Owning a home to live in has become such a staple of the Singapore lifestyle. Up to a few years ago, housing prices have been reasonably affordable.
Is housing unaffordable?
Lately the price and COV (cash over value) being quoted is absurd. Is it really absurd or is it a matter of progressive inflationary forces that we cannot stop?
My fellow blogger la pappillion blogged about his new house purchase at 568K for a flat that is 30 years old with a COV of 40k. That’s a total of 608k.
He will be paying 2k per month to service this.
My brother is also house hunting and the price he got quoted for a flat near to Buangkok MRT goes in the region of 550k. Buangkok! That’s to a lot of people not living close to be like Jurong West.
Yet more of my friends are doing their BOT rounds and trying to find reasonable price flats.
Now I am sure for my bro and la pappillion who is upper middle-class they should be able to service this. But if this is a progressive inflationary cycle of life then we would expect their mean salary to be around 5-6k per month. That will fit to using 30% of your income to service housing loans safety limit.
If a couple each earns 3k that will make up this 6k total income. If you ask me it is still within the safety limit. There is still money for other things necessary in life.
But if a family does not earn that well or only 1 spouse is working, then that one person would really need earn 5-6k per month to ensure mortgage servicing is at a safe limit.
So in summary my take is:
- I been hearing people at age 30 getting 5-6k salary. if that i s the norm then 2k mortgage is not much.
- 1 spouse working can service easily if you make 5-6k (pretty obvious there)
- We might be blowing things out of proportion here.
Is the rules for foreigners screwing up Singaporeans?
Then you get news like this:
Why PR siblings are allowed to buy HDB resale flat but not S’porean siblings?
Dear Minister Mah,
Lately, there is a cyber discussion on why 2 single PR siblings are allowed to buy resale HDB flat but not 2 single SC (Singapore Citizen) siblings. All involved parties are under the age of 35 years old.
Before I wrote to you in this letter, I did my homework calling up HDB hotline to make enquiry on resale procedure. The officer gave me a direct answer, ‘NO’ for the case involving 2 single SC. But she gave me another answer for the case involving 2 single PR; that they must write in to obtain approval for the resale purchase. The officer may not have given me the answer ‘NO’ but did you see the contradiction here?
I hope the Hon. Minister and the HDB can shed some light on this issue to fellow Singaporeans. Sir, maybe HDB can provide the statistics on each year how many joint-single PR applications have been successful.
Thank you for your attention.
Tony Keng Hong, Tan
*Note: Mr Teo (MP for Pasir Ris-Punggol GRC), if you received HDB reply on the statistics, do you mind share with us. Alternatively, can you ask Mr Mah in the next parliamentary session? I am your constituent of Punggol South. Thank you.
Now if there is any truth to this then its not really right. We been hearing news that time and time again the locals have been taken advantage of. Here is another argument for it.
I guess we really need foreigners to increase our competitive edge. There are things locals do best and there are all things foreigners will always do better.
It’s a great concept to ensure that they have a roof over their head while working here or even easily assimilating into our community. Afterall they are less likely to take advantage of any loop holes in the rules compare to Singaporeans, who have time and time again proved that they will exploit these loopholes.
What are you thoughts on this?