1 Million EC
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mrswongtuition:
there is no rule to say that they must OWN a house/flat before starting a familyWe can't expect houses to be so cheap but at least it must be a reasonable price - especially for public housing.
For most of us, it will take 30yrs for us to pay off fully for our first home. For those who are lucky, they may get to upgrade a few years down the road.
My mum told me that she finished paying off for her current flat within 10 years and had the rest of her career years to build up her CPF. So now that she's nearing retirement age, she knows that she can fend for herself without having to stretch out her hands for money from her kids cos she knows that we have a heavier burden.
They should rectify the prices of public housing soon - so that more young couples will be able to afford them and settle down earlier to start having kids earlier too. It's a vicious cycle!
rental is always a solution while waiting for the new flat from HDB -
toddles:
however, the quantum of capital appreciation from the HDB has also increased tremendouslythe thing is that housing prices have increased from 8,500 in 1970 to 200,000 in 2010 but wages have not kept pace.
don't think salaries have increased 23 times... even when you compare similar job scopes then and now.
wage growth severely lagging behind housing price index and some say even CPI.
that is how most people make their money to upgrade, not dependent on salary. -
but then you can only release the capital if you downgrade… assuming that you bought at a low. even then, the equity released is hardly substantial. not to mention negative equity, haiz.
overall, I think someone in gahmen wasn’t keeping their eye on the ball in the last 30 years. somewhere, something went seriously wrong and our generation is paying for it. -
toddles:
the gahmen can't be teaching you when to enter the market and when to exitbut then you can only release the capital if you downgrade... assuming that you bought at a low. even then, the equity released is hardly substantial. not to mention negative equity, haiz.
overall, I think someone in gahmen wasn't keeping their eye on the ball in the last 30 years. somewhere, something went seriously wrong and our generation is paying for it.
have seen people growing their asset from 3-room, to 5 room, to condo, to landed, to multiple landed and condo.......typically only 50% financed at most...the first asset may only net $50k, the next may be $150k profit....then the next could be $300k profit......and the following one could be netting S$500k and above.....these are patient people, going through at least 3 or 4 cycles of the boom and bust now...... -
well, unless it’s a second property, it’s never quite realised gains…
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verykiasu2010:
In Singapore, the mentality we grew up with is that we will set up home in a house we OWN. It's not common for us to rent unless we are in transit phase (new house not ready) or we are desperate to get out of our parent's house. Simply not our culture.there is no rule to say that they must OWN a house/flat before starting a family
rental is always a solution while waiting for the new flat from HDB
& it's financially straining to rent a house and try to save up to buy one.
I stayed in a rented place when I got married but it's with the knowledge that our own house would be ready in a few year's time. Else, I wouldn't have married until we secured our own lovenest.
Living in a rented house is totally different from our own house. -
then mind set need to change
be flexible
can still own a house as soon as possible
the real problem is youngsters these days spent all the money on car, gadgets, iphone, and holidays on the excuse that housing is not cheap and keep delaying to commit to get married to start family…and in the meanwhile no money is saved, plus owing lots of credit card bills. too much consumption mentality
in the past people will go book a HDB flat immediately graduating from uni while striking out to earn some savings and won’t ever think of owning a car unless it is due to family + children’s needs. after working some years, got savings, plus flat also ready…
of course the old HDB booking system also got played out by many old bird experienced family man just wanting to unlock cash from the existing flat and buying new again from HDB with max loan …giving rise the previous HDB glut of unsold flats…that is the reason behind HDB’s present BTO system…
actually we created a lot of problems on our own, if we are honest about it -
toddles:
but I believe that a housing price correction will come soon. it might not be a large crash, but this rate of growth cannot be sustained. with the influx of hdb flats dd will not be so high, and hopefully the market will regain some sanity.
I'm with you on this, toddles :celebrate: -
If you bought a house on loan…
Effectively you’re paying rent every month (in the form of interest) to stay in the unit until the loan is fully paid for… -
limlim:
of course you reduce the rental rate by principal repayment as much and as quickly as possibleIf you bought a house on loan..
Effectively you're paying rent every month (in the form of interest) to stay in the unit until the loan is fully paid for....
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