Apply HDB New Flat Income > $8,000, Can Appeal?

[MMM]

Also note that not the entire monthly CPF amount can be used for the flat as a % will go to special account, etc… So only those contribution to ordinary account can be used.


To be conservative, I think this is around $900 per person. So this works out to $1800 CPF.

[qms]

MMM:

Also note that not the entire monthly CPF amount can be used for the flat as a % will go to special account, etc... So only those contribution to ordinary account can be used.


To be conservative, I think this is around $900 per person. So this works out to $1800 CPF.

That's right. That is why the amount of cash top up is dependent on the age group of the couple because the amounts/percentages that go to the various accounts are dependent on the age group the couple is in.

[MMM]

Assuming that the net cash is around $670, this is around 10% of their disposable income. I thot it seems pretty reasonable?

[qms]

MMM:

I thot it seems pretty reasonable?

That's why HDB/MND thinks current prices of HDB flats are not exorbitant.

[watmekiasu]

The main consideration is do you want to spend 30 years paying off a loan? Imagine you're in your thirties now, you'll be paying till you're sixty. Pray that you will not be retrenched during that period and if so, hope that someone is willing to hire a person past 40 yrs of age. :roll:

[titank]

So if a couple maximum combined income $8000, assuming each of them earn $4.000/mth. Say thier age is below 30 years old.


Can they really afford the $700,000 HDB flat said in Bukit Merah, Central, Queenstown area? Everyday have to makan instant noodles, no life no entertainment?

[watmekiasu]

I think for a couple, the major expense comes when they have a child. Think preschool fees, enrichment classes like music, swimming etc , social activities for kids like zoo, science centre, children’s theatre, family holidays etc.

[schellen]

And gahment still expects us to have many kids.

[winth]

titank:

So if a couple maximum combined income $8000, assuming each of them earn $4.000/mth. Say thier age is below 30 years old.


Can they really afford the $700,000 HDB flat said in Bukit Merah, Central, Queenstown area? Everyday have to makan instant noodles, no life no entertainment?

To tell you the truth, the people who have come with an offer for my flat are all middle-age (at least 38 and above) families with teenage children. I don't think they are earning only 8K combined income.

One newly wed came, liked my place, but said very upfront to me that my asking COV is too high and they cannot afford.

But hor, if it was during the early part of 09, this place is still reasonable. 4room here was going approx 500K.

[mrswongtuition]

qms:

titank:

$700K for Tanjong Pagar new flat? Combine income max $8,000 wonder how can they pay?

OK! Let's make some assumptions.

Assumptions:

1. Couple's total income = $8k
2. Price of flat = $700k
3. Couple's grant eligibility = $40k
4. Couple's CPF Ordinary Account (total) = $60k
5. Tenure of loan = 30 years
6. HDB Loan Rate of 2.6% will not change for the next 30 years

According to the financial calculator found in HDB website, the monthly instalment will be $2,471.00

Total CPF contribution per month (including employers' contribution) = $2,760.00.

The amount of cash payment/top-up per month will be dependent on the age group of the couple.

MONTHLY INSTALLMENT OF $2.5k!!!!!
Not many people can afford that with <$8k income!

I know my installment is less than $600/mth, no cash involved and we still do not have alot of entertainment/holidays. How do people survive if their installments are so high? If one day they both are jobless, how long can they last?