HDB Mortgage SLAVES

[theDoors]

Are you a clone of GMS? Babbling clowns trying to act smart. I can bet you my last penny that paying out all the billions is nothing and will never be a problem. That is the beauty of fiat money. MAS is the printing press so where's the problem?

:oIo:

MAS can print all the paper money. But someone has to be inherit the debt for the inverted pyramid money system to function.

Stretching the mortgage to the 2nd generation is one plausible way to continue this musical chair game.

 

[bic_cherry]

How to correct HDB flat prices by 20% for now.

SG Foreigner Public Housing Rental Levy (FPHRL): Please return HDB to ALL Singaporeans now....

The following is an improved and revised version of the a/m previous post.

How to correct HDB flat prices by 20% for now.
Perhaps in a time of rocketing HDB prices due to the 'dire need' for HDB flats,
Gov should implement the following:

1. Rationing of HDB flats ownership by floor area, with entitlements proportionate to the number of citizens/PRs owning any particular apartment. My suggested (generous) calc. even in this time of 'dire need' is [800sqFt + X(300)]: where X is the no. of SC/PR owning such a flat (acc. ref below, would still qualify a single owner for most 4rm HDBs, but not 5/ larger which would be for larger groups only).
2. Make anyone owning BOTH HDB and Pte property enjoy the owner-occupied property tax rate of 4% on the HDB and have the pte property be annually taxed at 10% REGARDLESS of where the owner actually resides in- so as to keep to the spirit that HDB are actually meant for owner-occupancy. (A dual property owner in disagreement can dispose of his HDB which he is obviously not occupying, to enjoy usual 'owner occupied' discounted property taxes on his condo etc).
3. Charge PRs double purchase stamp duty when they purchase a HDB unit (open mkt) to discourage PRs competing for public housing options over pte housing options and limit the number of foreigners awarded PR status given out per annum until the a/m can be properly enforced.
4. Impose a Public Housing foreigner rental levy (PH-FRL): every foreigner (F) (i.e. non citizen(SC)/ PR) renting a HDB room/ unit shall have to pay a levy of 20% of rental / $80/pax/mth, whichever the greater to HDB for their enjoyment of 'subsidised' public housing in Singapore. ALL lessees (SC/PR/F) shall be registered with HDB so no SC/PR can 'rent' a unit whilst owning one (i.e. profiteer fr secretly re-renting it to the F).
   - All foreigners (friends/ relatives) bunking in with a Singaporean for >2 weeks would have to be registered with HDB so as to avoid misunderstanding when HDB officers come round to check.
   - Evasion of such levy would entail a a fine, jail or confiscation of the HDB flat.
5. Charge PRs who own in HDB units higher conservancy fees so as to encourage them to move to pte housing/ become citizens if all the a/m fail.

The a/m 5 pointers are more egalitarian, effective and citizen empowering solutions that I hope the gov (MBT) would consider first, before blaming the low birth rate for his (their) attempt to inflate Singapore economy with more foreigners- there must already be formed a foreigner and PR bubble, otherwise why else the sharp escalation in housing prices, esp that of public housing?

Should Singapore economy be built on bubbles or firm fundamentals?

This the PAP must answer; in the meantime, please ensure that Citizens feel both privileged and secure in their own country- so that citizens can operate and procreate in peace and security- and uphold the vibrancy that we have from young learnt to hold dear.

References:
- 'HDB Flat Types & Models': "Did you know that there are different HDB flat types? And within each flat type, there are varying models:" [singaporewatch.org]
- 'Benefits for Singapore Citizens & Permanent Residents': (Subsidies & Schemes: ICA,1May2009) (pdf)
- 'Don't deny investors a choice': "Over the years, this "sandwiched" class of private property owners worked hard to pay for their homes with the intention to move to an HDB flat during retirement. The private property could then be rented out to provide a stream of retirement income. The new requirement has effectively killed the hopes of many such people." [ST 1Sept2010]
- 'THE EFFECT OF HOUSE PRICE ON FERTILITY': YI, J. and ZHANG, J. (2010): EVIDENCE FROM HONG KONG. Economic Inquiry, 48: 635–650. doi: 10.1111/j.1465-7295.2009.00213.x [abstract]: "It is found that a 1% increase in House Price (HP) is significantly related to a 0.45% decrease in total fertility rates (TFRs), which is robust in sensitivity tests with an alternative model specification and alternative measures of TFRs. This implies that high HP inflation can account for about 65% of the fertility decrease in Hong Kong in the past four decades."
- 'Housing Prices affect Birth Rates as well... !!!': "The objective of HDB flat was originally meant to provide families a rooftop at a reasonable low cost. It has diverted so largely from its original objective in late years and this issue had affected many young couples especially local Singaporeans." [REACH 16Sept2010]
- 'YPAP leader and new citizen Sinha Shekhar complains about low rent of his resale HDB flat': "Mr Sinha also revealed that he owns a private property, implying that he bought the resale HDB flat NOT for staying but for renting and making money." [TR22June2010]
- 'Relook eligibility criteria for renting out HDB flats': "PRICES of HDB resale flats have been high for some time and there are no clear signs of them falling, despite the poor economy.
One reason for these high prices is that HDB flats are rented out." [ST 12Apr2009]
- 'HDB resale prices hit record high again rising by 4.1% in Q2': "DB resale flat prices have hit record highs again. Prices rose by 4.1 per cent in the second quarter of 2010 compared with the previous quarter. This makes it the fifth straight quarter of increase. " [CNA, 23July2010].
- 'PRICE INDEX OF HDB RESALE FLATS': Resale Price Index from 1st Quarter 1990 to 2nd Quarter 2010 [HDB InfoWeb] (pdf chart)

 

[singaporean_boy]

 

[theDoors]

I think this thread has thread has come full circle...

 

[borom]

Housing Sector in Singapore Only Getting Hotter
Kevin Lim | March 27, 2011

Singapore. Wendy Cheng, 32, has been trying to buy a home for more than two years without success........
At her last attempt to buy an apartment directly from Singapore’s Housing Development Board, she was given a waiting-list number of 1,983 for the 200 units offered, which meant she could get a unit only if 1,783 of the people in front of her dropped out.
“It’s like trying to win the lottery,” she said of her efforts to buy her own place, a predicament shared by an increasing number of young Singaporeans who feel they can no longer afford homes, ......

Private home prices in Singapore rose 17.6 percent last year despite government attempts to cool the market in February and August.......

The city-state’s median household income rose a much smaller 3.1 percent, or 0.3 percent after adjusting for inflation, to S$5,000 a month last year.....

But the HDB is building fewer apartments and charging more for them. Prices of both resale HDB apartments and private property have also soared due to an influx of foreigners in recent years.

“The high property prices, especially for private homes, is a festering source of disappointment, unhappiness and perhaps anger among voters,” said Eugene Tan, a law lecturer at Singapore Management University. “Parents are also concerned with how their children are going to afford comparable homes in the future. The angst and anxieties are made worse by the view that foreigners are pushing up property prices.”

Foreigners now make up 36 percent of Singapore’s population of 5.1 million, up from around 20 percent of four million people a decade earlier, after the government made it easier for foreigners to work in the city-state. ........

Developers such as CapitaLand, 40-percent owned by the government’s Temasek Holdings, have also bid aggressively at land sales, buying sites at prices that require a further increase in home prices for them to break even..........

Reuters

http://www.thejakartaglobe.com/business/housing-sector-in-singapore-only-getting-hotter/431907

Nothing we do not know but a timely REMINDER TO VOTE WISELY

 

[aangsc]

GMS, if you're in Mah shoe, how would you handle the current housing issue. On one hand , those who bought high , do not like to see their prize asset depreciate. Those who have not commit or can't afford would like to see price dropping or more units build. You can't satisfy both group of people, could you ? What is your housing strategy ? I like to hear each problem with a solution at the same time. Do you have one workable solution ?

 

[aangsc]

Alamak, why when press for housing solution there is total silence altogether ?

 

[borom]

The..... manager ..of Saizen Real Estate Investment Trust (“Saizen REIT”), wishes to announce the divestment of Club House Kikugaoka ...(“CHK”) to an independent private investor .... for a cash consideration of JPY 230,000,000 (S$3.6 million) .....
CHK, located in Kitakyushu, was built in March 1991 and comprises 25 residential units and 26 car parking units.
http://www.saizenreit.com.sg/images...cement_divestment_of_club_house_kikugaoka.pdf

... the manager of Saizen Real Estate Investment Trust ("Saizen REIT") wishes to announce that a desktop valuation for the property Club House Kikugaoka 1 (“CHK”) has been performed as at 31 January 2011 ....represents a marginal decrease
of 1.7% to its value of JPY 234.0 million (S$3.6 million) based on the annual
valuation performed as at 30 June 2010.

http://www.saizenreit.com.sg/images/stories/20110329_valuation_of_property.pdf

A listed SGX company sold 25 units of residence for $3.6 mm in Japan-or an average of S$144,000 per unit in the open market.

Where can you find a private property(or even HDB resale) for this price in Singapore now?
Have we really gone ahead of ourselves.
(unfortunately no other details including floor area or type eg leasehold/freehold is available at the company's website).

Hopefully the pappy's internet brigade or housing expert can provide more details to show that we are wrong.