High cost of living

I read a news report that young people find the cost of living to be high in Singapore.

I agree.

When I was young, the HDB flats and shops were at a subsidisied and controlled price. This helps to keep the cost of living low, and make Singapore competitive.

During the late 1980s, the HDB flats were allowed to appreciate to the "market price". This benefitted the HDB flat owners, but increased the cost of living for the next generation.

Looking back, it would have been better for Singapore, if HDB flats had been kept at the controlled prices. But, it is too late to turn back the clock.

At the current high prices, property will be just like any other investment. One has to think carefully before investing in property. Is the price right?

For some people, it may be better to rent a property. The rental may be lower than the cost of owning the property.

The capital sum can be invested in other means, eg in unit trusts or the combined fund from NTUC Income. These investments may give a better return in the long run.

Get advice. Make the right choice.