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Posts Tagged ‘Public Housing’

Why millionaire PAP ministers should focus on rent costs

In Financial competency, Financial planning, Public Administration on 20/02/2023 at 4:28 am

Came across an interesting discussion on the monetary effects of having to wait six years for a BTO flat.

In my case, rented a HDB flat from a condo-residing church friend while waiting for BTO. Kid was born in my friend’s flat. All in all, I invested $80,000 in rent all those years, would have been more if he didn’t offer a friendship price. Even if I were to sell my BTO, I’d make $120,000 more and minus the rent and housing loan interest, I don’t actually earn.

FB discussion

He’s saying, “Asset appreciation? What asset appreciation?”

He went to say

if one has to wait for 6 years for bto to be completed and go into rental. One would have to spend almost 200k for the 6 years of rent. And that figure is very Conservative given current market.

FB discussion

Another S’porean added

rent is now hitting 4.2k even in far flung places like Punggol, so that is over 300k assuming worse case scenario of a 6 year wait. Even if MND can bring the wait down to 3 years, this is 150k flying way from a couple’s nest egg and not coming back. I am not keen on the idea of young couples having to do this, because that money is honestly better spent on their kids. A dollar spent there benefits not only them, but the nation at large much more.

FB discussion

Our PAP millionaire ministers better take note that time is money, There’ll be a lot of unhappy S’poreans if the PAP doesn’t change their policies on when and how flats are built.

They are barking up the wrong tree by focusing on the “subsidy” BTO owners (and others) get. Focus on getting the BTO flats into the hands of voters ASAP.

 

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HDB “subsidy” assertions continue

In Media, Property, Public Administration on 16/01/2023 at 5:32 am

More assertions on the “subsidy” issue

Former Australian prime minister Julia Gillard commented that if you treat voters as sophisticated, they will return the favour. Our millionaire ministers obviously don’t believe this.

They obviously believe thar if they repeat assertions often enough the assertions become the truth, especially if the constructive, nation-building media support the assertions. But they should should remember that the most important component in the constructive, nation-building media has been caught with its pants down. It has admitted lying about its circulation figures after a not constructive, nation-building publication raised issues about the matter.

The SPH media team is now trying very hard to limit the damage.

 t

HDB tells us flats are juz affordable or unaffordable?

In Financial competency, Financial planning, Property, Public Administration on 01/09/2022 at 3:51 am

HDB posted this infographic on FB without comment. Is some subversive working in the HDB (and who does not wish the PAP well) illustrating how unaffordable or barely affordable are HDB flats?

ISD must investigate

“Cost of flat up by 44 times while household Income up by 9 times between 1971 & 2021.”.

Assumptions behind “affordable HDB flats”

In Property, Public Administration on 20/08/2022 at 4:30 am

Commentary: Even with million-dollar HDB flats, housing is still affordable for the average person

Beyond affordability, there are new challenges in the housing market that need attention, says this expert

https://www.channelnewsasia.com/commentary/hdb-bto-private-condo-home-resale-price-affordable-mortgage-inflation-2883131

It’s only affordable because of the repayment period and the large share of income repayment takes.

For new flats

In general, most new flat buyers use less than 25% of their monthly household income to service their monthly instalments, for a 25-year loan. For 4-room flats, which form the bulk of new flat supply, flat buyers would use about 26% of their monthly income if they choose a 20-year loan.

HDB 31 July 2020

Err why no rental option?

In Property on 20/07/2022 at 1:48 pm

Just after the latest chapter of the AMK Sers fiasco (Social media and cyberspace went wild when LHY pointed out using a tool used by the govt, those who opt for the 30 or 50 year lease suffer the most from asset depreciation, I got this in my FB feed.

If I was living in one of these Sers flats, I would prefer to rent. I’m 68 and I’m aware I can die at anytime. My dad died around 65.

Hard Truth about Old Guard’s insight on home ownership

In Political governance, Property, Public Administration on 07/02/2020 at 10:58 am

It’s a myth that LKY and Dr Goh etc were geniuses for their insight into the importance of home ownership in building a nation and their public housing building programnes.

They were juz good in copying and pasting best practice of ang mosh. From the PAP’s bible*:

After the second world war … Governments across the rich world decided that they had to do more to care for their citizens—both as a thank-you for the sacrifices and to ward off the communist threat.

To this end, they vowed to boost home-ownership. A country of owner-occupiers, the thinking went, would be financially stable. People could draw down on equity in their house when they hit retirement or if they found themselves in difficulty. In the late 1940s and the 1950s manifestos of Western political parties became more likely to identify home ownership as a policy goal, according to research by Sebastian Kohl of the Max Planck Institute for the Study of Societies. Over time, the notion that owner occupation was superior to renting became common, even apparently self-evident.

Policies to promote owner-occupation proliferated. In America the Veterans Administration made mortgages with no down-payment available to veterans in the mid-1940s. Canada established the Central Mortgage and Housing Corporation for returning war veterans. In 1950 the Japanese government established the Government Housing Loan Corporation to provide low-interest, fixed-rate mortgages. Changes to international financial regulations also encouraged banks to issue mortgages.

https://www.economist.com/special-report/2020/01/16/how-housing-became-the-worlds-biggest-asset-class

Related post:If LKY were alive, PAP govt wouldn’t publicly admit that HDB leases end worth nothing

—————————————–

*PAP’s bible

I’ve blogged before that the PAP doesn’t need that many smart people as it follows most of the Economist’s prescriptions (except on hanging, drug legalisation, free media and a liberal democracy). It has been an Economist mantra that market pricing is “betterest” because it uncovers the “correct” price. It is also a PAP Hard Truth.

PAP’s bible

S’pore: Lessons for the West’s housing crisis

In Property, Public Administration on 29/01/2020 at 3:09 pm

The Economist has a report on the West’s housing crisis

one of the rich world’s most serious and longest-running economic failures.

S’pore is praised four times (No other city or country is praised that much):

More than nine in ten Singaporeans are homeowners, a higher rate than in any other rich country. And what a nice place it is to live. The city-state is rich, stable and has virtually no crime. The streets are clean.

Singapore seems to confirm what conservatives have long believed: that home ownership makes for richer, happier folk. Lee Kuan Yew, its first prime minister, was a big fan, arguing that it gave ordinary people “a stake in the country and its future”. Margaret Thatcher’s “right-to-buy” programme in the 1980s, allowing Britons in social housing to buy their property at knock-down prices, is said to have been influenced by the Singapore model.

https://www.economist.com/special-report/2020/01/16/home-ownership-is-in-decline

And

Boosting the construction of public housing is also welcome. Singapore, where 80% of residents live in government-built flats, is in some respects the model to copy. The state regularly renovates the buildings and, more controversially, promotes mixing of different sorts of people, to help prevent the emergence of ghettos.

https://www.economist.com/special-report/2020/01/16/what-is-the-future-of-the-rich-worlds-housing-markets

And

Many of those activists argue that overtight land regulation is the root cause of high house prices. To get a sense of the argument, compare Singapore with Hong Kong. Singapore has a fairly elastic planning system. The government owns most of the land. When house-price growth is too strong or the population is rising quickly, the state can release extra land faster than a barman at the Raffles hotel can mix a Singapore sling. In Hong Kong, by contrast, the supply of developable land is controlled by a small clique of oligarchs. What will buy you a cramped bedsit in Hong Kong will buy you a decent-sized pad in Singapore.

https://www.economist.com/special-report/2020/01/16/politicians-are-finally-doing-something-about-housing-shortages

And

Autocratic planning systems do a better job of boosting housing supply. Russia has raised its annual rate of housebuilding from 400,000 a year in the early 2000s to over 1m. Singaporeans who protest against development are routinely ignored, says one with a house located near Tengah forest, some of which will soon be razed to make way for apartment blocks.

https://www.economist.com/special-report/2020/01/16/politicians-are-finally-doing-something-about-housing-shortages

Vote wisely.

60% of S’poreans always do: Why Oppo cock to think that HDB issues will affect the vote

(Last para added on 30 January 2020, at 4.10am)

 

 

When home ownership is less than 50%?

In Hong Kong, Property on 11/12/2019 at 9:00 am

There be riots?

The high cost of housing in HK

Li [a taxi driver in HK] was amazed at how “cheap” apartments in Singapore are. He lives with his parents in a one-bedroom apartment that is worth HK$6.5 million (US$830,000). He cannot afford to move out and, with his fourteen-hour days, has neither the time nor money to date.

https://sudhirtv.com/2019/11/15/a-longform-on-hong-kong-vs-singapore/

mostly due to the lack of an HDB type building programme because the property tycoons have in the past successfully lobbied against massive public housing programmes in HK.

One cheer for the PAP’s housing policy?

Public housing: a brickbat, two cheers & constructive suggestions

Hong Kong to resume subsidising housing

means that home ownership has fallen below 50% of the population.

In Singapore, home ownership is above 90%.

 

“This was the plan which we had from the very beginning, to give everybody a home at cost or below cost and as development takes place, everybody gets a lift, all boats rise as the tide rises,” LKY

He believed that owning a home gave S’poreans a sense of equity, that they own a part of the city, making them care more for the community. He also felt that home ownership would give Singaporean families an asset and a means of wealth accumulation.

———————

Wealth accumulation? What wealth accumulation?

Why 30-year old HDB flats difficult to sell/ Why PAP rule will end in 2029.


Now I.m not that stupid to think that the riots in HK could have been prevented by an HDB type policy and other economic measures aimed at reducing inequality. HK people are faced with a threat to their ang moh type freedoms: Honkies behaving like spoiled brats adopted by ang mohs (Cont’d)

But more public housing could have eased tensions: Bread and circuses.

Still not too late, if HK and Chinese govts are smart. But they don’t seem to be that smart. But maybe they are worried that a massive HDB type programme will cause unhappiness with those with mortgages to service? A massive HDB-type programme will result in lower values for existing private residential homes.

You might be interested in

Why our housing valuations look decent?

If LKY were alive, PAP govt wouldn’t publicly admit that HDB leases end worth nothing

Forgot (ignored?) asset inflation?

In Economy, Media, Property on 30/10/2019 at 8:32 am

(Scroll down to read My Comments, if you are adverse to bullshit, from our constructive, nation-building media as they add spin to a MoF report .)

Singaporeans in their 40s better educated, earn more than past cohorts

Constructive, nation-building ST screamed

MediaCorp’s free BS sheet said

Younger Singaporeans in their 40s are more educated and better able to find jobs, they are earning and saving more, and they are on track to longer healthier lives than citizens between the ages of 50 and 79, a new report has found.

The report, released on Tuesday (Oct 22) by the Ministry of Finance (MOF), tracks how socio-economic outcomes have shifted across generations. The study tapped data from the Department of Statistics, and the Health and Manpower ministries.

The report, titled Key Socio-economic Outcomes Across Cohorts, studied a repertoire of socio-economic indicators: Educational attainment; employment and savings; residential-property ownership; health; and family support.

Younger Singaporeans fared better than those in the preceding generations across the majority of these indicators.

Read more at https://www.todayonline.com/singapore/younger-sporeans-better-able-find-jobs-earn-and-save-more-older-citizens-mof-report

My Comments

So what all this gushing to do with the price of eggs? Or rather with the standard of living when the price of assets go up a lot more than salaries?

Here are two examples.

When I started work in the late 70s, I my monthly salary was slightly more than $1000. If I had been married, we would not have been eligible for an HDB flat. If I were starting work today, my starting pay would be around $5,000. HDB’s eligiblity is now $15,000 a month (I think) for a married couple.

With $15,000 entry point the for “affordable” public housing, waz the point of faring “better than those in the preceding generations across the majority of “educational attainment; employment and savings; residential-property ownership; health; and family support”?

The rocketing costs of housing (public and private) have way exceeded the increases in salaries. A new HDB flat in the early 80s in Eunos was $30,000 or thereabouts. Now a BTO four room (actually smaller) could be between $300,000 and $500,000, depending on the locality. Have salaries increased like that? Only for PAP ministers.

And don’t get me started on car ownership. When I joined the workforce, the price of cars had just gone thru the roof (Remember COV?) but I could juz about own one on the never-never. My friend recently told me that his daughters, one a recently graduated doctor and the other an admin service officer (she’s a overseas merit scholar who graduated three yrs ago) can’t afford to own cars. They and their future husbands are saving for the deposit for HDB flats

Read Election goodies: proves the point that PAP needs to be spurred?, written before 2011 GE and remember to vote wisely.

“You don’t need much space to have sex”

In Property on 08/10/2019 at 6:13 am

Well now you don’t need much space to have a queen bed, furniture and plenty of stuff.  They all can fit into a micro-apartment thanks to Silicon Valley.

Bumblebee Spaces, a robotics company, designs and builds storage and beds for compact living. Furniture and possessions are hidden away inside ceiling boxes, to be raised and lowered at the touch of an iPad. Suspension straps, able to hold up to 3,000lbs, support the boxes, while wall-mounted safety sensors are ready to hit the brakes if something — or someone — stands in the way. A queen-sized bed is lowered from the ceiling, quietly converting a sitting room into a bedroom.

FT

Pixs from a San Francisco rabbit hatch (Or is it chicken cdoop?).

 

Related post: Enough space for Queen Jos to have sex?

 

Why Oppo cock to think that HDB issues will affect the vote

In Financial competency, Financial planning, Property, Public Administration on 28/08/2019 at 10:01 am

In Christmas, CNY coming early thanks to PAP, I pointed out that the loss of value for resale flats and the older flats has yet to be addressed by the PAP govt. And that there are S’poreans that are unhappy.

But all the KPKBing by cybernuts like Goh Meng Seng (If he still thinks HK better place to bring up his family, how come he so quiet nowadays and btw, I hear his daughter is studying here despite him saying that HK’s education system is better), and Lim Tean (He rents a S$15,000 black and white bungalow from the PAP govt) to stir more unhappiness and discontent, S’poreans are not fooled by their BS.

Our public housing policies mean that public housing is cheap, compared to other major cities, not juz “affordable”.

This table puts into context the issues of

— Falling resale prices causing a problem for the PAP with those who bot resale flats: Double confirm, ground not sweet for PAP and Will this resale flat buyer vote for PAP in next GE?

— 99-year leases: Why 30-year old HDB flats difficult to sell/ Why PAP rule will end in 2029 and 

Christmas, CNY coming early thanks to PAP

Things could be better, a lot better. But 60-70% of voters think (thanks   that housing would be be like in HK, if not for the PAP govt. And while taz not the real pix, they are not that wrong.

Look at our private housing, it’s expensive:

Buying homes the billionaire way: two luxury homes are better than one

Why S$73.8m flat is a steal

Why S’pore is so shiok for private property investors

And even in private property there are govt controls

Ang moh’s great insight on property mkt

PAP whacks greedy pigs

So when will the PAP start worrying about the problem of older flats? Read Why PAP rule will end in 2029.

Christmas, CNY coming early thanks to PAP

In Political economy, Property, Public Administration on 22/08/2019 at 10:37 am

HDB sales exercise pushed to September so buyers can benefit from upcoming changes: Lawrence Wong

CNA headline

Mr Wong said that his ministry and HDB have been reviewing how to extend further support to first-timers buying new and resale flats. He will announce the details in September. adding, “We are constantly looking at ways to help young families set up their first homes,” wrote the minister.

The HDB sales exercise is expected to offer about 3,300 flats in Punggol and Tampines.

And to make sure that everyone who has recently bot or is applying for an HDB flat that they owe the PAP one, he reminded S’poreans of

measures which have been introduced in the past years, such as the increase of housing grants for resale flats*offering flats with shorter waiting times, as well as the flexibility given for students and national servicemen to defer income assessment for housing grants and loans.

“These changes have improved housing affordability and helped young families to secure their own homes earlier,” he added.

Read more at https://www.channelnewsasia.com/news/singapore/hdb-bto-august-sales-exercise-pushed-september-lawrence-wong-11827238

Notice the two elephants in the room that are dancing on his shoulders, he isn’t mentioning?

— Falling resale prices causing a problem for the PAP with those who bot resale flats: Double confirm, ground not sweet for PAP and Will this resale flat buyer vote for PAP in next GE?

— 99-year leases: Why 30-year old HDB flats difficult to sell/ Why PAP rule will end in 2029 and

If u read this far, suggest u might want read

— The real truths about public housing  my summary of piece by “Tan Jin Meng, a postgraduate from the Lee Kuan Yew School of Public Policy. He has an interest in social policy and economics.”.

— Exposed: Flaws in PM’s HDB spin

Vote wisely. My prediction last yr: Akan datang: GE in late 2019


*Why 37,000+ sure to vote for PAP

 

Life is expensive for the poor

In Uncategorized on 12/08/2019 at 4:43 am

I was surprised to read in ST that a lady living in a two-room HDB flat said that an air con cost $1000 which she couldn’t afford.

Then I realised that she could only use the kind of air cons that don’t require a hole to be knocked in a wall, and that even if HDB allowed her to knock a hole in the wall, getting a contractor adds to the costs. So $1,000 is about right especially as it’s likely she’ll be buying on the never-never: hire purchase.

Sad.

Fyi, two years ago when my existing box air con failed, I got a second hand replacement (Remember this brand: National?) for $250. Bet you, they’d replace the motor of my old one and sell it as second hand, even though they told me they couldn’t repair it: more like “wouldn’t”. But at $250 (including installation), I’m not complaining.

I remembered asking, “What else I got to pay?”

Air con is still working.

TRE: “Clueless Alternative Parties” & Thinking about VERS

In Public Administration on 29/03/2019 at 7:20 am

Let me declare upfront that I am neither an Incumbent Party supporter or an Alternative Party supporter.  I will cast my vote to the party whom I have confidence will work for the betterment of Singapore at the ballot box. And I will try to be as discerning as possible.  There are Incumbent Party members who have work for the betterment of Singaporeans, just as there are those who have not.  Likewise, there are Alternative Party members who are likely to work for the betterment of Singaporeans, just as there are those who won’t.

There is one sombre message that I believe all Alternative Parties members need to bear in mind.  They cannot, should not and must not think that they can win the General Elections because the electorates dislike or no longer trust the Incumbent Party.  Rather, they have to showcase their abilities and capabilities, that is, what they can actually do for the people if they are elected into the Parliament.  Furthermore, they must act in a way to be above reproach at all times.

As of this moment, I can honestly say that I have lost almost all faith in the Incumbent Party and I am very much inclined to cast my vote to an Alternative Party.  However, some recent behaviours of the Alternative Parties leave much to be desired, so much so that I could not help wondering whether I would be making a wise decision.

I will describe an incident below which I hope will serve as wake-up calls for the Alternative Parties members.

Lack of Thinking and Planning

The first incident revolves around NSP, which apparently held a rally last weekend.  (Surprise!  Surprise!)  A friend of my boyfriend attended the rally and we were quite surprised as none of our other friends are aware of that rally.

However, the worst is to come.  NSP members started telling the small group of audience (apparently only about 20+ people!) during the rally that NSP deserved to be voted in because they will be the voice of Singaporeans and they will do whatever is necessary to improve the lives of Singaporeans.  One member of the audience asked the following 3 related questions and requested NSP to use them as an example to show how NSP intends to act for the betterment of Singaporeans.

  1. Why are HDB flats priced so high despite having zero value at the end of the 99-year lease?
  2. How is the Incumbent Party intending to resolve the problem of tenants when the lease of their flats expire?
  3. What will NSP do differently to resolve the problem?

Our friend told us that apparently none of the NSP members have any clues on how to answer those questions. NSP members simply mumbled some incoherent responses and it became quite obvious after a while that they have never thought through the issue of the HDB 99-year lease at all.  Hence, the none of the NSP members have any ideas on how to resolve the problem of the tenants when the lease of their flats expire.

To be fair, I do not know how true is the above description since I was not physically there.  The only thing I can safely say is that our friend, despite being an Alternative Party supporter, was definitely not impressed by NSP. He left the rally feeling disappointed and disillusioned.

I found the above narration quite disturbing.  The HDB 99-year lease issue is a topmost issue affecting the lives of 80% of all Singaporeans and basically everybody knew about this issue for more than six months.  This is a most important and critical issue that has significant impacts on the lives of many Singaporeans.  If NSP is serious about being the voice of Singaporeans and it will do whatever is necessary to improve the lives of Singaporeans, how is it possible that nobody in NSP thinks through and works out some plans on how to resolve this critical issue?  If they are not concerned with such a critical issue, how exactly does NSP intend to be the voice of Singaporeans and to improve the lives of Singaporeans if they get elected into the Parliament?

To the credits of other Alternative Parties, both SDP (Chee Soon Juan) and PVP (Lim Tean) have clearly laid out their plans and thoughts on how this issue can be resolved.  This is what Singaporeans want and need from the Alternative Parties.  If these Alternative Parties members get elected into the Parliament, they have concrete plans to know what to do for the betterment of the lives of Singaporeans.  Of course, some plans may not be entirely feasible and need to be refined.  But it is at least a good start in the correct direction and it goes to show that these Alternative Parties are serious about improving the lives of Singaporeans if they are elected.  Indeed, prominent members like Pritam Singh/Low Thia Khiang, Chiam See Tong/Lina Chiam, Tan Cheng Bock, Goh Meng Seng, Tan Jee Say, etc should also make known how they intend to resolve this issue if they get elected into the Parliament.

Incidentally, a recent post indicates a very plausible method on how the Incumbent Party intends to resolve this issue – to finance VERS using a combination of tax hikes and price increases.  And the article was apparently written by a supporter of the Incumbent Party!

http://www.tremeritus.net/2019/03/25/why-vers-will-work-but-it-is-still-a-bad-idea/

I have performed some analysis in the past which shows that the government needs to fork out at least 3 billion every year to finance VERS, even if the average payment is merely $250,000 per flat.  The more probable financing cost is likely to be in the range of 4 to 5 billion every year.

At that time, I was adamant that VERS cannot work simply because it is too huge a financial burden – remember that this is not a one-time payment but a recurring cost year after year.  However, the above article throws some light on how VERS is to be financed – the monies generated by the tax hikes and price increases are easily in the range of tens of billions every year and these are more than enough to finance VERS, as well as to cover up losses in Temasek Holdings and GIC (the latter point was contributed by other writers).

Alternative Parties need to showcase how they intend to resolve this particular issue (and many other issues) to allow all Singaporeans to compare their plans against the Incumbent Party’s plan of financing VERS through tax hikes and price increases.  Then Singaporeans can make informed choices at the voting booths during the General Elections.

The only thing that is worse than showing a plan to finance VERS through tax hikes and price increases is when an Alternative Party does not even bother to think through this issue and has no plans on how the issue is to be resolved.  In such a situation, how are Singaporeans expect to trust that such an Alternative Party to run the country to improve the lives of Singaporeans if it is elected into the Parliament?

Cheryl Gupta

Alternative Parties seriously need to get up to speed

Why 37,000+ sure to vote for PAP

In Political governance, Public Administration on 08/03/2019 at 9:57 am

I refer to Double confirm, ground not sweet for PAP where I talked of falling resale prices causing a problem for the PAP with those who bot resale flats. But this is not an issue for those received this special government grant for buying a home to live with or near their parents or children. A friend drew my attention to (emphasis mine):

The number of households that received a government grant for buying a home to live with or near their parents or children has nearly doubled, said the Housing and Development Board (HDB) on Friday (Feb 8).

Since the launch of the Proximity Housing Grant in 2015, about 20,100 households have benefited from the scheme as of end-2018. This compares to the 11,000 households that received the grant between 2015 and 2017.

The grant was increased in February 2018 to encourage more families to live near each other.

In total, S$377 million has been disbursed under the scheme. An additional 300 families will receive their grants once their resale transactions are completed.

Under the scheme, all Singaporean citizen families who buy a resale flat to live with their parents or children enjoy a grant of S$30,000. Those buying a resale flat to live near their parents or children receive S$20,000.

Eligible singles who buy a resale flat to live with their parents receive S$15,000, while singles who buy a resale flat near their parents receive S$10,000.
Advertisement

The proximity condition of “near” is defined as within 4km.

All Singaporeans are eligible for the Proximity Housing Grant once, regardless of their household income, ownership of private property or whether they have enjoyed housing subsidies before.

Those who own private properties will have to dispose of them within six months of the resale flat purchase.

As of Dec 31, 2018, about 20,400 households have applied for the grant. Of these, 53 per cent did not qualify for other housing grants, HDB said.

Families made up 83 per cent of the applications, while the remainder were singles.

Read more at https://www.channelnewsasia.com/news/singapore/hdb-proximity-grant-number-doubled-live-near-parents-children-11222086

why will they not thank the PAP govt by voting for the PAP?

FYI, I got the headline number based on “Families made up 83 per cent of the applications, while the remainder were singles.” and “An additional 300 families will receive their grants once their resale transactions are completed.”

Every vote matters for the PAP.

Vote wisely.

Merdeka Package shows how smart scholars are

In Political governance, Property, Public Administration on 24/02/2019 at 11:23 am

It shows how the PAP’s millionaire ministers are killing five birds with one stone.

The Budget especially the Merdeka Generation Package has been condemned by all the usual suspects. Alt media and social media is full of criticism of said Budget. Nothing new here especially from the cybernuts who like Goh Meng Seng are prepared to misrepresent the facts (More on this another day). (Related post: 10- 20% of voters are anti-PAP cybernuts.)

Here’s an interesting angle from 99.co which has no known or even alleged links to the PAP IB or the constructive, nation building media.

THE MERDEKA GENERATION PACKAGE WILL INDIRECTLY HELP WITH AFFORDABLE HOUSING

The Merdeka Generation Package will benefit some 500,000 Singaporeans, mostly from ages 60 to 69. Over S$6 billion will be channelled into outpatient treatment subsidies, Medisave top-ups, and CHAS coverage of chronic illnesses.

But how does this affect Singapore’s housing? One of the biggest contributors to our rising cost of living is healthcare. Singapore’s healthcare inflation is now the highest in the region, and it will grow as our population ages. Anything that mitigates the rising cost of living will indirectly affect our ability to afford housing.

We feel that, while most Singaporeans can afford their HDB flats, taking the strain off healthcare costs will affect the housing considerations of retirees, or those near retirement. It may now be possible for some of them to finish off outstanding home loans instead of downgrading, for example, given CHAS coverage of chronic conditions and greater outpatient subsidies.

https://www.99.co/blog/singapore/how-budget-2019-could-impact-property/?utm_source=homepage&utm_medium=featured_stories

Hmm. Not tot about this. Did you?

What the Merdeka Generation Package does

— makes healthcare more affordable

— makes then housing more affordable

— also lessens pain of weaker HDB prices (Double confirm, ground not sweet for PAP) for resale buyers

vote buying i.e. spending more of our money on ourselves

— shows the PAP govt cares

Vote wisely.

Maybe that’s why Terry’s Online Channel has been praising the PAP govt — TOC now part of constructive, nation-building media? and Wah lan! TOC praises PAP govt?

But to be fair: Cybernuts can relax: TOC resumes normal anti-PAP service.

Double confirm, ground not sweet for PAP

In Political governance, Property on 28/01/2019 at 9:34 am

HDB resale prices go down, while private property prices go up.

Confirming flash estimates issued earlier this month*, the URA’s statistics showed that private home prices here soared 7.9 per cent last year as compared with an 1.1 per cent increase in 2017.

However, resale prices of HDB flats continued to dip, falling by 0.9 per cent last year, which was slightly lower than the 1.5 per cent decrease from 2017.

WHY THIS HAPPENED

Property experts pointed out that the disparity in price trends for HDB resale flats and private homes last year was an anomaly as prices for both tend to rise and fall in tandem.

They attributed this to collective sales fever heating up in late 2016 after the Government reduced supply in its biannual sales programme and land-hungry developers turned to en bloc projects to meet land demand.

Ms Christine Sun, head of research and consultancy at real estate firm OrangeTee & Tie, said that while en bloc fever typically triggers an upturn in the property market as a whole, the HDB market was not impacted “very much” last year largely due to increased awareness of the depreciating value of ageing HDB flats.

https://www.todayonline.com/singapore/hdb-resale-numbers-highest-2012-while-sales-private-homes-dive

So how to get strong mandate for 4G leaders (Why PAP aiming for 65% of the popular vote)? Tell you tom.

——————————————————————

*Will resale flat owners still vote for PAP in next GE? contd

 

 

TOC’s “Correspondent” shows that PAP govt really cares for S’poreans

In Political governance, Property, Public Administration on 16/01/2019 at 11:04 am

In a story headlined

HDB extends LBS to 5-room and larger units as resale value of old flats continues to slide

TOC’s “Correspondent” inadvertently (He very anti-PAP and his mental health shows it: More evidence that being anti-PAP is bad for yr mental health) shows that PAP cares for those flat owners who have 5-roomers who don’t want to move if they need to downsize by extending the buy-back to five room flats.

In the media report, it quoted part-time security guard Tang Lum Sui, 68, a widower who lives alone in his Jalan Bahagia 5-room flat is all for the extended LBS.

“I don’t want to move out of Toa Payoh because I have lived here all my life, and I like that my son’s family (living in Qatar) can stay with me whenever they come back to Singapore,” he said. Mr Tang, whose flat has 67 years left on the lease, added, “As long as the terms are favourable, I will go for it.”

TOC’s writer (He is not one of the two Indian subversives propagating fake news: Why TOC’s Danisha Hakeem is a menace to the credibility of alt media) then goes further, implying that the leaseback could help if prices fall.

However, Mr Tang should be aware that the value of his 5-room flat is no longer as high as before.

But if he can use the buy-back scheme, why should he worry about falling prices? And even if prices fall so what? All depends on his entry price. As he’s 68, his entry price will be pretty low, assuming he BToed it.

Vote wisely.

 

 

 

 

Will resale flat owners still vote for PAP in next GE? contd

In Property, Public Administration on 04/01/2019 at 1:05 pm

Last yr, private home prices rose nearly 8%* while prices of resale flats fell 0.9%**. (Related post: Why S’pore is so shiok for private property investors)

How to get huge mandate for 4G leaders remembering that one of them, Lawrence Wong*** (Btw, he not from elite school or so-called elite school), is being blamed by alt media (and more importantly by many S’poreans) for being responsible for the collapse in the prices of older flats?

Resale value of older flats has been sliding down ever since National Development Minister Lawrence Wong let the cat out of the bag in Mar 2017 by disclosing that not all old HDB flats are eligible for SER. He added that for most HDB flats, their leases will eventually run out and the flats returned to HDB, which in turn surrenders the land the flats are on back to the State. In other words, the value of the flats will go to zero when their lease ends.

TOC****

Will this resale flat buyer vote for PAP in next GE?

Will resale flat owners still vote for PAP in next GE?

“Houses are for living in, not for speculation”

Exposed: Flaws in PM’s HDB spin

Big problem for PAP. So why is it a surprise in an election yr that Budget is earlier than usual? Really good goodies to try to help us forget that after GE, GST will go up by 2 points as promised.

One can only hope that TOC and other alt media will keep reminding voters of this fact and stop propagating fake news: Why TOC’s Danisha Hakeem is a menace to the credibility of alt media. But don’t hold yr breath.


*Private home prices in Singapore rose 7.9 per cent in 2018, compared with a 1.1 per cent rise the year before, according to flash estimates from the Urban Redevelopment Authority (URA) on Wednesday (Jan 2).

However, the rise appeared to have slowed significantly after the Government introduced more measures in July to cool the red-hot market.

Private home prices slowed to a 0.5 per cent increase in the third quarter of 2018, and fell 0.1 per cent in the fourth quarter, URA’s estimates showed.

URA resale prices graph
Source: URA

Read more at https://www.channelnewsasia.com/news/singapore/private-home-prices-property-2018-ura-11078890

**Prices of resale flats in Singapore fell 0.9 per cent in 2018 compared to the year before, flash estimates released by the Housing and Development Board (HDB) on Wednesday (Jan 2) showed.

In the fourth quarter of 2018 alone, prices fell an estimated 0.2 per cent, according to HDB’s resale price index.

****TOC

[A]ccording to PropertyGuru, housing agents have been trying to sell 5-room units in block 30 at Jalan Bahagia for close to $600K:

But the value of the units transacted at this block has been observed to be sliding down rapidly in the last few years.

Data on PropertyGuru shows that units at the block were indeed transacting at $500 to $600K from 2014 to mid-2016. But the last 2 transactions which occurred in Mar 2018, however, shows that one was sold at $403,000 while the other at $322,888.

 

 

 

 

 

 

Wah lan BTO waiting period is six yrs?

In Property on 15/12/2018 at 1:32 pm

Angela Oh, 29, bought her new four-room HDB with the man who is now her husband in 2012 and just moved in this year. The system allows partners to put their names down for new flats, but you must be married by the time it is built.

“The long time that BTOs (Built to Order) take to build really spoils the joy of the proposal,” she says, because marriage becomes about practicality. If you break up during the waiting period, you lose money and are barred from applying for another BTO for a year.

http://www.bbc.com/capital/story/20181210-can-singapores-social-housing-keep-up-with-changing-times?fbclid=IwAR2fzGTXxtmVykT1tgqRlvXQkYIFUU_m5yMDHfP9_ze1Eu37-KtRIfAP52s

But I also read this:

1,000 BTO Flats with Shorter Waiting Times to be Offered in 2018
To help young couples get their first homes earlier, HDB will be offering BTO flats with shorter waiting times in selected projects.

The first batch of 1,000 flats, spread across three projects in the non-mature estates of Sembawang, Sengkang and Yishun, will be launched for sale in the 2nd half of 2018.

The first batch of flats with shorter waiting times will launch in Sembawang, Sengkang and Yishun in the 2<sup>nd</sup> half of 2018.
The first batch of flats with shorter waiting times will launch in Sembawang, Sengkang and Yishun in the 2nd half of 2018.

Construction will not be rushed to meet the shorter wait times. Instead, HDB will commence construction of the flats ahead of their sales launches. Construction work on the three projects is expected to commence in the 4th quarter of 2017. The flats will be completed between the 4th quarter of 2020 and the 1st quarter of 2021.

As a result, flat buyers only need to wait about 2.5 years for their flat from the time of application. There will be no compromise on the quality of the flats since construction time remains the same, at three to four years.

First-timer families will have another reason to rejoice as they will enjoy higher priority when applying for these flats. At least 95% of the 4-room and larger flats are set aside for them, which is a 10% increase from the current 85% quota for non-mature estates.

Flat buyers of these BTO projects can look forward to flats equipped with floor finishes, internal doors, sanitary fittings, and an open kitchen concept (if the layout permits). This will reduce the time needed for renovation so that they can move into their new homes earlier.

Look out for the sales launches of these BTO projects in the second half of 2018! For more information, visit the HDB InfoWEB at www.hdb.gov.sg.

https://www.mnd.gov.sg/mndlink/2017/sep-oct/bto-flats-with-shorter-waiting-times.htm

So waz a realistic median BTO waiting period today?

“Houses are for living in, not for speculation”

In Financial competency, Financial planning, Property on 27/11/2018 at 1:50 pm

Of course not PAP: but Grandpa Xi.

And it’s a statement that the PAP and voters should remember. While a lot of the KPKBing about the price falls in older HDB flats is coming from the usual suspects like P(olitician) Ravi, the SDP (Note the silence of the Wankers: Low, Auntie and Bayee got condos waiting to be seized when they lose court case), and the cybernuts, bet u there were greedy PAP voters didn’t know that a 99-yr lease is juz that and are suffering in silence.

They heard “asset appreciation” and bought resale flats.

Will this resale flat buyer vote for PAP in next GE?

“I bought in the resale market when the prices were quite high some years back,” said Jun Liang, 42, whose apartment is in a 55-year-old block called Selegie House. “When I look at the value now, it would not have appreciated — in fact, after renovation costs it could even be a small loss.”

[…]

Home-owner Jun and his wife bought their apartment in one of the oldest HDB blocks in 2013 after getting married, spending about S$700,000 on the property and another S$100,000 to renovate. Now, they have thoughts of upgrading to a private condo. But, looking at their budget, the couple wonder if they’ve any chance of getting the home they want.

https://www.bloomberg.com/news/articles/2018-10-25/singapore-s-public-housing-envy-of-the-world-hits-rough-patch

I think he’s deluded about a small loss taking into account renovation costs. Remember prices for flats like his took a dive after Lawrence Wong’s warning about the govt taking back the land when the leasehold expires: Why 30-year old HDB flats difficult to sell.

And it’s going to get worse. 🤑🤣😛😢😪😂😝😜

Fat cat medical doctor/ investor quantified the loss

The flats in Selegie House are the small types. The one in question probably a 806sqft 4-rm flat.

If really need to sell today, unlikely to get serious offers much above $500K. Buyers will need big chunks of cash onhand to pay.

Even if SERS, the compensation by HDB based on market valuations will be a big % loss of what he paid, and certainly not enough to buy any replacement new 4-rm flat in city centre area, even if its a subsidized BTO as part of SERS package.

If there’s SERS, HDB might offer them BTO replacement flats in a slightly cheaper district such as Kallang River / Mountbatten area. This was what they did for the Rocher Centre residents when it got torn down for the N-S Highway.

.

Why S’pore is so shiok for private property investors

In Political economy, Property, Public Administration on 12/11/2018 at 9:46 am

Look at the table and note that here holding costs (i.e. interest paid) for 5 yrs (assumes no profit from sale after 5 yrs) and fees payable (taxes, duties) very low compared to rest of the world bar a shithole of a city. The PAP govt treats private property investors better than they treat otters (TRE Cybernut says PAP has created paradise for otters not citizens)? $ means US$.

Waz there not to like about the PAP if u are an investor in private property?

Compare this to if u bot a resale HDB flat: Will resale flat owners still vote for PAP in next GE? and Will this resale flat buyer vote for PAP in next GE?

Will this resale flat buyer vote for PAP in next GE?

In Political governance, Property on 07/11/2018 at 4:19 pm

After reading this post, tell me if you think Jun Liang, the resale flat buyer, will vote for the PAP in the next GE.

Further to Will resale flat owners still vote for PAP in next GE? where I reported that the value of the homes has been falling even as prices of private dwellings rebounded over the past five quarters, leading to a 13.8 points gap in their price performance, the widest in more than a decade. Private home prices rose 0.5% in the third quarter, after climbing 3.4% in the previous three months here’s a really sad story

🤑🤣😛😢😪😂😝😜

“I bought in the resale market when the prices were quite high some years back,” said Jun Liang, 42, whose apartment is in a 55-year-old block called Selegie House. “When I look at the value now, it would not have appreciated — in fact, after renovation costs it could even be a small loss.”

[…]

Home-owner Jun and his wife bought their apartment in one of the oldest HDB blocks in 2013 after getting married, spending about S$700,000 on the property and another S$100,000 to renovate. Now, they have thoughts of upgrading to a private condo. But, looking at their budget, the couple wonder if they’ve any chance of getting the home they want.

https://www.bloomberg.com/news/articles/2018-10-25/singapore-s-public-housing-envy-of-the-world-hits-rough-patch

I think he’s deluded about a small loss taking into account renovation costs. Remember prices for flats like his took a dive after Lawrence Wong’s warning about the govt taking back the land when the leasehold expires: Why 30-year old HDB flats difficult to sell.

And it’s going to get worse. 🤑🤣😛😢😪😂😝😜

Nicholas Mak, executive director and head of research at real estate firm ZACD Group said:

HDB resale prices may fall 1 percent to 2 percent this year, according to Mak.  In the long term, besides undermining public sentiment, declines could threaten demand for private housing, since fewer people will feel wealthy enough to upgrade to condominiums, according to Cushman & Wakefield Inc.

https://www.bloomberg.com/news/articles/2018-10-25/singapore-s-public-housing-envy-of-the-world-hits-rough-patch

Who asked Jun Liang and his wife to believe PM and his ministers on asset values? Exposed: Flaws in PM’s HDB spin 

🤑🤣😛😢😪😂😝😜

And Jun Liang should also worry about the trade war between China and Trump because a slow down in China is terrible for us: we more affected than the rest of Asean:  PAP needs strong Chinese economic growth.

Will resale flat owners still vote for PAP in next GE?

In Political governance, Property on 30/10/2018 at 1:29 pm

🤑🤣😛😢😪😂😝😜

Resale prices for HDB flats have been on the decline over the last year. Prices fell 0.7 per cent in the third quarter of 2017, 0.2 per cent in the fourth quarter of 2017 and 0.8 per cent in the first quarter of this year, although they inched up 0.1 per cent in the second quarter.

Read more at https://www.channelnewsasia.com/news/singapore/hdb-resale-transactions-up-19-in-q3-as-prices-remain-flat-10865850

🤑🤣😛😢😪😂😝😜

Whatever happened to “asset enhancement”? Exposed: Flaws in PM’s HDB spin 

And Why 30-year old HDB flats difficult to sell/ Why PAP rule will end in 2029

No guesses about why S’poreans are so unhappy that they donated to WP MPs  (How to protest effectively when there’s no GE).

The real reason why HDB flats are a touchy topic

In Political governance, Property, Public Administration on 27/09/2018 at 10:22 am

Other than the fact that S’poreans have realised or discovered that HDB flats are 99-yr leases not freehold (They read what they agreed to buy? Exposed: Flaws in PM’s HDB spin) the other major headache for the PAP govt in public housing is that housing (private or public) seems to be more about psychological rather than material needs.

In the US and UK

Our space expectations are conditioned not only by where we have lived before, but also by our neighbours.

Because house size is a status symbol, we feel worse off when other people get larger houses.

A recent US study found that an increase in the size of the largest 10% of “superstar” houses had a significant negative effect on their neighbours, even if those people had also moved to bigger homes.

Previous surveys have suggested people would be prepared to have less living space overall if it meant they had more than others.

https://www.bbc.com/news/business-45420795

Given that more than 80% of Singapore’s population live in HDB flats, no wonder the PAP govt now wants to kick the expiring lease issue into the really long grass.

Exposed: Flaws in PM’s HDB spin

Smell the smoke? From Indonesia or from the PAP & cybernuts?

PM, PAP should remember what world’s richest man said

In Political governance, Public Administration on 09/09/2018 at 10:56 am

Given former PM’s comments his comment that those in the private sector earning less than $1m are “very mediocre people”, it’s surprising that the PM and the PAP are ignoring what the world’s richest man said

“Experiments are by their very nature prone to failure. But a few big successes compensate for dozens and dozens of things that didn’t work,” said Mr Jeff Bezos in 2014.

FT

I was reminded of this when I read

Mr Alfred Tan said that the PAP still refuses to acknowledge the policy blunder [about HDB leases]. He said that one of the key basic disciplines in problem solving is admitting that there is a problem. Only when there is an admission of misjudgment can the first step be taken towards a real and meaningful resolution and rectification of the problem.

“Is the PAP government prepared to man up and admit this misstep?” Mr Tan asked.

http://yoursdp.org/…/sdp_calls_out_out_of_t…/2018-09-08-6257

Dr Chee

 

Typical product of our education system?

In Property on 02/09/2018 at 5:48 am

Re “Every school a good school”.

Mr Low Mong Seng, 34, worried that the compensation under Vers may not allow flat owners to purchase a flat of a comparable size. This would be a problem for bigger households, said the swim coach, whose three-room flat in Block 95, Lorong 4 Toa Payoh, has less than 50 years left on its lease.

Hello, don’t people grow up, move out or die? All the residents never marry or die isit? The number of the people remain static isit?

And the issue of how much will a similar flat will cost is always present when selling out of the existing flat. 

As a FB post once put it

My parents bought the flat in 1978 for $19,000. It was fully paid for within a few years. Some time back, a property agent approached me and asked me to sell the flat, saying that I can get $420, 000 for it. I rejected because where are my parents and I going to stay if I sell. How much will a similar flat cost me if I buy a resale?

But to be fair to our education system, Mr Low could best be either die die support PAP heartlander or a cybernut from the hearlands of The Idiots or TOC or TRE. They are beyond help.

Exposed: Flaws in PM’s HDB spin

In Political governance, Property, Public Administration on 31/08/2018 at 10:56 am

From a TRE reader

In his NDR speech, PM Loong gave an example of his AMK 4-rm residents, trumpeting how their flats can now fetch $400k when they’ve paid only $25k for their units 40 years ago.

Yes, no one will argue about this fact. First owners of HDB flats were able to make a huge profit from their flats purchased decades ago. This is possible only because they bought their flats cheap.

Leong Piah Mann

Yup, it was all about getting in at a great level and riding the Pacific wave.

But now

Govt ‘smartly’ pegged BTO flats to HDB resale price. Resale price is based on the flat’s valuation price. Owners were given high valuation for their units (and you know who valued your HDB and they BS you it’s about demand that your flat cost that much), so resale price kept heading skyward and BTO price follow suit to the delight of the greedy govt.

Entry point is “rigged”. So how to make money?

And what about the sucker buyer?

When PM Loong bragged about how much profit a AMK 4-rm flat first owner can make from selling his flat, PM made himself look so excellent, like a grade A, top notch leader, but he conveniently forgot to mention about the buyer of that resale flat. After paying $400k for an almost 40yrs old flat, how much will the buyer be able to sell his flat for as it continues to age and ending up as govt’s eventually?

Sorry jialat. Liddat why vote PAP so that $$G ministers also can be “Crazy Rich Asians”?


Related posts:

The real truths about public housing  my summary of piece by “Tan Jin Meng, a postgraduate from the Lee Kuan Yew School of Public Policy. He has an interest in social policy and economics.”.

Why many PAP voters are ready to be flipped

New Hope: Why Dr Tambyah can flip PAP voters

——————————————————————————————————–

Leong Piah Mann’s comments in full

A Layman’s View On The Hot HDB Issue

I think people should stop arguing about whether we’re “owners” or “lessees” of HDB flats because the PAP and their lackeys can always defend the govt using all kinds of crooked logics. Fact remains, our HDB flats will belong to the govt after 99 yrs.

In his NDR speech, PM Loong gave an example of his AMK 4-rm residents, trumpeting how their flats can now fetch $400k when they’ve paid only $25k for their units 40 years ago.

Yes, no one will argue about this fact. First owners of HDB flats were able to make a huge profit from their flats purchased decades ago. This is possible only because they bought their flats cheap. This is possible only because our govt 40 yrs ago was genuinely caring. This is possible only because our 1G leaders’ main intention of building public housing was to let citizens have a roof over our heads. The Old Guards weren’t greedy. They didn’t price the HDB flats with the intention to make big profit from citizens or to let citizens make profits from their flats. More importantly, they never buy votes using the HDB flats upgrading or asset enhancement policy as election carrots.

As we can see, the situation now is no longer the same. The present govt has become too greedy that their greed has resulted in our  public housing (amongst others) becoming so costly, in fact too costly!

Govt ‘smartly’ pegged BTO flats to HDB resale price. Resale price is based on the flat’s valuation price. Owners were given high valuation for their units (and you know who valued your HDB and they BS you it’s about demand that your flat cost that much), so resale price kept heading skyward and BTO price follow suit to the delight of the greedy govt.

When PM Loong bragged about how much profit a AMK 4-rm flat first owner can make from selling his flat, PM made himself look so excellent, like a grade A, top notch leader, but he conveniently forgot to mention about the buyer of that resale flat. After paying $400k for an almost 40yrs old flat, how much will the buyer be able to sell his flat for as it continues to age and ending up as govt’s eventually?

Mr Owner is lucky and happy but what about Mr Buyer? If VERS is real, how much will the govt compensate Mr Buyer in 30 yrs’ time? For sure he’s going to make a loss. And what if VERS is just an invincible election carrot? If Mr Buyer is 30 yrs old, by the time he’s 89 yrs old, his $400k would go up in smoke. Why didn’t PM Loong talk about Mr Buyer? Don’t tell me getting paid millions of dollars cannot even foresee such an obvious problem?

I’d definitely applaud the govt if Mr Owner is allowed to sell his flat back to govt at the market value of $400k. Then the govt sells that flat to Mr Buyer at $400k but renew the lease to 99 yrs.

Did the govt not plan to have HIP II? They can even have HIP III and HIP IV to keep the flats in good conditions. Continuous upgrading whenever necessary for our future generations to live in, is this not also being fair to our descendants? If there really is a must to tear down any blocks of flats due to safety reasons, then compensate the residents accordingly with SERS.

Our children and grandchildren are our future generations. Families are getting very small these days. Our children can inherit our old flats and continue to live in them. If our govt genuinely cares and thinks for the people, there’s really no need for all our flats to
go back to the state for the govt to redevelop the land and build new flats.

We first heard that CPF money is not our money. Now we realised our HDB flats will not be our flats eventually. What next?

Apparently the scariest thieves in sg wear white not black. So, Singaporeans beware! Please stop inviting thieves into our house and allow them to freely steal our belongings anymore.

Leong Piah Mann

Smell the smoke? From Indonesia or from the PAP & cybernuts?

In Political governance, Public Administration on 30/08/2018 at 10:34 am

In the last few weeks, the smell of smoke has been getting stronger even though the usually annual haze has yet to show up in the weather stats.

So maybe its juz the PAP throwing smoke and the cybernuts reacting with hot air?

After all I started smelling the smoke when Goh Chok Tong decided to shit and piss on the PAP’s NatDay celebrations with his comment that those in the private sector earning less than $1m are “very mediocre people”. The subsequent uproar had him back pedalling.

Then came PM’s NDR speech on being frugal (Shumething PM left out in NDR speech/ Reason why?) and the plan to kick the HDB lease expiry issue into the long grass via Voluntary Early Redevelopment Scheme (Vers) which will begin circa 2038

Experts interviewed told TODAY that by airing its thoughts on the complex issue early, the Government achieved another objective: To restore some calm in the HDB resale market, and provide reassurance to homeowners.

https://www.todayonline.com/big-read/big-read-hdb-lease-decay-govts-solutions-not-perfect-theres-light-end-tunnel

This goodie was ignored:

Every HDB flat can also expect to undergo major upgrading twice during its 99-year lease period, with the new Home Improvement Programme (HIP) II rolled out for ageing units at the 60- to 70-year mark.

Then came Larry (Lawrence Wong: a PM-in-waiting) with

Mr Wong had also said earlier this week that even though many details for Vers will not be ready for some time, the Government felt that it “owed” Singaporeans an early explanation on its thinking for the next phase of public housing.

Of course the cybenut mob had to react with hot air of their own drowning out the cold doses of reality that sensible criticks of the PAP like Calvin Cheng (When being a minister turns from a calling into a job for life) and Eugene Wee (Best riposte to recent PAP BS) were pouring out to counter the PAP’s smoke.

And then there was “There seems to be a certain sourness on the ground, with more grumbling than usual about issues especially to do with the Government,” a semi-retired ST tua kee observed: “In the many chat groups I belong to, more people seem to be getting worked up.”

“ST Editor panicked over ground sourness urges PAP 4G leaders to do something” screamed Terry’s Online Channel cutting and pasting the ST piece: https://www.theonlinecitizen.com/2018/08/26/st-editor-panicked-over-ground-sourness-urges-pap-4g-leaders-to-do-something/

I’m still thinking if Han Fook Kwang is correct to say the present mood reminds him of the run-up to the 2011

— attributing the public discontent to the “disconnect” between the government leaders and the general public,

— adding “I agree with commentators who have pointed out that overly high ministerial salaries poison the relationship between leaders and the led, reducing it to a transactional one.”

What do you think, is the mood like that in 2011?

 

 

PAP Govt thinks there’ll be serious job losses soon?

In Economy on 29/08/2018 at 10:57 am

Before Tuesday (Aug 28), HDB flatbuyers had to first use up the entire balance in their CPF Ordinary Accounts. Now flat buyers can retain S$20,000 in their CPF OA when taking up HDB loans

The previous rule was to ensure that flat buyers exercise financial prudence and minimise the housing loan taken, said the HDB on Tuesday.

So why the change? Emphasis mine

“While this objective remains relevant, some flexibility can be given to flat buyers to provide a buffer in their CPF Ordinary Accounts to pay mortgage instalments in times of need, or to improve retirement adequacy if the buffer is eventually not tapped,” said a HDB spokesperson in response to TODAY’s queries.

https://www.todayonline.com/singapore/cpf-rule-change-hdb-loans-less-worry-more-flexibility-flat-owners

The PAP govt is preparing for another great recession methinks where there’ll be lots of retrenchments and many S’poreans being unable to pay off their HDB mortgages without the extra $ in CPF account. How to vote for PAP liddat?

Ownself pay ownself to pay ministers’ salaries. LOL or Sad?

 

Akan datang: GE in late 2019

In Political governance, Property, Public Administration on 23/08/2018 at 11:07 am
Singapore’s next parliamentary general election must be held by 15 January 2021. According to the Constitution, the Parliament of Singapore’s maximum term is five years from the date of the first sitting of Parliament following a general election, after which it is dissolved by operation of law.

So far the PAP has signaled trice in recent months that an election will be held in late 2019 or early 2020, after the 200th anniversary of Raffles making S’pore British is co-opted by the PAP to propogandise the benefits of PAP rule, (like the 50th anniversary of getting kicked out of M’sia was co-opted in 2015).

First signal: the PAP govt ended the property cycle upswing early. If things had been allowed to run their usual course, we’d have rising property prices in 2019, if not 2020.

With less than a third of collective sale sites sold so far this year and no deal inked since property cooling measures took effect more than a month ago, one property analyst has declared the current cycle of en bloc fever to be over.

More than 30 collective sale sites have failed to secure a buyer since January, according to data from real estate agencies Huttons Asia, Savills and Colliers.

“This cycle has reached its end,” said International Property Advisor’s chief executive Ku Swee Yong.

If that is the case, the current cycle would have lasted about two years – If that is the case, the current cycle would have lasted about two years – beginning with the sale of former Housing and Urban Development Company (HUDC) estate Shunfu Ville – shorter than the three-year run that lasted between 2005 and 2007, he said.

https://www.todayonline.com/singapore/more-30-en-bloc-tenders-closed-without-buyer-year-none-successful-after-july-cooling

Rising property prices in 2019 would have been problematic for early elections.

Second signal: goodies for my generation

Just as Singaporeans born in 1949 or earlier received the Pioneer Generation Package to cope with healthcare and other expenses, baby boomers born in the 1950s will receive help from the Government.

Called the Merdeka Generation Package, it will cover areas such as outpatient subsidies, Medisave account top-ups, MediShield Life premium subsidies and payouts for long-term care, announced Prime Minister Lee Hsien at the National Day Rally on Sunday (Aug 19).

Third signal: kicking problem of expiring HDB leases (Why 30-year old HDB flats difficult to sell/ Why PAP rule will end in 2029) into the long grass while details will be worked out in the next 20 yrs or so (Taz how confident PAP is of ruling S’pore)

With Prime Minister Lee Hsien Loong’s speech, the Government has laid out a “visible” programme for Housing and Development Board (HDB) flat owners for the future of their homes, said CIMB economist Song Seng Wun, who added that public housing has been the backbone of Singapore’s wealth creation.

Vers, which Mr Lee said would start about 20 years from now, will see residents of precincts that are about 70 years into their 99-year leases voting on whether they would like the Government to buy back the flats. The Government will compensate them — at terms less generous than the Selective Enbloc Redevelopment Scheme (Sers), which is compulsory — and help them get another flat to live in.

https://www.todayonline.com/singapore/devils-details-flat-owners-should-not-expect-windfall-new-hdb-scheme-analysts

I hope that the Oppo is better prepared this time to handle the PAP’s handouts of goodies. This was written in Sept 2012: Time for Opposition to rethink assumptions, lest it repents after next GE. But the Oppo fought GE 2015 as though it was GE 2006 and 2011 again. The result PAP got 70% of the popular vote. Of course LKY’s death and the 50th anniversary of independence celebrations helped.

One thing is sure, talk cock sing song Lim Tean is sure to make another video. Which reminds me: if he can make videos of himself talking cock, why can’t he produce the video on how to avoid getting sued for defamation he promised for Sept, then Nov 2017 after raising the money for it? Remind Lim Tean, it’s December

 

How to make it jialat for HDB owners if got child in RI

In Public Administration on 02/07/2018 at 12:15 pm

Just as how Singapore prevented racial enclaves from forming in its housing estates, the country must avoid the formation of any social enclaves, said Trade and Industry Minister Chan Chun Sing said on Tuesday (June 5).

To that end, the Government will “further refine” the design of precincts and public housing flats to “allow greater social mixing between people of different economic backgrounds”.

“This is especially important as society matures and social mobility and social mixing weaken,” said Mr Chan, who did not elaborate.

Constructive, nation-building media

We have a racial quota for each HDB estate to prevent racial enclaves from forming HDB estates. This upsets Indians, Malay and Eurasians no end because they can only sell to a minority, limiting the value of their flats. Chinese can sell flat to anyone because of their uber majority status: the quota doesn’t affect them.

So maybe to ensure that ensure that there’s a mix of educational abilities in HDB estate, HDB flat owners with one kid in RI or other so-called “elite” schools, can only sell their HDB flats to people with kids in RI or other so-called “elite” schools.

Why “S’pore is not a repressive country”

In Political governance on 22/06/2018 at 10:53 am

When an anti-PAP warrior living in an HDB flat posted this on FB

“In a recent interview with renowned CNN anchorwoman, Christine Amanpour, Prime Minister Lee Hsien Loong as categorically stated that Singapore is not a repressive country because in the last election, every seat was contested.

I find this reasoning rather one dimensional as whether or not an election is contested is not the complete picture. This is especially the case in Singapore whereby the opposition do face certain challenges before they even get to the contest.”

TOC

One Adrian Tan posted:

Got a lot of anti-PAP types living in “subsidised”, “affordable” public housing. If S’pore as bad as what TOC claims, why PAP govt no kick them out? 🤣😜

To which I’ll add some of the names of some of these warriors: M Ravi, Terry of TOC and Teo Soh Lung.

If they get kicked out of the HDB flats they are in living in, I’ll admit that S’pore is a repressive country. Until then, I’ll hold the view that S’pore is an authoritarian one-party state that 60-70% of voters every five yrs or so willingly agree to put up with for another five yrs.

S’pore: An illiberal democracy?

Goh Meng Seng (Silence of Goh Meng Seng) even claims that to part finance the fight against the PAP, he sold his HDB flat in 2010 or 2011 when he was NSP’s Sec-Gen. But it’s alleged that he never paid any monies into the NSP’s bank account.

 

The real truths about public housing

In Property on 21/06/2018 at 11:13 am

Not Hard Truths but the truths about public housing as revealed by “Tan Jin Meng, a postgraduate from the Lee Kuan Yew School of Public Policy. He has an interest in social policy and economics.”.

But first, a reminder why the topic of HDB housing is a problem for the PAP administration what with its “asset enhancement” policies.

 

 

 

 

 

 

 

Whatever happened to asset enhancement since 2013 Q2 is a question being asked by more than the anti-PAP activists and their allied cybernuts.

Back to Tan Jin Meng and his truths about HDB: writing in CNA he says

An over-emphasis on home ownership can come at a cost to society. Time for a review of public housing policy

And

Singapore’s housing policy started out with the aim of providing basic, comfortable and safe housing security for Singaporeans. Over the decades, strong public policy support may have led to an over-emphasis on housing ownership, leading to unintended consequences …

Read more at https://www.channelnewsasia.com/news/commentary/emphasis-home-ownership-hdb-lease-review-of-public-housing-10423116.

But if time-challenged juz read these two extracts

The first explains that the PAP administration has by way of subsidies (Uncle Leong and cybernuts will ask though “Subsidies? What subsidies?”) created an entitlement mentality in public housing:

Addressing the 99-year leasehold issue or the retirement security issue without a cost to the home owner would effectively need a cross subsidy from future tax payers.

Any changes to housing policy that impact prices would need to consider the fact that most voting Singaporeans have a vested interest in keeping house prices up.

The continuous subsidy of housing in Singapore has been underpinned by the Land Acquisition Act of 1966, which had used historical cost for acquiring land, managing to keep new HDB flat prices low. In 1959, the State owned 44 per cent of all land, and by the mid-2000s, it was 85 per cent.

Effectively, the Government redistributed land wealth from land owners to the rest of the population, aided by a growing economy supporting prices. This, however, cannot continue forever as housing leases start to run out, our economy slows, and our population ages.

The Government had, over the decades since independence, resisted calls to liberally expand the social safety net, in order to avoid the development of an entitlement culture – that once you give someone something, you cannot easily take it back without antagonising that person, and you may end up with an intolerable burden for future generations.

Yet, housing remains one social programme where much resources have been poured into.

The other very important truth is

A house is not just a shelter. It is also a leveraged financial asset. You are taking risk on both property prices and interest rates. Singapore’s rapid growth over the first 50 years from independence has led many people to believe that home ownership is a “sure win”, as house prices also rose from wage and population growth.

Sounds like the “asset enhancement” policies got a lot to answer for, and so has our PM who was DPM and the economy czar in the 90s, when the policies were introduced to fix the Oppo.

“Asset enhancement? What asset enhancement?”

 

 

 

 

 

 

 

Only if buy BTO flat leh, PAP will say. Go back and read what the PM, DPM and other PAP ministers said.

Wonder if our our constructive, nation-building media’s articles from the 1990s are as amendable as the media articles in Airstrip One in “1984”.

PAP definition of Middle Class?

In Property on 17/06/2018 at 3:39 am

An older managing director at a large bank complained of the struggles of the middle class. When I asked him to define “middle class,” he spoke of people like him, earning between two and four million dollars a year. Young analysts told me they were being priced out of Brooklyn, much less Manhattan, by rising hedge-fund plutocrats and their ilk.

New York based writer

Somehow, I tot of the PAP’s reasoning for the need to pay ex-SAF generals and ex-civil servants millions when they become ministers.

For some reason I tot about the PAP’s changing definition of affordability for HDB flats. Once upon a time it took only up to 10 yrs (Correct me if I’m wrong) to pay off the mortgage, now

The maximum loan repayment period is 30 years *. The maximum loan repayment period for HDB loans is 65 years minus buyer’s age or 30 years, whichever is shorter. The maximum loan repayment period for loans taken through financial institutions is 35 years.

https://www.cpf.gov.sg/eSvc/Web/Schemes/FirstHome/Assumptions

Sad.

Note: Text after quote changedtwo hrs after publication. Sorry, “Writer’s block”.

 

 

Will people like Mr Ang and his family ever vote for Oppo?

In Political governance on 15/06/2018 at 11:00 am

Further to S’poreans unhappy enough to make mad Dog PM?

where I reported this survey which says

Singaporeans are less satisfied with their overall quality of life and democratic rights compared with previous years, according to a survey conducted by two National University of Singapore (NUS) dons.

https://sg.news.yahoo.com/singaporeans-less-satisfied-quality-life-democratic-rights-nus-survey-130122483.html

there’s

As far as Mr Ang Hong King, 72, is concerned, his three-room flat which he bought for S$6,000 in 1970, has served its purpose — providing a roof over his family’s head for almost five decades and counting.

The semi-retired driver and his wife raised their three daughters in the unit at Block 65 Circuit Road. Their children have since moved out, and gotten flats of their own.

Having no plans to move out, Mr Ang shrugged off the prospect of his flat — which is worth about S$250,000 now — losing its value in the future. “Price drop also never mind,” he said.

https://www.todayonline.com/singapore/big-read-no-easy-answers-hdb-lease-decay-issue-public-expectations-have-change-first

Somehow I doubt it. So long as Mad Dog and his fellow nutters refuse to accept that there’s a big group of voters out there contented (Note I didn’t say “happy”) with the PAP, S’pore will continue to be a one-party state where the voters are happy every few yrs to renew the status quo of a one-party state.

Once Mad Dog and friends accept this reality, they can think of ways to destroy this contentment. More soon on possibles tactics. But if they continue thinking that 60-70% of S’poreans are stupid, then they can continue howling at the moon and banging their balls.

 

 

 

TOC saying vote PAP?

In Financial competency, Property on 10/06/2018 at 10:44 am

I kid u not, Terry’s Online Channel has a gd word for the PAP govt and one of its flagship programmes.

This is what TOC wrote

S$1 million will easily cover the cost of most new and resale HDB flats in Singapore. The median price of HDB resale flats in every neighborhood is below S$1,000,000, so prospective homebuyers could afford a comfortable residence in even the most expensive areas of Singapore.

For example, the median resale price of a 4-room HDB even in Central was S$850,000 in the early months of 2018.

And

S$1 Million is Not Enough to Afford Most Homes in Many Major International Cities

Both quotes from https://www.theonlinecitizen.com/2018/06/09/what-kind-of-home-would-s1-million-buy-in-major-cities-around-the-world/

Is TOC getting paid to say nice things about the PAP govt? One of TOC’s grouses is that mothership gets sponsorship from GLCs. So has TOC saold its soul too?

Btw, the writer is the only numerate person in TOC’s stable of writers and editors.

 

Falling HDB prices: Mad Dog, Meng Seng etc don’t count yr chickens yet

In Property on 02/05/2018 at 11:20 am

Private property mkt is going thru the roof

The Republic confirmed its biggest quarterly surge in private home prices in nearly eight years on Friday (April 27) — a 3.9 per cent jump that beat an earlier estimate of 3.1 per cent, data from the Urban Redevelopment Authority (URA) showed.

This is the highest quarterly price growth since the 5.3 per cent quarter-on-quarter increase in the second quarter of 2010.  In comparison, prices of private residential properties rose 0.8 per cent in the fourth quarter of last year over the previous quarter.

Ms Tricia Song, Colliers International head of research for Singapore, noted that it was “rare to see such a wide variance between the actual and flash numbers”. Flash estimates are based on data from the first two months of the quarter.

Constructive  T

while the Housing and Development Board (HDB) resale market has experienced a contrasting fortune compared to the private with the HDB resale price index contracting by 0.8%  for January to March.

Analysts have said that the increase in housing grants, shorter waiting time for Build-To-Order flats in certain housing estates, a strong supply of new public housing units, and the Government’s pronouncement that it will not renew the leases of HDB flats when they run out are some of the factors pushing down HDB resale prices.

So Mad Dog, Meng Seng, Lim Tean (Collect money from public but Where’s yr defamation video and jobs rally Lim Tean?) and other cybernuts (active or paper) are celebrating the defeat of the PAP in next GE.

But they did not read the ending

In the next quarters, HDB resale prices are expected to eventually rebound, the analysts said.

Given the huge number of en bloc sales since last year, Mr Ismail predicts “a greater demand for HDB resale properties with some en bloc owners considering bigger sized resale flats in the second half of the year”.

For the full year, the analysts said they expect HDB resale prices to be flat or grow by up to 1 per cent.

Not as gd as private property but then GE will not be held next year but the year after: after Raffles200. There’ll be goodies galore for HDB flat owners, trust me.

As to Goh Meng Seng’s BS that he’ll reveal his plan to solve the 99-yr HDB lease “problem” during next GE campaign, he shouldn’t waste his time BSing us. The PAP administration can solve the problem with a stroke of the pen. But will it is the question? More on what PAP administration can do soon.

If Coldstore detainees had gained power

In Property on 19/04/2018 at 11:06 am

This would have happened when HDB overbuilt

To reduce the property overhang, local governments bought millions of unsold homes from developers and gave them to poorer citizens.

Economist talking about local Chinese govt

Actually, not exactly because as HDB is a govt agency, the flats would have just been given away.

Thankfully for property investors, Coldstore was successful in preventing the whackos from gaining power.

Estate agents so stupid and selfish meh?

In Financial competency, Property on 16/04/2018 at 10:31 am

Mr and Mrs Ow should lose their licences because they are so stupid that they didn’t know that the shorter time left on any lease, the value of flat goes down. (HDB flats: 35 is a dangerous age and Why 30-year old HDB flats difficult to sell/ Why PAP rule will end in 2029)

I am very concerned if property agents who are suppose to be advising their clients personally had such an unrealistic idea that prices of HDB flats would rise forever that they thought it prudent to pay $580k for a 5-rm HDB flat that was already 35 years old at the time of their purchase.

ST also highlighted another case of HDB owner trapped in buying old HDB flats.

It featured a property agent, Janet Ow, who bought her 5-room flat with her husband, also a property agent, in the old estate of Telok Blangah. They bought the flat at $580,000 some 8 years ago in 2010. Currently, their old flat has just got 56 years left on its lease.

In 2016, they started marketing their flat at $680,000 to $690,000 hoping to make at least a $100K. Bids came in at $620,000 and $630,000 but now offers have also dried up. For more than a year now, they couldn’t sell their flat.

“Those who called asked about the balance of my lease first,” Ms Ow said. “The flat’s age has now become a main concern after National Development Minister Lawrence Wong’s reminder in March last year.”

“Upon knowing the age, sometimes they won’t even proceed with viewings. In 2016, when we put up an ad, we would get around 10 calls. Now, we don’t even get a single call for one to two weeks,” she added.

“If I don’t sell now and prices keep dropping, I will be making losses on my flat eventually.”

Ms Ow and her husband are hoping to sell their flat quickly so that they could get a condo with a fresh lease.

“At least we know we have a long lease ahead of us and can cash out,” she said. “We don’t want another HDB resale flat because the ageing lease problem will crop up again.”

In any case, at the moment, Ms Ow said she feels “insecure about the future”.

https://www.theonlinecitizen.com/2018/04/15/owner-sells-3-room-hdb-for-15-less-after-wongs-comment-about-zero-value-of-expired-flats/

Another reason they should lose their licences is that to help her and her hubbie out of their stupidity, they want the govt to screw other S’poreans

Ms Ow said, “Perhaps HDB could look into allowing buyers of flats with less than 60 years left on the lease to utilise their CPF fully (ie, 100%) instead of partially.”

“That will help to alleviate the worry of having to pay cash for part of the purchase. This will help buyers who need to buy flats in an oder estate to be near their parents who may be there,” she added.

Err that means those who use 100% of his or her CPF savings to buy such older flats will not have enough to retire on later because of the near-zero value of the flat.

Robbing blur Peter to pay stupid, s3elfish Pauline isit?

 

Why our housing valuations look decent?

In Hong Kong, Property on 13/02/2018 at 4:36 am

I was fooling around with this https://www.economist.com/blogs/graphicdetail/2018/02/daily-chart-5 and among other things compared S’pore property valuations with that of HK. Something didn’t seem right about the S’pore valuations when I remembered some Bloomberg stuff I saw in 2016.

This is something cybernuts don’t tell us, especially the one who jets in from HK on his private jet to lecture us on why life in HK is a lot better in HK and why we must all sing “The East is Red” and even the Malays and Indians must be Chinese patriots.

 

 

 

 

 

 

 

Because of public housing, housing here is a lot more affordable.

 

http://www.bloomberg.com/news/articles/2016-10-06/singapore-crushing-hong-kong-in-race-to-bring-down-home-prices

Now if the PAP administration were a lot less obssesed about “stealing from the reserves” and “market pricing” (Market pricing? Market market pricing when the state is the largest player in the market what with its control of supply?), housing here could be a lot more affordable.

Coming back to local property prices, if u had keyed in S’pore in the Economist’s interactive model, like I did, you would have seen that valuations (historical and present) here are pretty decent. I suspect public housing data is included. Even if this is not, the public sector housing affects the private sector valuations.

 

 

How to get S’poreans to welcome mass immigration

In Economy, Political governance, Property on 05/02/2018 at 10:25 am

The calls are getting louder, with more and more voices making the case for Singapore to relook its position on the foreign manpower issue, in the face of a severe demographics slowdown*.

http://www.todayonline.com/singapore/big-read-foreigner-issue-are-we-ready-rethink

The above and a similar ST article a few days earlier is evidence that the constructive, nation-building media is again preparing the way for the flood gates to be opened and for FTs to be allowed in by the cattle truck load (not like now by only the A380 or 747 cattle class load).

The stories reminded me also that

“Opposition to immigration is largely cultural and psychological. Policy options will therefore have to address this.”

Eric Kaufmann, professor of politics at Birkbeck University of London, http://blogs.lse.ac.uk/politicsandpolicy/why-culture-is-more-important-than-skills-understanding-british-public-opinion-on-immigration/)

Eric Kaufmann was talking about the UK, but what he says also applies here.

So somehow, I think talking in general terms that the economy needs FTs wouldn’t work. Think the Population White Paper (Population White Paper: PAP’s suicide note?) which didn’t convince S’poreans that we need FTs by the cattle-truck load.


A personal view

As I’ve blogged before, FTs by the cattle-truck load is good for me personally because of the wage repression effect, stronger GDP growth, rising property prices etc. But still I’m not even in favour of FTs by the A380 load. I want FTs by the A350 or 787 business class and first class load.

__________________________________________________________

So if the PAP wants to use culture and psychology to get S’poreans to welcome cattle truck-loads of FTs, the constructive, nation-building media should tell S’poreans what will happen to the value of their “affordable” HDB flats that they are paying for via 25-year mortgages, if said FTs are not allowed to come in by cattle truck-loads to beat up taxi uncles and professional women. After all, falling HDB, and private property, prices are a consequence of weak economic growth, which will result from restrictions on immigration: at least according according to the “experts” quoted in the said articles*.

As Moneytheism (particularly the Propery cult) is our religion, the message will sink in very fast that S’pore needs FTs by the cattle-truck load to prevent HDB prices, and private property prices, from collapsing.


*The article goes on

Last December, economists said it may be time to re-look the Government’s stringent immigration policies following a UOB report on Singapore’s “demographic time bomb” which will start ticking next year, when the share of the population who are 65 and over will match that of those under 15 for the first time.

In January, Monetary Authority of Singapore chief Ravi Menon devoted much of his speech at a high-profile conference on the topic, making an impassioned plea for Singapore to “reframe our question on foreign workers”, given the limited scope in raising birth rates and labour force participation rate (LFPR). This was followed by a commentary penned by National University of Singapore (NUS) academics urging the Republic’s universities to admit more international students, in light of falling numbers.

Dr Chua, the Maybank economist, questioned how the targets could be met based on the current workforce size without additional foreign manpower, even after taking into account those who are displaced from positions becoming redundant.

“Manpower policies will need to be fine-tuned…Singapore’s transformation roadmap cannot be fulfilled without some flexibility in its manpower policies,” he said.

Dr Chua reiterated that relaxing foreign manpower restrictions during economic upcycles will allow Singapore to capitalise on growing investments and demand. “If restrictions are too tight, business will choose not to invest in the first place,” he said. “That in turn hurts job creation and opportunities for Singaporeans.”

He added that foreigners also “pay their fair share of taxes and contribute to the overall fiscal position, reducing the tax burden on citizens”.

 

 

Why 30-year old HDB flats difficult to sell/ Why PAP rule will end in 2029

In Banks, CPF, Financial competency, Financial planning, Political economy, Political governance, Property on 02/02/2018 at 7:19 am

A doctor turned fat cat investor responded to Jialat for PAP where I reported a property saleman (OK, OK, he’s title is “research director”) as saying “From the ground, homes with leases of less than 60 years took longer to sell, and at a much lower price …”. (Background reading for those who have not followed the problem with HDB leases of less than 60 years: HDB flats: 35 is a dangerous age)

He wrote

Since 2016/2017 HDB flats older than 39 years have seen a “cliff drop” in prices due to:
(1) Reduction of CPF quantum that can be used for properties with less than 60 yrs lease;
(2) Age of buyer plus remaining lease must be >= 80.

In many mature estates undergoing SERS activities, the price of 40+ year old flats are having 35% discounts against nearby brand new “subsidized” BTO flats. Even with marketing efforts extolling the “higher chance” of SERS for those older flats, buyers are not buying it.

This mini cliff drop has been exacerbated since LW [Lawrence Wong] did an about turn against Old Fart’s & Woody’s asset enhancement propaganda.

Currently majority of HDB flats are still within 25-38 yrs old. The above problem will get worse over the next 10-15 years.

This gives PAPies another 2 terms at least to continue milking Sinkies.

Assuming the next general election is in 2019, this means the PAP will lose power or its two-thirds parly majority in 2029 or thereabouts. Mad Dog will then be 67 and Dr Paul will be about 65. If Mad Dog becomes PM jialat. If Dr Paul becomes PM, let the good times roll.

So if SDP is still headed by Mad Dog as is most likely because he’ll knife Dr Paul in the back to ensure that he’ll rule the SDP, I’ll be forced to vote PAP for the good of S’pore. So I hope he steps down soon.

 

Jialat for PAP

In Banks, Financial competency, Financial planning, Property on 29/01/2018 at 7:39 am

Unhappy HDB “owners”will complicate change of PM (Connecting SMRT failures, 4th gen ministers & change of PM) and other plans.

In yet another sign of a recovery in the private residential market (SIBOR up 25%, but property mkt is hot?), prices went up 1.1 % in 2017, reversing the 3.1%  decline in 2016, figures from the URA showed last  Friday.

But the HDB Resale Price Index (RPI) for 2017 declined by 1.5% , HDB said on Friday.

Worse for those wanting to sell older HDB flats

From the ground, homes with leases of less than 60 years took longer to sell, and at a much lower price … we anticipate the market to improve, especially in areas where former HUDC developments were sold en bloc. Some of these buyers downsized to a HDB flat and kept the proceeds for retirement, or to support their children in purchasing a private home.

Dr Lee Nai Jia, Head of Research at Edmund Tie & Company

http://www.todayonline.com/singapore/private-home-prices-11-2017-reversing-2016s-31-decline

(Trumpets pls: I posted this in April 2017 HDB flats: 35 is a dangerous age. And btw, this Old private flats’ value can also fall off a cliff).)

Anyway, the PAP has a problem if private property prices keep going up while HDB flats prices continue to decline, or stagnate at these levels.

Those with HDB mortgages will not be happy that their their “heavily subsidised” flats have not appreciated in value in line with FTs’ and elites’ private property values, while those with older flats will be doubly unhappy.

Since more than 80% of Singapore’s population live in HDB flats, a growing gap between HDB prices and private housing prices is not good for the PAP.

But at least Mad Dog and the cybernuts will be happy: more of the 70% will be unhappy with the PAP. They can “Keep on wanking and dreaming that the PAP will lose the next GE”.

2033: Real reason why PAP rule will really end

In Political governance, Property on 21/10/2017 at 7:07 am

When I wrote Today SMRT, TOM Resale Public Housing which tells readers living in HDB flats how much time they have to enjoy “asset enhancement” after paying off their “affordable” 25-year mortgage (before the value of their HDB flats collapses according to calculations made by the constructive, nation-building ST not anti-PAP cynernuts), a regular reader linked my tots to an earlier piece Why 2033 will be the yr PAP rule ends.

By then the problem of large swathes of HDB estates’ (not just blocks here & there) impending demise to zero value will be front & center.

this fat cat rentier pointed out referencing Why 2033 will be the yr PAP rule ends

So u really think Ah Loong wants his son to be the 5th generation PAP PM? Something his siblings and anti-PAP cybernuts allege?

Today SMRT, TOM Resale Public Housing

In Property on 20/10/2017 at 10:50 am

But first, why a good public housing system is good for society.

Housing is the first of the social services. It is also one of the keys to increased productivity. Work, family life, health and education are all undermined by crowded houses. Therefore a Conservative and Unionist Government will give housing a priority second only to national defense.

1951 Tory conference: Economist

(Note the Tories won the UK general election and ruled until 1964 despite several debacles like the Suez crisis and not getting into the EU.)

Like the Tories, Harry and the PAP Old Guard when they came to power in 1959 also understood the importance of housing in building a cohesive society .


Related articles

“Housing is Affordable”: The real truth

Recognise this ang moh description of our HDB system?

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

—————————————————

But things started going wrong when HDB flats on 99-year leases became “assets” to be manipulated for political gain (Think “asset enhancement”). The result: “affordable” public housing now means HDB “owners” having to take out mortgages of 25 years. Not a big problem if one buys a BTO flat from the HDB. After paying off the mortgage, there’s 39 years to go before the value of the flat falls over a cliff.

http://www.straitstimes.com/opinion/will-you-still-love-your-hdb-flat-when-its-over-64

Note, it’s not the anti-PAP cybernuts pointing out the fall in value when the flat is 65 years old. It’s the constructive, nation-building ST.

But if one bought a 30-year old HDB resale flat, by the time the mortgage is paid up, one only gets 9 years before the value of the flat falls over a cliff.

In between a BTO and a 30-year old flat:

— If one bought a 20-year old HDB resale flat, by the time the mortgage is paid up, one gets 19 years before the value of the flat falls over a cliff.

— If one bought a 10-year old HDB resale flat, by the time the 25 year mortgage is paid up, one gets 29 years before the value of the flat falls over a cliff.

One by one, the icons of PAP rule are showing their feet of clay. First was and is the MRT system run by SMRT, next will be resale public housing.

——————————————-

Feet of clay

Thou, O king, sawest, and behold a great image. This great image, whose brightness was excellent, stood before thee; and the form thereof was terrible.

This image’s head was of fine gold, his breast and his arms of silver, his belly and his thighs of brass,

His legs of iron, his feet part of iron and part of clay. (Daniel 2:31-33)

And whereas thou sawest the feet and toes, part of potters’ clay, and part of iron, the kingdom shall be divided; but there shall be in it of the strength of the iron, forasmuch as thou sawest the iron mixed with miry clay.

And as the toes of the feet were part of iron, and part of clay, so the kingdom shall be partly strong, and partly broken.

And whereas thou sawest iron mixed with miry clay, they shall mingle themselves with the seed of men: but they shall not cleave one to another, even as iron is not mixed with clay. (Daniel 2:41-43)

 

 

 

 

 

 

 

 

 

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.

 

HDB flats: 35 is a dangerous age

In Banks, Financial competency, Financial planning, Political economy, Property on 13/04/2017 at 4:48 am

It’s all about financing.

Here’s a great graphic from ST on how the value of a HDB flat will fall over a cliff after the first 35 years. Extracted from http://www.straitstimes.com/opinion/will-you-still-love-your-hdb-flat-when-its-over-64.

hdb_flat_depreciation_wsyecon12

 

Bang yr balls anti-PAP cybernuts

In Property on 25/01/2017 at 4:40 pm

That means u: TJS (comparing S’pore to PeenoyLand), Philip Ang, Goh Meng Seng and Oxygen and other TRE ranters. S’pore’s not on this list

https://www.theguardian.com/cities/gallery/2017/jan/23/10-most-unaffordable-cities-housing-in-pictures

Vote PAP?

After all, unlike HK (most unaffordable place and where Goh Meng Seng lives, saying its a lot cheaper than S’pore*) we got a decent, if expensive, public housing here.


*He got paid-up property there isit? Paid for by CIA for fixing the Oppo, election after election isit?

The man behind racial quotas in HDB estates

In Property on 15/12/2016 at 4:08 pm

The man who inspired the idea of racial quotas in HDB estates has just died. He developed the theory of the “tipping point” to explain white flight from US inner cities and his suggestions to counter this flight inspired the PAPpies who were his students in the Kennedy School of Public Policy (think PM, George Yeo etc) to come up with the idea of racial balance in HDB estates, making the Chinese owners of HDB flats more equal than owners of other races

NYT Dealbook

Thomas C. Schelling, Master Theorist of Nuclear Strategy, Dies at 95

The Nobel laureate used game theory to shed light on U.S. and Soviet actions and developed the theory of the “tipping point” to explain white flight.

Are PAPpies and cybernuts related?/ Andrew Loh’s bill dissected

In Uncategorized on 16/10/2016 at 2:31 pm

Maybe the u/m from FT will explain why Queen Jos and Andrew Loh sound so alike in their whackiness? The former appears to believe that sex is meant for procreation only and the other seems to swallow, hook ‘line and sinker the PAP spin that public healthcare is cheap*. On the latter as I’ve wriiteh here

Going by what Andrew Loh has written, anti-PAPpies repent and say “Vote PAP” when they see that their medical bills are peanuts? LOL

David Dunning and Justin Kruger received an Ig Nobel prize in psychology for their discovery that incompetent people rarely realise they are incompetent; the Dunning-Kruger effect is now widely cited. FT

(More on this effect.)

*When TRE republished this, a cybernut asked a rational question: was there over-priced billing in the first instance.

oxygen:

ANDREW LOH IS DEFINITELY NOT WRONG OF HIS FINANCIAL STATISTICS – it is his actual billing. But what he didn’t ask of obvious is this – was there over-priced billing in the first instance.

I saw a scanned copy of SGH’s colonoscopy bill of another – there was TWO facilities charges for one surgical procedure done – that is, there is a facilities charge for waiting area and another facilities charge for procedural surgery. The latter is comprehensible but the former (facilities charges sitting in the waiting room waiting to be call in for actual procedures) is mind-boggling. Why not also charge “facilities charge” for the patient’s relative sitting there waiting as well?

So the issue is the total billing and its details – the discount is rubbery fantasy of illusion -and of course the final billing. If Andrew Loh has expired all his Medisave account, HE WOULD STILL HAVE TO PAY THE AMOUNT OUTSTANDING OUT OF HIS POCKET.

Draining the balances of his CPF Medisave account must mean he has to top that up soon or sometime in the future. IT IS SEMANTIC OF ADVANTAGE ILLUSION – a bill is a bill and needs to be settled – one way or another unless it is free of universal health care like Medicare in Down Under.

Rating: 0 (from 0 votes)

There was another nut who also had a fit of sanity:

N.Jungne:

What was in the Bill is true, the devil is in the detail. It (the bill) does not reflect the detail of how they come about (summarized).
1). The maximum daily deduction per day in “C-class” X 7 days
2). The deductible for “C-class.
3). The half of 15% co-payment.
Now there is another NEW category (I can’t remember), even a few $$$ can be deducted from our Medisave.
Andrew is not WRONG, they change and change until we are confused.
The QUESTION is WHY (they change).

 Rating: +8 (from 8 votes)

“Using home to fund retirement is a delusion”

In CPF, Property on 17/07/2016 at 4:51 am

Downsizing your home to give yourself an income in retirement is unrealistic, according to the former UK pensions minister, Steve Webb.

http://www.bbc.com/news/business-36804906

Now u know why the HDB’s lease-back scheme is such a lousy deal.

Btw, don’t PAP ministers recommend downsizing or lease-back when CPF is not enough?

“Housing is Affordable”: The real truth

In Property on 24/04/2016 at 4:25 pm

Both PAP ministers  (“Affordable”: err on S$1m salary, everything is affordable) and TRE cybernuts (“very unaffordable”: how they know? They all living in rented public housing but cursing the govt because they want free housing juz like they expect Team TRE to pay money to entertain them.) are wrong.

Housing here is only marginally unaffordable. Chart from FT

Chart: Housing costs

Update on 13 May: A regular reader pointed out: I assume net earnings means after tax earnings. If that is so, then the net earnings for Singapore is massively understated. I am certain if CPF contributions are computed into net earnings, Singapore will be a lot higher.

HDB policy makes life harder for single mums

In Public Administration on 06/03/2016 at 7:00 am

“One single mother said she was regarded by HDB as “too well-off to qualify for a rental flat, but too poor to buy a flat.” Many are forced to rent in the open market, depleting what assets or savings they have left. By the time the 30-month debarment period is over, even if they did not start out poor, they have become poor. It is thus rental access rather than home ownership which needs attention.

The limitations of Fresh Start

Emphasis mine.

This is how a rental flat family lives

Nurhaida Binte Jantan is making dinner. She is roasting otah-otah, a Malay dish of fish paste wrapped in banana leaves, over a portable stove.

She is a 29-year-old unemployed single mother with six children from five to 13 years old. She lives in a tiny flat, just 30 square metres, with little furnishing.

There is no dining table, so the children eat their otah-otah with rice and chillies crouched on the floor.

The children share the single bedroom – their only bedding is mattresses and thick blankets. Nurhaida sleeps on the sofa in the living room.

She receives weekly groceries from charities, as well as about S$600 ($474, £262) a month in government aid and money from a boyfriend. But she admits that it is difficult to make ends meet. She has not been able to afford asthma medicine for her second daughter for months.

“No one can afford to get sick in this house because our finances are too tight. It’s quite tough and a struggle for me to be raising them up,” she said.

“I have to look after this house 24/7… so for me if I were to find a job, it would have to be a night job, so that once they are in bed, I can go out and the older kids can watch the young ones.”

http://www.bbc.com/news/world-asia-26349689

 

Not afraid of 99-yr lease ending

In Property on 27/02/2016 at 9:46 am

Afraid of redeveloment

I refer to this http://mothership.sg/2014/04/the-99-year-time-bomb-some-singaporeans-are-sitting-on/ which was recirculated again in mid Feb.

This reminded me of the Bras Basah Complex HDB flat I tot of buying.

In 2014, I heard they were going “cheap” because the tenure left meant that only cash could be used. They were value for money (I can’t remember the asking prices): roomy and juz round the corner from Taffles City etc, and with nearby facilities for oldies like my mum and me (in time to come). I wasn’t too concerned  about the remaining tenure as I calculated that I wasn’t going to be around to see the expiry. I considered the putchase price as “rent” paid in advance.

What stopped me from buying one was simple. What if the govt bought back the flats to redevelop the area? I’d lose serious money. It happened at the nearby Rochor Centre.

 

 

SG50/ HDB: PAP man didn’t take salary? Kidding me leh?

In Infrastructure, Political governance on 18/03/2015 at 5:20 am

Continuing the theme of the HDB and public housing, let’s remember Lim Kim San.

I had tot of him when I read this a few weeks ago: My grandfather sold his plot of land to the government in the 1960s and moved into a HDB or Housing Development Board home, thousands of which were sprouting up all over the island. It was an affordable way for Singaporeans to buy property and raise their standard of living.

“We had a huge task when we first started in 1960. At that time our population size was 1.6 million, out of that, 1.3 million lived in squatters – not to count thousands of others living in slum areas and old buildings,” says Liu Thai Ker, who was known as Singapore’s “master planner” in the 70s and 80s. The new HDB towns that Liu oversaw came with their own schools, shops and clinics. The high-rise buildings introduced many Singaporeans to the miracles of flushing toilets and clean water at the turn of a tap.

By 1985, in just one generation, Liu says, the HDB was so successful in its rehousing policy that Singapore could claim to have “no homeless, no squatters, no poverty ghettos and no ethnic enclaves”.

http://www.bbc.com/news/magazine-31626174

Sad that Lim had not been mentioned. Maybe the BBC writer, an FT of S’pore origin, didn’t know about him because I get the impression that he has been moved into the margins of the right narrative of our history despite being highly  praised by one LKY.as one of the Government’s past “political entrepreneurs”, who had seized opportunities using powers of analysis, imagination, a sense of reality, drive and character, “He has a lively, practical mind …” http://www.nas.gov.sg/archivesonline/data/pdfdoc/088-1996-11-28_lky.pdf

Let’s start at the beginning. He volunteered  in 1960 to be the HDB’s first chairman and was not paid for three years (but (Jos, Grace and Hen should take note) it seems. But then he was rich, very rich and as an Oz tycoon said A$5m is enough money to live on, though I’m sure Jos and Grace will disagree: money always not enough say the aunties.

He was in charge of the massive construction of high-rise, low-cost (Note: not affordable) housing that made the PAP popular with the masses.

LKY said he could organise and plan. But his planning was “rough and ready”: using simple estimates, not derived from detailed stats (there were none then) and detailed analysis (not that number of number and data crunchers around, and there were no computers).

Critics said he could not build 1,000 units a year because the HDB did not have the capability and the materials to reach the target. By the time a committee published its report on whether HDB could reach the target, the HDB had already completed 1,000 units of housing.

I’ll let his Wikipedia entry tell the rest of the  story.

In the first Five Year Housing Program, HDB achieved its goal of completing 5000 units of housing by 1965. The largest project at that time was Queenstown, a satellite town of more than 17,500 apartments capable of housing close to 22,000 people. The new neighborhood was built as a self-contained entity, with all amenities and shops built along with the houses, so people will not need to travel to other areas for basic necessities, thereby lowering traffic congestion. This philosophy (which was ultimately extended with the concept of regional centre), is generally accredited by many to have significantly contributed to the lower rate of congestion and burden on the central business district than before. [If so good why CBD charges introduced? And then island-wide tolls? Raise monney isit?]

In May 1961, the Bukit Ho Swee Fire broke out and some 16,000 people became homeless. Under Lim’s guidance, the relocation and reconstruction of the lost housing was completed in just over four years, and 1200 housing flats were made available to those who lost their homes in the fire.

The success of the housing project was considered by some to stem mainly from the standardized architectural designs that were used. Another important factor was Lim’s decision to use private contractors rather than employing construction workers directly. This allowed the HDB to supervise the contractors to ensure standards, rather than dealing with minute problems. Also, overall cost was kept low by using a large pool of contractors and different sources of building materials.

There are some who said that by solving Singapore’s housing problem, Lim saved the PAP in the process. However, Lim himself was more modest, saying the success of the housing programme was also due to government funding, as housing was, and still is, a top priority.

Part of Lim’s success at the HDB was that he had the trust of the Prime Minister at the time, Lee Kuan Yew. He also worked closely with the Minister of Finance at the time, Goh Keng Swee. These connections allowed Lim keep the housing program well-funded. Another political factor that allowed the success of the Housing Project was that Lim managed to cut through bureaucratic red tape and rigid regulations that would have otherwise hindered the housing program.

As to why he’s almost invisible? Maybe because he didn’t take a salary for three yrs? I mean with Grace, and Grace, you can figure out why he can’t be that popluar among younger PAP ministers. .

One cheer for the PAP’s housing policy?

In Infrastructure on 17/03/2015 at 4:56 am

During the Parliament debate on Tuesday (10 Mar), National Development Minister Khaw Boon Wan talked about the affordability of HDB BTO flats and how Singapore housing system is better than other countries’, “Recently, UK newspaper The Independent (Jan 23) had an article and with this headline: ‘Londoners queue overnight in sub-zero temperatures to buy one bedroom flat for 400,000 pounds’. 400,000 British pounds is equivalent to about S$840,000. On the same day, in Hong Kong, South China Morning Post (Jan 23) reported 130,000 applications for 2,160 subsidised flats in Hong Kong. The article’s headline reads: ‘Only 1 in 60 chance to win in Hongkongers’ rush for subsidised flats’. The flats, which are roughly the size of our 2-room flats, are priced between HK$1.9million and HK$3.3 million. This is more than 4 times our Build-to-Order (BTO) prices.”

“I think they put into better perspective our much more benign situation in Singapore,” he added.

He got a earful from TRE regular contributor Chris K who has lived in London. http://www.tremeritus.com/2015/03/13/khaw-talked-nonsense-comparing-hdb-prices-to-londons

I leave it to a letter writer to the FT to put the situation in the UK into perspective for us S’poreans: “For the young rent is over 40% of wages. Why do we have to keep paying the rentiers who generate no wealth? We don’t need a new productivity revolution we need to crush the rentiers. There is your paradigm shift.”

But many S’poreans for all of Khaw’s KPKBing about our HDB policies shares one problem with the Brits: Lord Best has spent a lifetime working in social housing and sums up how things stand: “Everybody under 40 has got some kind of housing problem. They’re paying too much for their mortgage, they’re paying too much for their rent, they’re in trouble one way or the other.”

Interesting even that lover of all things HK, Goh Meng Seng, hasn’t attacked Khaw’s comments on HK’s public housing programme. Neither has any other anti_PAP cybernut. In fact no-one has it seems.

So we are one up on HK? One cheer then.

 

 

Recognise this ang moh description of our HDB system?

In Uncategorized on 16/03/2015 at 4:57 am

In a recent article in the FT entitled “How to ensure the lowest paid aren’t forced out of cities”, this is how our HDB system was described:

The most obvious reaction to a market failure is to remove the market. … the state can step in. In Singapore, for example, 80 per cent of the population live in homes built by a government body, the Housing and Development Board (HDB).

It was set up in 1960 in a bid to clear up the city-state’s pervasive slums, and later turned into an all-purpose housebuilder and landlord. The vast majority of Singaporean households own their homes leasehold, with the HDB as the freeholder. The HDB also finances home buyers at preferential rates.

The HDB will only sell to Singaporean citizens, not foreigners. Maximum income ceilings also apply.

This popularises housing, preventing it from turning into an investment asset class which investors can pour cash into. Home ownership in Singapore is widespread, savings rates are high and the housing system has been credited as one of the factors in the country’s transformation from a third-world economy to a global powerhouse.

On the downside, such control gives the government a lot of power. For example, until 1991 the HDB would not sell to single people aged under 35, as part of the government’s attempts to promote marriage.

The market restrictions can also prevent people from building up an asset to fall back on in hard financial times, or in retirement. In many other countries, homes have replaced pensions as many people’s source of financial security.

If so good, how come so many people complaining online anonymously about the system?

I mean one anti-PAP complainer even complained that he had to sell his 5-room flat and downgraded to invest in his daughter’s future: sending her abroad to study medicine because she didn’t get the straight As to get into medical school here.

Shouldn’t he get on his knees before this photo and thank the PAP for his gd fortune: that selling his HDB leasehold could fund his investment in his daughter?

My serious point is that unlike our public transport MRT system*, our HDB system works pretty well. It can be improved and made really affordable. But by other major cities’ standards, there is affordable housing for the less well-off.

——-

*Our public bus system works well during off-peak hours. I know; I use it regularly. Btw, I’ll soon be eligible for senior citizens’ concession.

A long standing CPF sore remains untreated

In Financial competency, Financial planning, Political governance on 23/02/2015 at 5:29 am

On Friday, someone (no PAP rat) mumbled something about rising expectations as though it was a bad thing. I said given high ministerial and civil service salaries, very high expectations and standards must be the quid pro quo for the salaries especially as ministers and civil servants seem to have security of office despite non-performance (think Yaacob, Mah Bow Tan, Raymond Lim, Lim Hng Khiang). He conceded the reasonableness and fairness of the link.

Yesterday, I read something in TRE which should have been solved a long time ago by the PAP administration (ministers and senior bureaucrats) but not: S’poreans, after the age of 55, having to make HDB* mortgage payments in cash , even though they have some money somewhere in the CPF accoint which remains locked up..

I been driving taxi for the past 5 years now and recently turned 55. For the past 9 years, I have had zero CPF contributions and have slowly used up all the remaining balance in my CPF Ordinary Account to pay for my monthly HDB loan. I even had to give up all my insurance policies, since I couldn’t afford to pay the premiums any longer.
Earlier in the year, I sought assistance from my PAP MP to use my CPF Special Account, which still had about $90K balance left but which is utterly useless since it falls far below the stupid Minimum Sum of $155K. After my MP’s appeal, CPF Board allowed usage of my Special Account to pay my monthly HDB loan (of course la, appeal from PAP MP what!).
To my huge surprise, I have now received an officious letter from HDB asking me to pay cash for my monthly housing loan because of my turning 55. This means that my Special Account has now been converted into a “Retirement Account” and because it falls way short of the $155K Minimum Sum, I could no longer use my stupid CPF to pay for my HDB loan. This is how idiotic the law works against those Singaporeans like myself who are struggling to make ends meet everyday.

On Facebook someone posted this in sympathy:

Many people will not have that minimum $155k in their CPF when they turn 55 because a lot of it will have been used to pay for housing. Unless they bought their house at the age of 25, many will still be serving their home loans when they reach 55**.

So, if they do not have the minimum $155,000 in their CPF by the time they are 55, does that mean they must use cash and cannot use the monies in their CPF?

What if after using cash, they only left with a few hundred dollars each month?

Who knows? Maybe after 55, they start to get pay cuts and their children are in their early 20s and servicing their own education loans?

I cannot fault the logic of these complaints.

There should be provision within the rules to ensure that someone in this situation can automatically keep on using his “Retirement Account” to fund his HDB mortgage payments. “Lose the flat so that he got retirement fund”: WTF?

Sadly the whole CPF system is in such a mess that the following extract from the FT about the USSR reminds me of the problems of reforming the CPF system: Before the Soviet Union collapsed, Russians compared the problem of breaking free from their Communist past to a frog in a swamp that wants to jump out but finds it has a hippopotamus stuck to its backside.

The PAP will only tinker with this sacred cow and Hard Truth.

But will S’poreans trust an Oppo coalition (assuming the WP joins such a coalition) to solve the problem? Somehow I doubt this too.because support for the opposition comes from disenchantment with the PAP administration – and is not a vote of confidence for the opposition parties.

So the tinkering goes on but let’s hope this sore is treated soon.

*Actually all mortgage payments but if one has private property, one can look after one’s self.

**And do remember that the really rich minister said a HDB flat was affordable because it could paot-off over 30 yrs. The HDB now restricts the period to 25 yrs.

Did HDB, URA officials mislead MP?

In Public Administration on 17/02/2015 at 4:27 am

Let’s revisit shumething that was the talk of cyberspace only a few weeks ago: a commercial columbarium near a residential estate.

There is a seemingly major contradiction in what the PAP MP told us the authorities told him and what Khaw said in parliament on the issue of Eternal Pure Land winning a bid to build a temple  Dr Lam Pin Min said that the authorities (presumably URA and HDB) had assured him that commercial firms could bid for land earmarked for religious purposes*. That is why he defended the tender at the dialogue session.

This not what Khaw told us:The decision to award a site designated as Place of Worship to a company not affiliated to a religious organisation is a first for the Government, said National Development Minister Khaw Boon Wan in Parliament on Thursday (Jan 29). CNA

Khaw was careful to use the term “private company” and “for-profit company”**, not Dr Lam’s “commercial entity”. If Dr Lam had been an Oppo MP or NMP, the anti-PAP cyber warriors (like TOC and TRE) and their cyber-nut allies would be baying (and rightly so) for an explanation of what the HDB and URA officers told Dr Lam. But because Lam’s a PAP MP, it’s OK if public servants mad misrepresentations of fact to him?

And were they lying or making an “honest mistake”.

There doesn’t seem to be a difference between “commercial firm” and  “for-profit company”, so it would seem that the HDB and URA had assured Dr Lam that “for-profit companies” had been awarded tenders in the past.

All I can say is that  MP with his, “I was an honest broker”* (my words) and the residents deserve one another: both he and they are hypocrites.

I mean which honest broker will accuse residents of objecting to anything?

And then there is this.

At the session, Dr Lam was perceived to be defending Eternal Pure Land (EPL) – who were awarded the contentious tender – and the authorities rather than siding with his constituents. Some people pointed out that he was sitting at the same table as representatives from Life Corporation, the parent firm of EPL.

“My purpose there was first to facilitate the dialogue session, to clarify the misinformation of what was posted online, and to allow residents to raise their concerns to me and the relevant agencies,” he said. “Usually for a dialogue session, this is how it’s done.”

Well he could have taken the position of the Speaker in the UK parly, sitting between both sides. LOL

But whatever we may think of him, no public servant should misrepresent facts to anyone. Today an MP, tomorrow a Pioneer Generation Auntie.

*“I… asked HDB and URA whether a commercial entity is allowed to participate in a tender process for a place of worship, and I was informed that it had been done before,” he said.

**Mr Khaw said the Ministry of National Development is “in discussion” with Eternal Pure Land (EPL) to “ensure that the land is restored to the original plan of a Chinese temple”. He was responding to questions posed by MPs Seng Han Thong, Lee Li Lian and Lee Bee Wah.

“We now understand that the winning tenderer for this site, Eternal Pure Land, is actually a private company without any religious affiliation. From what we know, the plan of the company is to run a commercial columbarium on the site,” the minister said. “This is not in line with our plan for the Places of Worship site.”

He said the authorities never thought that a for-profit company would participate in a non-profit making venture, such as building a Chinese temple. Reports said EPL, which is owned by Australian company Life Corporation, had put in a S$5.2 million bid in July 2014.

 

Fernvale Lea: Owners “hiding” an inconvenient truth

In Uncategorized on 06/02/2015 at 5:11 am

The NIMBYs of Fernvale Lea (all relations of that very entitled scholar Eng or of property developers?), and their allies among the anti-PAP paper warriors don’t mention a very inconvenient fact. And surprisingly neither does the constructive, nation-building media which is the PAP’s only weapon against new media which is dominated by those opposed or not friendly (self included here) to the PAP administration.

When the “noise” started, the u/m sketch was widely circulated on the internet. I wondered what was the building (coloured grey) in between the flats and the “temple” area. 

Turns out there is a multi-storey carpark between the “temple” land and the flats. Here’s how it looks.

And the photo below shows, the proposed  “commercial” temple/ columbarium would not be visible from the ground level of the Lea. And the residents living higher up will only seen the roof. Effectively, the temple/ columbarium is not visible, or anywhere near the flats.

So waz this bull of the temple/ columbarium spoiling the enviroment? It’s all about the fear of not getting gd prices for the flats because the flats are near the “dead”.

Now that we know the tender should never have gone to a commercial entity, we should be assured that it was an “honest mistake” made by stupid bureaucrats. The PAP administration should get the CPIB and ISD to investigate the officials who approved the award and defended the decision. The reason for the CPIB is self-evident: got bribery or not?

The reason for the latter is to see if the officials are “anti-PAP” subversives trying to fix the PAP. Maybe it wasn’t “an honest mistake” but a plot against the PAP administration. Remember that the core of the WP is the activists from the Barisan Socialists, the cunning enemy of the PAP.

And the media too should be investigated by the ISD: strange that the constructive, nation-building journalists didn’t point out this fact when sliming the MIMBYs.

Next week, I’ll blog on the question that Khaw never addressed, but which he should have. Did the bureaucrats fib or is a PAP MP lying?

Related post: https://atans1.wordpress.com/2015/02/04/ferndale-lea-will-owners-fold-or-raise/

 

 

 

 

 

 

 

Ferndale Lea: Will owners fold or raise?

In Property on 04/02/2015 at 5:03 am

Will the owners sit down and keep quiet accepting a temple with a columbarium attached to it? Or will they continue the alliance with the anti-PAP cyber warriors  and demand “justice”: temple with no columbarium or a refund.

,Since the National Development Minister Khaw Boon Wan in Parliament on Thursday (Jan 29).

“We now understand that the winning tenderer for this site, Eternal Pure Land, is actually a private company without any religious affiliation. From what we know, the plan of the company is to run a commercial columbarium on the site,” the minister said. “This is not in line with our plan for the Places of Worship site.” (CNA),

while anti-PAP warriors are flooding cyberspace with continued attacks of the PAP administration and its apparent U turn, the owners have been quiet.

They had been spinning that they only objected to a commercial columbarium* because this would spoil the environment. So they wouldn’t mind a real temple that had a columbarium, would they? Because Khaw said:

He added that many temples provide an incidental columbarium service for their members and devotees, and whether the eventual temple in Sengkang will provide such a service is a decision for the temple trustees to make.

Mr Khaw said the Ministry of National Development is “in discussion” with Eternal Pure Land to “ensure that the land is restored to the original plan of a Chinese temple”

Err I suspect they would still object if there was a temple with a columbarium because this is what was circulated earlier something slighly different (analysed here by me and another) which had this very NIMBY bit

We are unhappy and felt aggrieved by HDB’s misrepresentation by way of omission of material fact in their sale brochures. We reiterate that there was absolutely NO MENTION of columbarium in the sale brochures while the stated “Ancillary Service” phrase is so general that anyone who read that would have misconstrued as something else. Such definition can only be found in URA website and not HDB website at all. Any ordinary man would not have known how to get access to the details at all.

2) We are against such sales tactic as we should be treated fairly to be given FULL DISCLOSURE of information by the seller, HDB before we chose to buy the flat. We should have the right to make INFORMED choices and not short-changed with such omission of critical material information by HDB.

And even in the BS missive to PM and Khaw they made it clear towards the end of the letter: no urns containing ashes and bones:

11. We hope that in the event of putting the land up for tender again, HDB could consider the combination of Chinese Temple with Childcare/Student Care. The Childcare/Student Care centre should be required to open to all races. This will serve the community well as many of the residents are young couples with kids.

I think the owners are hoping (and praying?) that somehow there won’t be a  columbarium. Dream on. Know any recently built temple that doesn’t have a  columbarium: the columbarium provides a good, regular stream of income that helps defry the cost of running a temple.

Meanwhile, they’ve decided to keep quiet. Smart move.

 

Look on the bright side: No wonder PM thinks govt doing a great job

In Economy, Financial competency, Political governance, Property on 11/12/2014 at 6:39 am

Blog E-Jay* posted this on Facebook to prove point that “PAP, will be voting against you again in 2015/2016. Thank you for making my life difficult.”

Well, there are other, reasonable legtimate ways of looking at the chart:

— Wah flat owners got windfall if they willing to retire to Batam or M’sia

— I should have used bonus for one yr to buy 3-room HDB flat for cash in early 90s . Only thing allowed for us oppressed singletons then: maybe taz why I’m so hard on those who KPKB about being discriminated for trivial things like being gay. Only a real sleaze bas got prosecuted by AGC under 377A. Had to client of M Ravi.

— HDB owners so ungrateful: property worth so much all ’cause of SuperLoong and sidekick Mah. Instead of being grateful, HDB owners fret for their children’s inability to afford “affordable” housing. PAP makes them rich, must also make their kids reach. WTF!

Seriously, what the chart tells us is that Ah Loong allowed Mah Bow Tan to screw S’poreans. And he wants us to vote for him? And not to have better checkers than the Worthless Party is now providing. One of these days, I’ll blog on why PM is behaving like scholar Eng, and how two really rich and privileged kids, to the manor born, so to speak, can teach him some humility and common sense. Then maybe, he doesn’t need checkers. In the meantime, we need better checkers than the Worthless Party’s MPs.

But we got to play our party, deprive the PAP of its two-thirds majority.

*Actually, a revised Magnificent 7 list should include him and Uncle Leong [Added at 11.00am]

S’pore property more expensive than Swiss city/ What Goh Meng Seng doesn’t tell us about HK

In Hong Kong, Property on 09/11/2014 at 6:41 am

Prime International Residential Index – Square meters US$1m will buy

  • Monaco 15
  • Hong Kong 21
  • London 25
  • Singapore 33
  • Geneva 35
  • New York 40
  • Sydney 41
  • Paris 42
  • Moscow 43
  • Shanghai 46

Source: Knight Frank

Related posts:

https://atans1.wordpress.com/2014/06/04/swiss-cost-of-living-in-s-terms/

https://atans1.wordpress.com/2012/02/27/spore-despite-fts-an-expensive-place-to-make-pancakes/

GMS likes to tell us online the ways in which HK is a better place than S’pore. It’s gd to get the perspective of someone who jets between HK and S’ore and who is raising a family there while working there.

But he never tells us this

Housing chart

We are not among these cities ’cause of our “affordable” public housing that is causing debt problems for younger S’poreans. It’s so affordable that GMS sold his flat to help fund his bid for a S$15,000 monthly salary. He knew he could get a second bite at the cherry if he needed to?

Whatever it is, we do know that GMS has the money to raise a family in a city where housing is very “unafforable”. He FT in HK?

CPF: The cock that Swee Say talks

In CPF, Financial competency, Financial planning on 25/06/2014 at 4:43 am

The best way for Singaporeans to prepare for retirement is to use less of their Central Provident Fund (CPF) money when they are young. Mr Lim Swee Say, Minister in the Prime Minister’s Office, said this will ensure the current level of CPF payout can be maintained over time and not be eroded by inflation.

Mr Lim, who is also the labour chief, made that point when speaking to reporters on the sidelines of the closing of the Singapore Model Parliament yesterday. (23 Jan 2014). He later issued a clarification saying “that housing, healthcare and education for the children” were excluded from his spending comments, saying the constructive, nation-building media had misreported him.

Even with the clarification, he was talking rubbish, showing how clueless the nTUC minister was with the life of his ordinary members.

For starters, as TRE pointed out

Using less CPF money means leaving the money with CPF board, which in the case of OA, will earn only 2.5%. Inflation rate for the last few years already exceeded 2.5% (except last year, which barely covered the 2.4% inflation rate) [Link]:

  • 2010 – 2.8%
  • 2011 – 5.2%
  • 2012 – 4.6%
  • 2013 – 2.4%

Next after his clarification that he was talking of CPF spending other than for “housing, healthcare and education for the children”, one is left wondering if he doesn’t realise that other than for these things, CPF cannot be used for other than retirement. Is he so out of touch? Or another example of his special status, like once a month CPF statement?

The more impt issue, if no use CPF, how to afford “affordable” public housing? Public housing is only “affordable” because of 20-yr mortgages that use CPF monies to finance the loans.

At the moment 36% of a S’porean’s wages are locked up in the CPF because of this Hard Truth

[Without the CPF], Singaporeans would buy enormous quantities of clothes, shoes, furniture, television sets, radio, tape recorders, hi-fis, washing machines, motor cars. They would have no substantial or permanent asset to show for it.

  • Asian Wall Street Journal, Oct 21 1985 quoting one LKY.

Our money, but can only be spent on the “right” things: uniquely S’porean.

But it was an ang moh’s idea in the first place: In February 1940, one Keynes published How to Pay for the War. He advocated that interest rates should be kept low and that compulsory saving (thereby deferring pay) should be used as a mechanism to prevent the inflation that occurred during World War One. A portion of everyone’s income would be automatically invested in government bonds. Then, when the war was over, and the economy was in dire need of savings, the money would be released. The plan was too revolutionary for the British government.

In the S’pore version, the payout got deferred and deferred.

“The rule is, jam to-morrow and jam yesterday – but never jam to-day.”
“It must come sometimes to ‘jam to-day’,” Alice objected.
“No, it can’t,” said the Queen. “It’s jam every other day: to-day isn’t any other day, you know.”
“I don’t understand you,” said Alice. “It’s dreadfully confusing!”

(Through the Looking Glass and What Alice Found There)

Bring back Super Mah?

In Political governance, Property, Public Administration on 10/02/2014 at 4:52 am

If the PM brings back Mah, the minister who made sure HDB prices rose in a recession*, this Forum writer should be very, very happy about. HDB prices not falling. But to be fair to this idiot KS S’porean, P Ravi has empathy for the sentiments expressed.Still that doesn’t excuse his sense of entitlement.

Can Govt ensure HDB flats keep their value over time?

There have been recent reports on the falling prices of Housing Board resale flats (“First HDB resale price dip since 2005″, Jan 25; and “Resale flat prices not yet at ‘steady state’”; last Sunday)

The number of resale transactions has fallen considerably and we are seeing some negative cash-over-valuation deals.

Despite this, National Development Minister Khaw Boon Wan says a “steady state” has yet to be reached and that home buyers should welcome the softening prices of HDB resale flats.

A few years ago, I took part in several flat balloting exercises as a first-time buyer. I was not successful and had to pay a steep price for a resale flat.

Then National Development Minister Mah Bow Tan had said flat owners would benefit from rising prices because their homes would become more valuable.

There is certainly a need to ensure flat buyers are not disadvantaged by overly high prices.

But it is equally imperative that due consideration be given to flat owners, so they will not suffer a loss in the value of their homes over time. Are there measures to ensure this will not happen?

Chan Kwang Ping

P Ravi on Facebook commenting on the above, “People cannot be faulted for buying a flat even when the price is high and it is the sellers’ market, because whatever the market condition, people still need a house to live in. When people’s retirement fund are stuck in the house they own, such sentiments are understandable.”

What do you think?

And do you think he he will vote for WP? Maybe as WP has promised that it will only be PAP’s co-driver, a co-driver that will let PAP do as its like (OK! OK! WP says will slap PAP if it makes mistakes. But it only gets worked up when NEA, PA and PAP make trouble for WP: not when PAP makes trouble for S’poreans.). Will he vote RP or NSP? Err I don’t think he that stupid.

Will he vote SDP? I hope so (even if I think that its policy of crawling to the Indons doesn’t work), but doubt it as SDP wants to cut the link between investment for retirement and public housing.  A laudable, rational aim, but a tough sell when so many S’poreans are taking 25 yrs to pay off 99-yr HDB leases (About 87% of S’poreans live in HDB flata). Besides these leases have been a gd investment on paper (but useless as security), so far. Hmm maybe SDP should stress these flaws.

Khaw should say, “Vote PAP leh”.

Related posts:

https://atans1.wordpress.com/2011/11/19/hdb-oversupply-again-by-next-ge/

https://atans1.wordpress.com/2011/06/01/consequences-of-khaws-hdb-policies/

https://atans1.wordpress.com/2011/10/27/hdb-affordability-and-market-based-land-costs-redefined/

——-

*https://atans1.wordpress.com/2011/04/30/property-prices-going-against-natural-laws/

Why banks tested for 50% plunge in property prices and other wonderful tales

In Economy, Property on 16/01/2014 at 4:23 am

Singapore banks are so well-buffered that they will be able to withstand even a 50 per cent plunge in property prices here if this were to occur over the next two years, say stress tests done by the International Monetary Fund (IMF) and the Monetary Authority of Singapore (MAS). (BT late last yr)

I waz wondering when I read the above, why 50%?

Now I know: typical govt over-reaction:

BOTH public and private housing prices in Singapore have finally come down after a raft of government market curbs.

Prices in the once red-hot suburban private home market dropped in the fourth quarter of last year for the first time since 2009, new data yesterday showed. This dragged down overall private home prices.

Housing Board flat resale prices also tumbled in the October to December period, hard on the heels of a third-quarter decline.

This marked the first time public housing prices have slid for two straight quarters since 2005.

Consultants said weak demand for homes could mean that sellers will finally be at the mercy of home buyers this year, adding that a bumper crop of upcoming homes will swing things more heavily in favour of buyers.

http://www.cpf.gov.sg/imsavvy/infohub_article.asp?readid=417120496-19741-7479931115

Well if property prices ever fell 50%, the PAP govt would be overthrown overnight. And the co-driver kicked out with it. mad Doc and his RI doctors will be in charge Actually it would be the end of the world as we know it.

But maybe the govt isn’t over-reacting: http://www.forbes.com/sites/jessecolombo/2014/01/13/why-singapores-economy-is-heading-for-an-iceland-style-meltdown/. Note that the article conveniently forgets that the banks have been stress-tested to survive even a 50% fall in property prices. Lots of other things wrong with the analysis that I’ll cover one of these days. But for now juz remember that one LKY was a regular contributor to Forbes. Taz the quality of their contributors? Oh, the central bank has come up with a rebuttal: read it in yesterday’s constructive, nation-building media.

Next tale: the cowboys were correct that the govt should restrict HDB sales to PRs:

The proportion of Permanent Residents (PRs) buying Housing and Development Board (HDB) resale flats has gone down in the last few months.

This comes after new rules to stabilise the HDB resale market were announced in August.

PRs now have to wait three years after obtaining their Singapore PR status before they are allowed to buy an HDB resale flat.

According to HDB, in the three months after the new rules were announced, PRs made up 12 per cent of all HDB resale transactions, with 528 units sold to them.

This is down eight percentage points from January to August, when PRs made up 20 per cent of all HDB resale transactions.

There were 2,581 resale flats sold during that period.

HDB also noted that the decrease is not unexpected, as there are now fewer PRs eligible to buy a resale flat.

It also pointed out the drop may not be solely due to the three-year waiting period. (CNA 23 december 2013).

Maybe PM should outsource policy decisions to the masses. Even IT operations are being done by the masses via crowdsourcing http://www.bbc.co.uk/news/business-25714443.

DBS doing NS on HDB loans?

In Corporate governance on 13/11/2013 at 4:26 am

If it’s one thing S’poreans who are paying off the mortgages on their HDB flats can agree on, it is that the govt is stretching the truth when it says that HDB mortgage payments are affordable because mortgagors can use CPF money leh. They are not that daft not to realise that it affects their old-age funds. And anyway, it’s always nice to pay less.

So it’s interesting that DBS has a very gd scheme for HDB borrowers. So gd that only the daft wouldn’t apply for it. I’ll let BT explain:

Thousands of HDB homeowners are turning to DBS Bank for a mortgage product that guarantees savings.

Those who took up a POSB HDB loan when it was launched in April could be looking at savings of as much as $1,600 by next month, calculations from DBS showed.

The first POSB HDB loan pilot launch – where homebuyers enjoyed a floating-rate loan with interest capped below the HDB concessionary rate for 10 years – was fully sold.

The bank is now into its second offering, which charges the same rate but for eight years, said Ms Lui.

The current POSB HDB loan charges for the first eight years the three-month Sibor (Singapore interbank offered rate) plus 1.38 per cent, capped at the CPF Ordinary Account rate. The current CPF Ordinary Account rate is 2.50 per cent.

Thereafter, the loan charges three-month Sibor plus 1.48 per cent. The September three-month Sibor is 0.374 per cent.

The HDB concessionary loan now charges 2.60 per cent, which consists of 0.10 per cent plus the CPF Ordinary Account rate of 2.50 per cent. Based on the three-month Sibor of 0.38 per cent, borrowers who switch from the HDB concessionary loan will pay a lower interest rate of 1.75 per cent.

For a homebuyer refinancing from the HDB in April, based on a loan of $400,000 and 25-year tenor, the potential savings over six months amount to $1,684.

And should interest rates rise over the next eight years, DBS guarantees that it will be capped at the CPF Ordinary Account rate of 2.50 per cent or 0.10 per cent below the HDB concessionary rate.

http://www.cpf.gov.sg/imsavvy/infohub_article.asp?readid=563079109-19246-5011258124

Nice to see DBS returning to its roots as “Development Bank of S’pore”., and using the POSB brand which some Foreign Trash CEO tried to get rid off. Fortunately, he went before the POSB brand went. Gd work ,New Citizen Gupta.

But if DBS is doing gd, is this mortgage making money, on a risk-adjusted basis, for DBS? How come OCBC and UOB don’t have similar schemes? Maybe DBS is helping out in constructive nation-building? Err what about shareholder value for non-controlling shareholders and gd corporate governance?

Never mind, I don’t own DBS shares.

To lose one Hard Truth may be regarded as a misfortune; to lose three in two months looks like carelessness

In Political governance on 09/09/2013 at 4:50 am

(“Mah & Yaacob disprove PAP’s Hard Truth on ministerial salaries”)

The implicit disowning of the Malay minister’s claims when he was Water minister that once-in-50-yrs floods were causing problems, not his ministry’s disfunctionality, has been implicitly disowned by the govt when the present Water minister said an expressway flood is unacceptable. Yaacob, talked of several floods that occurred several months apart as very exceptional events that could not be reasonably foreseen. VivianB’s comments imply that very heavy rain should be foreseen and planned for.

This reminded of another recent occasion when another Hard Truth was disowned.

On  26 August 2013, new rules were imposed by the Housing and Development Board (HDB). The one that caught the headlines and public attention was that households with permanent residency, or PR, status can only buy previously owned state-built homes if they have held PR status for at least three years. Permanent residents, who made up 10% of Singapore’s population of 5.3 million people in 2012, could previously buy a HDB flat from the resale market immediately after getting PR status.

But what S’poreans seemed to ignore was the rule change that would also offer public-housing loans with a reduced maximum tenure of 25 years, down from 30 years. Public-housing mortgage payments would be capped at 30% of borrowers’ gross monthly income, down from 35%. Prudent leh, we are told.

In 2011, one Mah Bow Tan argued that HDB flats were afforable because : It only took 30 years, 2 incomes and 30% of the 2 incomes to pay for the HDB flat.

As one blogger said qat the time: How many of you agree that this affordable formula is fair? This formula means that for the first 30 years of one’s working life, there could be very little saving for retirement. Most could only start to save after repaying their 30 year loan. So don’t ask why you don’t have enough savings for retirement. The other point which this formula dictates is that both husband and wife must be working to be able to afford the HDB flat. One income, forget it. And there are families that have to live on one income, by choice or by circumstances beyond their control, or by tragedies.

He went on: The people must denounce this formula as unaffordable. 30% of one income for 30 years is already too much. It was 20% of one income for 20 years for a 5 rm flat for a fresh graduate. But the goal posts have been shifted during the last decade that people have come to accept 2 incomes and 30 years as the norm. It is not, and it should not be the case.

Well the PAP govt has now dropped the 30-yr part of the formula. And by implication, condemned the man who said it. The PAP should also be asking itself, “Was it worth it to change to a GRC system, so that this clown chap could be made a minister? Maybe better if we never had him as a minister? Why did we let him remain a minister for so many yrs?”.

What next PAP? Ditch his point that selling HDB flats at cheapish prices was tantamount to raiding the reserves?

And while I’m at it, how come our ex-ministers can’t earn this kind of serious money? Players on the int’l stage in business deal-making

http://www.reuters.com/article/2012/09/10/us-glencore-blair-idUSBRE88915920120910

Instead they

https://atans1.wordpress.com/2011/10/07/sph-another-home-for-ex-ministers/

https://atans1.wordpress.com/2011/09/02/retired-ministers-no-megabucks-from-private-sector/

PAP listening to SDP?

In Infrastructure on 11/03/2013 at 6:22 am

Err didn’t the govt rubbish the SDP’s idea of lowering the cost of HDB flats by making it a condition of getting cheaper flats that they be resold to HDB?

And didn’t Khaw just say that this idea will be studied? But didn’t credit the SDP for suggesting it?

As an oldie using SingHealth, here’s hoping the SDP’s healthcare ideas be adopted* and that Paul A** gets co-opted to become Health minister.

——

*Never mind if it bankrupts S’pore as healthcare costs in the US and UK are bankrupting these nations, I’ll be dead.

**He was a possible SDP candidate for Punggol-East. Gd that he didn’t stand because he couldn’t claim to be born poor: even s/o JBJ claimed that although born in a pram made of gold, silver and ivory, he became poor when his dad took on the PAP. He dared make this claim even though he went to very expensive ang moh schools. JBJ became so poor that he could send his son to expensive schools? Come on, man who doesn’t know the Pledge, pull the other leg, it’s got bells on it.

 

Public housing: a brickbat, two cheers & constructive suggestions

In Environment, Political governance on 07/02/2013 at 6:25 am

As the population target “worse-case scenario” or “projection” of 6.9m as envisaged by the White Paper will require a lot more public housing, here are some constructive, nation-building ideas from me on how to avoid rabbit hatches, or battery-hen housing, in the sky. We can live like pigs in a modern-day Danish farm: comfortable, hygienic surroundings. Danish farmers believe that happy pigs produce the best bacon: something the PAP govt should take to heart, “Keep the exploited happy, and they will remain happy to be exploited”.

But first I want to analyse two “buah tahan” comments that irritate me.

Who comes out with the most stupid comment on the row on Executive Condos? No it’s not Khaw, surprising; but one Jaimie Chong, an EC penthouse owner. She thinks she  will still get permission to cover the “open” space: EC0001. Her agent says so. How dumb can this rich gal get?

And secondly, our dear leader said, ” If government did not get involved in housing, it would be like Hong Kong: overcrowded and subject to high prices …” Is it not surprising that the usual S’pore self-haters who populate the pages of TRE, TOC and Facebook didn’t challenge him on this?

He is telling us a Hard Truth (perhaps the only one) that is grounded in fact: in housing, the PAP govt does more for S’poreans, than the HK govt.

— “In 2012, HDB offered a record number of 34,237 new flats comprising 27,084 new flats under the Build-To-Order (BTO) system and 7,153 balance flats under the Sales of Balance Flats Exercise … HDB had earlier announced that at least 20,000 BTO flats are planned for 2013. HDB is finalising its building plans for 2013 and will now target to launch at least 23,000 BTO flats. These projects will have a good geographical spread in various towns/estates which compares with 75,000 completed over the past five years.” (HDB)

— Contrast this with what HK’s CEO said last month as reported by the BBC, “He promised action to address a property crunch that has seen some residents forced out of the property market and even into tiny so-called “cubicle homes”.

Land would be both re-zoned and reclaimed so it could be developed for housing, leading to a greater supply, he said. A target of 100,000 new public housing units would also be set for the five years from 2018.

“As long as the housing shortage persists, we have no alternative but to restrict external demand and curb speculative activities,” he said.”

The 20,000 a year HK programme starts in 2018.

But it’s only two cheers for PM, because by comparing our public housing programme to that of HK, he is forgetting that dad was a “social democrat” (dad said that in his books), not an ang moh lord or HK property tycoon: social democrats believe in raising living standards. So, of course, the govt had to get involved in public housing.

Now to the constructive, nation-building part on how make us as happy as Danish pigs, not as unhappy as battery hens.

Try this Dutch approach, Khaw? No not land reclamation. Architects in Holland are creating prototype neighbourhoods of sustainable floating houses. Their aim is to have new cities entirely out at sea as an alternative way of living. http://www.bbc.co.uk/news/world-europe-21180779. We got plenty of sea too, and the weather’s a lot nicer.

And best of all, we can retain the central catchment reserve, Ubin, the mangrove swamps (so beloved by mosquito-lovers) and the golf courses (that ministers and senior civil servants, and their private sector pals play on).

And floating towns will allow S’pore the possibility of experimenting with an alternative to 50-storey HDB coops flats. We could have hutong-style community housing (high density, low rise buildings) in the new sea towns. Plenty of room to expand sideways there. I read somewhere that London is experimenting along the lines of high density, low rise buildings . Can’t locate the link to story.

BTW, watch this 2011 BBC video clip on S’pore : Urban plan S’pore style http://www.bbc.co.uk/news/business-13852298. The architect who wants “more space” must be very upset with Khaw’s “worse-case scenario”.

HDB: Oversupply again by next GE?

In Property on 19/11/2011 at 6:40 am

The housing market in Singapore is heading for a prolonged downturn and overall private home prices are forecast to fall between 22 and 26%  in the next three years, Daiwa Research said. “We believe the residential property market could remain depressed for several years, triggered initially by a likely forthcoming gross domestic product slowdown (in 2012) and lingering global economic uncertainty.” (If you think this is bad, Barclays predicts a 45% decline in HK.)

Daiwa downgraded its view of Singapore’s property sector to “Negative” from “Neutral”, adding that “it is hard for us to see the developer shares outperforming the Straits Times Index over the next six months” despite their underperformance in the year to date.

From late next year, Daiwa said, structural issues such as the rapid build-up in unsold inventory in the primary market and vacant rental units will take centre stage and keep home prices and rents in check for several years. The mass-market segment will hold up slightly better than high-end properties, supported by better affordability and the resilience in the resale prices of HDB flats.

Err what happens if because of

— less FTS,

— slower economic growth or even a recession, and

— Khaw’s promise to build, build,

kiasu young S’poreans decide not to take up the HDB flats that are being built because they think prices will tank?

Remember that Mah overbuilt by more than 150,000 units in 2003, and was beaten up by the Opposition and netizens. For housing, the simple answer was the electorate demanded it, if you could recall the daily outcry in 2001 – 2003 by the opposition as well as members of publc on wastage of public funds on the more than 150,000 units left empty:  ajohor, a poster, on my blog pointed out recently.

(BTW can you blame him for then being super cautious and getting a reputation as the man who made public housing prices go up in a recession? No can win. But he got millions in the bank to console him, so no need to cry for him.)

Final tots. If there is an overhang of HDB flats, what will the Opposition and netizens then say? And how will the voters vote? For or against PAP? Hmm maybe PM deserves his global benchmark breaking salary? Salary review committee pls note.

Hong Kong to resume subsidising housing

In Hong Kong on 13/10/2011 at 5:07 pm

Hong Kong will resume a programme to subsidise home purchases to address public anger over ever rising property prices.

Donald Tsang, HK’s leader, said in his annual policy address that the government plans to provide more than 17,000 apartments between 2016 and 2020. On average about 5,000 apartments will be available each year. “Peanuts” by S’pore standards and remember there are lots more people in HK.

The programme is aimed at families who earn too much to qualify for public rental housing but who cannot afford to buy a home of their own.

The flats are to be priced at the equivalent of S$250,000 – S$330,000 and available to those earning a monthly salary of the equivalent of S$3,300 and S$5,000. These apartments will be between 400 to 500 square feet in size.

More background from BBC Online.