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Thread: From another forum - a user say he can never retire in sg...

  1. #1
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    Default From another forum - a user say he can never retire in sg...

    Tip 3: Do not spend more than 50 times of your gross monthly income on your property and upgrade only once during your lifetime. If your family income is $6,000, you can invest up to $300,000 on your property and not more.


    Upon Tan Kin Lian's advise that we should only buy house that is 50X of our salary.. if not that house is consider not affordable..

    In such case, my salary is like S$3000.

    I can only afford HDB of the price of S$150,000 ... ?
    My HDB cost me S$365,000 !

    That is 143.33 % out of my range!!

    Gosh..

    I think i can never retire

    i do agree TKL's theory is outdated in the current inflation..
    I took the road less traveled by, and that has made all the difference. - Robert Frost quotes (American poet, 1874-1963)

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    Quote Originally Posted by roly8
    i do agree TKL's theory is outdated in the current inflation..
    TKL and KBW (mr affordable) should sit down have a chat and give a combined press conference. that will answer alot of our questions.

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    Quote Originally Posted by roly8
    i do agree TKL's theory is outdated in the current inflation..
    TKL is a clown!!!

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    Quote Originally Posted by roly8
    i do agree TKL's theory is outdated in the current inflation..
    Bro, if a person earns 3k at say 26, does he expect to earn 3k at 32?
    If thinks so, he better buy cheap...
    For me I don't think so, if u believe in your capability, then u need to do forward salary...

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    Quote Originally Posted by chestnut
    Bro, if a person earns 3k at say 26, does he expect to earn 3k at 32?
    If thinks so, he better buy cheap...
    For me I don't think so, if u believe in your capability, then u need to do forward salary...
    Is that also why new launches are also sold at forward pricing?
    树大必有枯枝,人多必有白痴。
    树无皮必死无疑,人不要脸天下无敌!

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    If that guy's salary is $3K per month and if he has a homemaker wife and 2 kids, I agree with the TKL principle that he should only own a $150k home.

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    Quote Originally Posted by leftfield
    Is that also why new launches are also sold at forward pricing?
    Bro, u are rite. Because the land is bot at forward pricing...


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    Quote Originally Posted by roly8
    i do agree TKL's theory is outdated in the current inflation..
    that one of the reason some Singaporeans refused to have kids, low income with overprice bto

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    Quote Originally Posted by ay123
    TKL is a clown!!!
    cannot beat that kee chiu guy, lol.

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    Quote Originally Posted by roly8
    i do agree TKL's theory is outdated in the current inflation..
    so most if not all of us over leverage liao

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    Quote Originally Posted by roly8
    i do agree TKL's theory is outdated in the current inflation..
    so most if not all of us over leverage liao. Question is, do you regret it with the paper gain or you will thiink twice knowing that the sound adivse is as good as saying but things you can afford n not on iinstallment.

    there goes the car as well

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    Mr TKL is using the World Affordable Index for housing which is the price of the house divided by gross annual income. A ratio of 5 and below is consider affordable. He uses 4.2 as a guide for prudency.

    Abviously, housing in Singapore is less affordable because most people exceed the ratio of 5. It also means that most Singaporeans spend more on housing and less on others. It also means that in difficult times, a lot more people will have difficulties keeping up with their loans.

    Mr TKL is playing his roles and repaying to society. His efforts are commendable even if some part of the society may not agree with him.

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    Quote Originally Posted by Leeds
    Mr TKL is using the World Affordable Index for housing which is the price of the house divided by gross annual income. A ratio of 5 and below is consider affordable. He uses 4.2 as a guide for prudency.

    Abviously, housing in Singapore is less affordable because most people exceed the ratio of 5. It also means that most Singaporeans spend more on housing and less on others. It also means that in difficult times, a lot more people will have difficulties keeping up with their loans.

    Mr TKL is playing his roles and repaying to society. His efforts are commendable even if some part of the society may not agree with him.
    bro, your knowledge is respectable.

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    Wrong usage I think. He is using an index designed by those whose countries income tax is >40% & GST/VAT is 17.5%. Factored these in for Singapore's context, Singaporeans should be able to easily afford a property to live in that is 10years their gross annual household income.
    Since top 20% household income is >$12k pm, >$144k per year, they can easily afford >$1.44m property, which are what many of the 3BR OCR properties are transacting now.

    Quote Originally Posted by Leeds
    Mr TKL is using the World Affordable Index for housing which is the price of the house divided by gross annual income. A ratio of 5 and below is consider affordable. He uses 4.2 as a guide for prudency.

    Abviously, housing in Singapore is less affordable because most people exceed the ratio of 5. It also means that most Singaporeans spend more on housing and less on others. It also means that in difficult times, a lot more people will have difficulties keeping up with their loans.

    Mr TKL is playing his roles and repaying to society. His efforts are commendable even if some part of the society may not agree with him.

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    He forgot about employer CPF contribution, so a person with 3K gross pay effectively has $3480 pay. a person with 6K gross pay effectively has $6960 pay. he also ignore the relatively lower interest 2.6% lifetime and personal income tax in Singapore.

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    Quote Originally Posted by chestnut
    Bro, if a person earns 3k at say 26, does he expect to earn 3k at 32?
    If thinks so, he better buy cheap...
    For me I don't think so, if u believe in your capability, then u need to do forward salary...
    You are too rite..!!

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    Quote Originally Posted by roly8
    i do agree TKL's theory is outdated in the current inflation..
    Invest is diff from own stay.

    $6k x 0.8 = $4.8k nett pay

    Assuming CPF can cover HDB, $4.8k is not really a lot left for investment. At most can save $1k after all expenses and insurance for a typical family of 4. Prob cannot invest in any at current pte market prices, as the cheapest 1 bedder MM is already close to $600k with stamp duty.

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    Let us take EC as an example for a young couple with the max of $12K combined income buying an EC for $800K. The affordable index in this case is 5.5.

    Can someone who fall under this category advise whether the EC you purchased is affordable?

    Prior to the adjustment, the limit for EC was only $10K. My guess is HDB had done their sum and hence increase the limit to $12K to maintain affordability given the rising price.

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    SG will become so expensive in 10y time that some biz will have to go JB, no choice

    upper middle class family making 200k per year surely can retire comfortably in SG, middle class can become taxi drivers when retiring or choose to stay in JB, renting out their precious HDB

    Peter Lim already moving big time into JB
    Ride at your own risk !!!

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    Garment already showed the way. This follows by some SMEs, Ong beng Seng and Peter lim. It rather obviouus.
    Quote Originally Posted by phantom_opera
    SG will become so expensive in 10y time that some biz will have to go JB, no choice

    upper middle class family making 200k per year surely can retire comfortably in SG, middle class can become taxi drivers when retiring or choose to stay in JB, renting out their precious HDB

    Peter Lim already moving big time into JB

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    Nowadays I prefer Jusco at bukit indah compared to city square
    There is now a new cinema and popular bookstore and subway outlet
    The new highway linking bukit indah and horizon hills to Jb also help
    Ride at your own risk !!!

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    If Singapore remains as a country, it is not quite possible to become London or New York where only the rich and famous reside. The rich can go anywhere but the middle income and the lower income earners which form the majority of the population have no where to go. In the unlikely event that our economy should comes to a standstill, the likely scenario is that the rich will migrate and Singapore will be in a slump.

    It is therefore not unthinkable for Singapore to rejoin Malaysia and become one of the state of Malaysia if our growth comes to a halt in the coming years. Should Malaysia accepts Singapore, the federal government may not want Singapore to replace KL and may try to contain Singapore for political reasons.

    Wonder why our government is so "kiasu" and always looking for economic growth even at the expense of social integration? Ultimately, it is a decision Singaporeans have to make in the years ahead. Perhaps, someday, a national referendum may be called to decide on our very existance.

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    Quote Originally Posted by phantom_opera
    Nowadays I prefer Jusco at bukit indah compared to city square
    There is now a new cinema and popular bookstore and subway outlet
    The new highway linking bukit indah and horizon hills to Jb also help
    this one is near the 2nd link ,right?

    might go check out bukit indah to makan ..
    I took the road less traveled by, and that has made all the difference. - Robert Frost quotes (American poet, 1874-1963)

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    Quote Originally Posted by roly8
    i do agree TKL's theory is outdated in the current inflation..
    This guy nevwr factor in his income increase over time. Change job., promotion etc. Pls get married combine spouse income.

    Very in accurate comprison

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    Quote Originally Posted by Leeds
    If Singapore remains as a country, it is not quite possible to become London or New York where only the rich and famous reside. The rich can go anywhere but the middle income and the lower income earners which form the majority of the population have no where to go. In the unlikely event that our economy should comes to a standstill, the likely scenario is that the rich will migrate and Singapore will be in a slump.

    It is therefore not unthinkable for Singapore to rejoin Malaysia and become one of the state of Malaysia if our growth comes to a halt in the coming years. Should Malaysia accepts Singapore, the federal government may not want Singapore to replace KL and may try to contain Singapore for political reasons.

    Wonder why our government is so "kiasu" and always looking for economic growth even at the expense of social integration? Ultimately, it is a decision Singaporeans have to make in the years ahead. Perhaps, someday, a national referendum may be called to decide on our very existance.
    Does it mean that every Singaporen is poorer means we integrate better? I dont agree with the analogy if Singapore slump rich will goes. I think Singapore will slump if majority of the populationtion become un accomdative and not able to reconginize to sirvive in this globalized world is to, ove forward. N we have to be a step ahead as we are small n have no natural resources or local pool that is big enough.

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