As we know PRs are allowed to purchase resale flats and
sell it without any restrictions. The classic age old ponzi scheme
rears its ugly head again .This is how this scheme may work
A PR purchases a resale flat, after some time sells it to
another PR , who pays a higher price , the original seller then
returns to his country to enjoy the profits. the 2nd buyer then
sells it to the third for even higher price , and then
returns to his country, the ponzi scheme goes on and on and on.
none of them will have to slog 30 years to pay back mortgage loan
and yet still reap profits
I cant believe they are so dumb not to even see it. This is the
big problem with HDB's market pricing strategy for all locals and
PRs.
one way to curb this is to offer cost price approach for locals
and market pricing for PRs.
its a win-win situation for all, both HDB , PRs and
locals
A Ponzi scheme is a fraudulent investment operation that
pays returns to separate investors from their own money or money
paid by subsequent investors, rather than from any actual profit
earned. The Ponzi scheme usually entices new investors by offering
returns other investments cannot guarantee, in the form of
short-term returns that are either abnormally high or unusually
consistent. The perpetuation of the returns that a Ponzi scheme
advertises and pays requires an ever-increasing flow of money from
investors to keep the scheme going.