Out of the box Use of CPF to rent or buy a flat
I created a poll to ask people if CPF should be used to rent or buy a flat and to remove restriction on the tenure of the flat.

93% of those who voted agreed with this suggestion. See here.  They are expressing their lay man's view that this will make life better for them.

I like to give my reason why this is a good idea:

a) It allows the CPF members to use their savings to rent a flat, instead of being forced to buy a flat. This flexibility may suit some people who finds it difficult to own a flat. They may wish to rent a flat near the home of their parents.

b) They can also use the CPF savings to buy a flat with a short remaining lease. This flat is cheaper and more affordable. It will also create an active market for the owners of these old flats to cash out and enjoy a fair value rather than a depressed value.

c) Owners who have bought a more expensive 99 year new flat can continue to use their CPF for the repayment. They will not be negatively impacted. 

d) However, this flexibility to use CPF savings should apply only to the contributions that are made by the worker (or the amount kept in the ordinary account) and not the employer's contribution (which is kept in the special account and reserved for retirement).

Overall, this change will benefit everybody. It will free up the market for residential flats to better serve the financial needs of owners and occupiers.

Tan Kin Lian

Vote - do you agree with my perspective?
 

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