It could bebetter than what is today to the Gen Y kids, the offspring of this 50s people.
If the purchase of HDB is not tied to CPF savings policy these 80% HDB owners (the 50s) will prosper even more like countries HK, China, S Korea and Taiwan, etc. The Gen Y will benefit from 50s people who could have set up many enterprises and businesses and Gen Y take over from them today.
In the golden years period of the 60s to 90s property valued more than doubled and could use this equity growth as borrowing capacity to fund and finance many new technology businesses. Indian Ah Nehs got money from their property equity growth to fund their new businesses and this could be the one of the reasons today they can set up businesses in Singapore and worldwide.
All over the world bricks and mortars properties are not tied up to anything except PAP Singapore, Idiot.
All over the world many SMEs funded their own businesses through their hard asset which is most likely their own home, where else?
Say you bought your home for $25,000 back in the early 70s. Paid this up in 10 years and the property double to $50,000. Your borrowing capacity is say 70%of the value which gives you access to $35K funds.
3 buddies get together which give them a fund of $105K to start a small business. Well better than to find loan shark right? If business pick up then pay back $35K loan is easy. Add another 10 more years your property value is $100K and this increase your borrowing capacity to $70K and another opportunity to expand you business further.
But in Singapore, during those gold years period PAP do not allow you to take your HDB property equity growth to finance new venture business that was because it is tied up to the CPF savings. This CPF policy really screwed 80% of the population, you reckon. Whereas the 20% private property owners can do that and they surge forward the 80% HDB owners were left behind. You have to sell your HDB to get the equity growth? Sure or not?
Why should you sell where you can use it to refinance?
How refinance works in this case? This is known as LOC - Line of Credit. LOC is not new but has been bank credit loan to businesses for a long time which they allow you to borrow using your hard asset.
Say you like to refinance your home and ask for $50,000 LOC from the bank to set up a small business. If the value of your home say is worth $150,000 in equity and is full paid already, you can borrow 70% of the value which is $105K. The LOC allows you to withdraw from $1 onwards and you pay the interest of the $1. Say you withdraw $10,000 you pay the interest on that $10,000 only. The $50,000 is a standby LOC loan, you don't pay interest to what you did not withdraw. Then you put back the profit to clear the loan. Simple.
Now, go talk to PAP tell them to scrap CPF to tie up to HDB property, cut the crap. The off spring of Gen Y will suffer the same fate in 20 years time and do you want it to happen to them or lose out, again?
If PAP CPF savings scheme tied to purchase of hard asset like property is such a good idea, how come no other countries copy it?
Don't let PAP sup all your equity growth quietly to refinance their GLC businesses. This time is your equity growth is worth a lot more. Buy at $400K is worth $800k in 2023. Ho say leow for PAP but not you leh.
Bro sorry I don't agree...
1.Those who have reached 50 are the lucky ones with more savings and with more cash.They have savings, they have investments and they have properties.They can afford to retire, enjoy life and travel round the world. These Singaporeans have been working very hard when the economy was good and they have already made it! They will continue to support our benevolent government for a very long time ....
2. Not all of them have medical issues.Many are pretty healthy and free of any medical problems. The medical fees in Singapore are still affordable and we have one of the best medical centres in the world. Many of those in their 50s take great pain to stay healthy and they hardly have any problems at all.This group of people will continue to enjoy life,support the incumbent government and will even contribute to society. They are eternally grateful to our world class governance for making them rich and wealthy. Many were born poor or from poor impoverished families. Our Government provide them with the opportunities to develop themselves and they eventually succeed in life.Many are already millionaires when they reach 50.
3.When they reach 50, they are usually in their peak .So many of them are managers and in positions of influence.They are the important people in a company and many hold very stable and well paid jobs. There are many who are self employed and they are employers themselves. They succeeded and many are already millionaires.Many can even retire with a big bank account.No worries at all. They can afford to take leave and travel round the world.Lucky group of people.
4.Many who reach 50 are already economically and financially stable. Most of them drive and own their own houses and properties.There is no need to take public transport and if they do, they will appreciate how wonderful our world class system has become. This over-crowding is over-exaggerated. I've travelled many times taking our public transport, and I find it a breeze North to South ,East to West. No problem of over-crowding. You want to see over-crowding, try taking a train in Osaka and Kyoto.That's what I call over-crowding.
5.Again, many Singaporeans are physically fit and mentally resilient and strong. I don't think they are off their peak. In fact, many continue to hold important posts and continue to draw a good salary and contribute to the company and to the society.They are the great assets in our society. These people do not feel marginalized at all and they are the ones who will continue to support our world class system of governance ...and of course they will continue to support our incumbent government which has provided them with ample avenues to develop themselves.
Those who are in their 50s now are the lucky ones! Many of them are already millionaires.They do not feel threatened by the New Citizens .In fact, they welcome the New Citizens and help them to integrate and form part of our Greater Singapore!
Good Morning Thursday Singapore!!! Majulah Singapura!!! Thank You!!!
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