Buy a condominium unit or stocks for investment?

A conversation with a reader:

Hi Ak71,

I would like to get some advice weather I should get a private apartment and do long term investment at the same time.

As for the apartment I would like to rent it out and sell it. I am still very green in these area. Hope we can have a small talk help me understand and look at the bigger picture.

Some information total cost of the unit 4xx k, getting 80% loan from bank.  

Regards,

L

My reply:

Hi L,

Welcome to my blog. :)

I won't say too much. I will just ask you to consider the following:

1. You want to go to my blog's right side bar and look for the box labelled "Investing in real estate".

2. If you are interested in long term investment for passive income, you might want to go to my blog's right side bar and look for the box labelled "Passive Income: A Journey."

3. Of course, make sure you have your personal finances in order first before proceeding to try your hand at investments. This is very important. Anyway, you might want to look for the box labelled "My Methods and Philosophy."

If you read up on the links in the boxes suggested, you will get an idea what I might say to you in your case. ;)

Best wishes,
AK

I have published more than 2,000 blog posts and counting. Do a search and you might find the stuff you have in mind. Please read disclaimer found at the bottom of this blog too.

Related posts:
1. To rent or to buy? Rule of 15.
2. To retire by age 45, start with a plan.
3. How to have peace of mind as an investor?
4. When to buy a private residential property?
5. Ask two questions when buying an investment property.

What happens to our CPF money at age 55?

Reader's email:

Dear AK,

I have been following your blog regularly for the past two years. 

I found it very educational and useful for me - an ordinary worker trying to strive for financial freedom.






Among the discussion, I had also paid close attention on those mentioning taking advantage of the 4% interest in CPF-SA. 

Over the last two years, I had made a substantial amount of transfer from my OA to SA account. 

With this and my continued contribution, I'm quite confident that I will be able to meet the enhanced retirement sum at 55 years old. 


This year, I'm also considering voluntary top up to my CPF-SA account.





My question for you is that should i still perform voluntary top up to my CPF-SA given the new regulations ie only $5000 withdrawal allowed at 55 years old and 20% at 65 years old? 

In the event that I continue to perform voluntary top up, amount of funds in CPF-SA will exceed enhanced retirement fund at 55 years old however withdrawal of only $5000 is allow. 

Will the balance in the CPF-SA in excess of enhanced retirement sum be unnecessarily locked up without me having access to it?

thank you.

Warmest regards
C









My reply:

Hi C,

Welcome to my blog. :)

My understanding is that at age 55, we will be allowed to withdraw a lump sum that is in excess of the prevailing minimum sum at that point in time. 





Those who are not able to meet the minimum sum will get only $5,000 at age 55.

You might want to double check with the CPF Board to be sure. ;)

Best wishes,
AK

Who are the right people to ask?

Reader's reply:

Dear AK,

Thank you for the very prompt reply. I finally managed to get through to the cpf board today. You are right! :) 

Lump sum withdrawal in excess of the prevailing minimum sum still holds true with the new changes although the staff I spoke to couldn't provide me more info on the 20% withdrawal at 65 yo.

Will have to wait for more info on the latter as more announcements are being made.

Thanks once again for your help! :)

Warmest regards
C





Always the best to hear from the horse's mouth. Make sure it is the right horse. ;)

Related posts:
1. Tea with EY: CPF questions.
2. Videos on reaching 55 and CPF Life.