CB Goh Meng Seng want to do away $40k grants for young couples once he is elected!

[Forvendet]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

Perspective, you still don't get it.

If you reduce your downpayment, it would mean you will be borrowing MORE money. How much more? How will it affect you? I guess there are more lessons to learn from the book "Rich Dad Poor Dad".

Everybody doesn't get it, NUS Economics Horrors! :oIo:
Flat cost $200k, help you with $40k grant and you will be borrowing more money? :oIo:

 

[Frankiestine]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

There's a reason why the minimum amt and CPF Life was implemented. To ensure you still have money for retirement

More like a front to delay payout so that the hole in CPF can be slowly covered back.

 

[silverfox@]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

Perspective, you still don't get it.

If you reduce your downpayment, it would mean you will be borrowing MORE money. How much more? How will it affect you? I guess there are more lessons to learn from the book "Rich Dad Poor Dad".

I am not saying that taking loan is totally bad. It will be a necessity in some cases but HOW MUCH LOAN, HOW LONG IS THE MORTGAGE PAYMENT AND HOW HIGH IS THE INTEREST are critical questions that you must take into considerations.

I already put it simply, if you need to get a 30 year mortgage at LOW interest to pay for your flat, most likely you couldn't afford it at all. If interest rate double, very possible at the present rate of 1.5%, your monthly repayment will increase substantially!

You have to see both ends of the policy. See through the cloud of falsehood and realize the objective truth and results of such policy direction. More and more Singaporeans are forced to give up their flats now. There will be even more Singaporeans facing this problem if such "feel good" policy is not moderated.

Goh Meng Seng

Rich Dad Poor Dad is just a read. But in real life, if you do not have so much ready cash, how are you going to manage? The author is not in Singapore, of course when you present this Made in Singapore issue to him, he will give you the paper talk, I mean doing calculations who don't know. In fact everyone can calculate and who wants to pay a 30yr old mortgage when they can finish it in 20yrs? Who wants to pay 20yrs when they can finish in 10yrs? Who wants to finish it in 10yrs when they can pay in full?

Those Singaporeans who are forced to give up their flats (like what you said) many are in fact not forced but instead cashing out on their PROFITS. They used the PROFITS for other purposes. So how can we dictate them to sell their assets?

Every one has different financial status and best to let each and everyone of them do their own financial calculation. U can't just implement 1 standard and put it across to everyone.

 

[Perspective]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

If the sales fall, then price must fall in order to attract sales. If price falls to a level where buyers can afford without installment, then you have sales again.

If you're talking about computers, perhaps. Then again, you won't want to compromise on quality. Technology would also be stagnant since companies would have no money to do R&D.

If you're talking about houses, it isn't a hundred-dollar product and would always be expensive to most people.

 

[Devil Within]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

If you're talking about computers, perhaps. Then again, you won't want to compromise on quality. Technology would also be stagnant since companies would have no money to do R&D.

If you're talking about houses, it isn't a hundred-dollar product and would always be expensive to most people.

I am talking about free market principle. Competition will bring in quality at lower price, new technology at attractive price regardless of product. If you have monopoly without risk of competition, then there is no reason for you to provide quality service or product and new technology at low price.

 

[Perspective]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

Perspective, you still don't get it.

If you reduce your downpayment, it would mean you will be borrowing MORE money. How much more? How will it affect you? I guess there are more lessons to learn from the book "Rich Dad Poor Dad".

I am not saying that taking loan is totally bad. It will be a necessity in some cases but HOW MUCH LOAN, HOW LONG IS THE MORTGAGE PAYMENT AND HOW HIGH IS THE INTEREST are critical questions that you must take into considerations.

I already put it simply, if you need to get a 30 year mortgage at LOW interest to pay for your flat, most likely you couldn't afford it at all. If interest rate double, very possible at the present rate of 1.5%, your monthly repayment will increase substantially!

SUBPRIME in US happens when there are easy credit (through various means) for those who are initially not able to afford to buy their house. When it blew up, the whole financial system will suffer earthquakes. You may think that getting people to "buy" their flats are "good". Yes, in short term, it will satisfy some "aspirations" but as I have said, we are beginning to see a lot of people caught in this "mini-subprime" slowly exploding. It will accelerate if we do not stop the roots of the problems here.

You have to see both ends of the policy. See through the cloud of falsehood and realize the objective truth and results of such policy direction. More and more Singaporeans are forced to give up their flats now. There will be even more Singaporeans facing this problem if such "feel good" policy is not moderated.

Goh Meng Seng

I agree that reducing downpayment isn't a good idea, though I used it merely as an example.

Since you now state that taking loans is not necessary bad (or did I misunderstand you that you said loans were bad) you could define what period (20 years? 10 years?) and what interest rate is good and "affordable".

The way you said it earlier, it's like as long as something cannot be paid fully upfront is unaffordable. However, there are many things that no one can ever pay up fully. Many rich people still need to take loan for setting business. Surely starting a business isn't "unaffordable".

 

[ivebert]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

More like a front to delay payout so that the hole in CPF can be slowly covered back.

KNN!

I rather they keep the money in GIC and Temasek then than payout to the peasants to spend on prostitutes and gmabling

 

[Zombie]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

Guys,

here's some figures

based on:
- standard HDB 30 years loan 2.6% interest... you need to pay only 10% downpayment
- cpf contribution 35% out of which around 65% goes to ordinary a/c for your hdb repayments

For every $100k amount of your house, you need:

1) $1600 monthly household income (360 months) to have enough cpf inflow to repay the 90% loan each month.... and
2) you need to work for 28 months first to have enough cpf for the 10% downpayment..

in all you need 28+360 months of $1600 monthly household income for every $100k ...



btw,
if your grant is $40k and assuming you spread it evenly, it is "worthed" 28+360 months of $640 monthly household income,
meaning if you are buying a $200k houses, then
1) no grant: you need to earn $3200 every month
2) with $40k grant: you need to earn $2560 every month

 

[Char_Azn]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

Many rich people still need to take loan for setting business. Surely starting a business isn't "unaffordable".

Not unless U are GMS who owns a biz for so many years and still need to sell his house to pay that $10K deposit :p:p:p

 

[Zombie]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

In fact, if flats r sold @ cost, grants need to b higher to reflect e disparity in owning our 1st flat!

exactly... if hdb sells new flats at cost, and resale flats' grants remain unchanged (or even removed), the resale market will drop heavily to seek a new equilibrium..

 

[Zombie]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

If the sales fall, then price must fall in order to attract sales. If price falls to a level where buyers can afford without installment, then you have sales again.

to be exact,
demand and supply curve is about willingness to buy/sell, not affordability...
even though affordability is one of many factors affecting the willingness to buy

 

[ivebert]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

exactly... if hdb sells new flats at cost, and resale flats' grants remain unchanged (or even removed), the resale market will drop heavily to seek a new equilibrium..

HDB prices should be kept high so the loser peasants are enslaved into a long term savings plan.

If not, these fuckers will waste money on drinking, prostituting and gambling.

PAP already has all the data regarding all peasant behavior.
As a loyal citizen, you should entrust them to make the best decisions based on the long term future of the Sinkapore.

 

[Glaringly]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

Grant, artificially support the high price of resale flat where cost of new flat are pegged to.

Why don't you get it?

Damn u! Grants haf nothing to do w BTO fool! U sell Hdb @ cost nodirect rs wif removing e grant coz it doesn't mean resale prices, which r wad grants r meant for, might remain high! E grants r to help citizens who buy resale! In fact, if flats r sold @ cost, grants need to b higher to reflect e disparity in owning our 1st flat!

No wonder so many ppe call u loser!

 

[Glaringly]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

Many of us have more then 1 children who are going to buy their HDB home.

Do your maths. Unless you are a speculator owning more then 1 property, then you deserved to be screwed.

Mr Goh

Many of us have already paid for our home
You better not bring the value of our home down!!!

Damn

 

[knightriderz]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

Grant, artificially support the high price of resale flat where cost of new flat are pegged to.

Why you don't get it?

I dun tink u get it too....

E fuking grants are only for resale. Let me give u an example.

New Flat = 100k sold @ cost.
I cant buy new flat coz i wan stay near my old parents and i cant wait for 5 years to build e BTO coz i am nearing 40 n wan get married soon.
My option = resale.

Now IF according to GMS, remove grant, r u sure somewan will sell me a HDB flat at cost? I tell u answer is prob NO. So mayb i buy my resale at 150k. As a citizen i shd b able to get e flat @ 100k but nw i got to get it at 150k due to market inefficiency or HDB inefficiency or simply coz no land near my parents place to build P holes. SO how? e govt gimme e 40k grant to buy my flat. Surely u wud agree that this is perfectly reasonable as i am unable to get a subsidised flat?

MY POINT IS IF IDIOT GMS WAN REMOVE E FUKING GRANT AND SELL NEW FLATS AT COST, PEASANTS LIKE ME WUD LOSE OUT. UNDERSTAND?

pardon me for my rudeness bt e grant is one of e few stuff frm our govt tat is nt given to PR... and its meant to help poor peasants like me....

 

[Devil Within]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

to be exact,
demand and supply curve is about willingness to buy/sell, not affordability...
even though affordability is one of many factors affecting the willingness to buy

If you have to borrow money to be affordable, then that is not true affordable. That is distorted affordable. That's what happened to the US sub-prime.

 

[Zombie]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

If you have to borrow money to be affordable, then that is not true affordable. That is distorted affordable. That's what happened to the US sub-prime.

if you want to rewrite economics101, i have no objection..

 

[Glaringly]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

I think you are mixing existing and propose.

It will not be implemented in that way. There will be a separate market to keep it distinctly different. One you can speculate and the other No.

If and if this is being implemented, how many flats could be built in the beginning? Remember, the government is going to let in another 1.5 million FT, the demand for "market rate" flats will still be there for a long time.

I dun tink u get it too....

E fuking grants are only for resale. Let me give u an example.

New Flat = 100k sold @ cost.
I cant buy new flat coz i wan stay near my old parents and i cant wait for 5 years to build e BTO coz i am nearing 40 n wan get married soon.
My option = resale.

Now IF according to GMS, remove grant, r u sure somewan will sell me a HDB flat at cost? I tell u answer is prob NO. So mayb i buy my resale at 150k. As a citizen i shd b able to get e flat @ 100k but nw i got to get it at 150k due to market inefficiency or HDB inefficiency or simply coz no land near my parents place to build P holes. SO how? e govt gimme e 40k grant to buy my flat. Surely u wud agree that this is perfectly reasonable as i am unable to get a subsidised flat?

MY POINT IS IF IDIOT GMS WAN REMOVE E FUKING GRANT AND SELL NEW FLATS AT COST, PEASANTS LIKE ME WUD LOSE OUT. UNDERSTAND?

pardon me for my rudeness bt e grant is one of e few stuff frm our govt tat is nt given to PR... and its meant to help poor peasants like me....

 

[Devil Within]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

if you want to rewrite economics101, i have no objection..

There will always be willing buyers if they can find the money, even if it is not what they can truly afford. That is why people getting into trouble of heavy debts when they can't repay. They are always willing to buy, but can they really afford it?

 

[knightriderz]

Re: CB Goh Meng Seng want to do away $40k grants for young couples once he is elected

I think you are mixing existing and propose.

It will not be implemented in that way. There will be a separate market to keep it distinctly different. One you can speculate and the other No.

If and if this is being implemented, how many flats could be built in the beginning? Remember, the government is going to let in another 1.5 million FT, the demand for "market rate" flats will still be there for a long time.

If it is implemented, thats wad will happen coz no resale cost 150k nw... we r talking abt possibilities...

E grants shd nt b removed for citizens who buy resale to reflect the fact that they r not enjoying e so called @ cost HDB flats that GMS proposed. That is the thrust of my arguments. I am arguing for e grant nt e fuking @ cost flat..