the works of a social darwinist!
iridrium
Today, 09:27 AM
I love this statement on "As of last Friday, the subscription rate was already over seven times the supply offered. This high demand shows the flats are attractively priced. "
High demand shows the flats are attractively priced?!? Housing are essential goods that should not be justified using law of economics. It is like saying high demand for rice , so rice is priced attractively for consumer to buy.
For second batch of buyers for The Pinnacle@Duxton , they are already paying more the 50% what the first batch of buyers paid for. Which means the breakeven cost for HDB is very much lower. So what kind of subsidies are we talking about here? Where does the profit goes to?
This part on "First-timers who bought new flats from the HDB last year used, on average, about 20 per cent of their monthly household income to service their housing loans." is ridiculous, not at the way they are pricing their new flats.
A quick calculation for a couple who purchase a $600k flats and take up $550k loan for 30 years tenure at 2.5% interest. Monthly servicing comes up to $2,173 per month! If they are earning $8,000 per month (ceiling cap), that is 27% of their gross income.
25 yrs loan - 31%
20 yrs loan - 36%
Rough estimate that if you take up loan approximately $500k and above, the monthly payment cannot be paid entirely through CPF anymore.
addicted2tehhalia
Today, 09:39 AM
I guess home owners shld spend within their means, but the $8000 income cap for a premium housing that costs $600K is ridiculous. How are people going to finance their mortgages with a pay up to $8000 per month?
I seriously think HDB shld review their income ceiling. I don't think premium housing, and executive flats etc are for the so-called "lower income", so why put an income ceiling on the price?
fabritech02
Today, 01:23 PM
ST Editorial wrote on the new HDB flat price before. i dig and dig and found it:
These are not the best of times, but the Housing Board's new and resale
markets are still holding strong. Last week, in its balloting exercise, the
HDB drew an overwhelming response for some of its priciest flats at the
50-storey Pinnacle@Duxton in Tanjong Pagar. There were almost 1,500
applications for the 428 four- and five-room flats on offer, or 3.5
hopefuls for every unit. The 111 five-room flats there start at $545,000
and hit $645,800 for a 49th-storey unit - the most expensive new HDB
flats - yet there were still 372 applicants.
We wonder how many of them are young married couples. Assume a
young couple's combined income is $8,000, which is the HDB's ceiling
for new flat applicants, and they plan to take out a $500,000 loan
stretched over 30 years. If they are eligible for an HDB loan whose
interest is 2.6 per cent, their monthly instalment is about $2,000. And
they can use $1,600 from their CPF. It is painless. But what they do not
reckon with is that at the end of the 30-year period, they would have
paid a total sum of about $800,000 because of the interest, and there
will be nothing left in their CPF, except the minimum sum.
Such couples will be asset-rich, cash-poor, which is the position many
Singaporeans are in today. Of course, they can imagine their pay and
property prices going up over the years. But as the current financial
crisis shows, bad times can come unexpectedly, and there is always the
possibility of losing one's job. There are also other young couples who
commit themselves to condos and cars before they have built up
adequate savings. In a downturn, they will not be able to offload them
without suffering losses. To these young couples, we advise prudence.
Property in Singapore is a good long-term investment, probably one of
the best. But the wisest thing to do is to start small. Buy a three- or
four-room HDB flat in a location that does not come with a huge
premium. Then scale up as savings accumulate.
[email protected]
iridrium
Today, 09:27 AM
I love this statement on "As of last Friday, the subscription rate was already over seven times the supply offered. This high demand shows the flats are attractively priced. "
High demand shows the flats are attractively priced?!? Housing are essential goods that should not be justified using law of economics. It is like saying high demand for rice , so rice is priced attractively for consumer to buy.
For second batch of buyers for The Pinnacle@Duxton , they are already paying more the 50% what the first batch of buyers paid for. Which means the breakeven cost for HDB is very much lower. So what kind of subsidies are we talking about here? Where does the profit goes to?
This part on "First-timers who bought new flats from the HDB last year used, on average, about 20 per cent of their monthly household income to service their housing loans." is ridiculous, not at the way they are pricing their new flats.
A quick calculation for a couple who purchase a $600k flats and take up $550k loan for 30 years tenure at 2.5% interest. Monthly servicing comes up to $2,173 per month! If they are earning $8,000 per month (ceiling cap), that is 27% of their gross income.
25 yrs loan - 31%
20 yrs loan - 36%
Rough estimate that if you take up loan approximately $500k and above, the monthly payment cannot be paid entirely through CPF anymore.
addicted2tehhalia
Today, 09:39 AM
I guess home owners shld spend within their means, but the $8000 income cap for a premium housing that costs $600K is ridiculous. How are people going to finance their mortgages with a pay up to $8000 per month?
I seriously think HDB shld review their income ceiling. I don't think premium housing, and executive flats etc are for the so-called "lower income", so why put an income ceiling on the price?
fabritech02
Today, 01:23 PM
ST Editorial wrote on the new HDB flat price before. i dig and dig and found it:
These are not the best of times, but the Housing Board's new and resale
markets are still holding strong. Last week, in its balloting exercise, the
HDB drew an overwhelming response for some of its priciest flats at the
50-storey Pinnacle@Duxton in Tanjong Pagar. There were almost 1,500
applications for the 428 four- and five-room flats on offer, or 3.5
hopefuls for every unit. The 111 five-room flats there start at $545,000
and hit $645,800 for a 49th-storey unit - the most expensive new HDB
flats - yet there were still 372 applicants.
We wonder how many of them are young married couples. Assume a
young couple's combined income is $8,000, which is the HDB's ceiling
for new flat applicants, and they plan to take out a $500,000 loan
stretched over 30 years. If they are eligible for an HDB loan whose
interest is 2.6 per cent, their monthly instalment is about $2,000. And
they can use $1,600 from their CPF. It is painless. But what they do not
reckon with is that at the end of the 30-year period, they would have
paid a total sum of about $800,000 because of the interest, and there
will be nothing left in their CPF, except the minimum sum.
Such couples will be asset-rich, cash-poor, which is the position many
Singaporeans are in today. Of course, they can imagine their pay and
property prices going up over the years. But as the current financial
crisis shows, bad times can come unexpectedly, and there is always the
possibility of losing one's job. There are also other young couples who
commit themselves to condos and cars before they have built up
adequate savings. In a downturn, they will not be able to offload them
without suffering losses. To these young couples, we advise prudence.
Property in Singapore is a good long-term investment, probably one of
the best. But the wisest thing to do is to start small. Buy a three- or
four-room HDB flat in a location that does not come with a huge
premium. Then scale up as savings accumulate.
[email protected]
Got any scientific proof or evidence like audio/vodep recording of Cheesus talking one-to-one with "Goat" about all these?
the term is not used on individuals
