Khaw: New flats still affordable

[sleaguepunter]

History will repeat itself if and when foreigners leave sinkieland in droves. Most of the new residents will start leaving when they realise that cost of living here uses up most of their income. The tipping point is already here.

I cannot see the tipping point yet. not yet, at least no until population really reach 6m which we are still at least half a mil away. i was lucky as i brought my resale in 2004 when it less than half of current price. the govt have no biz to included the land price onto the flat as the land still belong to the govt. the property industry is now carrying the weight of the economy. can look ard, there no production of anything, export decrease, everyone is spending future money. once the dream wake up, the money will be gone in an instant.

 

[watchman8]

I cannot see the tipping point yet. not yet, at least no until population really reach 6m which we are still at least half a mil away.

I based my predictions on anecdotal observation; not precise, but hopefully useful.

You look at those pinoy, ah neh and ah tiong professionals working here. Their income average around 3k pm. Rental takes away 1k, food and transport another 1k. Taxes and other miscellaneous another 300 - 500. So net saving only 500 to 700 pm. Hardly enough to save up to bring their family here.

Those with family here are even worse off, barely any savings left as they usually rent entire flat at 2 to 3k. I spoke to a few, and they are realising that the money is no longer attractive in sg because of escalating rental and other costs. They came here between 05 - 08, and they are now seriously considering leaving as wages remain stagnant.

On the wages side, I spoke to employers, and most are not willing to increase wages, as their profit margin also shrinking due to high costs brough about by property and COE.

 

[LeMans2011]

char_azn estimation of $12K interest is not wrong as the actual amount providing the couple didnt default any payments and hdb interest remain at 2.6% is $11,750.42 as long they pay $815 a month and a final payment of $765.42 on the last month.

as for 3rm enough to raise a family or not, that will depend on the couple expectations.

The interest is fine, I underestimated the impact of the instalments paid thus principal is reducing. As for wth 3 room flat is enough to raise a family that is not even relevant. The same earnings just a couple of years back would have given one bigger space and more spare cash. So the relevant qn is: is it an economic necessity to flood the countries with so many FTs so quickly that your std of living has to drop? It all goes back to the most fundamental issue of bringing in FTs to prop up real estate. That is not a million dollar solution, that is something stone-age employed way before our forefathers were born so dont come and bullshit about your million dollar talent.

 

[TenderLovingCare]

Quick calculation

Average couple earning 2K each. Paktor 3 years wait for BTO 3 years. CPF will have about $65K(2K * 2 person * 6years * 23%)

Assuming buy BTO 3 Rm at Compassvale $151K(not including grant) - $65K = $86K

$86K @ 10yr loan @ current CPF interst rates 2.6% = Total interest $12K

Monthly Installment $800+

Should be able to use CPF pay in full. Finish paying at 40

I don't think that's too bad

Why don't you get married, if you are still single, quickly, riase a family in a 3 room flat and come back to us in a few years to see if it is really a good choice to buy an "affordable" 3room flat.

Just for the record, I was raised in a 3 room flat. So I understand.

 

[TenderLovingCare]

For those who still think that you own a HDB flat after finish paying up all your installment, please do yourself this favour - take out that document that HDB gave you when you finished paying up all the installment.

Do you see a Title Deed? No.

Do you see a Lease Document? No.

What do you see? Hello, bet you only see a DUPLICATE lease document. Please wise up.

 

[WHITEWOLF]

For those who still think that you own a HDB flat after finish paying up all your installment, please do yourself this favour - take out that document that HDB gave you when you finished paying up all the installment.

Do you see a Title Deed? No.

Do you see a Lease Document? No.

What do you see? Hello, bet you only see a DUPLICATE lease document. Please wise up.

Kinana would disagree.

 

[General Kala]

Kinana would disagree.

Hi there,

You seem to be in a hurry to hit your post count to reach 50.

 

[WHITEWOLF]

Hi there,

You seem to be in a hurry to hit your post count to reach 50.

General Kala bro, I not in hurry, for dun know why suddenly, I caught the writing bug. It's like a rush!

 

[Kinana]

I cannot see the tipping point yet. not yet, at least no until population really reach 6m which we are still at least half a mil away. i was lucky as i brought my resale in 2004 when it less than half of current price. the govt have no biz to included the land price onto the flat as the land still belong to the govt. the property industry is now carrying the weight of the economy. can look ard, there no production of anything, export decrease, everyone is spending future money. once the dream wake up, the money will be gone in an instant.

Really? So how can singkies afford them?
You have a weird sense of economics.

 

[greedy and cunning]

Really? So how can singkies afford them?
You have a weird sense of economics.

i am quite tired of pointing out the simple fact to you.
even someone with low iq can figure it our.

get this in your thick head , you dog ,
sinkie can 'afford' it because they are allow to pay for it in 30 , 40 years.
it is almost a life time of working just to pay for a roof over the head.