First-timers enjoy a high chance of getting their first homes: Khaw

[reporter2]

http://www.businesstimes.com.sg/breaking-news/singapore/first-timers-enjoy-high-chance-getting-their-first-homes-khaw

Published June 05, 2012

First-timers enjoy a high chance of getting their first homes: Khaw

By Carine Lee


Minister for National Development Khaw Boon Wan said in his blog on Tuesday that first-timers continued to enjoy a high chance of securing their first flat at the May BTO launch.

The overall first-timer application rate at 1.6, is lower than the 2.2 in the March BTO, and similar to the 1.6 in January earlier this year, and November last year. In non-mature estates, the first-timer application rate is even lower, at 1.3 compared to the rate of 1.9 in March.

More second-timers were also able to select a flat, said Mr Khaw.

Their application rate in non-mature estates is at a single digit level of 7.3, which is similar to the rate of 7.0 in March. The overall second-timer application rate is also at a single digit level of 8.8, lower than the rate of 10.8 in March.

"If first-timer application rates hold steady at below 2, I will be able to help even more second-timers get their new flats. The May BTO test results give us confidence that we are making steady progress on this journey. This is much to be cheerful about," wrote Mr Khaw.

[Sleepyhead]

Tell that to my friend... she's very upset that she cannot qualify to buy a BTO and hence benefit from the subsidized prices, and instead seeing newly converted citizens getting way more priority over her simply because they can tick the 'family nucleus' box.

My friend is almost 40 yrs old, single, living with mother in her fully paid up HDB, unlikely to get married anytime soon.

She says her only option is to buy over the HDB from her mom at market value, her mom will then have to return the 40k or whatever grant that the govt gave her way back then.

[phantom_opera]

My friend applied McNair Tower, the application ratio is 2.8 for first timers (2nd timers is 10x of that) so about 40% chance. Given the excellent location ... why most first timers applied Sengkang instead (3.8)... looks like not many can afford that 500k price tag even family income ceiling has been raised to 10k per month. A sign that HDB in good location, even subsidized, has moved beyond the affordability of first time buyers. Of course by no means HDB prices has peaked. But I can start to see social divide:

1. Last time Pinnacle@Duxton, even family with 5k income can apply and afford it
2. Now even Boon Keng, without income of 7-8k, you will be hard pressed to swallow that 500k+ price tag
3. Higher income family will now has much higher chance to secure a prime HDB BTO

It will be interesting to break down how many first timers apply for 3r and how many for 4r

:beats-me-man:

[Nman]

I no chance to enjoy HDB benefit till now. I think I forever no chance liao. I believed HDB value is away there unless population drop.. If I got chance i sure apply.

[TheOnlyGayInTheVillage]

Tell that to my friend... she's very upset that she cannot qualify to buy a BTO and hence benefit from the subsidized prices, and instead seeing newly converted citizens getting way more priority over her simply because they can tick the 'family nucleus' box.

My friend is almost 40 yrs old, single, living with mother in her fully paid up HDB, unlikely to get married anytime soon.

She says her only option is to buy over the HDB from her mom at market value, her mom will then have to return the 40k or whatever grant that the govt gave her way back then.

She can always buy private or vote opposition.

[Sleepyhead]

She can always buy private or vote opposition.

Her earnings only $4+k. Must support handicapped mother some more. How to buy private? Even buying over from her mother is a problem coz it's a 5 room... Market valuation should be 500k... She only wanted to get 3 room BtO costing 300+k... Bit not means to be. Gahmen dun let... Coz she's single.

[TheOnlyGayInTheVillage]

Her earnings only $4+k. Must support handicapped mother some more. How to buy private? Even buying over from her mother is a problem coz it's a 5 room... Market valuation should be 500k... She only wanted to get 3 room BtO costing 300+k... Bit not means to be. Gahmen dun let... Coz she's single.

Fall between the cracks liao. But not considered in hardship as 4k+ is reasonably comfortable. Mum is handicap but lucky not those illness with spiralling costs such as diabetes or cancer. Touchwood.

[phantom_opera]

Fall between the cracks liao. But not considered in hardship as 4k+ is reasonably comfortable. Mum is handicap but lucky not those illness with spiralling costs such as diabetes or cancer. Touchwood.

4k+ for 2 persons hardly any saving

20% goes to CPF left 3.2k
$400 to pay public transport for two
$100 to pay PUB
Left 2.7k
Eating budget $16 X 2 X 30 = $1k
Left 1.7k
Occasional travel / entertainment say 200 per month, left 1.5k
Insurance for 2 = $200 left 1.3k
Groceries, clothes, bags, shoes, home maintenance left 1k

If own car probably little left

[Allthepies]

I no chance to enjoy HDB benefit till now. I think I forever no chance liao. I believed HDB value is away there unless population drop.. If I got chance i sure apply.
yup hdb shld apply if u can to rent out to the FT. its like doing a service to the nation. i hope to apply for one when im about to retire from my rat race job.

[Sleepyhead]

4k+ for 2 persons hardly any saving

20% goes to CPF left 3.2k
$400 to pay public transport for two
$100 to pay PUB
Left 2.7k
Eating budget $16 X 2 X 30 = $1k
Left 1.7k
Occasional travel / entertainment say 200 per month, left 1.5k
Insurance for 2 = $200 left 1.3k
Groceries, clothes, bags, shoes, home maintenance left 1k

If own car probably little left

Yalor.. she wants to use her CPF to get a 3 rm BTO, but unfortunately, due to her circumstances, she's neither here nor there.... stuck.. like GayUncle said, fall through the crack liau.

So, Khaw's statement about easier for first timers?? well, he gotta quantify that statement... only the 'deserving' first timers as per gahmen's list of criteria.

[TheOnlyGayInTheVillage]

Yalor.. she wants to use her CPF to get a 3 rm BTO, but unfortunately, due to her circumstances, she's neither here nor there.... stuck.. like GayUncle said, fall through the crack liau.

So, Khaw's statement about easier for first timers?? well, he gotta quantify that statement... only the 'deserving' first timers as per gahmen's list of criteria.

Its liddat. Either she work harder to climb out of the crack, or get lower income to be eligible for assistance.

[Lee-Anne]

It is more easy for first time buyers to buy property now. However, should a first time buyer have a bad credit history, it makes sense that they will not be able to qualify for a home loan. Keep in mind that property (http://www.myroof.co.za/absa) prices are at their lowest in quite some time, and the interest rates are also low. This is the perfect time to buy property

[richwang]

I have expat friends earning 10k+++ still don't own a car in Singapore.
Why 4k income must own a car?
Use that 1k to buy HDB is a better choice.

I am very shocked by a local engineer who is earning 3k, and still owns a car.
If it is not a "culture" problem, it must be the 100% financing policy which has caused this problem (or should I say 200% financing policy if you count the COE).

Thanks,
Richard