MBT:We're proud of the asset enhancement policy

[Tedlhw]

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.

 

Bro, think he probably menat that net overall, the guy actually lost money.

But your definition is right though.

[Darryn]

Bro, think he probably menat that net overall, the guy actually lost money.

But your definition is right though.

 

I agree that net he did lose money.

 

Purchase Price + Interest < selling price

 

Of course would need to make a more complex equation to decide if was "worth it"

 

Purchase Price + Interest + Opportunity compared to Rental that would have been paid if he didn't buy and "satisfaction" from having roof over head that you controllled

[Tedlhw]

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 tie down to the land cost.

 

If it is high, rentals will be high & ultimately consumers like 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.

 

Actually, they have been moderating the rise.

All the recent policies have dampened the rise in property prices.

 

Part of the problem in these times is the cheap(ening!) USD and low interest rates.

This just causes asset price inflation globally, be it in bonds/stocks/property/commodities.

If you all have noticed, property prices in HK/Taiwan/China are reaching historical highs as well!

The only countries that have not experienced this are countries with a fairly weak economy and/or unstable political leaderships.

 

 

 

 

[Donut]

no la... the new flats are being built on a nearby plot of land. once the new flats are ready, they just move over......

[Sgnick]

no la... the new flats are being built on a nearby plot of land. once the new flats are ready, they just move over......

 

OIC, thanks. But "nearby plot"could mean it is located an additional 500M further away from the MRT station compared to current flat. Of cos it could also mean nearer to MRT. But I guess no choice have to take whatever is given.

[Duckduck]

Who agrees or disagree with Mr Mah? When my 99years HDB left with 50 years, will it still continue to appreciate yearly? So HDB is lesser the remaining lease, the more expensive it becomes? Good leh, investment of the century, uniquely Spore. I will keep my HDB till 98th year then sell it off at record price.

 

wat they will do is SERS before end of your lease, then sell u a new place nearby at mkt price, then take the enbloc'ed land, topup to 99 again for free since is garmen land, then sell as new flats again. the 10-20% required for the new flats shld cover const cost for your new replacement place & the enbloced place.

 

this is my guess on their cashflow management, & since im not a scholar & HDB got lots, i thk they'd have done their sums much more than my simply theory

Edited April 15, 2011 by Duckduck

[Kiadaw]

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.

I can understand what you mean, but the current situation is that the increase of housing far exceed inflation.

 

I also fully expect my children to work to get their own house, but think about this, instead of working for 7 years like you did, they have to work 15 years (for instance)!

 

Yes, demand & supply will play a part, but it may not be "balance", & your children may not enjoy the same quality of life as you have now.

[Koko]

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?

 

I don know leh, never asked in detail.

 

But she once told me that she is now waiting for the new building to TOP then she can move out. So i assumed that she only need to vacant the old house after new house TOP.

 

[Sgnick]

wat they will do is SERS before end of your lease, then sell u a new place nearby at mkt price, then take the enbloc'ed land, topup to 99 again for free since is garmen land, then sell as new flats again. the 10-20% required for the new flats shld cover const cost for your new replacement place & the enbloced place.

 

this is my guess on their cashflow management, & since im not a scholar & HDB got lots, i thk they'd have done their sums much more than my simply theory

 

Hmm, fork out 10-20% of the new flat price? By then if new flat is $800K, 20% is $160K. OMG, another LOAN!!!! I am forever in debt to my dear govt.

 

Another way to calculate, by then, I may have $160K sitting nicely in my CPF, then due to SERS, my retirement fund gets wiped out.

 

Either way, I am screwed.

Edited April 15, 2011 by Sgnick

[Moredhel]

Hmm, fork out 10-20% of the new flat price? By then if new flat is $800K, 20% is $160K. OMG, another LOAN!!!! I am forever in debt to my dear govt.

 

Another way to calculate, by then, I may have $160K sitting nicely in my CPF, then due to SERS, my retirement fund gets wiped out.

 

Either way, I am screwed.

 

Get the new flat, sell the new flat, migrate.

[Duckduck]

Hmm, fork out 10-20% of the new flat price? By then if new flat is $800K, 20% is $160K. OMG, another LOAN!!!! I am forever in debt to my dear govt.

 

Another way to calculate, by then, I may have $160K sitting nicely in my CPF, then due to SERS, my retirement fund gets wiped out.

 

Either way, I am screwed.

 

u r screwed if u got no job, but dun worry soon will have casino 3 & 4 & % etc.. hahahaa... more jobs! more crime! more FTs!

[Koko]

OIC, thanks. But "nearby plot"could mean it is located an additional 500M further away from the MRT station compared to current flat. Of cos it could also mean nearer to MRT. But I guess no choice have to take whatever is given.

 

 

I agreed with you... my aunt old house is just 4 to 5 hundred meter to clementi bus interchange, supermaket/wet market, MRT, etc...,

 

but the new house is about a km away to that what she previously have. And yes, she have no choice to take the offer... cos, she told me, with the en-bloc money, she could not afford to buy other mature area...

[Donut]

of coz... it's called "Land Recycling". They just recycle the land and keep earning money.........

 

They are the garment. Whatever they say, no one can dispute it. They say "your land lease is up. I'm taking it back and I will renew it again." Who can dispute it?

[Alim]

Oh please, they always say let market forces decide etc. All BS.

 

Everything is being controlled by gahment. I remember in 97 during the Asian Financial Crisis, there were more than 30k unsold flats.

 

How did they clear stock? More foreigners come in, PR, bro, sis all can buy HDB.

 

Following that, we hv our open leg policy to more cash-rich foreigners, who can buy HDB with high COV and pte property without a blink of an eye. With it, HDB also price their new HDB to market prices while giving you "generous subsidy". Suddenly, we don't have enough HDB, prices soared like crazy. FYI...1990 - 2009 Resale Price Index rose 442%.

 

If you have taken any subsidies for your HDB, when you sell or there is SERS, there is also a resale levy you must pay. So don't be too happy that you didn't pay COV for a resale and got a "subsidy".

 

HDB SERS

 

Now in 2011, they decided that the market is too hot or elections coming, so they introduce a a stream of cooling measures.

 

As recent as Mar this year, MBT said we have 33000 unsold flats, telling us COV has came down etc. note that there is no financial crisis right now.

 

What is MBT signalling?

 

You think about it and VOTE WISELY.

[Moredhel]

of coz... it's called "Land Recycling". They just recycle the land and keep earning money.........

 

They are the garment. Whatever they say, no one can dispute it. They say "your land lease is up. I'm taking it back and I will renew it again." Who can dispute it?

 

Then I want my old unit back after factoring in my expenses for moving house transportation and time lost during the renovations wil be charged to your account under rents to the government.

 

[Kkttt]

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.

 

True, $1k used to be a big amount, hence $10k was also big to many people at that time. A fair comparison would be to take the average salary and the average cost of a flat then, and compare to the increases to both over time. This had been done by many people in the past.

 

Asset enhancement policy = as u say, fund retirement.

 

Means at retirement age, we r suppose to sell off HDB, renounce citizenship, cash out CPF, and retire to indonesia (cheapest neighbour I can think of)?

 

Official response is to downgrade your flat, and hope the $ can fund the rest of your life. If that is not enough, you can go live in JB.

[Darryn]

Oh please, they always say let market forces decide etc. All BS.

 

Everything is being controlled by gahment. I remember in 97 during the Asian Financial Crisis, there were more than 30k unsold flats.

 

How did they clear stock? More foreigners come in, PR, bro, sis all can buy HDB.

 

Following that, we hv our open leg policy to more cash-rich foreigners, who can buy HDB with high COV and pte property without a blink of an eye. With it, HDB also price their new HDB to market prices while giving you "generous subsidy". Suddenly, we don't have enough HDB, prices soared like crazy. FYI...1990 - 2009 Resale Price Index rose 442%.

 

If you have taken any subsidies for your HDB, when you sell or there is SERS, there is also a resale levy you must pay. So don't be too happy that you didn't pay COV for a resale and got a "subsidy".

 

HDB SERS

 

Now in 2011, they decided that the market is too hot or elections coming, so they introduce a a stream of cooling measures.

 

As recent as Mar this year, MBT said we have 33000 unsold flats, telling us COV has came down etc. note that there is no financial crisis right now.

 

What is MBT signalling?

 

You think about it and VOTE WISELY.

 

I find it interesting also that they use COV as a measure of the "heat" in the market - shouldn't they also consider the absolute price? COV is an indicator, but not the only one. So what if COV has dropped from $50k to $10k if prices have gone up by $50k in the same period.

[Moredhel]

I find it interesting also that they use COV as a measure of the "heat" in the market - shouldn't they also consider the absolute price? COV is an indicator, but not the only one. So what if COV has dropped from $50k to $10k if prices have gone up by $50k in the same period.

 

Market demand has dropped to sustainable levels due to PAP's world class intervention.

 

The increase in property value is in line with PAP's public housing policies as an appreciating asset for all Singaporeans.