MBT:We're proud of the asset enhancement policy

[Donut]

I bought my 4rm flat 15years ago when it was 15yo for $320k.

It is now 30yo and is estimated to worth $320k.

Where is the appreciation?

15 years ago, as a fresh grad, my starting pay is only $1600. What is the starting pay now for a EEE graduate? $3k?

 

 

you bought your flat in 1996-1997, right?

 

then you belonged to the "kena-conned" group. At that time, property prices were sky high to the heavens, before the 1997 Crash.

 

so people like you, who bought during that time, are all facing the same problem now. Cannot made back the money at all......

 

 

too bad, bro........

Edited April 15, 2011 by Donut

[Donut]

U never tell them the condition. the condition is --------- your block must not be in Opposition ward hor, or u get NOTHING.

 

If you are in the Opposition area, then that's another story......

[Rm2s]

Question is:

 

Who allow this to happen in the first place?

 

An analogy: The authorities build flats years back with lifts serving only at certain floors which created a lot of inconvenience especially to the old & disabled. Now we have vote for them & thank them to come "upgrade" our flats with lifts at every floor & still have to pay for it? Where I come from, this is called DEFECTS RECTIFICATION, mean you repair the defective items AT YOUR OWN COST.

 

Another one: Lately they are furiously erecting vertical platforms at those above-ground train stations to prevent folks from tipping over or jumping over. The poor Thai girl who lost her legs recently because of the open platform was a sad case. This was really unnecessary if they could have emulated what Hong Kong's MTR, the model I believe they built based on it, have done when being constructed.

 

So before they go on explaining & explaining, they should ask themselves what led to the current situation.

 

Like I said, I have no answer. Not many people has.

 

Take another example, I spoke to friend from a small town in Johor, after 40 years, his family house has hardly moved in price, it still cost pretty much the same as what they paid for plus inflation.

 

Is that better?

 

Then u look at bigger city like JB and KL, has their properties prices increased? More so than the small town example? This would be to compare properties under the same regime within the same countries, one with a more open and competitive market while the other had hardly any external demand.

 

How would Singapore property market behave being a city state?

 

My post count increase a lot today.

 

[Vulcann]

My parents bought their home for a small amount which has now appreciated by a few hundred percents. They told me when they were buying, it was very intense because they have to cut back on their other non essential spendings just to afford the house. these cuts include eating simpler meals.

 

Are the young willing to go through the same sacrifices? No car, no nice restaurants, no travels, no branded goods, etc. All I am saying is that people think it was easy to buy properties then, only $10k what, what is the big deal, but the truth is how many people even have $1k in their pocket then.

 

So I gather you will be inheriting this unit or do you have to share with your siblings?

 

If you are taking it over yourself, congrats because the value must have appreciated all these years.

 

So if you have no intention to sell then good can stay till the day you hand over to your kids or other people.

 

But if you sell it off, you have to purchase another unit at then market price, which is what many young couples wanting to start a family are or trying to do.

 

Resale or new units or even condos/landed property which you are buying, this amount will not be a small sum & good for you if you can even make a tidy profit outa it.

 

What about your descendants or our future generations?

 

What sort of price do you think they will be paying then?

 

How many years of loan do they have to take up to pay off the loans?

 

Think about it...

 

 

 

 

[Moredhel]

Tom Yam is more exp than padang.

 

Doesn't make that much of a difference.

 

Our COE(excluding govt taxes on COE) here alone can pay off a Toyota Altis along with the road tax/insurance/etc...and still have leftovers for at least 3-5 years maintenance and tyres.

 

Last checked: Feburary 2011

 

 

Our 4-5 Rm HDB here can buy a bungalow with swimming pool and sercurity guards.

[Darryn]

Nope, do you?

 

Yes...and let me share with you - whether or not you make a profit out of your house has very little to do with the amount of equity you have. Equity is (in layman's terms) the percentage of the house that you own.

 

Being in negative equity means that you owe more on the house than it is worth. If someone is in negative equity after 15 years then I think something is screwy.

 

Of course, that does not address whether it has been a good or bad "investment" or if the money was "well spent"

 

Words mean things - please try to use them correctly.

Edited April 15, 2011 by Darryn

[Koko]

HDB will probably demoblished flats that are more than 40-50 yrs old, and built new ones over it. You won't get to stay until 70 years......

 

But that's the beauty of it. Ppl will actually buy from you a 30 year old flat, hoping that the day will come for HDB to enbloc it. The residents get a lump sum of $$ and an offer to stay in new flats nearby....

 

HDB works very differently from private condos....

 

It is a cycle. You actually cannot really earn much on it.

My aunt house been en-bloc in clementi. Yes, they pay her money for the en-bloc. They have a piority to buy the house at the new building, currently on going 40 storey project, at a subsidized rate.

 

Think about it, let say they pay my aunt 400k, buying the new house 300k, then you still need to renovate buy this, buy that... in the end, come back to the square...

[Sgnick]

Yes...and let me share with you - whether or not you make a profit out of your house has very little to do with the amount of equity you have. Equity is (in layman's terms) the percentage of the house that you own.

 

Being in negative equity means that you owe more on the house than it is worth. If someone is in negative equity after 15 years then I think something is screwy.

 

Of course, that does not address whether it has been a good or bad "investment" or if the money was "well spent"

 

Words mean things - please try to use them correctly.

 

Oh, ok, thanks for the lesson. So when MBT says negative equity (1st post), does he mean this?

[Wt_know]

even one make $100k from selling the flat now does not means he/she make a profit

 

if the $100k is not enough to cover

 

a. interest paid for the loan

b. loss of interest earned in cpf OA

c. inflation

 

Edited April 15, 2011 by Wt_know

[Rm2s]

My parents won't be giving me their home, I bought my own, directly from HDB which has also increased in value. My wife and I deliberated long and hard before buying, we saved up via CPF and some small cash and bought something within our mean. I didnt have a car until I am a lot older and have 2 kids.

 

What i am getting at is there will be inflation and price move according to demand and supply. I will not expect my son to buy a flat at the same price I paid 20 years ago, he has to make his own money which I suspect his salary will be relatively higher than when I first started working. No one say life is easy.

 

I recall i have to work for about 7 years before my wife and I managed to buy our own home, before that I was renting a room.

[Greatbirdlegend]

I bought my 4rm flat 15years ago when it was 15yo for $320k.

It is now 30yo and is estimated to worth $320k.

Where is the appreciation?

15 years ago, as a fresh grad, my starting pay is only $1600. What is the starting pay now for a EEE graduate? $3k?

 

Even if you have a $3k starting salary.

Your loan will be 25-30 years?

With all the competition are you able to keep your job and salary increasing through your working life?

Remember that once you get retrench the norm is that salary takes a huge hit and seldom get back to the same level.

[Ender]

It is a cycle. You actually cannot really earn much on it.

My aunt house been en-bloc in clementi. Yes, they pay her money for the en-bloc. They have a piority to buy the house at the new building, currently on going 40 storey project, at a subsidized rate.

 

Think about it, let say they pay my aunt 400k, buying the new house 300k, then you still need to renovate buy this, buy that... in the end, come back to the square...

 

The new house will come with a brand new 99yrs lease as oppose to the 50+yrs lease left.

[Mike1234]

Did you guys watch the news last night on this issue?

 

He also stoutly defended the previously announced 6.5m target population but now said the figure is just a "planning parameter".

 

After much unhappiness over this fearful number because of present already packed trains/buses, rising property prices, crowded situations in food courts & many areas, all of which may adversely affect the voting trend this coming GE, he has no choice but to "clarify" what they mean by this 6.5m figure.

 

Correct me if I am wrong but isn't this so-called "planning parameter" must be realistic & not over-caterEd/over-designed?

 

You mean I build a building actually for 100 occupants but provided for 200 because 200 is used just as a "planning parameter"?

 

He lost me on that one, just as the explanation on the term "highly-subsidized" 99-year "affordable" public housing....

 

As far as i know...

 

It is named as the "2011 blueprint"...

 

Places like CCK, Punggol, Sengkang, Bishan where the pieces of land are located right beside the MRT stations will be used to build future houses (ample to cater ard 100,000 of new houses)...

 

With BTOs, DBSS, EC around...

 

So how much would u think the prices of that HDB located beside Bishan would estimate cost?

Edited April 15, 2011 by Mike1234

[Donut]

Yeah, no one say you can make money out of it.

 

But its a short cut to be able to stay in that matured area that you want, instead of having to queue up for a new flat at "god knows where" ulu place.

 

This is why en bloc flats are in demand. Ppl will pay for it.

[Moredhel]

Yeah, no one say you can make money out of it.

 

But its a short cut to be able to stay in that matured area that you want, instead of having to queue up for a new flat at "god knows where" ulu place.

 

This is why en bloc flats are in demand. Ppl will pay for it.

 

No one will make money out of it except for the government via stamp duties and taxes at 0 cost and the government linked agencies and contractors involved in this money spinning ponzi scheme.

 

Why do you think most property agencies are huge multi-million dollar coporations after simply 1 project?

[Vulcann]

Like I said, I have no answer. Not many people has.

 

Take another example, I spoke to friend from a small town in Johor, after 40 years, his family house has hardly moved in price, it still cost pretty much the same as what they paid for plus inflation.

 

Is that better?

 

Then u look at bigger city like JB and KL, has their properties prices increased? More so than the small town example? This would be to compare properties under the same regime within the same countries, one with a more open and competitive market while the other had hardly any external demand.

 

How would Singapore property market behave being a city state?

 

My post count increase a lot today.

 

I hope the million-dollar minister has the answer because that is the reason we pay him for :)

 

You must compare our situation with a place like KL or even HK ( where property price is so much higher) & not a small JB town le.

 

Property price increase over tine. This is happening since the beginning of mankind & no one can dispute that.

 

The problem is how much is the rate over the years.

 

You parents bought the unit at which year?

 

Ok take mine for instance.

 

My folks got theirs around early eighties at around 70k.

 

At today's resale market, it can fetch around 200k.

 

So over what, 30 years, the flat increase 185% in value plus inflation & can earn 130k in profit easily right?

 

What if we have to get a new unit?

 

Are we happy if the new unit will be smaller & may be squeezed in between blocks?

 

Provided we need no roof overhead & can bunk in with someone with the fat 200k cheque in the pocket then we will be very very happy.

 

Everything in today's market is tied down to the land cost.

 

If it is high, rentals will be high & ultimately consumers like you & me will be forced to pay high prices.

 

We are realistic enough to know the rationale that the increase in property price is inevitable but can the folks up there moderate the rise?

 

Being the very same ones who sell the land plus legislating all the land policies, we expect them to diligently carry out their duty for the benefit of all Singaporeans ultimately.

Edited April 15, 2011 by Vulcann

[Sgnick]

It is a cycle. You actually cannot really earn much on it.

My aunt house been en-bloc in clementi. Yes, they pay her money for the en-bloc. They have a piority to buy the house at the new building, currently on going 40 storey project, at a subsidized rate.

 

Think about it, let say they pay my aunt 400k, buying the new house 300k, then you still need to renovate buy this, buy that... in the end, come back to the square...

 

Hi, can I know, how is the transition like from old house to new?

 

The new house will TOP first, then your aunt vacate the old house to move to the new?

 

Or you aunt need to vacate the old house now, they demolish the old house, then build new block on that same site for 3 year, and in mean time this 3 years your aunt got to find temp accomodation?

[Darryn]

Oh, ok, thanks for the lesson. So when MBT says negative equity (1st post), does he mean this?

 

What he means is that IF the price goes down, some people may owe more on the house than it is now worth.

 

Imagine you buy today for $400k. Borrow $360k

 

WP policy drops the price to $300k. But you still owe $360k. The loan is more than the value - which is negative (less than zero) equity.

 

FYI - this is part of the reason for 20% deposit requirement - it protects the bank if there is a price movement (the price must drop more than 20% before the loan is more than the value)