Why students study more during school holidays
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Imp75\" post_id=\"2135522\" time=\"1719293429\" user_id=\"2358:
I don’t know HDB’s pricing formula but $500K+ for Woodlands could be due to inflationary erosion of our purchasing power, aka our money has become “smaller”.
I am using wdlds as analogy lah to illustrate how unaffordable BTOs have become esp the prime and plus estates.
One may find Wdlands BTOs expensive but none of my young cousins getting married, chose Woodlands BTO. They rather pay more for estates like Bidadari!! LOL. Demand for Woodlands BTO definitely not as high as those nearer town -
lee_yl\" post_id=\"2135528\" time=\"1719295421\" user_id=\"17023:
Definitely la I using ulu eg (supposedly most affordable) as case in point.
I don’t know HDB’s pricing formula but $500K+ for Woodlands could be due to inflationary erosion of our purchasing power, aka our money has become “smaller”.
One may find Wdlands BTOs expensive but none of my young cousins getting married, chose Woodlands BTO. They rather pay more for estates like Bidadari!! LOL. Demand for Woodlands BTO definitely not as high as those nearer town
So tell me, how do we stop and smell the roses when homes have become so unaffordable.
And new graduate pay nowadays median is merely $3-4k (finance) not sure how much lower is for those in commercial/social service sectors. Also 60% of the population are non-grads. -
Hmm…. did a back of envelope calculation.
Say poly graduate, starting pay is around $2700. After working for 8 yrs ( around time to settle down) , pay increased to $3500. Say avg monthly pay from starting to end of 8 yrs is $3100.
23% CPF allocation into OA monthly = 23% of $3100=$713. After 8 yrs, saving in OA = 8x12x$713 = $68k. Say partner same profile. Total CPF available when apply for HDB flat is $68k x 2 = $136k.
First time buyer housing grant up to $80k I read
Say a $500k HDB flat, minus $80k grant minus $136k available, need to take up $284k loan.
Loan from HDB at 2.6% rate, repayment period 25 yrs, monthly instalment around $1289, and $645 per person.
Current salary of $3500, 23% allocation into OA , will be $800. Enough to service the monthly instalment.
U grad will be in better position. Poly graduate can upgrade to degree. Housing Base line i think still intact.
Not many can slow down. But at least some pressure will be reduced from the societal expectation front, making it easier for those who can work out something. -
Wow thanks for breaking this down, otherwise I would hv thought HDB ownership is really unaffordable. Not sure why hdb website illustrative example is painting a rather bleak picture or maybe I was too focused that it’s half a million (tsk tsk so expensive for a hdb that area).