Why he never mentioned about the rise in the cost of living n the basic necessities? Like as if the full pay is used for hdb...n no need to buy food etc... utilities never go up?
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It’s Official! Lawrence Wong has lost it! Claims that housing is affordable for Sinkies!
- Thread starter in3deep
- Start date
PAP has already made it clear years ago that HDB and EC housing loan payment cannot exceed 30% of the household income. You haven't been paying mortgage for a long time?
So don't buy hdb... Than sleep void deck?
Vast majority of sinkies buy HDB. Not sure what your point is.
In 1980 single income can pay for 4-room HDB, can single income pay for 4-room HDB in 2020? KNN…
My point is ah Wong is sprouting shit that HDB is affordable
Cheebye bro
An example case study on affordibility:-
After completing his NS, John at age 21(2018) with a Nitec Cert, worked at a local SME factory, earning basic $2500 + overtime =$3000/mth.
His CPF contribution is $600 + $510 contributed by his employer = $1,110/mth.
He met Jane, also age 21 (2018). She started work at 18yrs old as a clerk, work hard & became an admin manager with basic $3,000/mth.
Her CPF contribution is $600 + $510 contributed by his employer = $1,110/mth.
In yr 2023 ( 5yrs later from 2018 ) they decided to get married, but want a roof overhead first, & bidded for a BTO 4rm flat costing $400,000. They were successful, but had to wait for 5 yrs for the flat to be completed.
By 2028, the flat was ready, & they had to pay up for the HDB, which can be paid using their CPF ordinary account.
As they were dual owners, their monthly CPF contributions works out to $2,220/mth or $26,640/mth. From yr 2018 to 2028, they would have an est $303,651.54 COMBINED amount in their CPF at 2.4% compound interest & adjusted 3% inflation rate per yr. Even after deducting Medisave of 21%, they would have est $240,000 in CPF funds to purchase their home.
As 1st timer HDB property purchasers, they are eligible for grants up to $40,000
Purchase price $400,000 - CPF funds $240,000 - cash grant $40,000 = $120,000 in cash or loan needed to complete the purchase.
Using HDB loan at 2.5% interest rate for 25 yr loan = $538/mth OR $269/mth from each owner - Jane & John.
As John earns $3,000/mth, with CPF contributions from employee & employer = $1,110/mth, he can use his CPF monthly contribution to pay off his loan of $269/mth, leaving $841/mth in his CPF savings. So too similar for Jane. Thus they both practically do not even need to touch their salary to pay off the loan. And after 25 yrs, they pay nothing more except conservancy charges of est $50/mth.
They own the flat for 99 yrs, NOT rent. in 99 yrs time, their ages each will be 130yrs old, then hand over back the flat to HDB & the govt, to rebuild homes for the next generations of citizens. However, no mortal had ever lived to 130 yrs old......
After completing his NS, John at age 21(2018) with a Nitec Cert, worked at a local SME factory, earning basic $2500 + overtime =$3000/mth.
His CPF contribution is $600 + $510 contributed by his employer = $1,110/mth.
He met Jane, also age 21 (2018). She started work at 18yrs old as a clerk, work hard & became an admin manager with basic $3,000/mth.
Her CPF contribution is $600 + $510 contributed by his employer = $1,110/mth.
In yr 2023 ( 5yrs later from 2018 ) they decided to get married, but want a roof overhead first, & bidded for a BTO 4rm flat costing $400,000. They were successful, but had to wait for 5 yrs for the flat to be completed.
By 2028, the flat was ready, & they had to pay up for the HDB, which can be paid using their CPF ordinary account.
As they were dual owners, their monthly CPF contributions works out to $2,220/mth or $26,640/mth. From yr 2018 to 2028, they would have an est $303,651.54 COMBINED amount in their CPF at 2.4% compound interest & adjusted 3% inflation rate per yr. Even after deducting Medisave of 21%, they would have est $240,000 in CPF funds to purchase their home.
As 1st timer HDB property purchasers, they are eligible for grants up to $40,000
Purchase price $400,000 - CPF funds $240,000 - cash grant $40,000 = $120,000 in cash or loan needed to complete the purchase.
Using HDB loan at 2.5% interest rate for 25 yr loan = $538/mth OR $269/mth from each owner - Jane & John.
As John earns $3,000/mth, with CPF contributions from employee & employer = $1,110/mth, he can use his CPF monthly contribution to pay off his loan of $269/mth, leaving $841/mth in his CPF savings. So too similar for Jane. Thus they both practically do not even need to touch their salary to pay off the loan. And after 25 yrs, they pay nothing more except conservancy charges of est $50/mth.
They own the flat for 99 yrs, NOT rent. in 99 yrs time, their ages each will be 130yrs old, then hand over back the flat to HDB & the govt, to rebuild homes for the next generations of citizens. However, no mortal had ever lived to 130 yrs old......
Wow.....pap is indeed the best...but if the BTO was priced more fairly as in real subsidy ..Jane n John could retire at 55 yos n enjoy their twilight years
HDB charge u (the tenant) a lump sum amount or prepayment for a leasehold 99 year HDB flat (including the land cost).
After expiry of 99 year leasehold,u (the tenant) have to return the HDB flat with 0 value to HDB and u will not receive any compensation for the land cost already paid upfront.
After expiry of 99 year leasehold,u (the tenant) have to return the HDB flat with 0 value to HDB and u will not receive any compensation for the land cost already paid upfront.
This is a good maths question! How much do they have in their CPF if they were to retire at the age of 55?
In one year the price jumped by 150k. If it hits the point where you can't even take a bank loan then what? Hdb bao every debt?
HDB is affordable!! Oppies are spreading that silly impression that people have to pay up the entire $500k housing loan at a go.
In 1980, a single income is sufficient to put down a deposit for a 4-room HDB flat. It's different from paying for a 4-room HDB. You sound like you have never taken a housing loan before. You've been living with your parents in their flat all these years?
Should all issues being equal on interest rates, financial & political stability worldwide, & that both John & Jane are matured responsible adults with priorities in life such as to be gainfully employed till 55:-
a) at age 31, 1st Jan 2028, it can be realistically presumed that both John & Jane would have expired their cash savings for weddings & renovations, with both CPF Ordinary Account at zero.
b)However, as they are both STILL employed, on 15 Jan 2028, John's CPF account will be contributed with $600 as an employee + $510 from his employer = $1110. Less the HDB loan taken from his CPF account, he would still have $841 contributed per month. In a year, it will be $10,092. As the HDB flat is based upon Joint account, it will be similar with Jane in terms of CPF contributions.
c)By the age of 55, both John & Jane - being husband & wife, will have a combined total CPF of $661,741.42, at 2.5% interest rate adjusted at 3% inflation rate. Even after deducting 20% off for Medisave/Medishield insurance cover, they will still have $529,393.13 retirement savings in CPF alone, Each can withdraw any amount less $198,000 each to be set aside for Retirement, meaning each will have $264,696.56 - $198,000 =$66,696.56 cash in hand.
Combined as husband & wife, it will be $133,393 to spend, with $396,000 still in their combined CPF accounts that can be withdrawn at age 65.
d)Equally, they will still have FIXED asset - HDB home worth for sure MORE than $400,000 initial purchased amount for the 4 bedroom flat, However such will be based upon demand & supply for the price which in Singapore, due to land scarcity & population growth, etc, the trend will always be up, thus a need to ensure each home is used for residential purposes & NOT for investments, otherwise, many other growing citizens will be left out, forced to rent or even go homeless as investments for sure will push up prices.
e) By the age of 55, both would be more settled in life, & will have little needs, with a roof overhead already fully paid up for. The average lifespan of citizens is 83yrs. Should they not withdraw their CPF accounts, but transfer it from Ordinary account to Special Account for Retirement, they will gain a 6% annual interest rate on savings, which will escalate the $529,393.13 at age 55 into est close to a million dollars which they can withdraw at age 65.
f) As they had grown old, health would be an issue, but with CPF medisave & Medshield insurance, they will have little to worry about such concerns, also, they will be entitled to CHAS blue card subsidy, should they stop working at 55.
g)If they have children - 2 kids, they are entitled to many cash grant privileges contributed by taxpayers, for childbirth & even education. Thus, with their combined salary of $4800/mth less $1200 deducted for CPF, they would be able to afford a quality of life - necessities, vacations/yr, with even emergency savings of $1,000/mth from age 31 which at the age of 55, it will be $422,087.84 at interest rate of 3%/yr without purchasing any big ticket items such as car or branded goods.
h)Also, by the age of 55, with 2 kids, the kids would had grown up, matured, gainfully employed & would be able to contribute to family living expenses for the parents lifetime. Filial piety is a way of Asian life & culture. Love is a power but it has to be a 2 way street. When kids are properly natured with love, love will be returned to parents when the kids grow up.
Furthermore, with life expectancy of 83yrs, it will mean that the parents HDB home would have left 47yrs on the 99yr lease, which would be an inheritance that would be worth for sure more than its purchased price of $400,000, & even if it cant be sold, it can still be rented out, subjected to approval from HDB based upon relevant grounds, even if at today's current rent of $3,500/mth for a 4 rm flat unit whole, it will be est a rental total of $2 million by the 47th yr.
This example is NOT a fantasy, but based upon realities. Facts & figures do not lie. Most would be pre-occupied with work & family to care, but it just need simple financial knowledge & planning to enjoy the sunset years, than to live in fear, ignorance & hearsay.
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Please check your sums, there are deductions like DPS, Eldershield, and deductions due to surgeries and/or child birth.
Factor in the rising cost of education, food and transportation. This couple better pray their jobs are secure within the next 25 years.
Besides, the $100+K cash in hand and the $300+K CPF monies would have their value eroded by inflation in 25 years time.
The insignificant nobody simpleton me would welcome anyone to check upon my figures. I am just saddened that while you claimed to have the ability to point out my mistakes, so why did you NOT post your own figures to prove your superiority or those whom you supported, but instead asked me to do so?
Is this how opposition political & supporters work - to make others put in the effort, do the hard work, & then smugly point out minor discrepancies, then claim their superiority & right to rule, lead & govern the nation?
Just for your information, my figures had factored in average inflation rate. DPS, Eldershield are only less than a few hundreds per year, negligible to the vast sums within one's CPF & can even be topped up by cash. Does a Human need surgery or give birth every day?
My apologies & no offence intended. All the best.
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