Wednesday, November 19, 2008
Post no. 524
Parliament: HDB homes affordable due to high government subsidies - Fresh 938
More than 90 per cent of HDB flats are affordable to Singaporeans due to subsidies from the government, says National Development Minister, Mah Bow Tan.
- Shouldnt all HDB flats be affordable to every singaporean?
The 500-600K flats is unaffordable to people with household income of 8K amonth vis a vis The 200-300K HDB flats is unaffordable to people with household income of 2-3K.
Quoting a friend of mine (lets call him Porket to protect his identity)....
I can buy a BMW with my pay.... <-- thats affordable.
But my monthly expenses would sky rocket and i would have to cut back on alot of expenditure.
For example, a typical 4-room flat in Punggol and Seng Kang today, cost more than $300,000 to develop, taking into account land, building and other cost. This is much higher than the subsidised price of between $200,000 and $250,000 on new flats in Punggol and Sengkang.
-Hmmm.... 1000m square of land housing 100+households in a verticle plane in Punggol/Sengkang.. Thats economy of scale. Still no discount?
Quoting unknow sources from the ST forum pages...
"We need a breakdown of the costs"
What is more encouraging is that 70% of new flat buyers service their mortgage installments entirely using their CPF monies, without having to touch their cash."
- Yes.. the very same 70% who after spreading the loan over 25 years and ultimately doesnt meet the min withdrawal limit when they hit 55...or is it 60? or is it 65??
Nevermind the other 30% who cant meet their monthly payment with CPF and still need cash topup.
On a side note...
A typical singaporean male starts work at 27... after slogging for 3-4 years, at 31 decides to get married and buy a 300K HDB flat. He exhausts all his accumulated CPF at 31 for the downpayment of the HDB flat and spends the next 20 years repaying the loan... Hes 51 by the time hes done with the loan. He can now...start to accumulate his CPF retirement nest fund.....if he is still employable at 51.
Regards
Trying very hard to understand my govt...
More than 90 per cent of HDB flats are affordable to Singaporeans due to subsidies from the government, says National Development Minister, Mah Bow Tan.
- Shouldnt all HDB flats be affordable to every singaporean?
The 500-600K flats is unaffordable to people with household income of 8K amonth vis a vis The 200-300K HDB flats is unaffordable to people with household income of 2-3K.
Quoting a friend of mine (lets call him Porket to protect his identity)....
I can buy a BMW with my pay.... <-- thats affordable.
But my monthly expenses would sky rocket and i would have to cut back on alot of expenditure.
For example, a typical 4-room flat in Punggol and Seng Kang today, cost more than $300,000 to develop, taking into account land, building and other cost. This is much higher than the subsidised price of between $200,000 and $250,000 on new flats in Punggol and Sengkang.
-Hmmm.... 1000m square of land housing 100+households in a verticle plane in Punggol/Sengkang.. Thats economy of scale. Still no discount?
Quoting unknow sources from the ST forum pages...
"We need a breakdown of the costs"
What is more encouraging is that 70% of new flat buyers service their mortgage installments entirely using their CPF monies, without having to touch their cash."
- Yes.. the very same 70% who after spreading the loan over 25 years and ultimately doesnt meet the min withdrawal limit when they hit 55...or is it 60? or is it 65??
Nevermind the other 30% who cant meet their monthly payment with CPF and still need cash topup.
On a side note...
A typical singaporean male starts work at 27... after slogging for 3-4 years, at 31 decides to get married and buy a 300K HDB flat. He exhausts all his accumulated CPF at 31 for the downpayment of the HDB flat and spends the next 20 years repaying the loan... Hes 51 by the time hes done with the loan. He can now...start to accumulate his CPF retirement nest fund.....if he is still employable at 51.
Regards
Trying very hard to understand my govt...
# posted by 好人 @ 9:00 AM 
