Upgrading from 4 room flat to executive condominium.

Reader:
Hi AK, I have been scouring your blog and other cpf articles but need your advice.

I currently have about 67k in my cpf OA (I refunded my OA with cash for my hdb installments which I previously paid using OA, thus considered cash payment for my hdb) And 63k in my SA (due to yearly top up).

I am turning 30 this year. I started using cash to continue paying for my hdb installments which is slightly less than $1k a month-4 room hdb.

My question is this. I am thinking of doing additional transfer from OA- SA to make it 100k in my SA. 

What is holding me back is that I plan to buy a executive condo in the next 5 years. Proceeds from my flat can cover more than the downpayment.

Can you talk to yourself to see what would you do?



AK talks to himself:
Eh. If you have enough cash, don't use your CPF-OA money to pay for new place.
If no choice, then, use the CPF-OA money. Don't transfer to SA.



Reader:
I intend to keep a lump sum in OA worth at least 2 years of installments in case of emergency. I calculated if I continue paying cash for my hdb, by the time I get the condo, my OA will still be able to cover 2 years worth of installments.



The reader sounds like a prudent fellow.

Of course, we should remember that our home is a consumption item. If we could lower our cost of housing, we should probably give it some serious consideration.

Related posts:
1. Should I do CPF-OA to SA transfer?
2. Options for CPF-OA with flat on the way.
3. How to stop accrued interest from growing?

Make money from Croesus Retail Trust and no worries?

I said before that if an investment is still doing what we want it to do for us, there is no reason to sell unless we have found a another investment that can do a better job, bearing in mind to compare apples with apples.

Reader:
Hi AK, noticed you mentioned you would prefer not to accept any privatisation of Croesus. Just curious about the reason?

Supposing they pay a 20 percent premium, you'd be getting back effectively 3 years of dividends. Together with the large capital return (which would be more than 120 percent since your average price is much lower than current price), you could easily put that money on some other REIT, which itself would generate income moving forward.

So it seems that it's definitely good to take any deal that comes by. Or am I missing something?

AK:
It is like killing the goose that lays the golden eggs. 😉

Reader:
Haha true
Except with what you get back, you can buy another golden goose 😛
and have some more leftover because of the premium.

AK:
If you can find another golden goose. Not so easy. 😞


Well, sometimes, we don't have a choice and are forced to sell. Will just have to be philosophical about losing the goose then.

Related post:
History with Croesus Retail Trust.