Property Views

[vicki]

sleepy:

So now better 'do nothing', place money in short term FD, wait for right opportunity to enter market when price goes south

Nah - no point putting $$ in FD - rates too low! How about taking a little bit of risk n 'investing/ speculating' shares instead?

[Xmasbaby]

sleepy:

Funz:

I think the new measures are pretty fair. If you can afford a pte property, you have no business competing with others for a HDB. If you buy a resale HDB and have fulfilled the MOP and over those years you did well and can afford a pte property that is good, not right for govt to penalise you for doing well by taking away your HDB right.


Well when setting policies, cannot take into account every single scenario. All they can do is address the majority and manage the rest by exception.

:goodpost:

Hopefully these measures are effective enough to curb all speculation.

HDB flats are afterall public housing and should be made affordable to majority if not all. And definitely not meant for private property owners to buy (fuel demand) & rent out

I totally agree...

In my opinion, no matter what measures the govt implement, it can't please everybody and the most important is that HDB flats must be made affordable!!!

The latest measures would probably affect PR & mass market upgraders.


1. I really can't find the rationale for PRs to sell their property in their country, it really dun make sense to me because what they own in their own native country will not affect the local property sentiments.

2. For PR, they can't buy new HDB so they go for resale HDB. Now that the MOP extend to 5 years, the buyer must be very careful. Because if PR buy a HDB flat and after 1 year, selected for Lift Upgrading or Home Improvement Scheme, they may find its unfair. For LUP, PR pay around $13-15K whereas citizens pay around $1k, for HIP I think PR pay around $25-30K whereas citizens pay only a couple of thousands, if I am not wrong. If selected, they may not be able to sell the flat due to the 5 years MOP, and have no choice but to pay although the value of flat will increase after the upgrading. Most important is do you have the choice?

3. For mass market upgraders, if they have to buy with LTV of 70%, they have to cough out additional $100k for a $1m property, i.e. $100k cash, $200k CPF as compared to $50k cash, $150k CPF. I think its rather drastic.

4. Frankly speaking, for the next 3-5 months, chances we can't see the impact in the price for HDB resale flat because although the COV may dip a little bit, the valuation for the next few months will still increase. This is because the HDB valuation is using the direct comparison method ( which is the recent transacted price in the area). The prices shown in the HDB website is based on the completion date which means the deals are sealed about 3-6months ago. Before the new measures, the prices are still going up so the next few months, valuation will still be up. It will come back to square one because valuation up, COV dip, so for the next few months, the impact not so great.

But no matter what, I strongly applauded the new measures although I think abit late, because the HDB flats are simply too EXPENSIVE at his point of time!!!

Before the new meaasures are introduced, sometimes I wondered how much Pinnacle at Duxton will sell after 5 years if this rate continues....

[qms]

From HDB’s reply to forum letters in Today’s newspaper, it seems that only OTPs submitted after 30 Aug are subject to the new rules.

[raynreg]

For new buyers, they have to decide if they shd go wif HDB on their first ppty and bear wif the 5 yrs MOP before going to private or if they start on the wrong foot with private, then its private all the way or no private ppty in future (ever) if they choose to "down-grade".

[sleepy]

raynreg:

For new buyers, they have to decide if they shd go wif HDB on their first ppty and bear wif the 5 yrs MOP before going to private or if they start on the wrong foot with private, then its private all the way or no private ppty in future (ever) if they choose to \"down-grade\".

I thought still can downgrade to buy HDB? Have to sell private property within 6 months

[sleepy]

vicki:

sleepy:

So now better 'do nothing', place money in short term FD, wait for right opportunity to enter market when price goes south

Nah - no point putting $$ in FD - rates too low! How about taking a little bit of risk n 'investing/ speculating' shares instead?

invest in shares may not be able to exit in 6 months or 1 year if intend to buy another property then. Anyway, I feel that share prices too high now, limited upside?

[vicki]

sleepy:

vicki:

[quote=\"sleepy\"]

So now better 'do nothing', place money in short term FD, wait for right opportunity to enter market when price goes south

Nah - no point putting $$ in FD - rates too low! How about taking a little bit of risk n 'investing/ speculating' shares instead?

invest in shares may not be able to exit in 6 months or 1 year if intend to buy another property then. Anyway, I feel that share prices too high now, limited upside?[/quote]How about buying on 'dip'? and dont be too greedy and sell when the dip rebounce a little?

[toddles]

verykiasu2010:

RRMummy:

[quote=\"vicki\"] Aka, once you buy HDB, cannot dream of private until 5yrs later har?

Hi vicki, that is my understanding too

if you own private ppty now, and buy HDB, then must sell your private ppty within 6 months

then must stay in HDB for 5 years before u can sell it or buy a private ppty again

but if you buy private ppty after the MOP of 5 years, you don't have to move out / sell your HDB

therefore : private ppty owner cannot buy a HDB to live in it in order to rent out the private ppty, while a HDB owner now can buy private ppty (after the MOP) and still live in HDB and rent out the private ppty. This to me is grossly unfair to penalise existing private ppty owner. Someone inside HDB is very vindictive[/quote]current HDB owner who has met MOP of 5 years can buy private ppty, and apply to HDB to rent out the HDB too. usually these applications are approved. Then the person can stay in the pte ppty and rent out the HDB.

[verykiasu2010]

toddles:

verykiasu2010:

[quote=\"RRMummy\"]
Hi vicki, that is my understanding too

if you own private ppty now, and buy HDB, then must sell your private ppty within 6 months

then must stay in HDB for 5 years before u can sell it or buy a private ppty again

but if you buy private ppty after the MOP of 5 years, you don't have to move out / sell your HDB

therefore : private ppty owner cannot buy a HDB to live in it in order to rent out the private ppty, while a HDB owner now can buy private ppty (after the MOP) and still live in HDB and rent out the private ppty. This to me is grossly unfair to penalise existing private ppty owner. Someone inside HDB is very vindictive

current HDB owner who has met MOP of 5 years can buy private ppty, and apply to HDB to rent out the HDB too. usually these applications are approved. Then the person can stay in the pte ppty and rent out the HDB.[/quote]ya lah, why unequal treatment of citizens ?

[3Boys]

Any policy that aims to help the less well off do better, are almost by definition, discriminatory.


Taxes are discriminatory. Means testing for healthcare is discriminatory. HDB housing policy. Even charitable giving is discriminatory.

They discriminate against one set of citizens (the better off) for the benefit of another set (the less better off).

In another post in the National Day Rally thread, there was reference to the GINI coefficient being high in Singapore. I.e. there is high income inequality. Put another way, the gahmen is NOT being discriminatory enough. Not doing enough to equalise wealth.

In other for social cohesion to exist, the well off MUST accept a certain level of discrimination, accept the thankless task of paying taxes, not being allowed access to subsidised medical care, not entitled to certain forms of housing.

It is necessary so that the less well off can have a place in the sun.

The implementation of this new HDB policy is perhaps not perfect, but its got its heart in the right place, and if you may indulge me a guess, perhaps it goes like this;

We need to keep HDB housing affordable for the majority.

The property market is hot, and the quality of HDB properties is such that there is high demand.

Unfettered access to HDB properties to all and sundry, including those who own private property, maybe someone staying in a $4M Ardmore Park penthouse, will drive up HDB resale property prices beyond the reach of the man in the street.

Social mobility in allowing HDB owners to make investments in private property is desirable.

Throw all of this into the mix, what do you get?

1) Close the HDB market to private property owners. You can afford private apartments, please leave HDB to the less well endowed.

2) Open up private property market to HDB owners. This is to allow for the aspirational growth for 80% of our population.

DISCRIMINATORY? Oh yeah, if you are on the wrong side of the fence. UNFAIR? Not at all, in my view.

So, don't be too kiasu. Some policies don't directly benefit us, but one needs to consider the bigger picture sometimes, and its ok to prosper thy neighbour.