Then of course we have the almighty saying that we should not be looking for subsidies and should struggle more to maintain our competitiveness. That is of course easily said after you have gazillion dollars in the bank with half of the nation’s business going to the companies that you have a share in.

We do have a great talent pool in the Govt, they are all established entrepeneurs with good track records, but I think that is the root of the problem. These businessman are so profit minded that they have forgotten that they are running a country and in that “business”, the most important thing to look out for are your citizens! The bottom line for these ppl is how much year end profit ends up in the coffers! These reserves are of course essential for the maintaining of our cross border ties and helping with the international community! Sometimes at the expense of the citizens who contribute to these fundings.

Anyway, I have seen and heard too much and it seems that the only way to have a reasonable response to our queries and appeals is to express your views with your vote during the GE. At any other time, whatever is said will be “taken note of” but never acted upon.

To all who have suffered the high inflation rates and high costs of living, hang in there and pra… for a more citizen oriented Gvt as I am doing everyday….

Cheers!

The solution is to ask them to find a new way to fill their coffers but apparently, exploiting their own countrymen is the easiest way to do it.

And I remembered hearing news back then when HDB had a major reshuffling whereby many were given the love letter to go, the plan was by 20something which in phases that all new flats will be outsourced to private developer. Maybe some of you can recall this news or was I imagining?

Many Singaporeans were victim in most of the HDB new policy, like the housing grant, downgrading levy fee, bank loans extra. Many upgraded and downgraded their flats when HDB adjusted the valuation price to market price, Most may have benefitted from sales but however do note that the profit is not even a peanut in NKF issue, i.e. it may not even cross a half-mil from what I gathered. So to put a stop, they have a new policy to curb this fashion, i.e. a downgrade levy imposed, subsidised rate stop at 2, bank loans etc.

I also agreed that the policy for ownership of both private and HDB should be reviewed. I have seen private property owners bought HDB units and gaining rentals instead of staying there while depriving a chance for new or second chance low or middle income owners to own a flat.

Please email your tel to me leonggsh@pacific.net.sg – I would like to speak to you regarding this HDB appeal case

Cheers

Leong Sze Hian

Are the public flats priced too high for the average Joe and Jane to afford, or they didn’t do their sums properly. Anyway I remember some years ago a PM said we should enhance our ( brick ) asserts!
Singaporean will only be able to rent flats or rooms only in due course.

Dear Honourable sir, We,…………………………. Ic no:………………………………., would like to seek your help for a HDB Loan for a purchase of #room flat in the open market.

Currently, we are staying at Blk …………………………………………… under a bank loan. During the time of my purchase , I was in a high paying job. Recently I met with an accident and was hospitalised for some time.

Due to that there is alot of diiference in my last draw pay. This month my Cpf has been dried up. I have started to incure default payments for my home loan through bank. I and my wife has went to seek the help from the woodlands MP .He has appealed to HDB loan dept to help us out. They did call us for an interview around 3 weeks back. To our surprise, the officer in charge of our case told us to go and take another bank loan even though we explain to him that we are not eligible fpr a bank loan anymore.

Alternatively, he told us to go and borrow money from others to settle our home loan problem. We were very much shocked to hear that from a HDB officer from woodlands branch office. We did bring this matter agagin to our MP and he tried appealing to HDB for a Loan again . But again it was unsucceesful. Me and my wife, have my old age mother and 2 kids to look after.

The reason we went to see the HDB officer at the branch office is to give us a solution in our loan. but he’s idea will ruin my whole family to the street, please help us sir. We have no one to turn to as we have tried our level best in all angles. You are the only hope we have sir. Please help us to get a HDB loan sir.Sorry for the inconvenience caused sir. Thank you.

First, Ms Kee mentions that HDB “adopts a market-based pricing approach” and “sells the flat at a discount to the market value”.

Then, at the end of the letter she contradicts herself by saying that “a new 4-room flat can cost close to $300,000 to develop, taking into account land, building and other costs. This is significantly higher than the subsidised price of a 4-room flat sold by HDB at about $200,000-$260,000″

So is the subsidy market-based or cost-based?

And my 2nd question would be: What are these “other costs”?

I would also like to thank David for providing the following breakdown:- “total breakeven cost for a 5-rm new flat (in year 2000) was $120,000 – comprising $50,000 construction cost (actual, from contractor’s tendered sum) plus an estimated $70,000 for land cost and other related costs(eg piling,project management)

May I know the source(s) of your info? Thanks.

“29) DavidSeeLeongKit on July 2nd, 2008 9.30 pm

“Note: In my published BT letter below, the estimated total breakeven cost for a 5-rm new flat (in year 2000) was $120,000 — comprising $50,000 construction cost (actual, from contractor’s tendered sum) plus an estimated $70,000 for land cost and other related costs(eg piling,project management) — BUT the new flat selling price was pegged at $200,000 [ ie HDB was actually making a cleverly-disguised profit of $80,000 for every flat sold! Thus, providing the large sums of money for GIC and Temasek to play "tikam,tikam" ]”

2. It is very clear that this greedy, rapacious, corrupt, lying LIEgime gang is ‘charging what the market will bear’, that is, exploiting its monopoly to extract maximum profits from us, with profiteering as its only consideration, not social, welfare, or any other consideration. It fits in my essay analysing their “5 Aims of govt” in :
http://theonlinecitizen.com/2008/06/university-admissions-employment-and-help-for-the-poor/#more-874

Either that statement is fact or fiction. If you are so cocksure it’s false, sue them in court!

(A) MY BT LETTER:

Business Times – 20 Jun 2008
LETTERS TO THE EDITOR
HDB contibuting to price spiral

See Leong Kit

I REFER to the article ‘HDB pricing policy limits impact of rising costs’ (BT, June 11).

As a 60-year-old Singaporean, I empathise with the growing despair of young couples when it comes to such a basic aspiration as home ownership. Private property is mostly beyond their reach. Even for HDB flats, they are caught between waiting as long as six years for new flats or paying exorbitant prices for resale flats.

In the 1970s, a graduate’s starting pay was around $1,000 per month. Then, in HDB Marine Parade Estate, prices of 3-room, 4-room and 5-room new flats were $17,000, $20,000 and $35,000 respectively. By 1990, the average price of 5-room new flats was $70,000. Such prices then reflected a ‘cost-based’ pricing approach.

Now, graduate starting pay is three times higher than in the 1970s, but prices of new similar HDB flats have gone up 10-30 times.

These massive price hikes are largely due to the HDB switching over to a ‘market-based’ pricing approach, following the 1994 property bull run.

In 2007, the HDB finally confirmed that ‘the prices of new HDB flats are based on the market prices of resale HDB flats, and not their costs of construction’.

In 2000, the total break-even cost for a 5-room new flat was an estimated $120,000.

But, under the market- based pricing approach, the HDB first looks at the prevailing market price of, say, $260,000 of a 5-room resale flat. It will then pick a slightly lower figure of, say, $200,000 as the selling price for the 5-room new flat (despite its $120,000 break-even cost).

HDB will then say the new flat buyer is getting a so-called ‘market subsidy’ of $60,000, arising from the difference between the resale flat market price and new flat selling price. There is thus no actual ‘cash subsidy’ given at all.

This market-based pricing approach had resulted in new flat prices and resale flat prices chasing each other in an upward spiral, affecting buyers of both new and resale flats.

It has also led to current prices of 4-room new flats varying so much from $200,000 (Sengkang) to $400,000 (Telok Blangah) and a whopping $590,000 (Boon Keng).

HDB is supposed to be a low-cost public housing developer. Why then is it not passing on to flat buyers the economy-of-scale cost savings in its huge developments by pricing its new flats on a cost-based break-even basis?

(B) HDB’s standard “dodgy” reply ( avoiding answering the simple question in my last paragraph; stating numbers without detailed breakdown — pointing to “hiding the full facts and figures” from the people):

Business Times – 2 Jul 2008
LETTER TO THE EDITOR
HDB approach reflects true subsidy

WE refer to Mr See Leong Kit’s comments on the pricing of HDB flats in his letter ‘HDB contributing to price spiral’, (BT, June 20).

HDB adopts a market-based pricing approach so as to reflect the true subsidy that buyers are enjoying. Under this approach, HDB determines the market value of the flat, based on its location, the finishes and other attributes. Then, it sells the flat at a discount to the market value.

HDB buyers understand this, and appreciate that new HDB flats are priced lower than resale flats. Similarly, when they want to sell their flats in the open market, they are allowed to do so at the prevailing market value, not at their cost of purchase of the flat.

We also wish to highlight that under this approach, the current sharp escalation in construction costs does not directly affect the selling price of HDB flats.

Currently, a new 4-room flat can cost close to $300,000 to develop, taking into account land, building and other costs. This is significantly higher than the subsidised price of a 4-room flat sold by HDB at about $200,000-$260,000.

Kee Lay Cheng (Ms),
Deputy Director, Marketing & Projects
for Director, Estate Administration & Property,
Housing & Development Board

better make it mandatory for people to assign a portion of their capital gain from the sale of their property to fulfilling the requirements of cpf, insurance or ensure basic standard of living are maintained without becoming a social liability.

better not encourage easy way out for them without a roof.

They were priced at $207,000 to $278,00.

Are Singaporeans coming to their senses or are the flats just unaffordable to the majority.

I fully agree that the HDB should go back to their core basics of providing affordable housing to the people. This would also include a cap on the prices of the buying and selling of HDB flats.

How can a average worker, fresh from studies, working a few years afford such prices? It is no wonder that more young people are not getting married and living with their parents or siblings. Cheaper to pay your parents a monthly maintenance then to worry of the HDB mortgage.

There is a deeper issue to the high prices, social manipulation. It is to keep people rooted and bonded ( bondage ! ) to Singapore. But I think the younger and more educated has more options now than to live here and struggle all our lives ( Pay and Pay ! )

As for the flats being subsidized, we all know that the figures will not be forth coming anytime soon. The other question is, how much HDB is making from their commercial properties too? There is something very wrong with our society and country. I hope Singaporean can have to wisdom and courage to change things here, hopefully at the next election. It is not what we want to do for us now but what can we do to make life more livable for our children and their friends.

On a different note I think the present government has lost all its morality and credibility to run the country. What a shame , with such talented people.

Their reasoning for many policies seems to be like sand flowing through the fingers. We are just now buying them anymore. It’s like a scripture verse, I may recall, “the man who build his house on sand!” How long can this country go on like this?

While the “subsidies” are fully accounted for in their financial statements, the profits from land sales are not and are excluded from the annual budget.

Note that I have no way of verifying the above.

You don’t own your property and you still have to pay property taxes and maintain your ‘property’.

You can’t transfer the property beyond 3 generations. In contrast, our millionaire ministers live on free hold property and can perpetuate their wealth to their descendants. That is one of the many mechanisms in place to keep poor families poor and rich families rich in Singapore.

Paying your rent upfront is a very unusual practice that sucks your life savings from you.

The only other country that does that is South Korea. You pay a lump sum to rent for a few years but the owner gives you back the exact amount after the end of the lease. The owner uses that amount of cash to invest and generate interests. You are basically exchanging the ‘opportunity costs’ of money in exchange for shelter.

Living in a HDB flat makes you nothing more than a coolie to the PAP. Stop being a coolie and leave Singapore.

We ( Singaporean) will gather at the city to celebrate our National Day together.. AND NOT WITH THE PAP GOVERNMENT.