Should they invest in property?
It depends on how much cash Mum and Dad have. Those above 55 years will need to pay a lot more cash upfront as their loan period will be much shorter, explains Andrew. “More importantly, there are limits such as the Valuation Limit and CPF housing withdrawal limit that cap the amount of CPF that can be used for property purchases,” he adds.
Gregory says that even if one can pay fully in cash, one should still be mindful about liquidity. “Are you putting everything into a relatively nonliquid asset class that can’t readily be converted into cash?” he asks.