Making hdb flats more affordable

last SG · 2011-06-22T00:13:15+00:00

If they dun reduce to the price of TS advice. I will continue to vote for opposition;

Almond Cookies SG

There are of cos people whom are very happy with their HDB flats prices...

Cos they buy cheap but prices increases now.

βέτά SG

Money illusion.

Whether your 3 room HDB is worth a million does not make a difference.

You going to sell it?

You have 2-3 units of HDB?

The price of your HDB is like your CPF, see alot of money but you can't touch it.

Demon Bane SG

Can make $ if you sell your 5rm and downgrade to 3rm or 2rm or studio....

Almond Cookies SG

Money illusion.

Whether your 3 room HDB is worth a million does not make a difference.

You going to sell it?

You have 2-3 units of HDB?

The price of your HDB is like your CPF, see alot of money but you can't touch it.

Yah can see cannot use.

Demon Bane SG

Alot of CPF funds are being used for property payments, not much will be left for retirement....old age will be problematic....

Almond Cookies SG

Alot of CPF funds are being used for property payments, not much will be left for retirement....old age will be problematic....

So no retirement age like wad lao lee said. Work until u die.

Woody2 SG

good link for a flavour to this article

http://singaporemind.blogspot.com/2011/02/dr-susan-lim-and-22m-medical-bill.html

have a read

Demon Bane SG

We have become slaves to our lifestyles....

charlize SG

Money illusion.

Whether your 3 room HDB is worth a million does not make a difference.

You going to sell it?

You have 2-3 units of HDB?

The price of your HDB is like your CPF, see alot of money but you can't touch it.

That's what I think.

Assuming you bought your flat for $500K but now market prices for similar units drop lower to $400K.

Your life is still the same. Nothing has changed much, you still pay the same monthly mortgage plus interests regardless of whether flat prices have risen to $800K or dropped to $300K.

Except maybe you LL a bit because now people are paying less for a similar unit because they bought at $400K.

Demon Bane SG

Getting 20y or 30y loans are not considered as affordable to me....

charlize SG

Alot of CPF funds are being used for property payments, not much will be left for retirement....old age will be problematic....

Come to think about it, there is very likely no more money in the ordinary account for retirement purposes if you are on a 30 year mortgage loan.

Assuming you buy a flat at age 30 and use all the money in the OA to pay off the monthly payments, when the loan is finally paid up, you would be 60 years old and nearing retirement.

OA has zero monies while only SA and medisave accounts will have some money in them.

Looks like you really cannot depend on CPF for any retirement money.

Demon Bane SG

Come to think about it, there is very likely no more money in the ordinary account for retirement purposes if you are on a 30 year mortgage loan.

Assuming you buy a flat at age 30 and use all the money in the OA to pay off the monthly payments, when the loan is finally paid up, you would be 60 years old and nearing retirement.

OA has zero monies while only SA and medisave accounts will have some money in them.

Looks like you really cannot depend on CPF for any retirement money.

That's wat I'm worried about....have to sell the house to retire....

βέτά SG

That's what I think.

Assuming you bought your flat for $500K but now market prices for similar units drop lower to $400K.

Your life is still the same. Nothing has changed much, you still pay the same monthly mortgage plus interests regardless of whether flat prices have risen to $800K or dropped to $300K.

Except maybe you LL a bit because now people are paying less for a similar unit because they bought at $400K.

If I bought at $500k and the same unit drops to $300k, it will depend how much equity I have in it.

If I paid $100k and still have $400k to pay the bank, I might as well rescind the loan, let the bank take possession of my HDB and get a new one for $300k.

βέτά SG

One question.

Are Singapore mortgages non-recourse?

charlize SG

If I bought at $500k and the same unit drops to $300k, it will depend how much equity I have in it.

If I paid $100k and still have $400k to pay the bank, I might as well rescind the loan, let the bank take possession of my HDB and get a new one for $300k.

In theory you can probably do that.

Unfortunately, HDB has those rules like MOP or all sorts of reasons to disqualify you from buying and selling HDB flats every few months.

Can you imagine if everybody started defaulting or playing punk when HDB prices drop like mad?

charlize SG

http://forums.asiaone.com/showthread.php?t=41157

Interesting read.

βέτά SG

Think Singapore mortgages are recourse mortgages.

Means you better make sure you bankrupt so you don't have to pay them back the shortfall.

A key finding of a research paper by Associate Professor Ong Seow Eng, Research Director of the Centre for Real Estate Studies at the National Univesity of Singapore, is that protecting the CPF utilised in a mortgage, reduces significantly the tendency of borrowers to be delinquent on their mortgages. Why are HDB concessionary loan mortgages not on a non-recourse basis, like practically all residential mortgages in the United States ?

On non-recourse mortgages, the borrowers are not liable for any shortfall between the repossessed flat’s market value and the outstanding loan balance.

http://theonlinecitizen.com/2007/03/895-hdb-flats-repossessed-since-2003/

Demon Bane SG

What's wrong with the market? Sooo expensive and yet there are people lining up to buy??? Is it a combination of Kiasu-ism and stooopidity? I'm not buying !!!

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