Analysts expect shift in housing policy?

[Enye]

i prefer 1, because i can handle stress. but that is still not the key point of mine which you responded to. my key point is to say the HDB should never have given the option to HDB owners to buy private property and then rent out their hdb. either they stay in their hdb or they buy private but give up their hdb.

 

Gd for you to be able to handle the stress.

 

Actually my first response to you was just the fact that I knew someone that has hdb and also private property later and that I do not envy them.

 

Pertaining to your point on whether HDB owners should be allowed to rent out HDB and live in private property, i believe this used to be disallowed long ago. People who do it now are just "making hay while the sun shines". Personally, I think it should be banned too.

 

Cheers.

 

[Joseph22]

well, as far as i know, he is not aiming for condo (he needs a larger space), he is aiming for executive and nope, he doesn't own private now... but i wont be surprise he will go for landed thou...

 

think likely private.. cause new HDB he likely over the mark liao

[Enye]

yep, u also?

 

No...but somewhere nearby.

[Acemundo]

Gd for you to be able to handle the stress.

 

Actually my first response to you was just the fact that I knew someone that has hdb and also private property later and that I do not envy them.

 

Pertaining to your point on whether HDB owners should be allowed to rent out HDB and live in private property, i believe this used to be disallowed long ago. People who do it now are just "making hay while the sun shines". Personally, I think it should be banned too.

 

Cheers.

hee ok, cos when you say you don't envy them as a response to my post, i thought that you felt it should have been allowed.

 

since we have the same stand, no arguments over it ;)

[Xers007]

At these prices now how to bring it down?? giving discounts to those who have paid high?? most likely slow down the flat inflation only...

[Help1]

i prefer 1, because i can handle stress. but that is still not the key point of mine which you responded to. my key point is to say the HDB should never have given the option to HDB owners to buy private property and then rent out their hdb. either they stay in their hdb or they buy private but give up their hdb.

 

well...everyone can handle stress, you do not know what is the limit that you cannot handle anymore....

[Blackyv]

yep, u also?

 

i nearly bought a unit at coris, 15th floor unit back in 2005 WIS but by the time reach my Q, damn... all good sk and buangkok unit taken... i got a unit in punggol instead which is within my budget and i like..........no regret since me and wife love it.......

[Enye]

hee ok, cos when you say you don't envy them as a response to my post, i thought that you felt it should have been allowed.

 

since we have the same stand, no arguments over it ;)

 

Actually if you prefer (1), u should support this policy?

[Johnnylim]

If KBW can reduce expensive medical bill to just $8, I'm sure he can do wonders to HDB prices. That's the quality PM saw in him so appointed him to that post

Not appointed lah, he 'volunteered' for the portfolio

[Windwaver]

i think my bil smart... sold his 4-rm flat at buangkok for $535K last week and plan to sit on the fence, wait for timing to go in again.......

 

Where he staying now?

[Windwaver]

i wish to thank the OPPOSITION, without them in the parliment and waking the pap. i guess all these changes wont even happen and still be same sh it everyday

 

Even my colleagues are saying this

[Blackyv]

Where he staying now?

 

dont know, i think has to pass the key in sept/oct... he said maybe rent first.......

[Acemundo]

well...everyone can handle stress, you do not know what is the limit that you cannot handle anymore....

 

haha well, not trying to brag or what. but such things are usually kept in check through combination of stress management and astute planning. so i still belieive it is manageable for myself.

[Acemundo]

Actually if you prefer (1), u should support this policy?

 

haha now are you asking me to choose between my pocket and my righteousness.

 

let's jsut say now i am not given a chioce to choose, then i will hope for things being done in the right way that is fair to more people.

 

however if i am given the chance to enrich myself, i probably will still go ahead since this loophole by govt means other people will still exploit even if i dn't

[Latka]

Assuming I have family income of 8-10k, why would I buy a resale HDB at 500k when I can get a BTO at 300k, grant or no grant? I believe the govt grant is currently capped at around 30k, so the math still dun add up. I doubt KBW will increase housing grant for resale flat as supply remains tight, it will just drive up resale market further and his mandate is to stablise property prices.

If dey can wait for a few years for their flat, then it wud be good for them. If can't wait buy re-sale lor. In property, its a case of supply inelasticity. They shud scrap the BTO scheme and just build flats.

 

I can understand some may want to buy resale for the location or to be near parents but at current resale prices with the sky high COV, majority of the 8k to 10k family looking for a flat will opt for BTO, if they are allowed to. It is a no brainer, even after factoring in 3 years rental cost, BTO is still cheaper, and you get a brand new flat (most will just stay with parents, thus saving the monies for renovation).

So its up to them to decide wat they want and once decide shud not bitch about sky high prices and wat nots.

 

Subsidized loan? I thought commercial mortgage loans are cheaper now, HDB loan cost 2.6% p.a., which is no longer "subsidized" nor market.

Bank loan, 1st 3 years is honeymoon period, interest around 1. something %. After dat wl be pegged to mkt rate. Currently around 3.88% if I'm not wrong.

 

The question should be how big is this group of people and is it going to be 10k or 12k or even higher? And are the numbers large enough to sway the demand curve significantly?

 

[Kwchan]

For Singaporeans who have spouses that are PR, maybe a seperate scheme such as paying a levy etc should be imposed for buying HDB.

 

Singaporean who have PR spouses should not be penalize since they are going to 落叶归根 in Singapore.

 

unlike foreigner and PR couple (both are PR), whereby they can easily give up their PR, take back their CPF, and go back to their own countries.

[A5SB]

Their govt not trying hard enough.

 

 

1) HDB Flats can only be bought by Citizens or a Singaporean in the ownership nucleus.

2) BTO System to be scrapped. Build flats ahead of forecasted demand for the next 2-3 years based on records and statistics.

3) With regards to HDB housing, PRs are only allowed to rent until they become a citizen.

4) New Flats to be given up to 40% Actual Subsidy of the median of resale house prices in the surrounding area min stay 12 yrs (central/high demand districts to be pegged to national average valuation + land cost)

5) Areas to increase value based on developments in the area.

6) COV to be taken out of calculation the median price of the flat sold(only valuation amount is taken into consideration)

 

 

My explanation:

 

1) Restrict SG public housing to the actual Singaporean public. No frying of the market by external monies.

2) Ensure enough surplus - straight forward enough.

3) Reinforcement of pt 1 and safety net to ensure Singaporeans are not being taken for a ride by foreigners.

4) Actual subsidy to ensure young Singaporeans can pay off the loan amounts taken at maximum of 20 years within price bracket

5) Actual market forces to much value of HDB and not artificial forces like COVs

6) COV is artificial inflation and should be taken out of the equation. Only official valuations should be taken.

 

 

What results I hope to see from these:

 

Remove 100% foreign monies in ownership/lease of HDBs hence stabalizing the maket to local conditions.

Ensure sufficient and affordable housing for Singaporean families starting a famil, hence contributing to the high profile birth rate problem.

40% subsidy should be covered by inflation and actual developments in 12 years to bring it up to actual market value.

On selling, the said amount should be paid back to CPF account to develop retirement funds for economical and social stability(no cash profits other than COV)

If Singaporean decides to migrate, 40% + accrued interest would be removed from final drawn cpf amount entitlement.

 

 

Long term results:

 

Stable and Afforable new housing

Sustainable growth for current ownership

Less brain drain

Happier and more gracious society

More SG children

Less possibility of a property bubble

 

 

Short term effects:

 

GDP would be affected due to cut off from foreign funds and artificial inflation

Total value of reserves would be lowered to gaurantee success of this plan(not substantially though)

Spike in Private home market prices which might price potential private upgraders out of the market

Difficulty in bridging current and future COV amounts.

 

 

Comments?

Don't need to be so complicated. Everything else can remain the same as now, and we should let market forces dictate the valuation of our flats.

 

Just make it painless for new couples planing to start a family to get a flat. Sell it at cost to them. If one day they decide to upgrade, then recover the market subsidies part from the sales proceed. If all they need is a place to stay and make babies, no compelling reason to change home. Anyway if market is good and they decide that they will earn even after recovery of the market subsidies from the sales proceed, it's fine and good that they upgrade or downgrade their flats. At least they have an option to monetize their HDB flats and utilize the cash proceeds for investments or upgrading themselves, instead of having it locked inside CPF.

 

The point is make it darned easy and painless for first timers to buy flats, whether it's from HDB or from resale market.

[Moredhel]

yep, at first i was thinking also along the same line. if he quoted $60psf it must be purely the interior renovation and nothing else

 

although we are not from construction industry, some educated guesses in relation to renovation cost will roughly tell us the reasonable ball park range of the cost of construction.

 

Sorry, I have re-checked.

 

Actual worked up cost with everything in excluding land cost and land lease payments is $60-80 PSF.

 

I'm talking about purely construction of the building and basic fittings/flooring/windows/doors etc...What you normally get in a new condo incl external enviromental structures like swimming pool, piping/drainage, landscaping, etc...

 

 

Just to let you know, renovation cost has no economy of scale and the margin is ridiculously high.

 

But IF, let's say for a new BTO, you join up a few floors in the block and get a contractor to do up all the units, say 10-20 units, with same specs, I can guarantee you, the price will see at least a 30-40% drop off what you would normally get. So that gives you a rough idea of the profit margin.