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.

Found new HDB tenant in 9 hours with 30.2% rental increment & 9.5% rental yield

I found my first HDB tenant in year 2017 within 3 days. 

Read the blog here : JK Holdings: 4-room HDB Rental (Toh Guan @ Jurong East) (Revision 02) (jkfund.blogspot.com)

On January 26, 2022, I found my new HDB tenant in just 9 hours. That's a new RECORD!

Here are the timeline (based on my what's app timings):

3.35 P.M. : I informed my agent that my unit will be available for rental, looking at S$2,400.

7.11 P.M. : Agent proposed one tenant profile and I approved.

7.55 P.M. : Viewing completed! Can you believe it?

8.58 P.M. : Rental of S$2,800 offered for 2 years. What the XXXX !!!

10.31 P.M. : Tenant requested to move in the items on Sunday (Feb 27th) while tenancy lease starts on March 1st. Not a problem!

That's 9 hours duration to secure the deal, the rest are just paper works.

On January 27, 2022 timeline:

12.30 A.M. : Letter of Intent received for signature. That's how hardworking my agent was!

7.52 A.M. : Agent commission agreement form received for signature.

8.50 A.M. : Received tenant good faith deposit.

In short, my existing tenant will end the tenancy lease on February 28th ( he will start moving out the items at mid-Feb ) and the new tenancy lease will start on March 1st. No time wasted. Immediate transition to the brand new 2 years tenancy contract. Sweet!

Rental increased from S$2,150 to new rental of S$2,800.

Rental increased 30.2%

Rental yield now 9.5%

Passive income (2 years) = S$67,200

The HDB private housing loan (Maybank) had been fully paid in year 2014.

S$2,150 rate was 5 years ago and I had not increased the rental since.

S$2,800 rental is the second highest rental for 4-room flat at Toh Guan as there is one unit rented out at rocket high price of S$3,300 in January 2022!

65x rental transacted in Toh Guan (4-room flat) for the past 12 months.

Average rental: S$2,226. 

Median rental: S$2,200.

You can find all the HDB rental caveat here at this link: HDB | Market Rental Rates

I also checked for 5-room flat and Executive Apartment/Executive Maisonette data at Toh Guan, Jurong East.

For 5-room flat, total 50x rental transacted for the past 12 months.

Average rental : S$2,427.

Median rental : S$2,350.

Highest rental : S$3,300 as well.

For EA/EM flat, total 63x rental transacted for the past 12 months.

Average rental: S$2,744

Median rental: S$2,700

Highest rental: S$3,600.

February 11th, 2022: Tenant returned keys but still pay full rent for the month of February.

February 12th, 2022: Started to clean the unit.

February 13th, 2022: Completed cleaning.

February 15th, 2022: Received quotation of S$1,173 to make good the unit.

- Labor and materials to remove peel off plaster outside master bedroom toilet and re-plaster/paint the affected area.

- Labor and materials to paint 1 wall with sealer and white paints (include laying of protection covering).

- Labor and parts to replace 1x cove light.

- Labor to supply and replace the door bell switch and door bell.

- Labor to check and replace cooker hob.

- Labor to supply and replace 1x bidet spray set.

- To supply and replace 2 way tap at master bedroom toilet.

- Labor to supply and install the common toilet door latch.

- Labor to bring down chandelier, disconnect power supply, patches hole and paint.

- Transportation.

February 18, 2022: All touch up completed. I am satisfied.

Rosewood condo sold at all time high price !

My sis was able to sell her condo in November, 2021 at all time high, S$980,000 (the highest price of 3 bedrooms unit at Rosewood). It was S$80,000 above bank valuation.

That's exactly one month before the new property cooling measures announced on December 16, 2021.

It is a 3 bedrooms unit, located at 14th floor, 1,173 sq ft unit at Rosewood condo at Woodlands. Let's see when the next 3 bedrooms unit at Rosewood can be sold above S$980,000. : )

I had stayed at Rosewood for a year in year 2004. Not bad indeed. Good facilities. :)

It was sold at S$835 PSF @ Woodlands!

For 3 bedrooms unit, 1,173 sq ft, there are total 35x transaction for the past 5 years (from January 2017 to January 2022). The details shown in the table below.

For 3 bedrooms unit rental for the past 5 years (from January 2017 to December 2021), there are total 215x records, with the lowest rental S$2,100 and highest rental S$4,000. The median rental is S$2,400 and the average rental is S$2,477.35, pretty close to the median rental of S$2,400!

She bought the unit during the launch in March 2002 at S$552,583 ( S$471PSF ), that's a good profit of S$427,850.

The Rosewood condo had been fully paid. She had used CPF OA monies S$277,505.43 to serve the housing loan and there is an accrued interest of S$91,734.16. After the sales, total of S$369,239.59 will be returned to CPF OA account.

The OA account will be increased from S$3,594.25 to S$372,833.84.

With this, total CPF balance will be S$609,041.85. 

That's 0.61M44 (alone).

Technically speaking, it shall be 0.61M42 (alone) as her last CPF contribution was 3 years ago in August 2019.

I remembered vividly that the property price in Singapore actually crashed between year 2003-2006, you could actually get much cheaper price than the launch price of Rosewood close to S$400K+ for a 3 bedrooms unit. You could have profited even more if you are able to catch the dip. 

By the way, she bought a 5-room HDB flat in year 2006 and rented out Rosewood all the way until year 2021. She did not use CPF OA monies to serve the HDB private bank housing loan. She had also migrated to Sydney three years ago with her family in year 2019 (She works at IT management at Aussie bank). You can imagine the rental collected for 15 years from year 2007 to year 2021, taking average monthly rental of S$2,800 x 12 months x 15 years ~= S$504,000.

With the sale profit of S$427,850, the total profit would be ~= S$931,850. Nice!

In my opinion, if possible, it is always good to purchase at least 1x private property and 1x HDB unit in Singapore. 

The sequence is important now. You have to purchase HDB first then private property, not the other way round anymore as you have to dispose the private property within 6 months after you collect the HDB keys.

Updated on February 14, 2022

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The record was broken last month (January 2022), the 3 bedroom unit, 1,173 sq ft, much lower floor (06 to 10) was sold at all-time-high S$993,000. Amazing.

Updated on February 18, 2022

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CPF had completed the housing refund, total net amount used S$277,505.43 and total accrued interest S$91,734.16 to CPF OA account.

The CPF OA account now balloon from S$3,594.25 to S$373,603.09.

Total CPF balance now: S$609,811.10. 

Technically speaking, achieved 0.61M42 (alone). 

She has stopped CPF contribution since August 2019. Pretty impressive.

Next task: to perform CPF transfer from OA to SA,  to max out year 2022 FRS S$192,000 in SA account.

Updated on April 4th, 2022

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The record was broken last month (March 2022), the 3 bedroom unit, 1,173 sq ft, floor level 11 to 15, was sold at all-time-high S$998,000.