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HappyHouse88

Expensive Hdb - Solve Housing Problem At Its Roots..

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HDB was supposed to provide affordable homes for people living in Singapore. Instead of renting, to own the place where they stay.

And it shld go back to that.

The primary reason for property prices to be high is because of low interest rate, high inflation and property appreciation over the last few yrs. The low entry cost of HDB flat have attracted both PR as well as wealthy Singaporean to use it as an investment tool by buying them to rent out. Rental yield is a whopping 15% in some units in the central. There were also people that bought flat and simply to wait out for it to appreciation. I heard of friends that never moved into their hdb flat and sold them 1 yr later when the MOP is up.

When HDB first started, HDB are not be sublet! And I think it's time for us to do that again. HDB are meant for Singaporean , PR alike to have a comfortable place to stay and not to worry about mortagage as their CPF could easily afford. Singaporean who wishes to stay in private shld be made to sell their hdb. And they are suppose to stay in their HDB and not sublet for high rental yield. With no attractive rental yield, i believe that people (singaporean, PR) will start to pay realistic price for their hdb. HDB is suppose to be affordable housing! And seriously, one reason why Singapore has been able to stay competitive is that Singaporean has affordable housing and ,thus, less pressure for wages to go up like Hong Kong.

MOP should be abolished, people shld be free to buy and sell when they need to. Especially for young family that may need to move because of childcare arrangement or aging parents shld be free to sell their house and move to place where it is more convenience or some cases cheaper.

I hope that the new Minister will do something radical to the system.

 

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agreed with your theory ...

BUT ...

1. Whether singaporeans buy and sell or rent at high price - some are hearsay , some are facts. But did u know that they have to pay rental tax as well ? If your friends can do that, why can't you ?

 

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def not heresay.. cos' presently owning a flat , bought at 300k+ , now has valuation of 650k, could rent out easily at 3.5k.

Even if my buyer buys at let say 700k, rental could fetch easily 3.5k per mth which is ard 6% rental yield. So much better than condo. Thus, this attempts PRs as well as Singaporean who has lots of cpf to buy and rent out eventually.

At a rental yield of >6%, it's probably the best investment now esp, since they may not need to pay instalment using cash. Even with rental property tax, it still make this "investment" attractive. The government need to stop ppl from renting out their home, at least not whole house.

>> If your friends can do that, why can't you ?

Dont understand what you mean ? of course i can. i am just stating the problem and stating a possible solution to solve a national problem :P

Edited by HappyHouse88
 

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82% of s'pore resident population(PRs + citizens=3,772k as at end 2010) "stay" in HDB flats.

Price of "public" residential property is quite a complex issue, not as easy as Abc or 123 as it looks superficially.

1. Demand/supply issue already make the gov blur blur.

1.1 One department open gate big big let "external" thirsty ppls in. Another deparment asks "internal" ppls who feel thirsty to register in the list first, then tendering out for contractors to "dig wells" - wells digging take 3-4 years, digging half way all die of thirst liao. Actually not all die:

1.1.1 Those "tabolah tahan" for the thirst look for existing wells. Those "external" ppls also look for existing wells, so.....Only those waiting for the "new wells" - cry father & cry mother.

Everybody needs "water" to survive, those at upper hand make MONEY, those at lower hand make NOISE. Who caused such?, you know I know.

2. Global economic

2.1 Actually only asia econ is booming. QE1, QE2 effects, low interest rates......everybody "chiong" for property to keep the "money" worth its value. Keep $$$ in banks for 0.5% pa interest? To put in plain, everybody(esp those at upper hand) see property(public + pte) is the best "investment lobang" under such situations.

3. Function of "Visible hand"

3.1 The "visible hand" has "stirred" the "free market" 4 times or 5 times?, intended to keep the temperature down by changing the "rules of the game".

3.2 Same time, "visible hand" starts working hard "digging different kind of wells" and roll out many fresh leased lands. I expect in late 2012 to early 2013, the resident population will see the "water" start flooding, hopefully by then the interest remains low, otherwise, some will get "drown". Or open the gate/**** to "contain" the overflown water.

Too many theories to write, anyone care to carry on?

 

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hdb already made it clear all rentals of hdb must be reported to them

if not they can seize your house

What i am saying here is that NO RENTAL ALLOW for HDB. You buy , you stay. You dun want to stay, you sell. Then ppl will buy within their means and according to their needs. Dun have situation where PR buy 4-rm , rent out 2 rms, and ppl buy to rent out after 5 yrs. Making huge rental gain.

Edited by HappyHouse88
 

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What i am saying here is that NO RENTAL ALLOW for HDB. You buy , you stay. You dun want to stay, you sell. Then ppl will buy within their means and according to their needs. Dun have situation where PR buy 4-rm , rent out 2 rms, and ppl buy to rent out after 5 yrs. Making huge rental gain.

Frankly, ridiculous suggestion really. Think for a second.

- A PR family bought a house for 5 years. For work reason, they have to be overseas for work. They are not allowed to rent out the flat?

- They have a flat with 3 bedroom, they just have to leave 2 bedroom empty although they have difficulty paying the mortgage?

The root cause is as mentioned as bepgof, demand/supply problem.

 

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Frankly, ridiculous suggestion really. Think for a second.

- A PR family bought a house for 5 years. For work reason, they have to be overseas for work. They are not allowed to rent out the flat?

>> PR as well as singaporean, if they leave for a good couple of years, they should sell away.

- They have a flat with 3 bedroom, they just have to leave 2 bedroom empty although they have difficulty paying the mortgage?

>> they should right-size their flat. Get a 3 rm or 2 rm within their mean. Also, if you disallow rental, the price will stop going up. And there will less difficulties in paying mortage.

The root cause is as mentioned as bepgof, demand/supply problem.

The supply now is fuel by 2 grps of ppl , 1 ppl that seriously need a place to stay. And another that want to invest in HDB. You take away investor, your cut the demand. Price will moderate.

Edited by HappyHouse88
 

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1. So, if the family leaves for 2-3 years, they should sell away the flat, and next time buy again with HIGHER price. If you are them, will you do that? Sell your current flat at 400k and next time u have to buy again for 700k.

2. What is the right-size of flat? A family needs 3 bedroom because they have kids. Now the kids married, they moved away, do they have to sell the house just because of that reason?

3. Yes, there are 2 groups, question what is the percentage of the investors, u cut them away, will the price moderate?

 

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Before we question the rational of each policy. We had to look at the reasons for such implementation at that time. Demand/supply, lifestyle, etc. If such needs no longer exists then we had to revised them. If you were to scutinized the property rules. There are so MANY rules that had been in place. If there is a need to add some rules, perhaps we need to remove some too. I am not in favour of the numerous rules, cos our lifestyle change over the years. So, how can we be penalized for this changes when we are trying to change our environment to suit our lifestyle.

 

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no easy way out. Its already a road of no-return.... to bring down prices would mean that home owners who have paid high prices suffer a loss.

As i see it, no way for them to make people happy.

oh yes, unless they let people buy malaysia houses using CPF. that would surely be affordable. :P

 

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1. So, if the family leaves for 2-3 years, they should sell away the flat, and next time buy again with HIGHER price. If you are them, will you do that? Sell your current flat at 400k and next time u have to buy again for 700k.

if they have the intention to come back and think that property will become higher , then they shld keep their flat. The cost of maintaining shld be consider when they decide work oversea. We can shld not stop PR from buying flat because they stay here to work and need a place to stay. Looking back, there are singaporean that gotten aussie PR and still keep their flat here to earn rental. Is it fair?

2. What is the right-size of flat? A family needs 3 bedroom because they have kids. Now the kids married, they moved away, do they have to sell the house just because of that reason?

The reason to sell shld not be due to the size of the family but whether or not they could afford the house. If the house is fully paid and they enjoy the large space, they can keep the house. Why not ?

3. Yes, there are 2 groups, question what is the percentage of the investors, u cut them away, will the price moderate?

What percentage are PR ? why make difficult for them to buy HDB then ? Investors are the ones that push up the price until the rest have to pay more to get the unit. If there is no investment value in getting a flat, prices will moderate according to "affordability"

Edited by HappyHouse88
 

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no easy way out. Its already a road of no-return.... to bring down prices would mean that home owners who have paid high prices suffer a loss.

As i see it, no way for them to make people happy.

If property price is not deal with, it will soon snowball to bigger social issue. A immediate problem that arise from higher cost of accommodation is the productivity. Business owners are pressured to raise wages so that workers can afford their rent/mortgage. If not control, it will spiral and push business out of singapore because of high operating cost. We need to provide common ppl with affordable housing.

Edited by HappyHouse88
 

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The Additional CPF Housing Grant (AHG) Scheme, introduced in March 2006, is meant to help citizen families with a steady household income to buy their first subsidised HDB flat. The AHG can be used for the purchase of new, resale and DBSS flats. It is an additional subsidy over and above the regular market subsidy and CPF Housing Grant that new and resale flat buyers enjoy respectively. The scheme was enhanced in August 2007, with the income ceiling and the grant amount raised - to help more households own their first flat.

On 6 February 2009, the AHG Scheme was further enhanced, to make owning an HDB home easier for more citizen households - especially the lower-income families.

The enhancements are as follows:

• Maximum AHG amount is increased from $30,000 to $40,000

• Income ceiling is raised from $4,000 to $5,000

• Continuous working period preceding the flat application is reduced from two years to one year

 

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My take on this AHG is that it caters for income ceiling below $5000. Who aspire to own falt size of 3BRM or less. It is assume that those that make 5k~ 8k who aspire to own 4BRM and above do not need help. Worse is those who are 8k~10k. Totally, cannot apply BTO but from DBSS only. Actually 4BRM is a good size, got 3 BRM. These are the ppl that fall between the cracks.

More grants? cheaper BTO, but increase resale levy? cheaper loan rate for 1st timer?

Special grant to parents, if sell to children? Parents got cash, children still take care to parents. Grant to be revoke if parents din live there. 1st Children no need to chiong BTO. Currently both parents & children, each got 1, parent stay with children then rent out theirs for rental income....Em.also good mah..

 

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My take on this AHG is that it caters for income ceiling below $5000. Who aspire to own falt size of 3BRM or less. It is assume that those that make 5k~ 8k who aspire to own 4BRM and above do not need help. Worse is those who are 8k~10k. Totally, cannot apply BTO but from DBSS only. Actually 4BRM is a good size, got 3 BRM. These are the ppl that fall between the cracks.

to me, if earning 8-10k, it not really falling btw cracks. It's a adjustment of expectation. They shld go for smaller flats and still have a place to stay. I pity those that earn < 5k and cannot afford to rent or to buy.

More grants? cheaper BTO, but increase resale levy? cheaper loan rate for 1st timer?

Special grant to parents, if sell to children? Parents got cash, children still take care to parents. Grant to be revoke if parents din live there. 1st Children no need to chiong BTO. Currently both parents & children, each got 1, parent stay with children then rent out theirs for rental income....Em.also good mah..

If you want rental income, buy a condo and rent out. HDB is meant for hardworking residences of singapore that needs a place to stay, not as a mean of generating income

 

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