Four ways to bring down flat prices

[Scoots]

People like me who is young and both my partner and I have just started working all feeling the pinch. Condo is unrealistic and trying to be realistic the current price of the flat is totally impossible for 2 of us. Hence our timing of marriage has to depend on the property market

 

JUst curious, what are the prices and locations of new HDB flats that you have surveyed?

Edited September 19, 2009 by Scoots

[Joseph22]

JUst curious, what are the prices and locations of new HDB flats that you have surveyed?

 

i believe he must have surveyed all the mature estate lah... if not he is looking for more than 5 rooms.

as far as my calculation goes, as long as you are looking at flat 4room or smaller, if you have a combine income of around 1.5K to 2K, with governement grant (which is like 80K now.), you can afford one house around jurong or woodlands and sambawang area.

[Scoots]

i believe he must have surveyed all the mature estate lah... if not he is looking for more than 5 rooms.

as far as my calculation goes, as long as you are looking at flat 4room or smaller, if you have a combine income of around 1.5K to 2K, with governement grant (which is like 80K now.), you can afford one house around jurong or woodlands and sambawang area.

 

Exactly what I was thinking too.

 

A 300K-ish flat should probably require $600-$800 of monthly installment from over 30years (young couple, should be able eligible for the max 30yr period allowable) The max for one partner would be $400, from CPF ordinary account. That works out to about a $1600 of basic salary per partner. I seriously don't think that the issue here is about finding a place. It's more of finding a place that they want AT the price they want ...

 

I would like to buy a Ferrari at the price of a Toyata altis too..... I'm not getting it.

Edited September 19, 2009 by Scoots

[Joseph22]

Exactly what I was thinking too.

 

A 300K-ish flat should probably require $600-$800 of monthly installment from over 30years (young couple, should be able eligible for the max 30yr period allowable) The max for one partner would be $400, from CPF ordinary account. That works out to about a $1600 of basic salary per partner. I seriously don't think that the issue here is about finding a place. It's more of finding a place that they want AT the price they want ...

 

I would like to buy a Ferrari at the price of a Toyata altis too..... I'm not getting it.

 

wah altis price huh. i was thinking of QQ price

[Joseph22]

Exactly what I was thinking too.

 

A 300K-ish flat should probably require $600-$800 of monthly installment from over 30years (young couple, should be able eligible for the max 30yr period allowable) The max for one partner would be $400, from CPF ordinary account. That works out to about a $1600 of basic salary per partner. I seriously don't think that the issue here is about finding a place. It's more of finding a place that they want AT the price they want ...

 

I would like to buy a Ferrari at the price of a Toyata altis too..... I'm not getting it.

btw did you included the 80K grant governement give to them?

[Tunge]

I do not agree on the point about targetting opportunists.

 

As it is, HDB policy only allows for 1 family unit to own 1 HDB flat. There is no way for any one Singaporean to own/co-own more than 1 flat. No richer/poorer citizen is prejudiced by this arrangement. For those who want and dare to invest, it's their choice, and risk, to invest in property.

 

It's not just to deny a person from buying a $3 bowl of prawn noodle soup just because he can afford a $15 bowl of ramen

 

 

well HDB is never meant to be for investment, it's the givernments initaive to provide housing to the citizen, but due to competiton many people cannot land a new HDB n r "forced" to look into resale which usually mean having to pay more for an old flat plus COV n costlier renovations.

 

maybe it's not an issue of $3 noodle vs $15 ramen, but more like $2 subsidised meal by churh/temple/mosque for the needy but everyone else also come n da bao because worth it mah, why pay $3.50 or more at the food court

Edited September 19, 2009 by Tunge

[TandemAssassin]

Exactly what I was thinking too.

 

A 300K-ish flat should probably require $600-$800 of monthly installment from over 30years (young couple, should be able eligible for the max 30yr period allowable) The max for one partner would be $400, from CPF ordinary account. That works out to about a $1600 of basic salary per partner. I seriously don't think that the issue here is about finding a place. It's more of finding a place that they want AT the price they want ...

 

I would like to buy a Ferrari at the price of a Toyata altis too..... I'm not getting it.

 

Yes, I agree with you too. My gf and I die die want to avoid all the North, East and Far West estates. Prices are crazily unaffordable (as the area we want is where all the record HDB prices are), so we just have to resort to BTO in the area and praying hard for a good Q no. Maybe sell one of our cars. If we are not so lucky, then we will wait and save up 1st.

 

Fact of life is I want an Ang Moh Chu at HDB prices, but it is just not realistic. So I urge all young couples to be more realistic, if your savings are low, don't keep aiming the mature estates. If not, find a way to grow your savings, through beg or borrow.

[Joseph22]

well HDB is never meant to be for investment, it's the givernments initaive to provide housing to the citizen, but due to competiton many people cannot land a new HDB n r "forced" to look into resale which usually mean having to pay more for an old flat plus COV n costlier renovations.

 

maybe it's not an issue of $3 noodle vs $15 ramen, but more like $2 subsidised meal by churh/temple/mosque for the needy but everyone else also come n da bao because worth it mah, why pay $3.50 or more at the food court

you are a bit wrong on the area in bold. It is not ppl cannot land a new HDB. rather, they are not willing to wait for BTO or not happy with the location of New HDB and hence go and look for a older flat. which mean they are not "forced". Plus, if they look for area that is out side of the hot cake zone, you will be able to find a flat that is within your budget, plus, HDB already have Grant for the not so wealthy to offset the price disadvantages of buying from a resale.

 

[Fourth]

Based on current HDB price, still can lah. You just have to plan and make things work yourself, instead of asking government to spoon-feed.

 

There are realistic people who are willing to buy cheaper suburban to start family. Now, those who are not willing to compromise life's comfort wants gov to drop price so they can buy cheaper houses at mature estate? Fair request? I don't think so.

 

If the economy or IR picks up and foreigners zoom into Sgp property market again. The high end will surge again. Look at Macau in the past... all the residents cannot afford houses when casinos started too when their property price doubled/quadrupled. This is reality. Either you learn how to live with market swing or you just sit and whine.

 

I hope I don't sound too critical here. Singapore is without resource, so open market is important. Who will invest in the country if property market is so tame. Bringing down property prices in Sgp is asking to bring down Singapore. Not to forgetting that we have a aging population that is about to retire and their life's savings are in their property.

 

 

 

[Scoots]

btw did you included the 80K grant governement give to them?

 

Nope. Just ball park figures based mainly from my own experience.

[Scoots]

well HDB is never meant to be for investment, it's the givernments initaive to provide housing to the citizen, but due to competiton many people cannot land a new HDB n r "forced" to look into resale which usually mean having to pay more for an old flat plus COV n costlier renovations.

 

maybe it's not an issue of $3 noodle vs $15 ramen, but more like $2 subsidised meal by churh/temple/mosque for the needy but everyone else also come n da bao because worth it mah, why pay $3.50 or more at the food court

 

But HDB is not a charitable organisation doing a charity.

It's an organisation responsible for building flats, open to all Singaporeans. The flats are definitely no $2 subsidized meal and neither are Singaporeans "needy".

I think the analogy you used is not so appropriate.

Edited September 19, 2009 by Scoots

[Joseph22]

Nope. Just ball park figures based mainly from my own experience.

 

Then when we factor in the 80K grant, their pay can get lower liao... so hdb price no issue.

[Scoots]

Then when we factor in the 80K grant, their pay can get lower liao... so hdb price no issue.

Most definitely...

 

but what is this 80K grant?...when I bought my flat, there was only the 30K grant for first times buying resale (40$ if you stay within 2km of parents).... now there's a $80K grant??

[Ultramega]

Most definitely...

 

but what is this 80K grant?...when I bought my flat, there was only the 30K grant for first times buying resale (40$ if you stay within 2km of parents).... now there's a $80K grant??

 

 

Some low income earners can get additional grant up to $40k. So 40k + 40k = 80k

[Ultramega]

I thought the most obvious solution is for HDB to build more flats.....

You forgot we are in land-scarce SGP. We can't go on building flats indefinitely. In some areas, to build a new block, got to 1st demolish another.

 

 

1) All HDB must be owner occupied? no rental? does he know how drastic this is? Where is all the PR going to stay? condo?

PR's also can buy HDB flats leh.

 

 

4) no property agents... :) does he know he can sell his own flat without agents? why is he forcing other people to sell also without agents. Some of us unlike him have better things to do with our time.... there is a reason why property agents exist.

 

This is not entirely impossible. Maybe HDB can set up a department to handle resale for owners. And do it for FREE!

Edited September 19, 2009 by Ultramega

[Wind30]

well HDB is never meant to be for investment, it's the givernments initaive to provide housing to the citizen, but due to competiton many people cannot land a new HDB n r "forced" to look into resale which usually mean having to pay more for an old flat plus COV n costlier renovations.

 

????? who said HDB is never meant to be for investment????? common, everyone who buys a hdb hopes that the money they put in will give good returns because it is the biggest "investment" most of us will make. U think people like to put 200k just for a place to stay. And then 99 years return the flat back to Government? People want to see their HDB flat goes up in value in line with private property. So 10 years later they can upgrade.

 

The government knows that. That is why they try to make the hdb value goes up over time. The trick is to make it go up slowly....

[Carer]

you are a bit wrong on the area in bold. It is not ppl cannot land a new HDB. rather, they are not willing to wait for BTO or not happy with the location of New HDB and hence go and look for a older flat. which mean they are not "forced". Plus, if they look for area that is out side of the hot cake zone, you will be able to find a flat that is within your budget, plus, HDB already have Grant for the not so wealthy to offset the price disadvantages of buying from a resale.

 

i disagree on the bold part because if you look at the number of applicants, it always exceeds the number of total units.

[Wind30]

You forgot we are in land-scarce SGP. We can't go on building flats indefinitely. In some areas, to build a new block, got to 1st demolish another.

 

Actually, I have nothing with the price issue. But I feel that availability is a big problem. I read on this forum people has tried to get BTO for 10 rounds to get a flat. BTO always over subscribed many time. no walk in selection anymore.

 

I mean if you want to go BTO route, so that there will be no oversupply of flats, I think you should be more responsive to changes in demand. After all there is no risk. Every flat built has a buyer so why are you making so hard for citizens to get a BTO flat? Even after getting a BTO flat, they have to wait for a few years to move in.