Is this enough......to quell the market sentiment???

[cloudy78]

because one never knows what changes there are for CPF in store for the future. My parents time, age 55 can draw out CPF no questions. Now my generation, can't even draw out without leaving shitloads inside for the govt to 'manage'. in future, what if they decide to turn everything into a mega annuity?

But then everything is government driven right? Even with your reply above, I still cannot comprehend why it is garment's objective to make sure HDB prices rise with the tide.

[jitkiat]

But then everything is government driven right? Even with your reply above, I still cannot comprehend why it is garment's objective to make sure HDB prices rise with the tide.

IT is becos property investment the government has control using land supply to ensure your flat will grow at or better than 2.5% per year. If you have lots of $ in CPF OA and you choose to invest in stocks or more risky thing like Lehman minibonds ... then you could lose your pant and unable to retire ... thus government allows you to use CPF OA to pay your property

[gfoo]

But then everything is government driven right? Even with your reply above, I still cannot comprehend why it is garment's objective to make sure HDB prices rise with the tide.

Every government's objective is to have a little inflation for that feel good factor. The majority of the population already own hdb/pte. As asset inflation creeps up, there they are thinking - hey i'm sitting on $300k profit from my flat - and they'll be more confident to go out and spend, makan, etc. It's a feel good thing that makes people think the govt is doing well macroeconomic wise, and such things win elections.

It is those who are starting out, low cash, no asset - who are getting married and wanna get their first HDB or first pte pty - that are affected. But really, although they make the biggest noise in ST Forum and every other online forum, they are still a minority

like i tell all my friends - your first property should always be a hdb flat. if your income exceed, then that means you can afford a resale HDB. if you cannot afford a bt merah or marine parade, then be realistic, buy a resale in punggol, senkang or sembawang - they are at best 10-15% more expensive than brand new flats which you need not wait for 3-4 years to complete. Want the govt grant but exceed income? too bad, life is tough - give the poorer folks your allotment. If you cannot afford that COV, then who asked you to buy that dream WRX the moment you get a job? this means that you are not ready to get married yet - save up first.

But young singaporeans are status conscious - they want to live it up, without paying for it up front. So most of them that cannot afford to pay the COV in cash, will then go for pte prop DPS or IAS. they sign massive loans that will wipe out their monthly spare cash, at ridiculous PSFs - but not much cash outlay!

[amk]

But young singaporeans are status conscious - they want to live it up, without paying for it up front. So most of them that cannot afford to pay the COV in cash, will then go for pte prop DPS or IAS. they sign massive loans that will wipe out their monthly spare cash, at ridiculous PSFs - but not much cash outlay!

exactly! I saw so many young grads automatically assume when they get married, they must be able to afford a pte condo, or minimum a prime location resale hdb, plus a nice car. When they "discover" the price is out of their reach, the immediate reaction was " wah how can government allow pty price go up so much ? " "how can resale COV is 80k ?". And all the talk of government must do this do that, to allow them to fulfill their dreams. If these people chose to do IAS/DPS and get burned later, they owe it to themselves. Government should not be here to babysit them!

[amk]

(duplicated)

[jlrx]

MBT wants our HDB asset to climb to finance our retirement.

Precisely! The government wants property prices to climb so that the younger generation can help to finance our retirement.

This is called filial piety 敬老尊贤.

For example, when I bought the house last time, I was helping the old couple who sold it to me to finance their retirement because they had bought it for only $50,000 in the 1950's.

I was using my hard earned income to help them retire comfortably.

I was so filial to them, even though they were not my parents.

Now that the property price has doubled, it is my turn to enjoy filial piety.

[maisonjai]

Precisely! The government wants property prices to climb so that the younger generation can help to finance our retirement.

This is called filial piety 敬老尊贤.

I was using my hard earned income to help them retire comfortably.

Now that the property price has doubled, it is my turn to enjoy filial piety.

well said, MBT managed to fine tuned the jap system. haha....who knows, maybe a FT might be the one financing ur retirement.

[Laguna]

exactly! I saw so many young grads automatically assume when they get married, they must be able to afford a pte condo, or minimum a prime location resale hdb, plus a nice car. When they "discover" the price is out of their reach, the immediate reaction was " wah how can government allow pty price go up so much ? " "how can resale COV is 80k ?". And all the talk of government must do this do that, to allow them to fulfill their dreams. If these people chose to do IAS/DPS and get burned later, they owe it to themselves. Government should not be here to babysit them!

Yes fully agreed. Our GenY is seeking for full protection, well pampered by parents, and government. Compare to those in Mainland or even HK, can our GenY compete well or not? I doubt very much. Our GenY is not hungry, and they want good work life balance.

[echotrain]

like i tell all my friends - your first property should always be a hdb flat. if your income exceed, then that means you can afford a resale HDB. if you cannot afford a bt merah or marine parade, then be realistic, buy a resale in punggol, senkang or sembawang - they are at best 10-15% more expensive than brand new flats which you need not wait for 3-4 years to complete. Want the govt grant but exceed income? too bad, life is tough - give the poorer folks your allotment. If you cannot afford that COV, then who asked you to buy that dream WRX the moment you get a job? this means that you are not ready to get married yet - save up first.

Agreed! Exactly what I think.

[jlrx]

Yes fully agreed. Our GenY is seeking for full protection, well pampered by parents, and government. Compare to those in Mainland or even HK, can our GenY compete well or not? I doubt very much. Our GenY is not hungry, and they want good work life balance.

Actually the GenY are quite pitiful as the starting income of fresh graduates seems to be stuck forever around $2,000 to $3,000 per month.

Today I read the papers about 200 new teachers having problem paying back their mistaken $2,000 bonus ... one teacher said it was "very painful." I read already also feel "very painful" for them. I think MOE should just write off the $400,000.

Many years ago, my aunty a new teacher earning $800 per month can buy a Newton apartment for around $100,000. That's 10 years of income (assuming 100% of income to service the loan).

Now a new teacher earning $2,000 per month will take 100 years to buy a unit at Newton Suites (assuming 100% of income to service loan).

Then you want them to move to bt merah or marine parade, then to punggol, senkang or sembawang ...

like i tell all my friends - your first property should always be a hdb flat. if your income exceed, then that means you can afford a resale HDB. if you cannot afford a bt merah or marine parade, then be realistic, buy a resale in punggol, senkang or sembawang

[kalumder]

not to forget that genY does not have the same job-security stability as previous generations. Future generations will find it more common to have to deal with bouts of unemployment than previous generations.

[Laguna]

Actually the GenY are quite pitiful as the starting income of fresh graduates seems to be stuck forever around $2,000 to $3,000 per month.

Today I read the papers about 200 new teachers having problem paying back their mistaken $2,000 bonus ... one teacher said it was "very painful." I read already also feel "very painful" for them. I think MOE should just write off the $400,000.

Many years ago, my aunty a new teacher earning $800 per month can buy a Newton apartment for around $100,000. That's 10 years of income (assuming 100% of income to service the loan).

Now a new teacher earning $2,000 per month will take 100 years to buy a unit at Newton Suites (assuming 100% of income to service loan).

Then you want them to move to bt merah or marine parade, then to punggol, senkang or sembawang ...

I share your view on the GenY.

Eventually, we all will be like Mainland rule of 4+2 (parents from both sides of the young couple to foot the first instalment and monthly instalment by the couple) soon, and it is a matter of time is 4+2+1, with drop in birth rate, high property price, we need to take a 50 years mortgage and have our child to help to pay.....

[august]

But then everything is government driven right? Even with your reply above, I still cannot comprehend why it is garment's objective to make sure HDB prices rise with the tide.

to tie ur funds down, otherwise the ponzi.. oops i means cpf scheme will collapse..

hence the eagerness to raise population i.e. get new entrants into the scheme