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This guy says high HDB prices good woh!
- Thread starter hockbeng
- Start date
- Joined
- Jul 10, 2008
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- 65,122
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hdb 2.6% loan => $1494 instalments => $94k interests
closer to $100k
In NZ/OZ, housing loans are currently 6% or more and are set to rise further. Sinkies should count their blessings.
The above statement is CONFIRMED wrong. If '86 per cent of the poplulation' = 86% of say 4.5million population = 3.8 million apartments. Do we have these number of apartments/houses now ?
It should be 86% of FAMILIES, which each may consist of 2, 3, 4, 5,6 ......members. When children of these FAMILIES grow up and get married, they need/want their own HDB. That is where the problem re sky-high prices is the key issue.
I cannot imagine these generations are going to spent their lifetime servicing the HDB loans, let alone the obsolete word 'retirement' for them. It is going to be farce if that is so, or if the property prices clash one fine day (nothing to do with MBT gets booted out of parliment though).
Can you list any country whereby after u buy a car, it will actually appreciate over the years?
Why compare houses to cars? Different nature altogether! I suggest that u stick to porn discussions which u are more adept at.
I will name you 1 country that had seen this situation : SINGAPORE !!
Yes, when the COE was imposed, I made $ after driving my new car then (COE was only cople hundred dollars then) for 1 year then sell off for a profit (COE couple thousand of dollars). However, I have to pay a significant sum to buy my next new car at prevaling COE prices which 'shot through the roof' too.
So, isn't it the same synergy with the current sky-rocketing price of houses ? When price go up (unless you are not buying another bcos you have more than 1 house) if you sell your only house at high price, can you buy another of same size in same location for the same price or higher couple months down the road, barring something un-imaginable happened? What about the next generation who do not have a house to sell but need to buy a apartment ?
That, I believe, it the serious unhappinies of the population now.
- Joined
- Jul 10, 2008
- Messages
- 65,122
- Points
- 113
If the population is unhappy, it's because they don't realise how lucky they are. The sky high prices of today are the bargains of tomorrow. It's all relative.
My parents bought their first HDB flat for around $6000. They thought they'd be in debt for the rest of their lives.
As from my examples above, I half agree with you there. As I said, unless you have more than 1 property to stay while cashing out the other, I agree fully with you the potential windfall in the future if you commit now. Otherwise, buy-high-sell-high, buy-low-sell-low. LPPL.
It only burden the younger generation who do not have a property on hand to cash out.
Unless salary grows in tendam with price increase, even if bought at, say, $500,000 now, these young generation will probably work their entire lives to repay the loan. Nevermind the market goes $1M in future. Again unless they sell and migrate, there is no way they can enjoy the market appreciation.
1)Majority of voting Singaporeans, just count those aged 28 and older, own HDB flats. All property owners want their property to increase in value. So I really cannot understand those wanting property prices to go the other way. As for rapid increases in HDB prices - much of it is not a bubble but more as a result of influx of FT, PR, new citizens. So all those that argue against increasing prop prices are younger than 28 years old and have NO prop.
2) If you own a 4 rm flat, you can cash out of it by downgrading to a 2 room or 1 room flat when your kids have left the nest and you do not need the space. So it is not LPPL. Unfortunately because your initial skin in the game is small the potential for cashing out is small - but you can still easily net $150K or so. If you have more skin in the game, you would have either upgraded to condo or even purchased an investment condo. Now with more skin in the game you can reap more rewards. Also because your HDB has gone up in price, it makes it easier to upgrade to pte condo (that is why there is so much demand for cheaper condos - upgraders).
3) Those without HDB flat and are trying to get one - ok I agree the subsidy may not be enough and you are worried. Government should try and increase subsidies and build more flats (they are ramping up right now - there is a lot of land and HDB flats are cookie cutter in design so in 3 years you should see lots of supply). I am sure the moment you get your flat, you will hope that it will increase in value.
4) HDB loan is really cheap. No it is not cheap because of Gov Subsidies. It is cheap because Singaporeans are offering cheap loan in the form of 2.5% CPF. Please do not complain about how much this 2.6 percent is worth in 30 years. No one will give you interest free loan for 30 years. Even your borther will not do that because factoring in inflation of 2 to 3 % his money would worth only 50% in 30 years. SO be very happy about the 2.6% and kiss the ah soh at the void deck who is still helping you with the 2.6% HDB loan because her CPF kena stuck until 70 years old or more.
High HDB prices are ok because it is a result of FT, PR (fundamentals). There is not that much speculation. However they should speed up the wait for new flat, offer rental flats for new couples waitong for their new flats and maybe increase the subsidies for those buying their first flats.
2) If you own a 4 rm flat, you can cash out of it by downgrading to a 2 room or 1 room flat when your kids have left the nest and you do not need the space. So it is not LPPL. Unfortunately because your initial skin in the game is small the potential for cashing out is small - but you can still easily net $150K or so. If you have more skin in the game, you would have either upgraded to condo or even purchased an investment condo. Now with more skin in the game you can reap more rewards. Also because your HDB has gone up in price, it makes it easier to upgrade to pte condo (that is why there is so much demand for cheaper condos - upgraders).
3) Those without HDB flat and are trying to get one - ok I agree the subsidy may not be enough and you are worried. Government should try and increase subsidies and build more flats (they are ramping up right now - there is a lot of land and HDB flats are cookie cutter in design so in 3 years you should see lots of supply). I am sure the moment you get your flat, you will hope that it will increase in value.
4) HDB loan is really cheap. No it is not cheap because of Gov Subsidies. It is cheap because Singaporeans are offering cheap loan in the form of 2.5% CPF. Please do not complain about how much this 2.6 percent is worth in 30 years. No one will give you interest free loan for 30 years. Even your borther will not do that because factoring in inflation of 2 to 3 % his money would worth only 50% in 30 years. SO be very happy about the 2.6% and kiss the ah soh at the void deck who is still helping you with the 2.6% HDB loan because her CPF kena stuck until 70 years old or more.
High HDB prices are ok because it is a result of FT, PR (fundamentals). There is not that much speculation. However they should speed up the wait for new flat, offer rental flats for new couples waitong for their new flats and maybe increase the subsidies for those buying their first flats.
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