Why a few decades ago, a man with single income of S$500 can afford a HDB flat but now, even a graduate couple cannot, thanks to Car Scratching Govt's rapacious greed and stupendous stupidity
During my time, I have no concern about affordability. I can afford to pay my housing loan using my single income from CPF for a 4 bedroom HDB flat purchased at S$24,000. My income is only S$500 per month and I need not take such long loan tenure of 30 years, as most couples did with joint income nowadays.
I don’t need to be a rocket scientist to be able to understand what it means by Housing Affordability. If I simply take $24,000 divide by $6000 (for my annualized earning), I get an index of 4. Nowadays a brand new 4 bedroom HDB flat from the same estate of which I bought my first HDB flat is pricing now at S$540,000. Assuming a new graduate pay of $3500 (annualized to S$42,000), the Affordability index will be 12.85. Even if I use couple’s joint income of $7000 per month, the Affordability index will be 6.43. Just imagine a non-graduate or lower income group, what would be perceived affordability?
Of course, I reckon someone would say just buy a 3-bedder or even smaller HDB flat. Go do your sum to see what “Affordability index” you get even if your income is lesser than $1500. If anyone tells you that a HDB flat is affordable, he is asking you to spend your entire working lifespan to pay for your small “pigeon hole” in the sky! And don’t forget you got to pray hard that you or your spouse stay healthy, don’t lose your jobs, as both combined income are painfully needed to support the mortgage payment.
Alternatively, if you are lucky enough, you can count on your old parents to help support your initial down payments out from their retirement funds. Is this the direction we envisage for ourselves, our children and children’s children? I am not surprised before we even reach 2030, our housing loan period would have to be extended to 50 years or more. When you are forced to take a housing loan of 50 years or more to afford a decent space to live with your family, sure enough your monthly mortgage will look more “affordable”. Make it a 100-years tenure loan; it would look even more “affordable”! So, please don’t be deceived by such message of “affordability”. Use your common sense. Can you support your loan by a single income? Can you afford to pay off your loan within 15 to 20 years? We don’t have many 10’s or 20’s years to work and to live a decent life and we need not have to be indebted for our entire working life or worse still having to pass the burden to the next generation. The big question is how to undo the mistakes without causing more pain especially for those who are sunk in debts for the next 30 years or more.
The affordability of having an HDB flat is a primary factor for our young people to consider getting married and starting a family. That doesn’t include even the cost of bringing up a child, not to mention to bring up two or more children. In today circumstances, both parents have to work to support payment of housing loan (mostly 30 years loan tenure), payment of utilities bills, food, transportation, childcare, medical, insurance expenses and educational expenses. It is a day-to-day survival without much saving not just for the lower income but now affecting the middle-income class as well. Whatever CPF saving one has will go almost completely towards payment of housing mortgage. The house or apartment is legally still owned by the bank or HDB (if loan is taken through them). So, one is still not asset rich till the mortgage loan is fully paid.
With the newly announced Singapore Budget 2013, do we see any “Game Changer” that would convince our woman folks to change their mindset towards child bearing? I like the two words “Game Changing”. The recent high-speed train project connecting our tiny island to KL is praised as “Game Changing”. Maybe we should consider what would be a “Game Changer” to improve our TFR (Total Fertility Rate).
Gem-->>>>>>>>>> TO HELP ME, COMPLETE THESE STATEMENTS, THANKS: http://roberthorequestforstatements.blogspot.com/My wife, an accountant, then a manager in an MNC drawing a 5-figure salary before she retired, can confirm that I write the Truth in all these. <<<<<<<<<<RH: LKY LHL WKS ELECTION RIGGINGS EMAILED TO ALMOST ENTIRE GOVT:
ME ON VIDEO DESCRIBING lky lhl wks NUMEROUS ELECTION RIGGINGS + PoBoB and CCTV Ideas:
MY ACQUAINTANCE, MR DAVID DUCLOS, A FORMER POLICE INSPECTOR, AND HIS LAWYER FRIEND, EYEWITNESSED LEE KUAN YEW RIGGING THE 1997 CHENG SAN GRC ELECTION. READ MORE AT MY BLOG ENTITLED "I CAME, I SAW, I SOLVED IT" :http://i-came-i-saw-i-solved-it.blogspot.com/
MY ONLINE POLICE REPORT ON LKY LHL WKS CHEATING ELECTIONS:
a. MY SWORN AFFIDAVIT OF 16 JULY 2010:
http://i-came-i-saw-i-solved-it.blogspot.com/2010/07/my-sworn-affidavit-of-16-july-2010.htmlb. SWORN EXHIBIT IN SUPPORT OF AFFIDAVIT:c. SOME LEGAL PRINCIPLES ON WHICH I GROUND MY CASE:d. THE PATTERN OF CRIMINAL WRONGDOINGS THAT PROVES MY CASE;e. 3rd EMAIL TO UK PM FOR OBSTRUCTING, PERVERTING JUSTICE:LEE Kuan Yew, LEE Hsien Loong, Tony TAN, HO Ching corruptions and theft of billions:
"THE PRIMAL FEAR OF A SUPERIOR MIND"