<12 May 2019>
Have been reading up on the new cpf hdb changes and trying to gather my thoughts to analyse the whole situation.
As a summary I can only say that this move is great for older folks who wanna buy older houses. But terrible for younger couples like us who will be forced to go for newer resales (unless you don't mind not using cpf). One of R and my key criteria when we were finding house previously was to be able to use as much cpf as possible for our house, as I don't want to touch our cash (for other investments etc).
Hence if I were to get my current flat now that has a lease of 60years left, I'll likely only be able to use around 80+% of cpf to cover the house as compared to 100% now.. forcing me to go for newer flats which come at higher costs + the areas that we are looking at with proximity are limited for new flats. It's all like 5-10years old which really can't afford unless I go Two room
On the other hand, it also unlocks all the older properties near us that we previously couldn't access cos <60 years old for us was around 50% cpf usage only.. so those flats now would be around 70-80% cpf usage for us under this new scheme which then maybe we could close one eye to get a cheaper old unit near our parents??
Another thought that I also have about the supply and demand scale is that it might actually make smaller old flats more in demand, as if the move is towards older folks getting older houses, they most likely will wanna downsize. Hence for example my parents 5 room flat that is around that same age as mine might be of less demand than my 3room flat. Does this move then also affect those younger couples who have got bigger houses before this change as they might face more difficulty with selling?
Also I guess my thoughts are whether the younger generation is keen to use a pro-rated percentage of their cpf for house purchase? Cos if they are then the analysis above doesn't hold anymore, but if they do mind (like R and I) then we might end up with more demand for newer MOP flats or everyone just giving up and bidding for btos earlier.
Anyway so many thoughts as I try and see what is the implications on the housing market and my summary is that: sometimes really no way to game the system haha. Who knows what the government is going to do next 🤣