Wednesday, August 11, 2010

High price of HDB flats

Do the residents benefit when there is appreciation in the value of HDB flats? This person thinks that they do not.

My view
It is better for the flat prices to be kept at a reasonable proportion of the average income, e.g. 5 years. Currently, most people are paying more than they can really afford. It caused them to cut down on other expenses.
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6 comments:

Unknown said...

IF YOU ONLY HAVE 1 PROPERTY, PRICE INCREASE IS ONLY PAPER GAIN. HIGHER PRICE WILL RESULT IN HIHER PROPERTY TAX SO YOU ACTUALLY LOOSE ONLY THE GOVT GAIN.

August 11, 2010 8:39 PM
Createwealth8888 said...

Our first residential home is for living and not for profit taking.

http://createwealth8888.blogspot.com/2010/01/home-for-living-and-not-for-profit.html

August 11, 2010 9:06 PM
singapore man said...

The Majority of the flats in Ang Mo Kio, Bedok, Marina Parade and Toa Payoh are more than 30 year old, instead of appreciating; they should peaked their value about now and begin their depreciation curve. But instead of depreciating it is still appreciating with no end in sight. Our housing bubble would pop once the reality sets in that a 99 year lease cannot appreciate indefinitely. Those idiots that bought their flats at a high will understood that the PAP manipulated the market to screw our backside once their exuberance wears off

Also those living in Bukit Merah, Kallang and Whampoa with flat kana en-bloc will understand why they can no longer afford a replacement flat at the same district nor a 2nd hand market at fair value.

Knowing that the bubble will pop sooner or later, I will be going into a life time of debt soon with my wife and I am very cheesed off coz the similar flat 3 years ago was cheaper by half but at least I would have 99 years of lease left.

August 11, 2010 10:47 PM
Jamesneo said...

Hi Mr Tan i prefer the long term 3.5 times median income total of both couple. 5 times is starting to be unaffordable. I think that all property will revert back to this mean although the situation might differ slightly in different country in terms of timing.

August 12, 2010 1:54 AM
Unknown said...

All flats whether $200,000 or $600,000 will start from ground zero once it reaches 99 years lease. Fail to understand why people are so blinded that they are willing to pay more than $600,000 for old flats in mature estate. The only people who benefits are property agents, legal firm,government etc.

August 12, 2010 8:27 AM
Unknown said...

http://finance.ifeng.com/hk/sckx/20100713/2401891.shtml

Here is a report in a website in China which stated that on average, Singaporeans will need 36.4 years to completly pay for a housing. It is the world highest.

August 26, 2010 11:55 AM

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