View Full Version : Two ways to make HDB more affordable
http://www.businesstimes.com.sg/sub/views/story/0,4574,438309-1305057540,00.html?
Published May 10, 2011
Two ways to make HDB more affordable
PRIME Minister Lee Hsien Loong has said that National Development Minister Mah Bow Tan will review the income ceiling for purchasing new HDB flats and that he will take six months to complete this.
The government should consider two other solutions to help make new HDB flats more affordable. It does not need six months.
1. Reduce the 99-year lease for one-, two- and three-room new HDB flats to 50 years or less. Shorter leases will mean lower flat prices for lower-income groups.
2. Build high-rise windowless auto carpark facilities instead of having open-surface car parks. This will free up land to build more new HDB flats where possible. A higher built-up density by adding more blocks of flats will mean lower property prices for everyone.
Tan Kok Tim
http://www.businesstimes.com.sg/sub/views/story/0,4574,438489-1305143940,00.html?
Published May 11, 2011
LETTER TO THE EDITOR
Shortening HDB leases will do more harm than good
I REFER to the letter by Tan Kok Tim ('Two ways to make HDB more affordable', BT, May 10) in which he suggests shortening HDB leases to make flats more affordable. This will harm many Singaporeans' long-term interests without improving the affordability of HDB flats, and could even make it worse.
Shorter-term leases could increase affordability in the short-term for some flats. But they will also result in higher premiums for current 99-year-lease flats, in the same way as there is a premium for freehold flats over 99-year leasehold properties. Thus, overall, a shorter HDB lease is likely to cause further asset inflation and price increases in the property market.
Second, as most Singaporeans' savings, especially those of lower and middle income citizens, are invested in their HDB flats, shorter-term leases will mean that when they reach old age, the value of their HDB flats are much lower, as the leases will be close to expiration. This would become a serious issue for many people.
To make HDB flats affordable to new, young couples, it would be better if the HDB would just lower the price for young, first-time buyers.
Chua Soon Hock
rattydrama
13-05-11, 21:03
buyer cannot even pass on to the 2nd generations.:eek: 99 years leasehold becomes popular now.
the method to reduce price by cutting the lease period is commit suicide to Govt and all Singaporean..seriously i find waste of time commenting on such stupid suggestion. but i wanted to see what is others Singaporean response, so i am supporting this idea....Cut lease cut lease cut lease...then my HDB and Private will be much valuable..
kingkong1984
13-05-11, 22:56
To make it cheaper, build taller and smaller and further away from town. Tuas sure very cheap
Operational and maintenance costs are high for mechanical carparks so this 2nd point is unlikely.
HDB is already building 30 years studio apartments. But writer has a point in making lease for normal HDB units shorter and more affordable, provided HDB gives an assurance that the lease can be topped up for the 2nd time.
devilplate
14-05-11, 01:34
Actually there r old hdb left wif abt 60yr lease remaining... Still ok bah?
kingkong1984
14-05-11, 06:16
Operational and maintenance costs are high for mechanical carparks so this 2nd point is unlikely.
HDB is already building 30 years studio apartments. But writer has a point in making lease for normal HDB units shorter and more affordable, provided HDB gives an assurance that the lease can be topped up for the 2nd time.
Haha, monkey story, 5 peanuts, 2 peanuts and 3 peanuts is not better than 3 peanuts and 2 peanuts.
Won't get done this way.
For a 400k flat, cash 20k cpf 20k for new.
Resale cash 20k cpf 60k less grant + cov.
Both are about the same w/o cov, so main killer for young couples is the cov.
Not enuf for cov and reno they have to go queue, ballot and wait 3 years naturally they would want the best flat they can get for this long wait.
So the key issue for young couples is cov, not tenure.
Actually there r old hdb left wif abt 60yr lease remaining... Still ok bah?At 40 years old, these flats must be inspected for structural stability. If its a super high rise building, then more work must be pumped in to sustain the block for another 60 years. If its a low rise like 4 storey, then less reinforcement work is required... :D
For a 400k flat, cash 20k cpf 20k for new.
Resale cash 20k cpf 60k less grant + cov.
Both are about the same w/o cov, so main killer for young couples is the cov.
Not enuf for cov and reno they have to go queue, ballot and wait 3 years naturally they would want the best flat they can get for this long wait.
So the key issue for young couples is cov, not tenure.Its COV coz at 400k, it is still barely reasonable. But when HDB resale reaches 700k in Queenstown and even Tanjong Pagar, then its a totally different ball game... :scared-2:
start small and slowly upgrade lah.. i started w a 200k 3 room flat oso face green green liao.
Its COV coz at 400k, it is still barely reasonable. But when HDB resale reaches 700k in Queenstown and even Tanjong Pagar, then its a totally different ball game... :scared-2:
Not sure will garment put a % cap of the valuation price of a property for the COV?
start small and slowly upgrade lah.. i started w a 200k 3 room flat oso face green green liao.
devilplate
14-05-11, 09:57
start small and slowly upgrade lah.. i started w a 200k 3 room flat oso face green green liao.
Tats the right attitude:cheers6:
Was just wondering how govt come to the high BTO price of $750k for new launches? After 10% downpayment, its $675k. That translate easily to about $2000 over 30 years. Both husband and wife's CPF completely dried up after 30 years and by then they are already 60+, ready to draw out their cpf money and to their horror, there's nothing!!! :scared-4: CPF was intended for retirement but with nothing left, what's next? So sure need to top up cash if want to keep money in cpf for retirement but then again with inflation and cost of living shooting up, how much cash can the couple cough up??? :( Is $750k sustainable? This price may be rare but still it must be accounted? Is there a cap to the price of new BTO launches??? :spliff2:
Geylang OKT
14-05-11, 10:23
I gotch simple solution. Just vote in more opposition MPs can oredi :tongue3: :scared-1: ;) :D
Was just wondering how govt come to the high BTO price of $750k for new launches? After 10% downpayment, its $675k. That translate easily to about $2000 over 30 years. Both husband and wife's CPF completely dried up after 30 years and by then they are already 60+, ready to draw out their cpf money and to their horror, there's nothing!!! :scared-4: CPF was intended for retirement but with nothing left, what's next? So sure need to top up cash if want to keep money in cpf for retirement but then again with inflation and cost of living shooting up, how much cash can the couple cough up??? :( Is $750k sustainable? This price may be rare but still it must be accounted? Is there a cap to the price of new BTO launches??? :spliff2:
Hdb is a profit oriented organization, why should there a cap on price? They should have a floor price. I would suggest young ppl to rent, if they cant afford, or cut the lease as suggested.it will be cheaper.Eg. 100yr lease =$1m , cut the lease to 50yr =700k...good deal everyone. Reason being is simple, relatively thts the max we can pay, and 50yr lease is the only choice for new unit.
I gotch simple solution. Just vote in more opposition MPs can oredi :tongue3: :scared-1: ;) :D
I got better solution, elect tin pei ling to replace mbt, then ppty market sure crash to affordable level,stock market bubble burst,no more crowded mrt,all foreign talent run away, more job for singaporean. Fastest cooling measure. Inflation drop to new low. All tpl need to do is give her constructive suggestion and all above will be in place in no time...I think china will grab her to cool china market too.
Haa haa...TPL as our new PM :rolleyes:
devilplate
14-05-11, 11:09
Was just wondering how govt come to the high BTO price of $750k for new launches? After 10% downpayment, its $675k. That translate easily to about $2000 over 30 years. Both husband and wife's CPF completely dried up after 30 years and by then they are already 60+, ready to draw out their cpf money and to their horror, there's nothing!!! :scared-4: CPF was intended for retirement but with nothing left, what's next? So sure need to top up cash if want to keep money in cpf for retirement but then again with inflation and cost of living shooting up, how much cash can the couple cough up??? :( Is $750k sustainable? This price may be rare but still it must be accounted? Is there a cap to the price of new BTO launches??? :spliff2:
Most bto launches now up to 500k for 5rm flat....duno how u pluck 750k figure? Or u mean ec?:p
Imagine, ur mthly installment can b fully paid by cpf or jus top up a little...meaning to say u can set aside more cash from ur take home pay to build up ur retirement nest.
Furthermore can always start small....nobody forcing u to buy the top flr 5rm flat....4rm flat recently cost about 300k....those who stretch to their last dollar got nobody to blame but themselves
Most bto launches now up to 500k for 5rm flat....duno how u pluck 750k figure? Or u mean ec?:p
Imagine, ur mthly installment can b fully paid by cpf or jus top up a little...meaning to say u can set aside more cash from ur take home pay to build up ur retirement nest.
Furthermore can always start small....nobody forcing u to buy the top flr 5rm flat....4rm flat recently cost about 300k....those who stretch to their last dollar got nobody to blame but themselves
I wonder why govt want to build premium bto where everyone apply until over subscribe XX times, then ppl complain expensive at the same time. The govt should just build standard looking ulu location flats, then can sell cheap, and no one can complain expensive. Land near mrt just sell to developer for condo.
kingkong1984
14-05-11, 11:45
I wonder why govt want to build premium bto where everyone apply until over subscribe XX times, then ppl complain expensive at the same time. The govt should just build standard looking ulu location flats, then can sell cheap, and no one can complain expensive. Land near mrt just sell to developer for condo.
excellent point.
devilplate
14-05-11, 11:54
excellent point.
Ya la...those ec like austville shd b hdb bto instead....better land site shd b reserved for dbss/ec and condo
Slap mbt? Hehe
linchong84
14-05-11, 13:56
Ya la...those ec like austville shd b hdb bto instead....better land site shd b reserved for dbss/ec and condo
Slap mbt? Hehe
That austville site is not that bad.. Its 6 year old neighbour park green is selling >700psf.. For a resale EC at sengkang not near MRT to sell at that price is considered quite power already.. Cos there is still LRT and those amenities plaza within walkable distance.. I think Austville didn't do well is cos there were some other northeast ECs that launched just a couple of months before it, killing off a big number of 8k-10k income people in north east.. Anyway, EC sites are meant to be not very good otherwise how can <10k income people be able to afford..
Condo land sites traditionally quite good one, likewise for DBSS.. BTO sites traditionally also lousy except for this 2-3 months election period so HDB launch some great locations one.. So actually the situation is ok lah..
Haha, monkey story, 5 peanuts, 2 peanuts and 3 peanuts is not better than 3 peanuts and 2 peanuts.
Won't get done this way.
It is still one of the solutions to reduce the upfront costs for young couples. Nowadays most people are going for shorter 99LH condo or EC for their condo dream. Unless the government subsidies the market price using public fund.
I agree w you, ah kong can pay the 5% cash in the form of an ah kong grant but mop 10 years. :D
It is still one of the solutions to reduce the upfront costs for young couples. Nowadays most people are going for shorter 99LH condo or EC for their condo dream. Unless the government subsidies the market price using public fund.
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