View Full Version : Next, HDB will allow banks to value resale HDBs
phantom_opera
13-03-14, 09:31
Temasek annualized return in danger due to softening property market and TDSR
and slowly, no more HDB preferential interest loan since many ppl kpkb that 2.6% is much higher than market rate, banks will be encouraged to offer fixed rate for 25y and hedge against it
what do u think? akan datang?
with our world class leaders its possible:cheers1:
Amber Woods
13-03-14, 09:46
HDB will not likely to allow banks to value resale HDB flats.
HDB had tried allowing banks to value resale HDB flats for the purpose of loan dispenses during the initial period when it first started allowing banks to offer loans to buyers of resale flats. The result was dire with banks giving generous valuation. As stated in the media, only the 60 HDB appointed valuers will be allow to value HDB resale flats. HDB is not likely to repeat the same mistake it made years ago. More importantly, HDB wants to be able to control prices of HDB flats by controlling the valuation of resale HDB flats.
HDB will not likely to allow banks to value resale HDB flats.
HDB had tried allowing banks to value resale HDB flats for the purpose of loan dispenses during the initial period when it first started allowing banks to offer loans to buyers of resale flats. The result was dire with banks giving generous valuation. As stated in the media, only the 60 HDB appointed valuers will be allow to value HDB resale flats. HDB is not likely to repeat the same mistake it made years ago. More importantly, HDB wants to be able to control prices of HDB flats by controlling the valuation of resale HDB flats.
Singapore Government will never allow Casino in Singapore also what.
What make you so sure they will not let market force decide, HDB very tired since 1993 have been controlling valuation. Now that they de link BTO to resale what reason do they have to control valuation.
https://www.dropbox.com/s/qz4lkgmr5x5ml1y/Public%20Policies%20and%20Public%20Resale%20Housing.pdf
To further promote the resale public housing market, the “Mortgage Loan
Financing Scheme” was revised in April 1993. This scheme allows resale
public housing purchasers to obtain mortgage loans of up to 80% of the
purchase price or the market value of a housing unit, whichever is lower.
Before this policy revision, the amounts of mortgages available for resale
public housing were pegged at the HDB’s “posted prices,” which were fixed
at historical values and priced very much below transacted prices. This
change in mortgage loan financing has therefore provided a great boost to
the public housing resale market, as purchasers are now able to obtain much
larger mortgage amounts.
Amber Woods
13-03-14, 15:31
Singapore Government will never allow Casino in Singapore also what.
What make you so sure they will not let market force decide, HDB very tired since 1993 have been controlling valuation. Now that they de link BTO to resale what reason do they have to control valuation.
Already explained in the previous thread that the government greatest weapon is its ability to influence prices of HDB flats and the control of CPF. Think deeper!
https://fbcdn-sphotos-b-a.akamaihd.net/hphotos-ak-ash3/t1/1959313_10152249148037040_94221925_n.jpg
https://fbcdn-sphotos-b-a.akamaihd.net/hphotos-ak-ash3/t1/1896957_10152217637417040_902751500_n.jpg
https://fbcdn-sphotos-f-a.akamaihd.net/hphotos-ak-frc3/t1/1497360_10152217637397040_678015662_n.jpg
Published on Mar 08, 2014
By Cheryl Ong
PROPERTY values are unlikely to slide in the longer term, if the Government continues with stable, clear-sighted policies, Law Minister K. Shanmugam has said.
"(As) we move into a high-tech economy... we remain a safe centre for banking and financial services... where the Government does not move arbitrarily and acquire for no compensation. The Government doesn't chase people away," he said on Thursday.
"If we can keep our policies right, in the longer term, if Singapore was a stock, buy it. And that means property prices will go up," Mr Shanmugam said in response to questions that cooling measures such as the Additional Buyers' Stamp Duty would weigh down property values.
He was addressing about 1,700 property agents attending a ministerial dialogue organised by real estate firm PropNex at Kallang Theatre.
He also noted in a Facebook post yesterday that he was optimistic about Singapore's future, as the thriving Asean economic community "will offer exciting economic and trade opportunities for us as a regional service hub".
Headwinds in the property market, though, in part due to the cooling measures and Total Debt Servicing Ratio, do not mean buyers are unable to afford property, he added at the convention.
Instead, some buyers may be wary and are holding back because of fears of a correction in prices.
The Government's redevelopment plans for the Greater Southern Waterfront and Paya Lebar Airbase will also free up "prime superb-value land" and play a part in propping up property values, he said.
That means that the role of property agents will grow in importance, as property prices rise.
"You are talking about people having to commit millions of dollars, and I think a highly-trained professional who can help people get value for that... can have a tremendous amount of value," Mr Shanmugam said.
"I think a lot more advisory work, a lot more analytical-type work and services will have to be started and provided."
Singapore Billion Dollar Project.
http://forums.condosingapore.com/showthread.php?t=13324&highlight=billion
http://staticc02.insing.com/images/97/f0/0f/00/pc_600x450.jpg
Former Minister Mentor Lee Kuan Yew said that even though Singaporeans have been able to own a home through HDB, owners should think twice before selling their flats for a profit because prices will appreciate in value over years.
"Everybody owns their own homes and the value of their homes go up as development takes place,” he said in a Channel NewsAsia report. “Some are unwise enough to sell their homes, thinking they can buy another one, they then find they can't and have to rent a flat.
“But those who held on to their homes, I've seen their property values going up, five times, 10 times, 15 times, 20 times. This was the plan which we had from the very beginning, to give everybody a home at cost or below cost and as development takes place, everybody gets a lift, all boats rise as the tide rises.”
HDB will not likely to allow banks to value resale HDB flats.
HDB had tried allowing banks to value resale HDB flats for the purpose of loan dispenses during the initial period when it first started allowing banks to offer loans to buyers of resale flats. The result was dire with banks giving generous valuation. As stated in the media, only the 60 HDB appointed valuers will be allow to value HDB resale flats. HDB is not likely to repeat the same mistake it made years ago. More importantly, HDB wants to be able to control prices of HDB flats by controlling the valuation of resale HDB flats.
oops, dont get it... how can hdb control the valuation???
http://www.savills.com.sg/services/valuation-and-professional-services/hdb-flat-valuation.aspx
http://www.hlf.com.sg/about/faq/hdb.html
All valuations are done by external parties leh....
My opinion is the govt is nice to stop the train for people to hop on... question is - will people take this opportunity???
oops, dont get it... how can hdb control the valuation???
http://www.savills.com.sg/services/valuation-and-professional-services/hdb-flat-valuation.aspx
http://www.hlf.com.sg/about/faq/hdb.html
All valuations are done by external parties leh....
My opinion is the govt is nice to stop the train for people to hop on... question is - will people take this opportunity???
Same Question:
1. Do you have a HDB?
2. Are you a buyer or Seller?
3. What make you think what you read is correct?
From the Horse mouth, My 4 room HDB Valuation 195,000 in 1995, market
selling for SGD300,000 and I ask the guy doing my valuation, his reply do you
know every year we need to apply to HDB to be the appoint a private valuer
and our valuation is subjected to HDB approval. And I sold my HDB for SGD
285,000 the buyer have to find SGD 100,000 cash to buy in 1995.
http://askhdb.hdb.gov.sg/Themes/HDB/Answers.aspx?MesId=8984072&From=Show&TOPV=YES&VMesID=4049197
Q: Do I need to have valuation report in order to buy a resale flat?
A: You need to get a valuation report from an HDB-assigned private valuer if you are:
Anti-cashback rule starts from April 1
Resale flat buyers must appoint HDB-assigned valuers
The Straits Times - February 19, 2005
By: Goh Chin Lian
TO CURB the practice of falsely inflating the price of a flat to get a bigger loan, buyers will have to appoint a private valuer assigned by the Housing Board.
The new ruling will be from April 1 for resale flat buyers who wish to take bank loans and pay up with their Central Provident Fund (CPF) savings.
National Development Minister Mah Bow Tan made the announcement in Parliament yesterday, following a report in The Straits Times on the apparently prevalent practice.
The ruling already applies to existing buyers who take up HDB loans, Mr Mah said.
He also told the House that two more housing agents were being investigated for illegal cashback deals.
Ms Kereen Teo Pei Pei, 27, became the first property agent to be convicted of attempting such a deal last month, and was fined $8,000.
The HDB knows of only these three cases, though media reports suggest there are many more, Mr Mah said.
'It is very, very difficult to detect instances of cashback arrangements if all the parties involved collude and do not blow the whistle,' he said.
'We do not know how rampant these practices are and therefore we also do not know how much the prices have been inflated... unless somebody spills the beans.'
The HDB and CPF Board will announce more details of the new ruling soon, he said.
He also noted the current penalties for cashback deals. Now, buyers and sellers who give false information to HDB could be jailed for up to six months, fined and be barred from buying an HDB flat. Errant housing agents could be jailed for up to three years and fined; HDB could strike off their agency from its list.
Despite such penalties, buyers who need fast cash have resorted to cashback deals to secure a bigger housing loan, which they slowly pay back with their CPF savings.
But Mr Mah warned that not only is the arrangement illegal, 'but it also exposes buyers to greater financial risk, to high loans and erodes their retirement savings'. He also noted that buyers would incur higher stamp and legal fees, and that sellers may end up paying a higher resale levy if they subsequently buy a second subsidised HDB flat. This is because the levy is based on the sale price of the first subsidised flat.
Dr Amy Khor (Hong Kah GRC), who raised the question on cashback deals, asked if the ministry would allow only real estate agents from firms listed with the HDB to carry out resale flat transactions. Mr Mah did not think having such a restriction was necessary as it was not compulsory for real estate agents to be on the HDB's list, even though most are.
When Dr Khor pressed her point again, arguing that the onus was on these firms to ensure their agents do not cheat, Mr Mah agreed to consider her suggestion should a review be necessary.
http://www.stproperty.sg/articles-property/?c=article&aid=58315&title=Anti-cashback-rule-starts-from-April-1
http://www.mas.gov.sg/~/media/resource/legislation_guidelines/banks/circulars/Cir_BD_04_2005.pdf
[quote=Arcachon;467727]
Answer your question :
1. Do you have a HDB? - Ans - no
2. Are you a buyer or Seller? - cannot sell as dont have.. cannot buy as not qualified..
3. What make you think what you read is correct? what i believe is, if i have a hdb flat, i wont sell... hahahahaha.. the roi is so good....:cheers1::cheers1::cheers1::cheers1: where to find such roi?????? hahahahahaha
what i believe is, if anyone who has the opportunity to buy a hdb, should get a hdb and after mop can rent out leh... hahahahahaha. but again, to each his own...:D:D:D:D
[quote=Arcachon;467727]
Answer your question :
1. Do you have a HDB? - Ans - no
2. Are you a buyer or Seller? - cannot sell as dont have.. cannot buy as not qualified..
3. What make you think what you read is correct? what i believe is, if i have a hdb flat, i wont sell... hahahahaha.. the roi is so good....:cheers1::cheers1::cheers1::cheers1: where to find such roi?????? hahahahahaha
what i believe is, if anyone who has the opportunity to buy a hdb, should get a hdb and after mop can rent out leh... hahahahahaha. but again, to each his own...:D:D:D:D
You the Man, not many people when I ask them the question they dare to
answer, guess they have other things in mind. You are right ROI very high
and Lee also say not wise to sell.
One evidence that the resale market is turning the corner is the declining trend in COV: cash-over-valuation. Nearly 40% of resale transactions last month were priced below valuation, a negative COV. Indeed, the market has coined a new term, CUV: cash-under-valuation. Whether it is COV or CUV, the practice of bargaining based on this, rather than the total price of the flat, is an anomaly unique to our HDB resale market. How did it come about? Currently, most flat sellers would obtain a valuation report for their flats, which they then use as a base price and negotiate with buyers based on COV. Contrast this with practices in the private market. Negotiations there are rightly, based on recent transaction prices, and are typically carried out before buyers request for valuations.
Er Lee Bee Wah has suggested that the HDB resale market follow the practice in the private housing market. I agree. With COVs hitting zero or negative, now is a good time to make the adjustment. I have asked HDB to move on this.
HDB will rationalise the process of price negotiations and restore the original intention of valuation, which is to help buyers obtain a housing loan. In parallel HDB will publish daily, prices of resale transactions as soon as they are registered. This way, buyers and sellers can refer to the latest market information during their negotiations. Negotiating based on price rather than COV will take some getting used to. However, it is a useful move for long-term market stability.
http://www.theonlinecitizen.com/2014/03/hdb-flats-purchase-new-rules-for-valuation-requests/
COS 2014 - Speech by Minister Khaw Boon Wan "Negotiating the Turn"
10 Mar 2014 04:15 PM
Our housing market is turning the corner. The HDB Resale Price Index has turned negative for 2013, the first time in eight years. The Private Property Index has also fallen, the first time in seven quarters. All property analysts and developers are projecting a softening market ahead. They only differ on the speed of softening.
In last year’s MND COS, I “suffered” 40 COS cuts. This year, there were only 27. So clearly, our efforts to cool the housing market are producing results.
I must place on record my thanks to our fellow Singaporeans for your patience and understanding over the last three years. I thank Members of this House, particularly GPC Chair Er Lee Bee Wah for your many feedback and suggestions. Many of your ideas, I have put them into practice.
In previous COS sessions, we had to be hyper-active and we made many big moves on housing. We ramped up the BTO flat construction programme; we raised the HDB and EC income ceilings; we de-linked BTO pricing from the resale market; we allowed singles to buy new BTO flats; we built more HDB rental blocks; we stepped up Government land sales for housing; and we introduced property cooling measures. They were urgent, they were necessary. For this COS, we can maintain a calmer stance, taking a deliberate and targeted approach, as we negotiate the turn.
We must be mindful that as the market turns the corner, the way forward is not straight-forward. As Sun Yanzi cautioned in one of her songs: “向左，向右，向前看”; turning left, turning right or go forward. Have a care, be hopeful but don’t be hasty.
A few key data to help us appreciate how far we have come in the last three years. We launched over 77,000 BTO flats. 14,000 units were completed last year and handled over. This year, double, 28,000 completed units will be handed over. These decisive steps have helped many young families, our top priority. In three years, we helped 80,000 households book their HDB flats; 60,000 of them were young families. 10,000 enjoyed priority because they had kids or were expecting. 8,000 benefitted from the new income ceilings. 800 are now staying in our rental flats while they wait for their keys. 250 will move into 3Gen flats with their extended families, the first batch in Yishun, Yishun South to be precise. These are significant numbers of beneficiaries from the new housing policies. Mr Gan Thiam Poh and Er Lee Bee Wah suggested that we lift the HDB and EC income ceilings immediately. I have no plan to do so immediately. I will look into each individual case of appeal.
We have helped many vulnerable families who cannot as yet afford homeownership. 5% of HDB flats, about 50,000 units are now available for public rental housing. Another 10,000 units are at different stages of construction. They will raise our proportion of rental flats to 6% of our total public housing stock.
We broke new ground with helping the singles buy new HDB flats. 1,400 have benefitted from this new policy. Many more, quite a few thousand,will benefit this year as we ramp up the supply of two-room BTO flats. Ms Penny Low shared the wish list of singles – I heard them, including the suggestion that we extend the scheme to larger flats. I have no plan for such a change immediately. Given our limited resources, let me prioritise and give greater priority to the married couples first.
Cooling Measures
As the market is at a turning point, there are, not surprisingly, opposing views on the way forward. Developers are calling for early removal of the cooling measures. Many forum letters argued for the cooling measures to stay.
As noted by Mr Dhinakaran pointed out, the Government’s cooling measures have been necessary to ensure that prices move in line with our economic fundamentals. With prices still rising, though tepidly, in some market segments, it is premature to withdraw these measures.
While we have re-tilted the balance between buyers and sellers, we are not yet at the optimal state. We will continue to watch the market closely. On the supply side, we are moderating both the BTO programme and Government land sales. Meanwhile, both buyers and sellers have to be realistic in their expectations.
COV or CUV?
One evidence that the resale market is turning the corner is the declining trend in COV: cash-over-valuation. Nearly 40% of resale transactions last month were priced below valuation, a negative COV. Indeed, the market has coined a new term, CUV: cash-under-valuation. Whether it is COV or CUV, the practice of bargaining based on this, rather than the total price of the flat, is an anomaly unique to our HDB resale market. How did it come about? Currently, most flat sellers would obtain a valuation report for their flats, which they then use as a base price and negotiate with buyers based on COV. Contrast this with practices in the private market. Negotiations there are rightly, based on recent transaction prices, and are typically carried out before buyers request for valuations.
Er Lee Bee Wah has suggested that the HDB resale market follow the practice in the private housing market. I agree. With COVs hitting zero or negative, now is a good time to make the adjustment. I have asked HDB to move on this.
HDB will rationalise the process of price negotiations and restore the original intention of valuation, which is to help buyers obtain a housing loan. In parallel HDB will publish daily, prices of resale transactions as soon as they are registered. This way, buyers and sellers can refer to the latest market information during their negotiations. Negotiating based on price rather than COV will take some getting used to. However, it is a useful move for long-term market stability.
Elderly
Er Lee Bee Wah, Mr David Ong, Ms Foo Mee Har, and A/P Muhammad Faishal have all spoken on the housing needs of our seniors. Our priority is to help our elderly retire comfortably with security. With a large supply of new flats, their married children are spinning off to their new flats. We meet many of them in the house to house visits. Most seniors are happy to stay where they are, though some find it bigger than they need. But they are comforted that they are sitting on a valuable asset. Nearly 220,000 HDB flats are owned by Singaporeans aged 55 and above, and with mortgages fully paid up. 220,000 such units. This is more than 20% of the HDB’s stock. Ithink we should all reflct on this number and be proud of this achievement.
Most seniors have strong family support and healthy savings. However, for some who want to convert part of their housing asset into cash, they have options: switch to a smaller flat; rent out a vacant room; or take up the Enhanced Lease Buyback option. In the last three years, 5,600 elderly households booked Studio Apartments. Another 390 took up the Lease Buyback Scheme. Since 2013, 70 topped up their CPF Retirement Accounts when they right-sized – meaning move into a smaller flat. They and received a Silver Housing Bonus of up to $20,000 in cash.
When we engaged the elderly in Our Singapore Conversation last year, we discussed the low take-up for Lease Buyback. Many told us they want two things: to age-in-place and also, they want to have an asset which they can bequeath to the family. Some suggested that we offer them reverse mortgages. Reverse mortgages are loans taken up by the owner using his property as collateral, and repaid with interest upon termination or death, typically from the sales proceeds. Like Lease Buyback, reverse mortgage is a form of equity release that enables the owner to age-in-place while unlocking some equity. Reverse mortgage has actually been tried here before in the past by NTUC Income, but did not quite take off.
As our population ages, retirement adequacy and how equity release can help enhance it, is an important issue. I think we have to spend time thinking about this. We have had some experience with Silver Housing Bonus and Lease Buyback, and now a better understanding of our senior’s preferences. It is timely to revisit reverse mortgage as an additional option for our seniors. My ministry has begun a serious study of this option. We hope to formulate a practical scheme for our elderly. Along the way, we will also see if the Lease Buyback Scheme can be further improved, e.g. be extended to larger flat types, as suggested by Er Lee Bee Wah, A/P Muhammad Faishal and Mr David Ong. We will also study how we can make our options more readily available and easier to understand, so that the elderly can make informed choices when they need to tap on their flat for retirement income.
Ms Foo Mee Har noted the commercial success of The Hilford but wondered if it would really become a good retirement village. The jury is still out. The success of such a development can only be seen several years later, when it is completed and when residents have moved in. So meanwhile, URA is in no hurry to push out other sites until we are clear about the outcome. With 80% of Singaporeans living in HDB, our priority is to make sure that the vast majority of seniors can age-in-place in HDB towns, with strong community and neighbourly support. We shall leave the market to cater to the high income segment of our population.
Vulnerable Families
Er Lee Bee Wah has reminded us that a home offers basic security for divorcees and their children. Mr Seah Kian Peng spoke passionately on the housing needs of vulnerable segments of our society including divorcees, single parents, and ex-convicts. He felt that many were victims of circumstances and deserving of society’s support. Now that the market is stabilising, both Members suggested that we shift our priority to the vulnerable families. I agree. Now that we have cleared the backlog for newlyweds, we have begun to focus on helping the vulnerable groups, especially divorcees with children.
Last year, we reserved a 5% quota for divorcees or the widowed with a young child, applying for a two-room or three-room flat in a non-mature estate. So actually, they get priority. In fact, they get very high priority. This has helped 60 such families get a HDB flat. Number sounds small because the applicants were also small in numbers. But almost everyone, we were able to satisfy their needs. But if you come across cases in your MPS that has dropped through the net, let me know and we will take a look. We have also shortened the debarment period, and 120 divorcees have gotten to buy a flat earlier as a result. The question is: What else can we do? I am open to suggestions. This afternoon, we heard two suggestions. Er Lee Bee Wah suggested that we remove all forms of waiting periods for divorcees with children. Mr Seah Kian Peng suggested that we seek the local Community Development Council’s inputs when evaluating an applicant’s housing needs. We will study both suggestions. Meanwhile, we will continue to exercise flexibility and compassion whenever we receive worthy cases from Members. Many have in fact been helped.
Despatch and Delivery Riders
Beyond housing, we also offer practical help to the lower income, particularly those who work hard to better their lives. Er Lee Bee Wah highlighted one specific group, the despatch and delivery riders. Today, motorcyclists using HDB and URA car parks are charged at a flat rate of 65 cents for either a Day or a Night session in the same carpark. This is inexpensive but those who use multiple car parks in a day, such as despatch or delivery riders, may still chalk up considerable parking charges. Apparently, they bear such cost, and not their employers.
I accept Er Lee Bee Wah’s suggestion that we should revise the EPS (Electronic Parking System) parking rates for motorcycles and begin to charge on a per minute basis. In addition, we will introduce an enhanced Season Parking Ticket that allows motorcyclists to park in all HDB and URA car parks for a flat monthly fee. Right now, it is different. For URA carparks and HDB carparks, you pay different rates. We will make sure it is affordable. HDB and URA will work out the details and implement them as soon as possible.
Overseas Property Purchase
As we rein in our property market, some Singaporeans have turned to investing in foreign properties. The Government does not interfere with such investment decisions, but I do share the concerns of Mr Seah Kian Peng and Mr Liang Eng Hwa. I echo their words of caution. Property markets move in cycles. For foreign properties, there are additional risks and complexities, because their legal and regulatory frameworks governing the purchase and their financing agreements are all different from ours. And they may change suddenly when domestic politics push for a change in policies. Do go in with your eyes open.
The Council for Estate Agencies will launch an online guide to provide some general tips to consumers who are thinking of buying a foreign property. Do read it, and exercise due diligence, caution and good judgement before you invest. There are no sure-wins in property investments, whether here in Singapore or overseas. CEA will also step up its effort to regulate estate agents marketing overseas property developments here. Members of the public should report to CEA any marketing activities by unlicensed foreign estate agents, so that CEA can investigate and take appropriate actions.
Property Value and HDB Lease
Mr Laurence Lien painted a dark scenario of housing prices spiralling downwards, not as a cyclical phenomenon but a permanent trend due to structural changes. He worried that the ageing of our population might cause such a scenario. The future is full of uncertainties, and anything is possible. Property prices are correlated with economic growth. If Singapore’s economy were to decline permanently, all assets, including properties would drop in value. That is why it is important to ensure that our economy remains dynamic and vibrant. Underpinning that must be a healthy population growth and a productive workforce. These were the critical issues that the Population White Paper highlighted and were discussed at length in this house.
Our demographic challenges are serious, but we can overcome them. We have done well in the past 50 years against more severe odds, and I believe our best is yet to be. The key is to ensure that we have an honest and competent Government that continues to plan ahead for the long-term interest of our people, and our people are solidly united behind the Government. Then we can avoid such a dark scenario.
Mr Gerald Giam asked again in this House about HDB flats at the end of their 99-year leases and the role played by SERS. Like all leasehold properties, HDB flats will revert to HDB upon expiry of their leases. HDB will in turn surrender the land to the State. Hence, everything else being equal, properties with shorter remaining leases should have lower value than those with longer remaining leases. Buyers of short remaining lease properties buy with such an understanding and price in such an outcome, that upon expiry of a lease, the land will revert to the State.
Before then and where possible, we shall revitalise old estates through SERS. But SERS is selective and dependent on the potential for land intensification. SERS also assumes that the Government’s finances are healthy to fund it. So in short, for as long as our economy is strong, and our Government competent and well supported by the people, we will have many options to address such challenges.
Endearing Home
In the last 50 years, we have housed a nation, but our public housing programme is more than just providing a shelter. It is about forging relationships in our families and our communities. It is these intangible aspects of the HDB flat and HDB town that make it an endearing home. HDB estates provide the unique Singapore way of life which we all share as a people. Our housing policies must continue to enable those relationships.
Beyond the hard infrastructure, it is the mutual care and support within the extended family that people most value – be it support for parenthood or care for the elderly. Mayor Teo Ho Pin has made the point convincingly. I agree fully with his sentiments. Many young married couples want to live near their parents, especially after they have kids. Likewise, many elderly parents wish to live close to their children and grandchildren. The presence of family nearby is particularly reassuring and comforting for the elderly. We must do our best to meet such aspirations. It is not difficult in non-mature towns where we are still building new flats. It is more challenging in mature towns where the opportunity to build new flats is less. Nevertheless, I want to push the limits to enable extended families to live near one another. So I will study Dr Teo’s and Er Lee Bee Wah’s suggestions, and we will think up our own ideas as well.
Ms Penny Low suggested that any enhanced scheme or greater priority given to those who wish to live closer to their elderly parents should not neglect the singles. Mr Gan Thiam Poh felt that the BTO system could be refined to better gauge and respond to demand. I will also bear these points in mind.
Finally, some Members commented on the housing difficulties faced by families with very complex social challenges. Some may have sold their flat due to family break-ups or poor financial management. Others are unable to afford their next flat as they do not have a steady job to qualify for a loan or a grant. And public rental may not be the best solution for those households, especially over the longer-term. What more can we do to help such families progress onto homeownership? How do we ensure that they will continue to sustain their home to ensure a good living environment for their children? Even as we continue to support marriages and families, and reward self-reliance, how can we, in housing, build a social compact that is more inclusive and provide greater support to divorcees and unmarried parents with kids?
I intend to further engage Singaporeans on the relationships and values we hold dear as a society, and how housing policies can better support them. Our Singapore Conversation has demonstrated its usefulness and we will do similar engagements this year.
Madam, I believe I have addressed almost all the comments raised by Members but a few comments on the construction industry and estate upgrading will be addressed by my colleagues later on.
Conclusion
Madam Chair, our housing market is turning the corner. There are dangers ahead of us, and there will be surprises. The best strategy going forward is to focus on the basic values and work on the priorities. What are they? Get our young to marry and have babies; get extended families to live near one another; forge kampong spirit among neighbours; help vulnerable families to stand on their feet again; leave no one behind. In Singapore, if you work hard, you will earn yourself a brighter future – this is our promise, and I will do my part.
Since independence, the Government has made the building of good affordable homes a national priority. We bring homeownership within the reach of every citizen and his family. And over the years, HDB has produced increasingly better homes, upping our quality of life. Just last month, we marked the 50th Anniversary of the Home Ownership for the People Scheme. This is a major milestone on a journey launched by Mr Lee Kuan Yew, driven by his vision to make Singapore a nation of home owners. At the Pinaccle ceremony, Mr Lee recalled:
“When I got HDB to launch the homeownership scheme in 1964, there were many skeptics. We had little reserves then. Singapore was still in Malaysia. Our future looked bleak. The post-war baby boom and the high unemployment added to our pressures. Our construction industry was low in skills and lacking in building management. Few believed a home-owning Singapore was possible. Against the odds, through grit and determination, we housed the nation progressively and systematically.”
50 years ago, we were an island of squatters and slums. 50 years later, a third generation of Singaporeans is now embarking on their own homeownership journey. We inherited all these, I think it is our job to build on it. During Our Singapore Conversation last year, an overwhelming 97% of Singaporeans said “yes” when asked if homeownership was important to them.
But while we can provide a solid foundation for Singaporeans to start a family, the Singaporean way of life is ultimately determined by ourselves. While we can build a flat, it truly becomes a home only when we put our hearts into it – taking pride in ownership and sharing life’s ups and downs as a family together. While we can build the most liveable estates, a community comes alive only when shared experiences forge strong bonds, and a sense of rootedness grows out of shared memories and personal attachment to the estate.
The last three years have been very busy and I want to thank the many officers in MND and especially HDB who have worked tirelessly to tackle the public housing situation. This year, I want to do more for the elderly, the vulnerable groups, and help extended families live near one another. We will push the limits, do our best and we will try to realise some of the Members’ wish lists. Thank you.
Back to top Last updated on 12 Mar 2014
http://app.mnd.gov.sg/Newsroom/NewsPage.aspx?ID=5254&category=Parliamentary%20Speech&year=2014&RA1=&RA2=&RA3=
[quote=chestnut;467735]
You the Man, not many people when I ask them the question they dare to
answer, guess they have other things in mind. You are right ROI very high
and Lee also say not wise to sell.
bro, i sold my hdb @ bishan in 1994. I told the buyer - you buy the unit, sure make money one... dont need to worry... look at the new hdb in bishan, already so high, so no problem...
Why i sold - my home became so small and i bot a bigger unit (private). during that time, if you own hdb and private, you can only stay in hdb and rent out private... cannot stay in private and rent out hdb... so bo pian, have to let go my hdb...
bot my 4 room hdb @ 100k, sold for 320k... if hdb allowed me to rent out my hdb then, it is now a cash cow... hahahahahaha... but i am very easy going lar... must let everyone have opportunity leh....:cheers1::cheers1::cheers1::cheers1::cheers1::cheers1::cheers1::cheers1:
[quote=Arcachon;467737]
bro, i sold my hdb @ bishan in 1994. I told the buyer - you buy the unit, sure make money one... dont need to worry... look at the new hdb in bishan, already so high, so no problem...
Why i sold - my home became so small and i bot a bigger unit (private). during that time, if you own hdb and private, you can only stay in hdb and rent out private... cannot stay in private and rent out hdb... so bo pian, have to let go my hdb...
bot my 4 room hdb @ 100k, sold for 320k... if hdb allowed me to rent out my hdb then, it is now a cash cow... hahahahahaha... but i am very easy going lar... must let everyone have opportunity leh....:cheers1::cheers1::cheers1::cheers1::cheers1::cheers1::cheers1::cheers1:
My colleague also like you sell HDB buy private, one day I told him Private can buy HDB and he look at me and say this is crazy.
http://www.np.edu.sg/library/resources/subjectguides/wci/Documents/05.09.10sc.pdf
Propwise.sgBy Aktive Learning | Propwise.sg – Mon, Sep 2, 2013
By Paul Ho (guest contributor)
Under the HDB’s new rules issued on 27th Aug 2013 and effective on 28th Aug 2013, Singapore Permanent residents will need to wait three years before they can purchase a HDB flat. This is welcome news for most young Singaporean couples as less competition will mean more stable prices, but the specifics of the rules can create an anomalous situation where a young couple finds they cannot finance an HDB flat but are able to finance a private condominium.
HDB’s Monthly Servicing Ratio capped at 30% and loan tenure at 25 years
In line with the government’s aim to impose financial prudence, the monthly servicing ratio (MSR) for HDB flats has been set at 30%. This means that the housing related servicing must not exceed 30% of a person’s or household’s gross income. For example, a household who earns $8,000 a month (husband $4,000 and wife $4,000) can only spend a maximum of $2,400 on property financing for HDB.
While a $2,400 monthly repayment ceiling sounds fine, don’t forget that this is not based on the actual interest rates charged by the banks, but rather a rate of 3.5% mandated by the MAS.
For HDB property buyers, they have to meet two criteria to get a mortgage. First the MSR must not be greater than 30%, and the Total Debt Servicing Ratio (TDSR) must be not more than 60%.
The loan tenure plays a part as well. If the loan tenure is 30 years, that means that the couple will be able to afford a higher priced HDB flat. If the loan tenure is shorter, that means that the price of the HDB flat they can afford will drop. With effect from 28th Aug 2013, the HDB loan tenure for an 80% loan is now capped at 25 years (down from 30 years).
What is the impact of this rule?
Under the impact of this rule, young couples will face greater difficulties in buying a HDB resale flat as they have to pass the MSR rule.
Let’s take the example of a young couple (30 years old) with $8,000 joint income and $1,200 of car loans, with no credit card or other debt.
BEFORE 28 Aug 2013
Before the rule, a young couple earning a total income of $8,000, with a car loan servicing of $1,200 per month can only buy an HDB flat cheaper than roughly $700,000, as the MSR comes up to ~31.43% based on 80% borrowing. In other words, they can only take a maximum of a $560,000 loan.
ON OR AFTER 28 AUG 2013
On or after the 28th Aug 2013, the young couple cannot even afford to buy a HDB flat that costs $600,000 as the MSR comes up to 30.04% based on 80% borrowing, with a maximum loan of less than $480,000. This is due to the reduction of the loan tenure from 30 years to 25 years.
As the young couple cannot pass the MSR criteria, there is no need to compute the TDSR which they can pass easily.
But in the government’s aim for financial prudence, it seems that an anomaly has opened up. This couple would be able to borrow up to $800,000 and still meet the TDSR (at about 59.9%) to buy a private condominium, as private property purchases are not subjected to the MSR requirement.
So to conclude: a couple cannot borrow more than $480,000 to buy an HDB flat but they can borrow $800,000 to buy private property or an Executive Condominium. How is financial prudence served in this way?
By Paul Ho, holder of an MBA from a reputable university and editor of www.iCompareLoan.com, Singapore’s first Cloud-based Home Loan reporting platform used by Property agents, financial advisors as well as Mortgage brokers. Posted courtesy of www.Propwise.sg, a Singapore property blog dedicated to helping you understand the real estate market and make better decisions. Click here to get your free Property Beginner’s and Buyer’s Guide.
[QUOTE=chestnut;467740]
My colleague also like you sell HDB buy private, one day I told him Private can buy HDB and he look at me and say this is crazy.
http://www.np.edu.sg/library/resources/subjectguides/wci/Documents/05.09.10sc.pdf
Bro,I know. about 4 years ago or longer I also wanted to buy hdb. Why??? I saw influx of foreigners, I was studying the population stats, etc... I knew surely make money... But I did not buy as I honestly did not want to deprive my fellow Singaporeans of me entering this great gold mine... I already owned a few props then... No regrets... Serving my "national service"... Cannot be too selfish😃.
That's why I don't understand why people want to sell hdb to upgrade to private??? Might as well keep both...
Cheers bro
[QUOTE=Arcachon;467741]
Bro,I know. about 4 years ago or longer I also wanted to buy hdb. Why??? I saw influx of foreigners, I was studying the population stats, etc... I knew surely make money... But I did not buy as I honestly did not want to deprive my fellow Singaporeans of me entering this great gold mine... I already owned a few props then... No regrets... Serving my "national service"... Cannot be too selfish😃.
That's why I don't understand why people want to sell hdb to upgrade to private??? Might as well keep both...
Cheers bro
Some people use mouth to think while others use their brain, can't blame them.
10 Mar 2014 my colleague very angry because the COW want people to agree
the price of resale before valuation. After I explain to him, he become very
happy. These are the people we need to help them to think using their Brain
instead of their mouth.
http://www.voiddecker.com/2013/09/relying-on-rental-income-for-retirement/
A perennial question some Singaporeans have is why HDB owners are allowed to hold on to their HDB flats after upgrading to private properties, but private property owners are not allowed to hold on to their private properties should they buy a HDB flat.
There is always more upgraders than downgraders especially coming from the hdb to pte property. Usually majority's interest is better taken care of than the minority.
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