The following is a letter sent to the TODAY newspaper by TOC columnist Leong Sze Hian.
I WOULD like to applaud the Government for what is arguably Singapore’s best Budget ever, with very comprehensive measures across the board, to help Singaporeans and businesses in this recession.
Perhaps, the greatest concern of Singaporeans is to have a roof over their heads. As of October, about 8 per cent of HDB concessionary loan mortgages were in arrears over three months.
Furthermore, with the forecast that as many as 300,000 jobs may be lost, the number of HDB flat owners in arrears may rise.
I would like to suggest that the Government consider giving the assurance that during this recession, say for 2009 and 2010, any one who cannot pay for his HDB flat, will not be subject to compulsory acquisition by the HDB, nor be compelled to liquidate in the open market.
HELP keep the voice of TOC alive!
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#33 & Gilbert.
Not sure about bank loan. My is HDB loan but b’cos not first nor second timer so my interest is market rate 3.86%. If interest go up, my rate goes too but if it comes down, its none of my business.
#33 don’t know how is Gilbert’s calculation but I know that my monthly instalment for a $126,600/- 25 year loan works out to $626 deduct from my CPF. Out of $626, the interest portion is $400 plus per month. Which means I pay only $200 plus for my principal amount and double of that for my interest. So for one house you purchase, if you take a loan you are actually equal to someone who buy 2 houses without loan. That’s how it works out. Illegal loan sharks? I guess I can’t deny that. What’s more, I had a misunderstanding that the housing grant was a cash deposit given to pay our house but I was wrong. It’s fund borrowed from CPF and upon selling my flat, I had to pay back CPF board the grant + accrued interest !
Get real HDB is now no longer subsidised housing. Those were my parent’s days when HDB only caused them $6900 for a 3 room (1971 price). My dad is now 84. Those days many are simple minded. They cannot afford to buy and so they rented from HDB. So even if the price is high there are not many buyers and thus not an advantage to a business minded company like HDB to sell even if they want to do so.
But then times have changed and many wants to “own” their own flat. So what better way to make the most money than jerking up the price and let us buy them by paying a high interest for it. Now HDB its just another speculative property like all private housing. Just think some are even willing to pay $850,000 to buy a 5 room HDB, an amount which you can use for buying a private condo with a swimming pool! Yes no doubt you pay monthly maintenance fee but don’t we all HDB dwellers do that? Our carpark is $95 for MCP with lift. Our 5 room conservancy is $60 which makes it $155. So condos only charge $135/- per month for maintenance and their cleaners daily keep your corridor spit and spank. What’s more if you look at the HDB title deeds, we are not “owners”, we are only “lessees”.
You ask my why don’t I lift in a condo then. I also want if I had $850,000/- like that person!
“Could someone from REACH reply here?” – Hong Mui Hoong.
You mean the toothbrush?
#53 @YH “You ask my why don’t I lift in a condo then. I also want if I had $850,000/- like that person!”
Most self-made millionaires do not live beyond their means. That is what seperates them from non self-made millionaires. (Heck – I am not a millionaire!)
aiyoyo
think we need a lot a lot of $ to survive.
a lot a lot of interest go to hdb.
aiyoyo
With interest only mortgages,yr initial monthly payments to yr bank are just interest. You don’t pay off any of the capital at all during the interest only period. it is not a recommended route as you may find yrself paying back yr
home loan until the day you die.
So, A Principal & interest mortgage is the surest and safest way to pay off
a home loan !
P.S. Was talking abt those above 65 and getting their CPF monies loh.