HDB Flats --- Are they becoming less affordable?
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OK. So, it's a HDB flat. Yes, it is very expensive.
But, considering the size of the unit (173 sq m), it is about 50% bigger than a typical 5-room flat (110 sq m) you get nowadays.
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Yes, very expensive! especially when the COV is a cool $170K! The buyer must be very damn rich!~
:roll: :roll:
The report says that the medium price for similar flat in Bishan is around $615k... -
Letters taken from TODAY
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Let's talk about property
For all the gripes about high COVs, no one complains when they're selling ...
Letter from Lulu See 05:55 AM Apr 13, 2010
Sunday's inaugural episode of Singapore Talking - the new live talk show shown at 10.30pm on MediaCorp Channel 5 - saw MP Lim Wee Kiak (Sembawang GRC), PropNex CEO Mohamed Ismail and struggling househunter Iris Lim go back-and-forth on the issue of whether escalating property prices are making housing increasingly out-of-reach for the ordinary Singaporean. This letter was sent in response to the topic.
I AM Singaporean, but seriously, sometimes I think Singaporeans just want to complain.
On the gripe about high COVs (cash-over-valuation): Though we are all complaining about the high COV, when we have a unit for sale, I am sure all will do the same - ask for a high COV.
The current property system has proven a godsend to many. How many of us will be able to make $100,000 off a single transaction? Many of us, no matter how hard we work, will never be able to save that sort of money. It is only through selling and buying wisely that we will be able to make that first bucket of gold, and thus improve and upgrade our lifestyle.
Then, there are those who say they are unable to get a flat. There are many options available for newlyweds, single parents, and so on. However, most insist on getting what they want. Let's say I can only afford a $250,000 flat, but insist on buying one in a neighbourhood like Bishan, Toa Payoh, Clementi, Holland or Queenstown. I want it on a high floor, a corner unit, and it must be close to an MRT station.
If I can never find one that fits my bill and my budget, is that then HDB's fault?
Even those with bigger budgets claim there are no options available to them. But look at Iris, who appeared on Singapore Talking and who earns more than $8,000 a month. HDB flats - especially newly-built ones - are meant to help those with low incomes, or who are just starting a family. If you are earning more than $8,000, it is a happy problem.
Besides, I've found that the HDB is quite gracious - you can always write in and explain your situation. My partner and I earn more than $8,000, but we were allowed to buy a unit at The Pinnacle after they reviewed our request.
Really, it's just a question of looking for a place you can afford. We should always live within our means and not ask for the sky.
The only change I would suggest is that the income cap should be raised for \"premium\" new flats - say those worth $450,000 of more - to ensure that buyers don't run into problems paying their instalments.[/quote]
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How much would I have made?
When you sell a flat, you still have to buy another
Letter from Tong Jee Cheng 05:55 AM Apr 13, 2010
THERE has been a lot of discussion recently about HDB flats being affordable, and how they are valuable assets and profitable investments.
I'm just the typical Singaporean who bought an HDB unit to house my family. I got my four-room flat in 1984 for about $67,000. I took a $48,000 loan from the HDB - the interest rate that time was 6.25 per cent - for a repayment period of 20 years.
In total, I paid $23,000 in interest, which amounted to 47 per cent of my loan.
So, in reality, my flat cost $90,000.
Many would point out that should I sell the flat today, I would have made a huge profit - the value of my $90,000 would have multiplied many times over. It would be worth in the hundreds of thousands.
But the forgotten aspect of the equation is that once I sell, I'll still need a place to stay. There is no point selling to stay in a similar unit - or I would just stay put. So let's presume that if I do sell my flat, I would downgrade to a three-room flat.
The price difference between three- and four-room flats now is about $100,000, so that is the cash I would end up with.
So, to make $100,000 after 26 years - just $3,846 a year - I would have to downgrade to a smaller unit. If HDB flats are indeed such valuable investments, shouldn't I be upgrading instead?[/quote] -
Btw, both the high-price Bishan and Strath?? flat transaction did not go through…so no high price established yet.
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ks2me:
Btw, both the high-price Bishan and Strath?? flat transaction did not go through....so high price established yet.
For the Strathmore flat, I read somewhere that the bank did not approve the buyer's loan, and hence, the deal didn't go through.
As for the Bishan flat, not sure what happened. Perhaps the owner wasn't happy with the $50k shortfall in COV, and was hoping another buyer could up the offer?
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is there a cap to the amount any bank can lend out for a property?
like 80% of evaluation, etc? -
tankee:
Yes, there is a statutory MAS cap and internal an internal cap based on their view of the value of the property and general conditions of the market.is there a cap to the amount any bank can lend out for a property?
like 80% of evaluation, etc? -
there is also a cap on he loan tenure based on the age of the prop for 99LH. Somehow, this does not seem to aply for HDB.
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Nebbermind:
The cap on loan tenure is dependent on the age of the borrowers at the time of borrowing.there is also a cap on he loan tenure based on the age of the prop for 99LH. Somehow, this does not seem to aply for HDB.
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