S’poreans more able to afford larger flats?
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S’poreans more able to afford larger flats?
Monday, 7 December 2009, 3:49 pm | 1,313 views
Leong Sze Hian
I REFER to the report, ‘Cool response to smaller HDB flats’ (Nov 27), which stated that there were much fewer applications for HDB two- and three-room flats, relative to larger flats.The reasoning that this was due to more Singaporeans being able to afford larger flats may be flawed.
It may be due to the HDB’s income ceiling policy, which does not allow applicants with a household monthly income of more than $2,000 and $3,000 to buy two- and three-room flats respectively.
What this means is that those who earn more than $3,000 have to buy four-room or bigger units. So it is not just a matter of preference.
With rising new HDB flat prices over the years, many lower-income households may not be able to afford a two- or three-room flat. This may be why there were fewer applications for smaller flats than for larger ones.
The argument that HDB flats are affordable, because most flat owners do not use more than 30 per cent of their income to service their mortgage, may be fundamentally flawed as only those who can afford it will buy flats. Those who cannot may already have given up their flats.
The fact that median and lower incomes have been lagging further behind, relative to HDB prices as a multiple of income, may be the best indicator of affordability.
The statistic that 30,770 HDB loans were in arrears over three months as of September, may be the best indicator of affordability as a 7 per cent arrears rate for total HDB loan mortgages is a very high figure – meaning about one in 14 cannot pay.
What this figure and the low ‘1,350 HDB flats repossessed’ statistic may reflect, is that most in default would have sold in the open market at valuation plus cash-over-valuation to avoid HDB compulsory acquisition at only 90 per cent of valuation.
Those who are forced to sell would disappear from the ‘in arrears’ and not be reflected in the foreclosure statistics.
Finally, why are there no statistics on HDB bank loans in arrears and foreclosures?
The above letter was published in the Straits Times’ Forum Page on 7 Dec 2009.
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Funny is how they tell people to buy what they can afford but if you earn a higher salary than their benchmark, you cannot buy those smaller flats.
In essence, they control what you can or cannot buy.
They define what you can afford or cannot afford.
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too small also complain
too big also complain
haiz......
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It is such coz look who is controlling HDB. So many control freaks!!!!
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HDB not worth it
only leasehold 99 years
only .... we never been owners at all
HDB is real owner
think i go sentosa cove better
later go see whats for sale there
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Originally posted by noahnoah:
HDB not worth it
only leasehold 99 years
only .... we never been owners at all
HDB is real owner
think i go sentosa cove better
later go see whats for sale there
You are right. The overall owner and winner is the HDB.
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Property act in sg is very powerful
one...
Sorry i cant share much on tis
later i get kick out of sg
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Originally posted by noahnoah:
Property act in sg is very powerful
one...
Sorry i cant share much on tis
later i get kick out of sg
Powerful to serve whose purpose???
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Originally posted by Fantagf:
Powerful to serve whose purpose???
for sureis not to serve my purpose
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Originally posted by noahnoah:
for sureis not to serve my purpose
of course we know that. -
Originally posted by noahnoah:
HDB not worth it
only leasehold 99 years
only .... we never been owners at all
HDB is real owner
think i go sentosa cove better
later go see whats for sale there
help mi recce while u are there ok?? i just need a small small piece of land by the sea one ok?.... enough for mi to pitch my tent there, fishing and bbq....... -
Originally posted by I-like-flings(m):
help mi recce while u are there ok?? i just need a small small piece of land by the sea one ok?.... enough for mi to pitch my tent there, fishing and bbq.......
why not you pitch your tent at my garden rear exit door, we need a watch man there, so might as well shelter you. -
Originally posted by charlize:
Funny is how they tell people to buy what they can afford but if you earn a higher salary than their benchmark, you cannot buy those smaller flats.
In essence, they control what you can or cannot buy.
They define what you can afford or cannot afford.
That's like telling folks, if you make above $3,000, you are not allowed to eat at coffeeshops, can only eat at restaurants. Same with the medical services.
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Originally posted by angel7030:
why not you pitch your tent at my garden rear exit door, we need a watch man there, so might as well shelter you.Pimping is good money.
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The point of singapore housing is not whether you can afford or cannot afford, because you may be able to afford until you are retrenched and therefore the contribution to CPF stopped, the fundamental of HDB policy is to make sure that everyone had a roof on top of his head, now you tell me, out of 30 thousand ++ in arrears of payment, did anyone get thrown out of their house??? if you are in Malaysia or in any part of the world, you would be thrown out and live in the street, but our govt dun do that, they listen to you, understand your problem, then find a solution for you, but if youreally are those lazy bums who got work but dun wan to work, then i have no said, but if you are geninuely in trouble, govt will help you out, you can still stay in HDB and carry on to build your nest from there. So, please
In fact, what is arrears when you are alway having to pay the loans whether in arrear or not?
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Originally posted by angel7030:
The point of singapore housing is not whether you can afford or cannot afford, because you may be able to afford until you are retrenched and therefore the contribution to CPF stopped, the fundamental of HDB policy is to make sure that everyone had a roof on top of his head, now you tell me, out of 30 thousand ++ in arrears of payment, did anyone get thrown out of their house??? if you are in Malaysia or in any part of the world, you would be thrown out and live in the street, but our govt dun do that, they listen to you, understand your problem, then find a solution for you, but if youreally are those lazy bums who got work but dun wan to work, then i have no said, but if you are geninuely in trouble, govt will help you out, you can still stay in HDB and carry on to build your nest from there. So, please
In fact, what is arrears when you are alway having to pay the loans whether in arrear or not?
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Originally posted by angel7030:
why not you pitch your tent at my garden rear exit door, we need a watch man there, so might as well shelter you.
ur garden is where leh?? i wan sentosa cove leh or 6 ave also can...and must have a pond or sea or ocean for mi to fish hor.. -
Originally posted by I-like-flings(m):
ur garden is where leh?? i wan sentosa cove leh or 6 ave also can...and must have a pond or sea or ocean for mi to fish hor..
No 10, Oxley Rise -
big hole ar u?? and there's no pond there leh... got swimming pool no count hor
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HDB’s income ceiling policy, which does not allow applicants with a household monthly income of more than $2,000 and $3,000 to buy two- and three-room flats respectively.
So that means if your wife is not working and you are working and earn 1.9k than you can buy a 2 room hdb flat?
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Originally posted by noahnoah:
Property act in sg is very powerful
one...
Sorry i cant share much on tis
later i get kick out of sg
What's so secretive about this one? It's written in the law.The land acquisition act states that the Govt can take back the land your property is on, and only pay $1, if your land has been identified to be required for re-acquisition for public or urgent reasons.
So far, I think it has only happened once, when the SLA carve a corner piece of land from a condominium for the purpose of road widening, and paid the condo owners $1.
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Originally posted by soul_rage:
What's so secretive about this one? It's written in the law.The land acquisition act states that the Govt can take back the land your property is on, and only pay $1, if your land has been identified to be required for re-acquisition for public or urgent reasons.
So far, I think it has only happened once, when the SLA carve a corner piece of land from a condominium for the purpose of road widening, and paid the condo owners $1.
Wah. Than the condo owners got no money to buy a new flat than sleep on the streets ah -
Originally posted by keeptouch:
Wah. Than the condo owners got no money to buy a new flat than sleep on the streets ah
No lahCondos have land that are used for landscaping, garden's etc
The SLA carved that part of the land from the condo total land area, and just give $1.
So far, have not seen a case where the govt executes the act to possess someone's house for $1, and causing them to sleep on the streets.
So far, they have acquired properties due to the need of that piece of land at 'market' rates, which of course, is not exactly the market rate that you think they will pay (usually it's much lower than what you would sell for).
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Originally posted by charlize:
Funny is how they tell people to buy what they can afford but if you earn a higher salary than their benchmark, you cannot buy those smaller flats.
In essence, they control what you can or cannot buy.
They define what you can afford or cannot afford.
yeah at the end of the day you pay the same price for smaller or bigger in real term so most singaporean feels that since you are going to charge anyway so most of the folks will bid for bigger flat.