{"id":106993,"date":"2019-05-10T12:35:45","date_gmt":"2019-05-10T05:35:45","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-rules-on-cpf-usage-how-will-this-affect-homebuyers\/"},"modified":"2019-05-10T13:06:34","modified_gmt":"2019-05-10T06:06:34","slug":"new-rules-on-cpf-usage-how-will-this-affect-homebuyers","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-rules-on-cpf-usage-how-will-this-affect-homebuyers\/","title":{"rendered":"New Rules On CPF Usage \u2013 How Will This Affect Homebuyers?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0"},"content":{"rendered":"


\nSingaporeans will now have more flexibility in using their Central Provident Fund (CPF) when purchasing older properties.
\nFrom Friday (May 10), home buyers will be able to draw more from their CPF to buy ageing flats, provided that the property\u2019s remaining lease covers the youngest buyer until the age of 95.
\nHomebuyers would also be entitled to the maximum Housing Board loan of 90 percent of the property price or valuation if they are buying resale HDB flats, according to a joint statement by the ministries of Manpower (MOM) and National Development (MND).
\nThis comes as the Government shifts the rules to focus on whether a property can last a homeowner for life, rather than its remaining lease.
\n\u201cRules on CPF usage and HDB housing loans have been updated to provide more flexibility for Singaporeans to buy a home for life, while safeguarding their retirement adequacy,\u201d the ministries said.
\nThe rules on CPF withdrawals after the age of 55 have also been changed. CPF members wanting to withdraw their CPF savings above their Basic Retirement Sum (BRS) should now have a property with a remaining lease to cover them until at least 95 years of age.
\nThe change is aimed at encouraging CPF members \u201cto have a home for life and to secure at least a basic level of retirement income\u201d, explained the ministries.
\nHowever, this change is not expected to affect most CPF members, as all HDB flats and the vast majority of private properties have leases that can last a 55-year old member until the age of 95.
\nLooking to buy an HDB flat? Get more insights on the right locations for your new home at\u00a0AreaInsider.
\n\u00a0
\nWhat does this mean for homebuyers?
\nAccording to Desmond Sim, Head of Research for CBRE South-East Asia, the new rules on buying properties using CPF or HDB housing loans is a move to expand the demand pie of potential buyers, as well as the supply pool of potential sellers.
\n\u201cAs the new borrowing rules on minimum property tenure are readjusted from 30 to 20 years, and pegged to the younger buyer\u2019s lifespan, potential buyers can now qualify for some developments that have otherwise been out of their reach,\u201d says CRBE\u2019s Sim.
\n\u201cAt the same time, existing owners of developments with 30 to 40 years left have effectively received a 10-year extension to their properties\u2019 saleability. Apart from unlocking additional value to older properties, this will also allay the fears of people owning aging assets,\u201d says CBRE\u2019s Sim.
\nOlder buyers may also benefit from these changes, says\u00a0Christine Sun, head of research and consultancy at OrangeTee & Tie.
\n\u201cPreviously, older buyers may not be able to use CPF for flat purchases but with the new regulation, some will be able to use CPF for their home purchase. It also helps the retirement plan for older buyers as many may want to use more CPF for home purchase and have more cash for daily expenses or for retirement,\u201d Sun explains.
\n\u00a0
\nPotential positive impact for older leasehold properties
\nThe new policy changes are also expected to have a positive impact for older leasehold properties, says Eugene Lim, Key Executive Officer at ERA.
\n\u201cThough it may take some time for buyers to get used to the changes, we believe the expanded options that it now accords to buyers will have positive impact for older leasehold properties over the longer term,\u201d says Lim.
\nOlder flats may see more attention from buyers, now that buyers may the option of using more CPF monies. There may even be a slight increase in prices of these old flats, Lim adds. However, as transaction data is readily available for both public and private homes, we expect that transacted prices will still hover around valuation, and large price hikes are unlikely.
\n\u201cTaken together with VERS and HIP ll, older HDB flats are likely to still attract buyers, given their spaciousness and convenient locations,\u201dLim concludes.
\nFind\u00a0HDB flats for sale\u00a0or read our\u00a0HDB guides\u00a0to make better-informed decisions. Can you afford an HDB flat? Check your\u00a0affordability\u00a0now.\u00a0
\nFiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email\u00a0fiona@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…New Rules On CPF Usage \u2013 How Will This Affect Homebuyers?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Singaporeans will now have more flexibility in using their Central Provident Fund (CPF) when purchasing...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-106993","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-rPH","jetpack-related-posts":[{"id":109704,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cpf-rule-changes-likely-sparked-demand-for-older-hdb-flats\/","url_meta":{"origin":106993,"position":0},"title":"CPF rule changes likely sparked demand for older HDB flats","date":"August 7, 2019","format":false,"excerpt":"\r The government\u2019s policy updates on Central Provident Fund (CPF) usage and Housing and Development Board (HDB) housing loans may have given the HDB resale market a new lease of life. 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