan. The CPF credited can then be used to pay loans of another property.

We never fully paid off a property before. When we sold our old investment property and bought another one, we paid back the CPF which was in turn used to pay off some of the downpayment of the new property.

Anyway, better check w/ CPF directly for their latest policies. Not sure if it makes a difference whether it's an investment property or owner-occupied property.

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Postby MMM » Tue Apr 06, 2010 3:14 pm

haha this is rather complicated... hope someone can advise. Any housing agent KSP here?

We are looking at 2 property A and B.

We intend to sell property A for $90. We still owe the bank $50. So when we sell, I suppose $50 will go into paying off the bank first and the balance $40 will back to CPF. Is this correct?

We now have $40 sitting in CPF after we sell property A. We intend to use this $40 to pay off existing property B. Eg. property B has a outstanding loan of $40 and for this property, we've never apply to use CPF before. I am assuming we just need to get the lawyer to prepare some docs to use CPF against property B. So once this is done, effectively, property B is now paid off with a mix of cash and CPF. Will we get the title deed back? Or do we've to wait till we are 60? Any implications,etc...?

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Postby csb » Tue Apr 06, 2010 3:23 pm

Hi MMM, why don't you write to CPF directly?
I read and tried to understand the policies a few years before but gave up. It was on the cpf website. Recall that there was/is(?) a minumum sum we have to set aside in our cpf a/c. Only amount over and above the minimum sum can be used for housing loan BUT I think (disclaimer: don't quote me cos, as I mentioned earlier, I gave up understanding it totally) this condition is waived for 1st purchase (only hdb?) and/or 2nd property purchased before a certain date (around 200x).

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