Is the property market nuts? Poll

[august]

Heard from the grapevine that HDB may be slowly moving towards the privatisation of HDB and to make the prices of HDB flats competible to the private, using private as a benchmark. The DBSS projects are just pioneering the govt's intention and eventually (i may not live to see that day), HDB will be 80% controlled by private developers working in partnership with the government. The current hdb valuation is based on the past transacted prices within the area and valuations in certain places have shown that HDB is very desired regardless of price to the singaporean or PR homebuyer. Meiling street, Kim Tian and certain parts of Bt Merah have seen HDB valuations going to as high as between $780000 to $840000 (I kid you not) for an Executive apartment and the valuation itself is already more than the price of some 3 bedroom condos. Why did the govt allow this trend without correcting prices? You can probably figure out the answer....

of cos some of these private developers will be govt-linked corporations ~

a leopard does not change its spots

[kalumder]

The main problem is that people today will suffer with their HDB morgage payments, if they have to pay more (longer) then in the past. Lets not forget that compared to the past, job stability is non exsistent. My farther worked for 30 years at the same company, in the last 10 years I have worked at 5 and now started my own business. If I had continued to go the employee route, I would have had spells of unemployment, or would have to even consider pay reduction sometime in the future. That is the nature of todays world. So the burden of a 30 year morgage is not to be underestimated, and I am under the impression that a lot of young people in Singapore have over-extended themselves. The other thing one should not forget is that if people spend a larger % of their income on a morgage, it will mean that they will sacrifice on their disposable income. This has serious effects on the local economy.
HDB needs to be linked to GDP, and needs to take in to consideration that in todays world the rich get richer and the low income group are getting squeezed harder. So it needs to make sure that the "low income group" can afford housing. The low income group are the backbone of each country, I dont want Singapore to develope ghettos/slums like they do in the USA or other countries.

[franzmark]

Of course the low income group can afford housing, just that they need to pay longer. Our government has to create jobs to ensure that we do not end up like a small scale sub-prime. I do sympathise the younger generation going out to look for a new flat or a resale flat at this point but we must also remember that salaries today is much higher than before. I remember my parents drawing less than $1000 of combined income during the 1980s when money was "big" and all I needed to go to school was fifty cents. Times have changed and not to mention graduates, coffeeshop helpers would sometimes even despise a pay offer of $1200 a month. A relative of mine working in a coffeeshop gets paid $1600 a month even though she has to put in the long hours of hard work. She lives in a 2 room flat which is well within her means, so I do not see any issue of affordability there. When you talk about young couples not being able to afford hdb housing, it can only be the fact that they are buying outside their means. A couple with combined pay of $2500 would of course find the monthly mortgage payments for a $600000 executive flat draining, but in the first place, shouldn't they be looking to live in a 3 or 4 room flat in the first place? Many couples I have seen are spending beyond their means and some even buy a hdb unit at the high, using rental as a fall back when their finances go down. Another relative of mine rented out his 4 rm flat in toa payoh and is currently living with his parents as he found the mortgage payments a drain after his wife has stopped work and has 2 kids to look after. We cant deny the fact that many singaporeans bought their first flat at a low and first time buyers of new or resale flats get subsidy from the govt as well. Ultimately, i can only say that one should spend within or below his means. young couples should make the best use of any govt subsidy which is what i have done. most people will have a chance of making at least $100k from the sale of their subsidised new flat 5 years later, so make the best use of that and use that as a stepping stone to upgrading to a bigger flat or even a condo. That is how i became the proud owner of 2 properties ( 1 private and 1 hdb) and i have not even reached 34. I am just sharing my humble view with 1st time potential home buyers out there...

The main problem is that people today will suffer with their HDB morgage payments, if they have to pay more (longer) then in the past. Lets not forget that compared to the past, job stability is non exsistent. My farther worked for 30 years at the same company, in the last 10 years I have worked at 5 and now started my own business. If I had continued to go the employee route, I would have had spells of unemployment, or would have to even consider pay reduction sometime in the future. That is the nature of todays world. So the burden of a 30 year morgage is not to be underestimated, and I am under the impression that a lot of young people in Singapore have over-extended themselves. The other thing one should not forget is that if people spend a larger % of their income on a morgage, it will mean that they will sacrifice on their disposable income. This has serious effects on the local economy.
HDB needs to be linked to GDP, and needs to take in to consideration that in todays world the rich get richer and the low income group are getting squeezed harder. So it needs to make sure that the "low income group" can afford housing. The low income group are the backbone of each country, I dont want Singapore to develope ghettos/slums like they do in the USA or other countries.

[jonleelk]

Slightly off topic...but based on the new hdb rules, can one rent out his whole hdb flat if it is already fully paid?

[franzmark]

i thnk rules stipulate u have to live there for 3yr b4 u cn let out whole flat. But again sme people choose to lock 1 rm, return to the flat occasionally n still let out whole unit. Hdb doesnt care if u have fully paid 4 unit or nt

Slightly off topic...but based on the new hdb rules, can one rent out his whole hdb flat if it is already fully paid?

[jonleelk]

i thnk rules stipulate u have to live there for 3yr b4 u cn let out whole flat. But again sme people choose to lock 1 rm, return to the flat occasionally n still let out whole unit. Hdb doesnt care if u have fully paid 4 unit or nt

Tks...that's what I remembered reading. 3yr if buy resale without subsidy. 5yr if buy with subsidy. No more need to justify why owner cannot stay in the flat.

However, HDB website forever not updated...still state the old rule of only can rent out whole house if can provide reason that the owner cannot stay in the flat.