atans1

From conception to death, the PAP looks after S’poreans

In Property on 08/05/2017 at 10:15 am

It’s juz that some are ingrates.

Let me explain.

More than 80% of Singapore’s resident population live in HDB flats https://data.gov.sg/dataset/estimated-resident-population-living-in-hdb-flats.

———————————————-

Btw too bad we are not in this survey http://www.bbc.com/news/world-39512599. In China 70% of millennials are homeowners, and I’m sure we are pretty close to that figure.

————————————————-

So you would think that

— After the MND minister double confirming that when the leases for HDB flats run out, they have to be returned to the state; and

— Chris K and others (self included) asking “So waz this BS about asset enhancement?”

you’d think he and the PAP will be running scared.

No so.

He turns around and says HDB “good store of value”. Huh  “good store of value” when zero value in 99 yrs is the response from Chris K and the others (self included).

What weed is he smoking? The Minister for pets and police should investigate?

But there’s a logic to this complacency (or madness?) about this self-perpetuating machine.

Let’s come back to the fact that more than 80% of Singapore’s resident population live in HDB flats, means that most young S’poreans were and will be conceived (Queen Jos’ comments on sex in confined spaces), born and grow up in HDB flats.

Then when they grow up and get married:

“Take for instance a 30-year-old couple, with a combined monthly income of S$5,000, looking for a resale flat in Woodlands near their parents. They can get up to S$75,000 in grants off the resale flat price, and should easily afford a flat with a lease of 90 years.

“Thirty-five years later, the couple will be 65 and the remaining lease of the flat will be 55 years. They still have an asset which can be monetised for retirement,” he said.

He also noted that elderly couples can opt to sell their flat and “right-size” to a two-room Flexi flat with a shorter lease, to enjoy the Silver Housing Bonus of S$20,000 in cash and use their sale proceeds for their retirement.

Those who prefer to stay in the same flat can apply for the Lease Buyback Scheme and sell part of the remaining lease back to HDB, Mr Wong said. They also have the option to rent out a room, he added.

These examples are simple, but typical of many HDB households, he said.

“The general point is that the HDB leasehold flat is not only a good home, but also a nest-egg for future retirement needs. That’s what we have achieved and that’s what we will continue to ensure – both now and in the future.”

Either CNA or Today


Lease Buyback Scheme offers value: really

Even TOC (writer Chris Kuan contributing) says “The reply by Housing Development Board (HDB) on resale prices and Lease Buyback Scheme (LBS) sums don’t seem to add up to resale buyers overpaying.” https://www.theonlinecitizen.com/2017/04/28/hdb-reply-on-resale-prices-and-hdb-lbs-example-show-resale-buyer-are-not-overpaying/

The LBS is value for money, is what Chris K wrote. Err wondering if Terry knew what he was publishing: a pro PAP piece?

Comparing HK to S’pore

Caveat: [Lease Buyback Scheme]  suffers from the same problem as CPF Life — opaque internal workings & computations and subject to unannounced changes in computations & internal assumptions. E.g. CPF Life internal annuity calculations have changed a couple of times since it launched — the monthly payouts as calculated by the CPF Life calculator has changed even with same parameters in just a few short years. Previously, the Basic CPF Life option was the better no-brainer choice. Now the default Standard CPF Life is arguably better with a significantly higher quantum in monthly payouts. Imagine those old folks that took up the Basic plan earlier…

Article


What us critics* are missing is that the HDB system is a self-contained eco-system for the people living in it. One is born into it, grows up within it, reproduces and nurtures the next generation of HDB dwellers, and dies within it. But’s it’s an escapable system if one wants to leave it; private housing, migrating.

So no surprise, 70% of voters vote PAP. They realise (and are grateful) that the PAP looks after them from the moment of conception to death. And beyond because there are places for urns too even if these are not exactly inside in the ecosystem. Meanwhile, normal people (even professionals) in London, Vancouver cannot afford to get on to the property ladder.

And the balance who don’t vote PAP but live within the system (about 10 points) are ingrates. But what to expect? They don’t even donate funds to keep TRE (their online home) going.


*But to be fair to Chris and me, we are not part of the eco-system.

 

Advertisements
  1. Old Fart already provided blueprint to benefit from HDB:-

    “I would start off with a five-room or an HDB executive… Quickly, before my income ceiling takes me beyond that. You buy a flat in Bishan, it’s going today for half a million. So I would get there first, stay five years, seven years, and then move out.” — LKY, 1994

    That is, don’t hang onto HDB for too long, or at least don’t make it the bulk of your asset. Get a BTO or a youngish resale with CPF/HDB subsidies. Then either sell & move on, or if can afford keep the HDB to rent out & buy a condo.

    However Old Fart has lousy timing — if you bought expensive property in 1994, you’d be stuck through Asian Financial Crisis, dot.com bust, 911, Enron/WorldCom/Arthur Anderson, SARS. Not as bad as those jokers who bought at the peak in 1996, but still…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: