Singapore MOE School Fees (Primary 1 to 3) S$78 per year

I just made a count on MOE School fees for Primary 1 to 3.

Total School fees (EDUSAVE + Cash portion): S$716.30, whereby S$234 paid in CASH (32.7%) , S$482.30 paid by EDUSAVE account.

Your child will receive receive S$1,470 FREE (throughout 3 years) from the government in his/her EDUSAVE account.

The miscellaneous fee of S$6.50 monthly has to be paid by CASH.

Hence, S$6.50 x 12 months x 3 years = S$234 ( paid in CASH only)

I would say the S$78 annual school fees in Singapore is extremely affordable and yet you still have a good balance in EDUSAVE account that attract 2.5% interest.

4-room HDB Rental (Toh Guan @ Jurong East): Year 2022 update

• 4-room flat, 90 sqm (968 sqft) purchased in June, 2009 for S$355,000 (S$367 PSF).
• Renovation started on Dec 11, 2009 until January 24, 2010.
• Private bank housing loan was fully paid/redeemed on August 1st, 2014.
• Self-stayed for 7 years & 10 months until October 13, 2017.
• The HDB unit was rented out since November 5, 2017 until today.

(1) Tenancy agreement was renewed for the second time (total 52 months to be exact as tenant ended the tenancy 2 months in advance) with the same rate of S$2,150. Rental yield: 7.27%.

 The 3rd tenancy agreement ended on February 28, 2022.

New tenant found with 2 years contract, starting on March 1, 2022, with new monthly rental of S$2,800. New Rental yield: 9.5%.

(2) Total rental income to be received for 4x tenancy contracts, total 76 months (until Feb 2024) will be : S$179,000

52x S$2,150 = S$111,800

24x S$2,800 = S$67,200

(3) Miscellaneous charges:

- Yearly rental income tax (through additional personal income tax): at least one month of rental:

S$2,150 x 4.33 years ~= S$9,309 (52 months = 4.33 years)

S$2,800 x 2 years ~= S$5,600

Reality (estimated): S$19,413

- Monthly town council fees of S$79.50 x 76 months = S$6,042

- Real estate agent fees paid: S$1,150 (2017) + S$1,613 (2019) + FREE (2020) + S$2,996 (2022) = S$5,759

(I engaged tenant directly for 3rd tenancy agreement renewal with the consent from the real estate agent.)

- Property tax S$449 (2017-prorated) + S$960 x 4 (year 2018-year 2021) + S$1014 x 2 (year 2022- year 2023) = S$6,317

- Changed a new Daikin System 4 air con S$2,780 on June 27, 2019.

- Toilet repair done by HDB on March 1st, 2019, S$339

- Touch-up/furnishing cost on November 5th, 2017, S$1,800

- Touch-up/new kitchen hob, February 18, 2022, S$1,753

Total cost: S$44,204 (up to Feb 2024).

(4) Net gain: S$179,000 - S$44,204 = S$134,796. (38% of the purchase price) for 76 months = 6.33 years.

Net rental yield: 6%

The flat still has 74 years lease (counting from year 2024 until lease expired, year 1999 flat).

(possibly additional rental income of: 74 years x 12 months x S$2,800 = S$2.486 million)

Each year of rental will bring a net gain of S$21,294 (S$1,774 net monthly gain).

New CPF Full Retirement Sum (to be raised by 3.5% instead of 3.0%) for year 2023 to 2027

The previous CPF Full Retirement Sum (FRS) was adjusted higher by 3.0% each year but now it accelerated faster / higher at the speed of 3.5% per year to catch up the inflation rate. The same increment pace (3.5% P.A.) for the BRS and ERS too as they are all linked together. 

FRS= 2 x BRS

ERS = 3 x BRS

Below table is the brand new FRS projection based on the 3.5% rise each year. The next 5 years FRS figures had been announced during the Budget Day 2022 ( Feb 18th, 2022).

What's the impact to me?

My projected FRS used to be S$282,000 (with 3% increment P.A.) but now the new projected FRS will be S$300,800 (with 3.5% increment P.A.).

With this higher FRS figure, my CPF LIFE monthly payout at the age of 65 will be increased accordingly from S$2,256 to S$2,406.

Hence, you can treat this change as a forced / disciplined / increased sum of retirement annuity that will later give you a higher monthly pension payout at the age of 65 to death.

You must know how to calculate your own FRS & CPF LIFE monthly payouts too!

My son FRS sum will also be increased from S$726,000 to S$906,800 that will later yield a monthly CPF LIFE payout of S$7,254 at his age of 65.

When will we see the S$1 million dollar mark in FRS ?

48 years later.

Those who born in year 2015 (SG50 babies), your FRS in year 2070 (when you are at age 55), the FRS will be S$1,005,500.