[h=1]Minister Khaw explains the math of buying a flat on $1,000 salary[/h]
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AsiaOne
Saturday, Mar 03, 2012
SINGAPORE - Deputy Prime Minister and Finance Minister Tharman Shanmugeratnam caused a stir on Thursday during the Budget debate, after he commented that 98 per cent of Singaporeans below the age of 35 earn at least $1,000 and are able to buy HDB flats.
Mr Tharman was rebutting a claim by Workers' Party NCMP Gerald Giam that many younger Singaporeans from lower-income households will find it difficult to afford a house, reported The Straits Times.
On Friday, it was National Development Minister Khaw Boon Wan's turn to explain the maths, admitting that the comment startled many, "precisely because it sounded so incredible".
Mr Tharman had told Mr Giam in his speech on Thursday to "catch up" with policies already introduced to help Singaporeans own their own homes.
He said: "So I would like to assure Mr Gerald Giam, who might not have caught up with all the developments... that a family with $1,000 income can now, through our housing subsidies, purchase a small flat."
According to media sources, his comments sparked intense debate online.
Mr Khaw pointed out during Friday's Budget debate that Mr Tharman was referring to a two-room flat, which has a subsidised price of about $100,000, if the applicant is a first-timer.
He will also be entitled to housing grants of up to $60,000.
=> Care to explain the criteria for getting this $60k. Note the "up to" fine print.
"DPM was referring to a two-room HDB flat, which we started building in 2006. The subsidised BTO price for such a unit in a recent launch is about $100,000," said Mr Khaw.
"So the net selling price to him is about $40,000, and the monthly mortgage payment of such a HDB loan can be fully covered from his Central Provident Fund contribution."
He added that most two-room applicants earn above that income ceiling, highlighting that their median income based on recent BTO (build-to-order) launches is at about $1,400.
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http://www.asiaone.com/News/Latest+News/Singapore/Story/A1Story20120303-331368.html
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AsiaOne
Saturday, Mar 03, 2012
SINGAPORE - Deputy Prime Minister and Finance Minister Tharman Shanmugeratnam caused a stir on Thursday during the Budget debate, after he commented that 98 per cent of Singaporeans below the age of 35 earn at least $1,000 and are able to buy HDB flats.
Mr Tharman was rebutting a claim by Workers' Party NCMP Gerald Giam that many younger Singaporeans from lower-income households will find it difficult to afford a house, reported The Straits Times.
On Friday, it was National Development Minister Khaw Boon Wan's turn to explain the maths, admitting that the comment startled many, "precisely because it sounded so incredible".
Mr Tharman had told Mr Giam in his speech on Thursday to "catch up" with policies already introduced to help Singaporeans own their own homes.
He said: "So I would like to assure Mr Gerald Giam, who might not have caught up with all the developments... that a family with $1,000 income can now, through our housing subsidies, purchase a small flat."
According to media sources, his comments sparked intense debate online.
Mr Khaw pointed out during Friday's Budget debate that Mr Tharman was referring to a two-room flat, which has a subsidised price of about $100,000, if the applicant is a first-timer.
He will also be entitled to housing grants of up to $60,000.
=> Care to explain the criteria for getting this $60k. Note the "up to" fine print.
"DPM was referring to a two-room HDB flat, which we started building in 2006. The subsidised BTO price for such a unit in a recent launch is about $100,000," said Mr Khaw.
"So the net selling price to him is about $40,000, and the monthly mortgage payment of such a HDB loan can be fully covered from his Central Provident Fund contribution."
He added that most two-room applicants earn above that income ceiling, highlighting that their median income based on recent BTO (build-to-order) launches is at about $1,400.
[email protected]
http://www.asiaone.com/News/Latest+News/Singapore/Story/A1Story20120303-331368.html
