Goh Meng Seng has challenged MBT on HDB. Unfortunately MBT is acting "blur" and refuses to come out of his hidey hole. Make him look so weak and scared.
Response to Minister Mah's twisted logic
http://singaporealternatives.blogspot.com/2011/04/response-to-minister-mahs-twisted-logic.html
I have made the following rebuttals to Minister Mah Bow Tan's assertions:
1) Asset Enhancement Scheme
As an undergraduate in early 1990s, I was pretty upset when the Prime Minister Goh Chok Tong announced his plan for "Asset Enhancement Scheme". It would mean that my generation as well as future generations will have to pay MORE for HDB flats in future. Indeed, I have to pay 10 times more than my parents for a similar 4 room HDB flat. There is a COST of this Asset Enhancement Scheme to next and future generations.
Every Singaporean can only own ONE HDB flat as their HOME. HDB flat is a HOME, NOT an investment tool.
Furthermore, can the value of HDB value keep going up forever when it has only a 99 year lease? Obviously not! When our HDB flat is 50 year old or more, banks will be very reluctant to provide loans for potential buyers. It would mean that the demand for our old flats will drop drastically and the value will definitely drop.
To ask Singaporeans to depend on their HDB flats for retirement financing because we have this Asset Enhancement Scheme is totally flawed.
2) Lower Land Cost is Raiding Reserves
The PAP government has "raided" our forefathers by using Land Acquisition Act to acquire their land while paying peanuts in compensation! While our forefathers made sacrifices for the sake of our Nation's development needs, it is the social obligation of the PAP government to take care of our people by providing cheap public housing. At the very least, they should provide such cheap public housing for their FIRST matrimonial home.
Even with lower land price, the government of the day will still GAIN from such land sales due to the fact that they have acquired such land at dirt cheap prices.
We have accumulated more than $300Billion reserves basically due to the hefty profits gained via land sales. We could afford to slow down the growth of our reserves by making more concessions to our young Singaporeans.
3) Will we crash the market?
Resale market and first hand new HDB flat market are totally different market segments.
Resale market is a free market with many buyers and sellers. The demand in this market segment consists of Permanent Residents, Upgraders as well as some First time buyers.
For the first hand new HDB flat market, HDB is the MONOPOLY of supply with many Singaporean buyers. But the demand of this first hand HDB market consists only FIRST time buyers.
Thus, only Singaporeans who are first time buyers of these NEW HDB flats will benefit from this Cost-Plus scheme which NSP is advocating. Even if those first hand buyers in the resale market start to consider buying New HDB flats directly from HDB, there is no risk of total collapse of the resale market at all! This is basically because PRs and upgraders would not benefit from this scheme at all. PRs cannot buy direct from HDB and upgraders cannot benefit from this scheme. There is no incentive for them to switch to buy new HDB flat.
If the PAP government is sincere and serious about solving the low fertility rate problem, it should fulfill its social obligation by giving our young Singaporeans a big Ang Pao in terms of cheap HDB flats. This will allow them to have a head start in owning their first home when they get married.
Response to Minister Mah's twisted logic
http://singaporealternatives.blogspot.com/2011/04/response-to-minister-mahs-twisted-logic.html
I have made the following rebuttals to Minister Mah Bow Tan's assertions:
1) Asset Enhancement Scheme
As an undergraduate in early 1990s, I was pretty upset when the Prime Minister Goh Chok Tong announced his plan for "Asset Enhancement Scheme". It would mean that my generation as well as future generations will have to pay MORE for HDB flats in future. Indeed, I have to pay 10 times more than my parents for a similar 4 room HDB flat. There is a COST of this Asset Enhancement Scheme to next and future generations.
Every Singaporean can only own ONE HDB flat as their HOME. HDB flat is a HOME, NOT an investment tool.
Furthermore, can the value of HDB value keep going up forever when it has only a 99 year lease? Obviously not! When our HDB flat is 50 year old or more, banks will be very reluctant to provide loans for potential buyers. It would mean that the demand for our old flats will drop drastically and the value will definitely drop.
To ask Singaporeans to depend on their HDB flats for retirement financing because we have this Asset Enhancement Scheme is totally flawed.
2) Lower Land Cost is Raiding Reserves
The PAP government has "raided" our forefathers by using Land Acquisition Act to acquire their land while paying peanuts in compensation! While our forefathers made sacrifices for the sake of our Nation's development needs, it is the social obligation of the PAP government to take care of our people by providing cheap public housing. At the very least, they should provide such cheap public housing for their FIRST matrimonial home.
Even with lower land price, the government of the day will still GAIN from such land sales due to the fact that they have acquired such land at dirt cheap prices.
We have accumulated more than $300Billion reserves basically due to the hefty profits gained via land sales. We could afford to slow down the growth of our reserves by making more concessions to our young Singaporeans.
3) Will we crash the market?
Resale market and first hand new HDB flat market are totally different market segments.
Resale market is a free market with many buyers and sellers. The demand in this market segment consists of Permanent Residents, Upgraders as well as some First time buyers.
For the first hand new HDB flat market, HDB is the MONOPOLY of supply with many Singaporean buyers. But the demand of this first hand HDB market consists only FIRST time buyers.
Thus, only Singaporeans who are first time buyers of these NEW HDB flats will benefit from this Cost-Plus scheme which NSP is advocating. Even if those first hand buyers in the resale market start to consider buying New HDB flats directly from HDB, there is no risk of total collapse of the resale market at all! This is basically because PRs and upgraders would not benefit from this scheme at all. PRs cannot buy direct from HDB and upgraders cannot benefit from this scheme. There is no incentive for them to switch to buy new HDB flat.
If the PAP government is sincere and serious about solving the low fertility rate problem, it should fulfill its social obligation by giving our young Singaporeans a big Ang Pao in terms of cheap HDB flats. This will allow them to have a head start in owning their first home when they get married.
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