Higher grants, more choices for first time flat buyers?

I will be blunt. To me, never mind how HDB mixes and matches or adjusts their grant structures, HDB Grants are still dirty words. Let me explain.

HDB is a monopoly with a social mission of building truly Affordable flats to house our citizens. That, they have done well in the early years of our independence but over the decades, HDB has become too greedy and cunning. On one hand, pap ministers, especially former National Development minister Mah Bow Tan kept intoxicating and brainwashing Singaporeans that HDB flats are affordable but I urge readers to think harder and deeper if that is really so. If HDB flats are truly affordable, then there is no need for any housing grant whatsoever. I repeat. If HDB flats are truly affordable, then there is no need for HDB to extend generous housing grants to their buyers whatsoever.

Grants are not free money. I repeat. Grants are not free money and they must be repaid back to HDB with interest years later when the flats are sold. What have happened to many people alearly is that after their flats have been sold and the compounded interest on their grants paid back to HDB, they then realised that they are left in a negative equity position. Their seemingly profits from their appreciating flat prices is gone and the balance in their CPF is also low or locked away. Never underestimate the power of compounding interest and interest on those very generous HDB grants could snowball to very, very large sums years later. Please ponder.

If HDB flats are truly affordable, then there is no need to load the buyers with SHG or AHG etc. It maybe too late to wish that greed has not overcome and blinded policy makers at HDB to just build and sell flats the old, good and honest way instead of pricing their flats exorbitantly and use housing grants to masssge and mask unaffordability superably well. Think.

I thank you all for reading my post again.

 

Simon Lim

Amendment: kindly take note all readers.

I have realised that I have made a mistake that CPF housing grants WILL NOT be returned back to HDB when the flats are sold but go back into the CPF accounts of the respective persons. This is an important and fundamental issue relating to my post above and kindly bear that in mind.

Once again, I apologise for my initial misunderstanding about this issue. I apologise for all your inconvenience.

 

 

 

yyy
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28 Responses to “Higher grants, more choices for first time flat buyers?”

  • Flabbergasted:

    Housing grants are given to keep the prices high and climbing non stop. Don’t be fooled by them white shit.

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  • MarBowling:

    The so-called SALE of AFFORDABLE and HEAVILY SUBSIDIZED HDB flats is the Mother of all PONZI SCHEMES created and implemented by Lee Kayu’s Bluest-Eye Boy Minister $hortar$e $miling Tiger Marbok Tan! Period.

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  • Cant sue sister, can sue Xu:

    During GE2015 hustings, we were very excited. Because every WP rally was over crowded with folks, young old all races.

    But ffff. When the GE2015 results were announced, we realized 70% sheep has decided to vote away the future of their own children.

    Do we care today whether 70% sheep lives poorly or in dire shape? ffff no. Because 70% sheep by voting pap has asked for it.

    What is our problem then?

    We are old and our legs are closer to the other side than this side. Our last hope is before we cross over to the other side and kick the balls lying pap master liar lky at the cul de sac, we live to see his clown and wife get indicted like najib and wife are now indicted.

    In other words, we hope to see true justice meted out to lky clown and wife and their S$m gang members before we kick the bucket.

    Will it happen? Like we said, there is hope, as long as more and more 70% sheep suffer deep deeper deeperest today.

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  • Fat Cat Leadership:

    HDB, like almost all government ministries, departments and statutory boards, and organs of State have diverted and diluted their original missions to serve the people. Now, they are the Lots and Lords, being served by the people’s blood, swear and tears money and labour.

    Appropriately, therefore, HDB should stand for “Hidden Draculars in Disguise”.

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  • Rabble-rouser:

    Housing matters is a question that have plagued S’poreans for long time. It has created a big problem for people expecting a pot of gold at the end of their rainbow but upon nearing it, only saw a pile of dung!

    The huge problem was that People’s Housing needs intermingled with Investing/Retirement objectives to create a big headache for their property owners. Added into this volatile mix was the PAP’s exhortation of Asset Enhancement which was ultimately blew away by Lawrence Wong’s subsequent devastating message that upon the 99 year lease expiry, the flat value is zero!

    How then, do one make sense of it going forward? I’ll not give you answers because people might hold you to it like drowning souls grasping for straws. You have to do your own soul searching but think through things carefully:
    1. S’PORE PROPERTY PRICES
    Property prices are too well-controlled in S’pore especially for the newly developed ones. 80% of lands in S’pore are State-owned lands while the remainder are in private hands. HDB flats are only housing structures (ie. a long term lease) with no conferred rights over the land.

    Private property, on the other hand, have rights either as apportioned Strata owners (condos) or as landed property owners.

    Historically, private property have better prospects for capital growth than HDB flats. Just remember this, land appreciates while building structures depreciates.

    2. S’PORE ECONOMICS
    S’pore’s Economy has matured. The Cost of Living eco-system is incredibly high & difficult. Wages & salaries had been stagnant for a long while. The job eco-system was very different 30 years ago from today.

    Yet property prices have kept going up without much effort! Except for a 8-year pause (1998-2005) & much earlier a 5-year pause (1985-1990), the Property Price Index only went one way ie. Up! Understand HK’s situation & point 1, you’ll see the “picture”.

    3. DEMOGRAPHICS/FOREIGNERS INFLUX
    S’pore’s HDB demographics are ageing! A number of S’pore HDB dwellers are living in excessive HDB sized units eg. 5-room, EA or EM. They need to downgrade but can’t.

    The ageing state of their flat creates insufficient funds to achieve twin objectives; one, fund their retirement & two, acquire smaller housing. There is also the question of trapped funds under CPF retirement minimum scheme.

    4. OVERCOMMITMENT ON HOUSING
    Because of Investment outcome desires, S’poreans would overcommit on housing eg. 5-rm HDB/EC instead of 4-rm/3-rm; Pte condo instead of HDB, etc. Or spending $100k on HDB renovation. Ask yourself this question, will this 50 year S’pore property boom cycle continue into the future or not?

    https://www.propertysoul.com/2017/10/30/7-deadly-sins-2/

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  • oxygen:

    SIMON LIM IS DEAD CORRECT. The grant is notional bordering on a mirage of fiction. For a start, the buyer of HDB is NOT the owner of the HDB flat. It can’t be mortgage to a financial institution for loans nor can the successful proven creditor of a bankrupt estate put his dirty little finger near that property. After it has been sold to any buyer, the HDB flat is still owned by HDB. If the contrary is true, how come buyers of HDB flat cannot pledge his flat for banking credit facilities AS VALUABLE COLLATERAL or creditors cannot take legal possession if it was ever owned by the bankrupt?

    At least one government mouthpiece publicly asserted that HDB flat, once and after sold to buyer, STILL BELONGS TO HDB! That is AVA, a division of Ministry of National Development which HDB is also a division of the SAME Ministry.

    So in reality of facts, subsidy and grants are a mirage of transfer of economic resources from one pocket of MND to the other – the liabilities of that belongs to the purchaser. There is a resale levy if purchaser buys new HDB flat twice – ignoring the fact that this particular buyer paid for land AT LEAST TWICE which he/she has no legal title or property rights to land. In effect, the buyer, as mere tenant of the land, subsidized HDB/MND twice for pretentious subsidy from the latter.

    On resale, the grants goes to the CPF a/c of the HDB purchaser. But CPF is another moving feast of a ghostly retirement saving – in actuality another backdoor tax – the returns of which is creamed off by unknown ghostly fabrication/s. CPF money is channeled into investment and CPF members pretentiously owns a portion of debt securities (liabilities of the issuer/Ministry of Finance), not an asset of cash/investment of its members.

    The net equity of HDB buyer is his lease resale value minus CPF and minus the hypocritical grants.

    IF HDB IS TRULY AFFORDABLE, WHY NEED THIS ELABORATE COVER OF DECEPTIONS?

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  • Bobo:

    Spoke with some young families who got BTO or EC. They are grateful with PAP help on subsidy and grants and found that the scheme helps alot. Deal is plain reasonable, ie. pay back with interest and back to their own CPF account for retirement. They are neither interested to know how worst things are now nor the future under PAP. When asked who they will vote? The answer is simply spoilt it and stay neutral. Conscious free! Guess they are still living in heaven with a housewhole income of over 10K. Got maid, condo, car, dogs, cats and plans to go holiday at least thrice yearly. It’s HAVEN.

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  • vincent tan:

    at 2.5%compound the money repay to HDB
    >>>>after 5years is 0.13X$100000 grant=$13000
    >>>after 10years is 0.28x$100000 grant=$28000
    >>>after 15years is 0.45x$100000grant=$45000
    >>>after 20years is 0.63x$100000grant=$63000
    xxx after 28years all $100000 money totally return to HDB !
    moral of the story>>it is wiser to sell “Granted” HDB as early as possible.

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  • cost driver is land cost:

    a time shall come, soon, when income does not match HDB rental prices.

    then 70% sheep shall know, it has been taken for a BS ride by pap S$m folks.

    worse, when median wage is not S$m but S$3,500 gross per month, sooner and no later society breaks down. made worst by hordes of aliens FTs PRs who are all potential 007s who don’t give a hoot about 70% sheep.

    what to do?

    70% sheep needs to wake up now and vote out pap, the source of all money problems in money faced pap Spore.

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  • vincent tan:

    simon can reconfirm whether
    the accrued interest pay back to HDB or
    earned by flat seller and added to seller cpf account?
    just stated by a PAPian on channel8 6.30 news segment 18/9/19

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  • opposition dude:

    It isn’t HDB that is greedy for money, do remember who HDB is under. It’s the party that has an unsatiable appetite for $$$.

    So what if the housing grant has been increased, they will just increase the prices of future BTOs on the quiet and the grants won’t be of any use. It’s not as if they haven’t done this before when Uncle Leong regularly provided statistics to highlight how a BTO sold in 2012 compared to one sold in 2016.

    And the funny thing is that even after the grant the couple still have to pay off the remianing loan PLUS interest. How many years this will take, who knows…..

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  • vincent tan:

    of course
    the lacky PAPian said the seller earned the
    Accrued interest ..
    can double confirm these monies are due to repayment to HDB

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  • Harder Truths:

    Firstly what is the price of the unit? This is how it all starts.

    First put a false value on to the unit.
    Second – promise ever increasing returns to the greedy public.
    Third – open the system to FT
    Fourth – make sure the HDB / banks can loan the money for the repayment.

    This is how you steal someone’s money over their lifetime – principal and interest – and make them thank you for it.

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  • there's always a catch:

    putting poor hdb buyers deeper into debt!
    dont take the grants if possible!
    theres always a catch…no one gives you something for nothing..esp where money is concerned.

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  • A Spade:

    A spade will still be a spade whether it is small or big, black or red or shiny or matte. Hence, the HDB is still leased property on 99 years basis no matter how much grant you can enjoy even without the need to pay back. End of the lease, the disposable value is zero. But you had already spent tonnes of CPF money on loan and interests.
    Happy buying…

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  • vincent tan:

    this to confirm the Grant$40k to &160k
    are gifts from government via CPF.
    after flat seller sold their “granted” 5 to 10 years down the road.
    all monies go back to cpf including the
    >>>grants$40k or whatever
    >>>the accrued interest @2.5%compound also
    go back into seller’s cpf account.
    stress here, the grant beneficiaries need not payback
    any accrued interest$ to hdb nor cpf

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  • oxygen:

    @ vincent tan

    Grant is gift or semantic accounting in selling price inflated valuation? I am confused.

    Is the 2.5% compounding that must go back to seller’s CPF account (after the flat is sold) necessary? Remember this – the grant of whatever amount given to flat buyers GOES INTO PART PAYMENT SETTLEMENT of the purchase costs. IT IS UNPRODUCTIVE OF INCOME GENERATION for “owner-occupied” premises, what interest does that DEAD LOCKED EXPENDITURE earn of productive income which could be remotely constituted as income generation or earned DURING THE PERIOD BEFORE THE HDB WAS SOLD – TO BE THEN LOCKED UP IN CPF AS IF IT IS EARNED INCOME?

    It is simply to me imputed income of fictional notional construct. My argument is this – if I give you $100K but insist that you locked it up for 20 years in a safe vault EARNING NO INTEREST IN THAT LOCKED UP PERIOD to be accessed only 20 yrs later. In 20 yrs time, when you opened up the safe vault, how much $$$ you will find and retrieve from there?

    EXACTLY $100k, NOT ONE CENT MORE OR LESS!!!

    So how can the amount go into your CPF increase by any amount OF FICTIONAL 2.5% COMPOUNDED GROWTH beyond the grant after you sold your HDB?

    IT IS AN ACCOUNTING AND SEMANTIC DELUSION WITH INTENT of dubious calculations unexplained to lock up more of your SALE PROCEEDS INTO YOUR CPF savings – this money might not be touchable by you until your final nail of your coffin is knocked in!!

    vincent tan: this to confirm the Grant$40k to &160k
    are gifts from government via CPF.
    after flat seller sold their “granted” 5 to 10 years down the road.
    all monies go back to cpf including the
    >>>grants$40k or whatever
    >>>the accrued interest @2.5%compound also
    go back into seller’s cpf account.
    stress here, the grant beneficiaries need not payback
    any accrued interest$ to hdb nor cpf

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  • oxygen:

    @ vincent tan

    I HAVEN’T DID ANY NUMBERS CHECK, but for illumination only, I take your calculation below as correct.

    vincent tan: xxx after 28years all $100000 money totally return to HDB !

    WHILST THE $100000 DID NOT return to HDB, the fictitious imputed compound interest after 28 years will see a LOCK UP of same amount in your CPF of your sale proceed.

    After 28 years of lease expired, what is the value of your resale flat if there is still a GOONDU BUYER looking?

    So whatever residual of that sale proceed, $100,000 of FICTITIOUS COMPOUNDED INTEREST EARNED get locked out of your retirement spending reach until 65 (or later if policy changes then) OFFSETTING EXACTLY THE GRANT OF SAME AMOUNT TODAY.

    SO IS THE GRANT A GIFT OR A DELUSION OF A MIRAGE OF YOUR FINANCIAL LIABILITY to pay for a 99-yr lease OF AN INFLATED HOUSING PRICE?

    I am EVEN MORE CONFUSED NOW.

    oxygen: IF HDB IS TRULY AFFORDABLE, WHY NEED THIS ELABORATE COVER OF DECEPTIONS?

    If I am an investment guy, I will NEVER BUY into a bait-and-switch shady deal which I don’t understand of its scheme intent and outcome.

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  • oxygen:

    @ vincent tan

    WHY I CALL THIS GRANT A BAIT-AND-SWITCH SHADY DEAL. Very simple!

    In accounting treatment and reality of material facts, ALL CONSUMPTION EXPENDITURE ITEMS are EXPENSE ACCOUNT. It is a debit entry. So it is not an income or revenue item of credit entry. You can’t switch them around.

    SO HOW CAN AN EXPENSE ITEM OF SPENDING SOLELY FOR ONE OFF CONSUMPTION BE AN INCOME SOURCE unless it is a capital nature of asset/investment outlay to generate CONTINUIING income?

    oxygen: If I am an investment guy, I will NEVER BUY into a bait-and-switch shady deal which I don’t understand of its scheme intent and outcome.

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  • vincent tan:

    HDB grants ultimate target… CPF RetirementAccount ** RA
    eg
    >>> 2020 couple age around 30 grant$80k
    >>> 2045 couple sold flat age 55 lockup to cpf $160k
    the couple RA can at least partly met .
    in conclusion,PAPian solving social problems using these
    hdb, cpf interlinking tools.
    was reported most lower income sgreans did not meet the
    required RA at age 55.
    coincidentally these lower income flat buyer are
    most generously granted.
    @oxygen, any comment, thank you for arousing argument

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  • oxygen:

    @ Vincent

    THANK YOU VERY MUCH FOR YOUR REJOINDER and your financial calculations. I didn’t check but assumed you correctly done your due diligence.

    vincent tan: HDB grants ultimate target… CPF RetirementAccount ** RA
    eg
    >>> 2020 couple age around 30 grant$80k
    >>> 2045 couple sold flat age 55 lockup to cpf $160k
    the couple RA can at least partly met .

    Mate, you have asked for my comments, so I shall speak my mind. The asset enhancement politics was a failed social experiment of STUPID ECONOMICS. As explained, housing is an EXPENDITURE RELYING ON DEBT. If money (wealth) can grow on trees of debt, who wants to work and who wants to lend you money instead of investing themselves? Grants and CPF is just adding more credit (debt) to the unaffordability equation that must be accounted for sooner or later.

    BOTTOMLINE IS

    - HDB is debt
    - Grant is debt to be funded out of false interest income
    - CPF is debt out of false retirement saving. in actuality you own Govt bonds (PAPpynomic’s liability) not the cash and investment in the investment portfolio of GIC/Temasek Holding.

    So when the system failed, it cannot be pretended that it provided for future retirement RA by this formula incomprehensible

    DEBT + DEBT + DEBT = WEALTH (in RA account)

    It is fraud at least in thought whatever the real final outcome might be.

    Global population turns geriatric means smaller aggregate demand. AI destroy jobs destroy also investment creating jobs, means less wealth created. HOW TO FUND HOUSING MORTGAGE TILL 55 to leave in your retirement account when you unload your flat??

    FANTASY LAND DREAMING OF PAPpynomics.

    Wages stagnating because too much labor too little jobs opportunities. AI cut labor bargaining power. Consumers buy less because smaller income, business got no pricing power- EVERYONE ONLINE CHEAPEST BUYING . Return on investment slim, hence negative interest rate environment – NOT ENOUGH INVESTMENT SPENDING DEMAND FOR CAPITAL.

    BUSINESS EXPLOIT CHEAPEST LABOR AND AI FOR PROFITS. Those can work but expensive not needed.Those who can work and cheap survive. Those who prosper are those good in investing – exploiting cheap labor and AI efficient business.

    Family formation will decline as marriage falls. Older folks can’t sell their luxury size condo or 5-rm HDB. Gen Y can’t afford.

    JAM EVERYWHERE. YOUR RETIREMENT $160k RA is going to fail spectacularly.

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  • vincent tan:

    your argument is true should the granted seller sold flat
    well below the BTO price 25 years down the road.
    >>>> 2020 bto $400k
    >>>> grant less$80k
    >>>> seller paid $320k

    >>>> 2045 can only sell at $320k
    meaning all grant wipe out .
    should still insist on meeting RA requirement
    the seller truely face Negative Equity
    but chances of this dire occurrence is remote.
    Only happen in very depressed economic situation

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  • vincent tan:

    @oxygen
    your argument is only true should the granted flat
    well below the BTO price of $400k.
    >>>> 2020 flat BTO $400k
    >>>>> grant less $80k
    >>> paid by 30 yr couple $320k
    >>> 2045 only managed sold $320k 25 years down the road
    selling collection unable to cover grant monies.
    And still has to put aside $80k X2=$160k RA
    This definitely penalise flat seller CPF-laly
    couple truely faced Negative Equity
    this dire occurence to happen is remote
    only in very bad bad depressed economic situation

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  • oxygen:

    @ vincent

    THE ASSET ENHANCEMENT POLITICS IS A SCAM transferring wealth from the poor to the rich – only the rich has multiple properties for speculation/trading gains but the burden of support come from the overwhelming masses at the bottom doing all those heavy lifting.

    Its adulteration is worst – I am talking about the Southern Waterfront public housing crazy ideas – those who got balloted there got the “lottery effect” – the rest suffer from escalated runaway housing price bubbles they cannot afford with grants, pretended subsidy, CPF (ACTUALLY ALL DEBTS IN DISGUISE) added together.

    Housing bubbles is what economists around the world resist in advice to all government except in HK and LEE-jiapore. Both Gs rely on land sales to bolster state treasury but leave permanent inextricable damaging consequences for peasants.

    Land sales bubbles are like heroin addiction in state finance. We are seeking HK falling into desperate SOCIAL VANDALISM (professional workers joining in) to counter the STATE AND THE RICH greedy wild unrestraint ECONOMIC VANDALISM OF WEALTH EXTRACTION. It is unsustainable even though i am sure Sinkies will NOT resort to SOCIAL VANDALISM now going on in HK.

    HK Govt. rely on land sales for 27% of its budgetary finance. LEE-iapore it is hidden from public eyes. BUT THE CONSEQUENCES ARE UNMISTAKABLE AND LIFE-THREATENING of national survival.

    Massive housing/land value m*sturbation transport to all sectors of the economy. We will die from loss of economic competitiveness. I am seeing these now -

    - cheaper foreigners and AI displacing local in all classes of jobs

    - HDB flats value dwindling to zero on lease expiry and no buyers long long before that of older flats

    - CPF money bundled up with housing costs are entombed in the same coffin

    FOR ELDERLY, THERE IS NO OLD AGE SECURITY, NO RETIREMENT SUBSISTENCE TOGETHER AND THE NEXT GENERATION TO SHOULDER HIGHER AND HIGHER HOUSING ACCOMMODATION COSTS.

    THE LONGER THIS HEROIN-LIKE ADDICTION TO SCAM OF ASSET ENHANCEMENT POLITICS, THE HARDER AND BIGGER STRUGGLE TO EXTRICATE FROM THIS DEATH-CERTAINTY DESTRUCTION MACHINE.

    THE FUNDAMENTALS OF THE MOST BASIC CALCULUS IS WRONG. You are one family and your neighbor is another – two households. If you child marry your neighbor kid.ONLY ONE NEW HOUSEHOLD FORMATION. When your generation is gone, your children (and neighbor kids married) NEED ONLY ONE HOUSE but you both LEAVE TWO BEHIND.

    ONE CANNOT BE SOLD, WHO IS SUPPLYING THE MONEY TO PAY FOR THE FUNERAL INEVITABLE FOR ALL INCLUDING ME??

    PAPpypolitics and PAPynomics is STUPID TO INFINITY.

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  • oxygen:

    @ vincent tan

    MATE, I HAVE JUST OPENED the Pandorax box on the imminent poison of our fake public housing ownership via its asset enhancement politics of more grants, more CPF funding (needed).

    oxygen: THE FUNDAMENTALS OF THE MOST BASIC CALCULUS IS WRONG. You are one family and your neighbor is another – two households. If you child marry your neighbor kid.ONLY ONE NEW HOUSEHOLD FORMATION. When your generation is gone, your children (and neighbor kids married) NEED ONLY ONE HOUSE but you both LEAVE TWO BEHIND.

    ONE CANNOT BE SOLD, WHO IS SUPPLYING THE MONEY TO PAY FOR THE FUNERAL INEVITABLE FOR ALL INCLUDING ME??

    PAPpypolitics and PAPynomics is STUPID TO INFINITY.

    Tan Chuan Jin obviously got other ideas of how PAPpypolitics and PAPpynomics should strive in LEE-jiapore. He said these words on why voters should not vote his tribe out.

    TCJ :I often say that change is not the desired end state. Better outcomes are. I remember this twitter exchange I had with some Singaporean who was enamoured by the change in our neighbouring country. I’d shared a tweet about Brexit and he said that sometimes one must be bold to flip the coin so that we learn what is on the other side. My response was now that they have done so in UK, look what has happened?! Pandora’s Box is opened. What then?”

    I opinion in this thread is obviously not his flavor of the month or life time.

    APPARENTLY, HE DOES NOT LIKE TO OPEN THE PANDORA BOX….in case the worms of economic rots crawl out in full public view??

    i AM SURE, HOWEVER, THAT THE MOST LEARNED MINDS OF FRED EMERY AND ERIC TRIST WOULD NOT AGREE WITH TCJ SOME 70 YEARS AGO.

    The causal texture of the organisational environment.

    https://ackoffcenter.blogs.com/ackoff_center_weblog/files/10.1177_001872676501800103.pdf

    Me sees opening the Pandora box in the vocabulary of ONE, YES JUST ONE – WORD, it is called REJUVENATION.

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  • oxygen:

    @ vincent tan

    WHAT IS THE RA AMOUNT REQUIRED for the couple in 2045? Will it be $80K each or together?

    If it is the former, then the total is $160K i.e. the flat must be sold at $480K ($320K + $160K) to break even.

    Where would the couple be living if they sold their flat in 2045? IT IS A MYSTERY!

    Will the rising grant meets inflationary price bubble? If it does, the next generation is paying for the costs of living and debt of this decayed generation.

    Btw, I got posts prior still under moderation in this thread – it could be illuminating.

    vincent tan: @oxygen
    your argument is only true should the granted flat
    well below the BTO price of $400k.
    >>>> 2020 flat BTO $400k
    >>>>> grant less $80k
    >>> paid by 30 yr couple $320k
    >>> 2045 only managed sold $320k 25 years down the road
    selling collection unable to cover grant monies.
    And still has to put aside $80k X2=$160k RA
    This definitely penalise flat seller CPF-laly
    couple truely faced Negative Equity
    this dire occurence to happen is remote
    only in very bad bad depressed economic situation

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  • oxygen:

    @ vincent tan

    NOT ASKING YOU OR ANYONE ELSE READING THIS THREAD TO BUY GOLD, but read this link for self-education of the absurdity of negative interest rate environment now gaining traction of contagion.

    Negative Rate Folly

    http://sprott.com/insights/negative-rate-folly/

    vincent tan: 2045 only managed sold $320k 25 years down the road
    selling collection unable to cover grant monies.
    And still has to put aside $80k X2=$160k RA
    This definitely penalise flat seller CPF-laly
    couple truely faced Negative Equity
    this dire occurence to happen is remote
    only in very bad bad depressed economic situation

    JAPAN HAS NEGATIVE INTEREST RATE FOR DECADES – it is DEFLATIONARY OF CONSEQUENCES.

    So you do not need very bad bad depressed economic situation to drive down “hard” asset prices – THE BUBBLE BURST ON ITS OWN VOLITION – and no recovery thereafter.

    Bond market yield is a proxy for inflation. In negative interest rate environment now spreading, it is telling of asset mispricing and downside risks forward.

    Like I explained earlier in this thread – the ageing demographic and declining new family formation brings about 2 homes empty and one buyer only.

    $320K hdb dwindling to zero valuation on lease expiry might find a goondu buyer of newly married couple – but maybe way way way below $320K now paid after grant.

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  • oxygen:

    @ vincent tan

    THE REAL ESTATE CRASH in the last GFC taught me a few important things – PRICE AND PROPERTY VALUE DISCOVERY AND LIQUIDITY DIE IN DARKNESS AND SILENCE.

    It is silent like death.

    Did the real estate in US recovers 10 years after the GFC and after 10 years of CHEAP MONEY DEBT-FUELED SPENDING FROM THE FED TO LIFT UP FROM THE NEAR DEAD ECONOMY?

    Here is the answer.

    Has the U.S. Housing Market Recovered? It Depends on Where You Are…

    https://knowledge.wharton.upenn.edu/article/u-s-housing-market/

    It is HIGHLY DEPENDENT on specific areas economic recovery.

    LEE-JAIPORE IS LEASE OF DIMINISHING VALUES AND PAPpolitics and PAPpynomics do NOT have the luxury of printing $$$$$ debt funded by foreigners (US$ got global convertibility) to spend our way out of recession.

    WE ARE FAR MORE VULNERABLE THAN THE US.

    The bigger the grant PAPpypolitics and PAPpynomics supply you, the bigger is the risks of over-inflated mispricing bubble way beyond your actual affordability.

    PAPpypolitics is NOT AND NEVER WAS Father Christmas!!!

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  • a sad sad situation: did anyone in the family inform TC of their dire straits situation? if they had maybe they...
  • Harder Truths: Does not matter how needy you are – the servants of the government just do not care. Mostly FT...
  • Longanus Lee Albinus: Mr Tan seems to be having a health problem due to being rich. The 47% retirees who could not...
  • Longanus Lee Albinus: Good on you Mr Kin Lian. Hope you just dun repeat the vote splitting that allowed tony to win....
  • Pioneer heart aches: Felt so sorry or this family,wonder how multimillion dollar ministers sleep at night:bet you...
  • Samuel S: PC Ong said Study hard and work hard and we will be ok. But this case is about a person who contracted...
  • Harder Truths: Apologies- 2nd para should read “The division is racial – ethnicity – as the basis for group...
  • Harder Truths: Aziz – where did you get that idea – that the MP’s are passing themselves off as...
  • they will remain silent: Those multimillion-dollar salaried and bonused PAP leaders will pretend not to have seen or...
  • What is Wrong?: While they are collecting more money, the aged and elderly poor are collecting cardboard boxes!
  • Asd: This is not your own country it’s just a motel
  • There is a difference, bro: In the rule of nature, the race follows the papa. Religion, on the other hand, can be...
  • There is a difference, bro: yep thats it!: just another day in paradise–Phil Collins. the difference...
  • N.Jungne: Aziz, you’re spot on, unfortunately it has been misused.
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