6,500 households can't pay HDB loans

[dysentry]

Assuming an average of 300 grand owed, that's S$1.9B in arrears.

Can easily add another 4,000 households who stopped paying in the last 2 years.

Are we being held hostage by insanely high prices as HDB valuers happily increase their bogus valuations at their whim and fancy? If buyers keep paying COV what's the point of valuation? Might as well have open market pricing. Is valuation being used to control the market price?

Quote :

Mr Mah said: “So we’ve got 6,500 households who are owing arrears for more than two years. Some of them are owing three years, four years. We had hoped by giving them more time, they would be better able to resolve their financial problems.

“Instead, they remain unable to service their loans and they are not nearer to a sustainable solution. In fact, their circumstances have worsened significantly and their arrears have gone up.”

That is why instead of providing short-term relief to its arrears cases, HDB now helps them find longer-term sustainable solutions to their problems, said Mr Mah.

To do this, affected households must be prepared to make tough adjustments and these include subletting a room or even the whole flat.

 

[newyorker88]

Assuming an average of 300 grand owed, that's S$1.9B in arrears.

That is why instead of providing short-term relief to its arrears cases, HDB now helps them find longer-term sustainable solutions to their problems, said Mr Mah.

To do this, affected households must be prepared to make tough adjustments and these include subletting a room or even the whole flat.

Long term solutions? Take back their HDB flat and give a smaller one to them, sell the bigger ones to PRs. So simple.

 

[angie II]

"If 5 room flat $5XX,XXX cannot afford then downgrade lah or pay until u die ok?"
​

 

[diversifyx2]

No choice but have to go to mudland to buy property.

 

[VeryWise]

A note on property but I am not an expert here. For disclaimer, I gathered my opinions from seminars on properties and landbanking. It's purely my own observations no extensive research done.

The fundamental of determining the price of your property, sadly, is purely preception of people (both buyers and sellers). Of course, in technical property-speak, experts will tell you that it's more than that. You have to consider the location, the nearby facilities, the age of the development, potential for growth, height of your apartment and etc. Now I ask you a question, aren't all the considerations determined by people? What's a good location? It's what people think of it. For example, if I build multi-million projects in Yishun and attract the ultra-rich to the neighbourhood, I could well form an exclusive area. This might not be a very good example but in larger countries like the US, Australia and European countries, it's more noticeable. Especially, if that area has some famous celebrities.

In the States, when the dot com and technological era were at its peak, certain areas in Silicone valley had house prices out of our imagination. This is fuel by demand and the earning power of the technocrats working in the area.

Hence, to understand how price fluctuates, 2 key parameters to know - perception and demand + supply. It brings us to the questions of HDB value. Why Bishan is much more expensive than Jurong when you can build both HDB at the same size, same height, same everything? It's because people perception that Bishan is closer to CBD and a more central location that the property values there are higher. Again, as more buyers want to purchase in the area with limited supply, the prices will be driven up. These are really layman understanding which I hope explain why flat prices fall and rise. And HDB can controll the price by controlling the demand and supply.

Now, another question. Is it worthwhile to pay 300K for a HDB flat with 99 year lease? There is no definite answer. If the goal of HDB is to provide affordable housing, I'll suggest only a 15 to 30% markup of the cost of building one. This will not tied people down with huge loans. I have known a number of older people, including relatives and friends, having their flats paid up. Well, they got their flats at very affordable price of about 20 - 40K for 3 to 5 room flats many decades ago. Even after a few upgrades, they still managed to clear the loan before they hit 55. To cut it short, I am afraid that HDB has created a "sub-prime" as some people mentioned by inflating the prices of HDB. Sometimes, I think of a 300k loan for 15 or 30 years on something with 99 year lease, who will be the eventual benefit from it?

 

[lifeafter41]

Assuming an average of 300 grand owed, that's S$1.9B in arrears.

Can easily add another 4,000 households who stopped paying in the last 2 years.

Are we being held hostage by insanely high prices as HDB valuers happily increase their bogus valuations at their whim and fancy? If buyers keep paying COV what's the point of valuation? Might as well have open market pricing. Is valuation being used to control the market price?

Quote :

Mr Mah said: “So we’ve got 6,500 households who are owing arrears for more than two years. Some of them are owing three years, four years. We had hoped by giving them more time, they would be better able to resolve their financial problems.

“Instead, they remain unable to service their loans and they are not nearer to a sustainable solution. In fact, their circumstances have worsened significantly and their arrears have gone up.”

That is why instead of providing short-term relief to its arrears cases, HDB now helps them find longer-term sustainable solutions to their problems, said Mr Mah.

To do this, affected households must be prepared to make tough adjustments and these include subletting a room or even the whole flat.

I believe it is going to get worse, with regards to the loan default, if the economy situation does not improve soon.

Like I said in earlier post, with today's high prices of 300k to 500k, and the people being tied down by 25 years to 30 years loans. With the ups and down of economic cycles getting shorter, it will never be easy for these loans to be repaid.

I am sure, in today's working enviroment, a person will meet or get retrench at least once, in their working life. For how long the duration, till the next job comes is another matter.

However, how to go about repaying the loans, comes to mind, especially if the person is on a 30 years loans. That in my opinion is a very long time. In fact, it's the person whole working life, assuming he came out to work and got a flat at age 25.

 

[The Monkees]

may about 10-15% will just pay in part and not fully for every month.
just like what those Malays use to do it for their utilities and CS bills.

 

[makapaaa]

>>>Why Bishan is much more expensive than Jurong when you can build both HDB at the same size, same height, same everything? It's because people perception that Bishan is closer to CBD and a more central location that the property values there are higher. <<<

Try putting 1k bangras into Rochalie Drive and see what happens.

 

[Tiu-leh-see-fart]

All the residential property pricing, be it HDB beehives or private are manipulated by evil people for the sake of greed and power.

High-priced house is a ruse to make leasers feel the "Asset-rich illusion " while their hard-earned money is poured into one strongroom for others to use.

how long can this illusion last ?

hope the recession will be long and many hundreds of thousands kenna retrenched .

 

[dysentry]

A priceless article from the legendary Lehman Bros...

DJ Market Talk: Singapore Housing Strength To Last Until 2010-Lehman Brothers
Dow Jones
Singapore
Wednesday, 30 April 2008, 12.01pm Singapore Time

Upcycle in Singapore's housing market likely to last until 2010, although sector currently taking a breather, says Lehman Brothers.

Expects below-average public housing completion to create deficit of up to 4,300 homes by 2010, pushing homebuyers to private housing market. Says current low transaction volume for private homes has more to do with sentiment than fundamentals; "the concern of the market should be potential housing undersupply and not oversupply, in our view."

Forecasts net supply of 11,000 private homes for 2009, 16,000 for 2010 vs yearly historical average of 7,000 since 1988; "even if we are to take into account a lower net migration rate this year as the economy slows, we think the overall housing supply is still likely to miss the population needs."

Top stock picks include CityDev, Bukit Sembawang, CapitaLand, Keppel Land, SC Global. Respective target prices at S$16.90, S$15.40, S$8.20, S$10.40, S$3.80.

 

[kaipoh]

saw on TV these asshole ah soh said govt flat of $500/ to $600/sq ft is very cheap, so you don't have to worry they can't pay up!!!

 

[SneeringTree]

A priceless article from the legendary Lehman Bros...

DJ Market Talk: Singapore Housing Strength To Last Until 2010-Lehman Brothers
Dow Jones
Singapore
Wednesday, 30 April 2008, 12.01pm Singapore Time

Upcycle in Singapore's housing market likely to last until 2010, although sector currently taking a breather, says Lehman Brothers.

Expects below-average public housing completion to create deficit of up to 4,300 homes by 2010, pushing homebuyers to private housing market. Says current low transaction volume for private homes has more to do with sentiment than fundamentals; "the concern of the market should be potential housing undersupply and not oversupply, in our view."

Forecasts net supply of 11,000 private homes for 2009, 16,000 for 2010 vs yearly historical average of 7,000 since 1988; "even if we are to take into account a lower net migration rate this year as the economy slows, we think the overall housing supply is still likely to miss the population needs."

Top stock picks include CityDev, Bukit Sembawang, CapitaLand, Keppel Land, SC Global. Respective target prices at S$16.90, S$15.40, S$8.20, S$10.40, S$3.80.

This just shows how economists, analysts etc know FUCK.

 

[visitor]

Nearly a quarter of units at new condo in Jurong West snapped up

Nearly one quarter of the 712-unit development in Jurong West was snapped up within the first two days of its opening.

The first 250 units were sold at $540-$640 per square foot.