Hidden Profit Killer That Devalues HDB Affects 90% Of Singaporeans

Do you wish the money in your CPF account grow faster than the current 2.5% in your Ordinary Account (OA)?

Do you want to take advantage of your HDB value to upgrade to a condominium or buy a second property? 

Wouldn't it be nice if your CPF account is fat enough to cover your daily expenses so you can retire peacefully?

Half A Million Asset

As the cost of living continues to rise in Singapore, it is a good that at least the value of our property rises too.

It is comforting to know at least we have a growing asset (our HDB apartment) worth around half a million.

But what if there is a hidden profit killer affecting 90% of Singaporeans that devalues our HDB?!

This affects all Singaporeans who used the money in their CPF account to pay for their HDB.

This hidden profit killer is called CPF Accrued Interest.

And it is more dangerous than you think.

Why Is CPF Accrued Interest So Dangerous?

This is the amount that you need to refund back to your CPF Ordinary Account when you sell off your property.

Let's assume you took out $200,000 from your CPF OA account to pay for your property (Refer to diagram below).

This $200,000 would have earned you 2.5% a year compounded if you left it in your CPF OA. And 20 years later, this $200,000 will grow to around $328,000. An extra $128,000!

When you sell your HDB, you need to put back the original $200,000 and the additional $128,000!

So let's say you sold your HDB and has a profit of $120,000, you actually have a negative sale of $8,000!

Click for full image

And this is on top of your HDB loan interest (around 2.6%) that you need to pay HDB. 

To make matters worse, if you are like most Singaporeans, you also use your CPF OA to pay off your HDB monthly instalments.

So your total amount used from your CPF OA account for your HDB would be more than $200,000. And all these money would be accumulate the 2.5% CPF Accrued Interest, which you need to pay back!

Did You Know?

Because even if you and your spouse managed to pay off your HDB Loan, the CPF Accrued Interest continues to compound and accumulate indefinitely!

Yes, Your CPF Accrued Interest Compounds Even After You Paid Back Your HDB Loan!

And what if your "profit" from your HDB sale is less than $120,000? So your negative sale margin may realistically be much higher than $8,000!

HDB is supposed to be our greatest property asset. And yet when you plan to sell it to upgrade to a condominium, you are slapped with a negative sale loss.

The Lethal Hidden HDB Trap

This is a problem all HDB owners face.

So what can you do about it?

You have 2 options:

Option #1

Never sell and utilise your HDB's value and let the CPF Accrued Interest compound endlessly. Because you never sell your HDB, you never need to pay it back.

Option #2

Learn how to use a legal CPF loophole to grow the money in your CPF OA account faster than the 2.5% CPF Accrued Interest.

Yes, instead of letting your CPF monies just sit there, you can use this legal loophole to grow them faster than the fixed 2.5% CPF interest rate.

There are different ways to do this but I have figured out the best way to help my clients grow their CPF accounts. In fact, I have helped many of them grow their CPF account by more than 20% in less than 3 years (instead of the normal 2.5%).

If you want to learn my strategy, simply schedule a FREE consultation with me today.

Why am I doing this?

Because I know 50% of the people who book a session with me would be so happy with this strategy and go ahead to implement it themselves. If this is the case, I'm glad that I have helped them.

And the other 50% would be so excited with my strategy that they would become a client and hire my team to implement this strategy for them.

Either way, it is a win-win situation for the both of us and I am glad to have helped you.

The Catch You Are Looking For:

This legal CPF loophole has two requirements:

  • You bought your HDB at least 5 years ago
  • You and your spouse's combined salary is at least $8000

That's it! So if you are eligible, book a strategy session with me today so you can escape the lethal CPF trap called CPF Accrued Interest!

Don't settle for the low 2.5% growth rate in your CPF OA. Discover how to multiply your earnings in your CPF account using this simple legal loophole.

P.S. Don't let procrastination kill your early retirement dreams. Use this loophole to protect your HDB value while you still can. Click here to schedule a free CPF Loophole consultation today.

About the Author

Tim Wayne is the chief writer at Elite Financial Habits. He understands that the rich didn't grow their wealth using magic; it is simply an intelligent combination of mathematics, psychology and economics.

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