Your views on the current surging property market

[zj2000]

Yes, hdbs are still affordable. Important thing is you must have the right expectation. If you want to stay near town then be prepared to pay more. If you want cheap housing then look for the more ulu places but still near mrt like pioneer or sengkang. If that is still too expensive then look for those super ulu places like maybe teban where there is no mrt nearby. Even super ulu places willbe within an hour from the cbd (take bus then train), this is not too bad compared to places like KL, London or HK where many ppl take an hour to get to work.

Many of those who complain about prices being too high are those looking for flats in hot areas like queenstown, toa payoh but only willing to pay sengkand prices.

 

[zj2000]

Also I feel that whether or not property are affordable should not be based on the average property price compared with the average household income but rather should be based on whether the majority of households are able to afford something from the market.

From here
http://www.salary.sg/2009/compare-your-household-income-2009/
we see that 90% of households have income more than 2k. Assuming you use 30% to service your loan you will have at least 600 a month to service your loan. Part of the 600 can come from CPF - my calculations show 230 will go in your OA with a 2k salary meaning you only have to fork out 370 cash. With 600 a month servicing a 35 year loan means you can borrow 200k. 200k is surely enough to get something from the resale market. 90% of households can afford to buy their own home. Is that affordable?

 

[flowerpot]

Yes, hdbs are still affordable. Important thing is you must have the right expectation. If you want to stay near town then be prepared to pay more. If you want cheap housing then look for the more ulu places but still near mrt like pioneer or sengkang. If that is still too expensive then look for those super ulu places like maybe teban where there is no mrt nearby. Even super ulu places willbe within an hour from the cbd (take bus then train), this is not too bad compared to places like KL, London or HK where many ppl take an hour to get to work.

Many of those who complain about prices being too high are those looking for flats in hot areas like queenstown, toa payoh but only willing to pay sengkand prices.

b4 u say its affordable, pls go into the market and try to buy 1 in sengkang...

Also I feel that whether or not property are affordable should not be based on the average property price compared with the average household income but rather should be based on whether the majority of households are able to afford something from the market.

From here
http://www.salary.sg/2009/compare-your-household-income-2009/
we see that 90% of households have income more than 2k. Assuming you use 30% to service your loan you will have at least 600 a month to service your loan. Part of the 600 can come from CPF - my calculations show 230 will go in your OA with a 2k salary meaning you only have to fork out 370 cash. With 600 a month servicing a 35 year loan means you can borrow 200k. 200k is surely enough to get something from the resale market. 90% of households can afford to buy their own home. Is that affordable?

200K resale... 3 room maybe :bsmilie: its not about buying 200K, its about paying COV 30K up front... plus reno, plus weddings if u are getting married...

 

[zj2000]

200K resale... 3 room maybe :bsmilie: its not about buying 200K, its about paying COV 30K up front... plus reno, plus weddings if u are getting married...

Heres your problem, you can probably afford a 200k 3 room but you want to get a 4 room or 5 room. COV 30k can be paid using a bridging loan (so many banks call me to offer me uncollaterised loans) or borrow from parents. No money for reno then why insist on that design in home and decor. No money for that banquet in marriott then why not consider one of the smaller restaurants. Problem is nowadays so many ppl insist on the best of everything and then complain that they can't afford it.

 

[USM]

Heres your problem, you can probably afford a 200k 3 room but you want to get a 4 room or 5 room. COV 30k can be paid using a bridging loan (so many banks call me to offer me uncollaterised loans) or borrow from parents. No money for reno then why insist on that design in home and decor. No money for that banquet in marriott then why not consider one of the smaller restaurants. Problem is nowadays so many ppl insist on the best of everything and then complain that they can't afford it.

The famous phase - "Ai Pi, Ai Qi".

 

[flowerpot]

Heres your problem, you can probably afford a 200k 3 room but you want to get a 4 room or 5 room. COV 30k can be paid using a bridging loan (so many banks call me to offer me uncollaterised loans) or borrow from parents. No money for reno then why insist on that design in home and decor. No money for that banquet in marriott then why not consider one of the smaller restaurants. Problem is nowadays so many ppl insist on the best of everything and then complain that they can't afford it.

why would i want to buy a 3 room flat to house my kids and parents... why would i want to burden myself with a 30K loan shark from the bank...i never ask for designer decor, u think furniture is free ? not all parents are cash rich...ppl never ask for the best of everything... if everything has to be the best probably u need to be a millionaire to be satisfied...:bsmilie:

 

[flowerpot]

The famous phase - "Ai Pi, Ai Qi".

plus dua liap ni... :bsmilie:

 

[vince123123]

Yah, so their entire CPF goes towards paying the loan such that when they retire, they got no CPF left. That's affordability

.... Lets say they earn an average of $2k a month for the next 20 years. After grant lets say they take 160k loan, putting aside $855 (out of the $4k household income) a month for housing will allow them to finish paying off everything in 20 years assuming the current 2.6% hdb loan rate.

if you want to pay of in 10 years, u need $1515 per month.

 

[scanner]

Yah, so their entire CPF goes towards paying the loan such that when they retire, they got no CPF left. That's affordability

Just to add on, once you got loan from the bank or CPF board,
maybe say for the next 10 to 30 years, likelihood that you can't
afford to be jobless. How sad....

 

[diver-hloc]

i assume u r refering to why i comment on agents are making so too much too easily, well not all jobs pays well by just working long hrs, holidays, 24/7 etc... working hard and long hours does not meant u make 15K everytime in every job... the task of the agents happens to work during non working hrs like weekends and weeknights... so if a farmer works 16 hrs a day, 24/7 for the whole yr, do u expect him/she to make 15K per month ? its a tough job i know, its hrs are not friendly i know, but that doesn't warrant u to make 15K a month with the job responsibility of the housing agent...

My dear friend.... that is about as funny as it can be. I don't want to pass judgement.... and I'm sorry if I offended you. But one word just pop into my head - ENVY.

A Super Model earn $15K a shoot and do anyone doing the paying complaint that they shouldn't earn so much.... ??
A Pro Footballer easily earn as much per day.... and do you think they should feel sorry ??
A Housing Agent could earn as much $15K or NOTHING.... through hard work.

I earn just under $2K a month.... but I think I deserve every single cent.... no matter if that poor farmer puts in 18hr a day and take back less than 10% per month. And if you are willing to pay me twice as much for the same job.... I don't think I would complaint.

Much as I believe you think you deserve every cents you are paid even when foregin workers / maids working for under $400 a month under the hot sun think both you & me are over paid for working inside an Aircon environment. Or do you agree that you shouldn't be paid too much ?? :think:

Bro/Sis..... we get what we paid for. If you think that being an Agent means 'Easy Money'.... then join them. If you want much more out of your life.... then don't envy others when they earn more. Cause inorder to earn more..... they pay with other things (Time, Family... etc)

Again.... I apologize if you are offended by my statement... I'm just expressing my opinion :embrass:

 

[diver-hloc]

Yah, so their entire CPF goes towards paying the loan such that when they retire, they got no CPF left. That's affordability

I believe most ppl would downgrade once they don't need such a big unit anymore.... when they childrens are all grown up... etc.

My plan is this....

*Keep my current house and not upgrade since a 4Room is enough for me and my family.
*Loan will be paid off a few years before I hit 55.
*Can use half the price of my house to get my CPF to reach minium sum.
*Sell my 4Room and buy/rent one of those studio unit for old folks (can't remember the name)
*Use profit from the sale for old age.....

And yes.... HDB Housing is affordable if you could have lower your expectation on, location & size.

 

[vince123123]

Yup, quite sad, but donno why alot of pple dont realise it

Just to add on, once you got loan from the bank or CPF board,
maybe say for the next 10 to 30 years, likelihood that you can't
afford to be jobless. How sad....

 

[vince123123]

Well, I guess I can't change your mind. Its okay, we can agree to disagree on affordability. I've said my piece, with references and you have taken your view. We will let the others decide

Anyway, making a motherhood statement like "affordable if you lower your expectation" applies to everything. Its a matter of what expectation is. If I lower my expectation to live in a hut, I will be considered to be a rich man. Hence, it is a redundant argument.

I believe most ppl would downgrade once they don't need such a big unit anymore.... when they childrens are all grown up... etc.

My plan is this....

*Keep my current house and not upgrade since a 4Room is enough for me and my family.
*Loan will be paid off a few years before I hit 55.
*Can use half the price of my house to get my CPF to reach minium sum.
*Sell my 4Room and buy/rent one of those studio unit for old folks (can't remember the name)
*Use profit from the sale for old age.....

And yes.... HDB Housing is affordable if you could have lower your expectation on, location & size.

 

[diver-hloc]

Just to add on, once you got loan from the bank or CPF board,
maybe say for the next 10 to 30 years, likelihood that you can't
afford to be jobless. How sad....

Err.... could you tell me where/when you could 'Afford To Be Jobless' ?? :think::bsmilie:

 

[vince123123]

Lower your expectations and you can afford to be jobless. Seriously

Err.... could you tell me where/when you could 'Afford To Be Jobless' ?? :think::bsmilie:

 

[diver-hloc]

Well, I guess I can't change your mind. Its okay, we can agree to disagree on affordability. I've said my piece, with references and you have taken your view. We will let the others decide

Anyway, making a motherhood statement like "affordable if you lower your expectation" applies to everything. Its a matter of what expectation is. If I lower my expectation to live in a hut, I will be considered to be a rich man. Hence, it is a redundant argument.

I like this part.... in many other Forum... Name Calling & Foul Language would have long happened.... but, we have Gentleman here. :thumbsup:

Yes.... we can Agree to Disagree :bsmilie:

Btw.... I just came home from work.... whats your excuse for surfing the internet this late at night... or this early in the morning :bsmilie:

 

[diver-hloc]

Lower your expectations and you can afford to be jobless. Seriously

Already very low :bsmilie:

I don't own a Car or Bike.... wear only T-Shirts & Shorts.... Own a simple but cozy 4Room flat. I either Smoke, Drink or Gamble... only eat alot.

All my $$$ are spent on Overseas Trip, Scuba Diving, Photography+Computer.... :sweat:

Think I'll die a poor man :bsmilie:

 

[StarAlliance]

For those who thinks that being a housing agent is high earning job, think first:

As a matter of fact, for every batch of new comers to this trade, at least 50% will drop out in 6 mths.

Let's step into the shoes of a house owner, he checks his mailbox and finds tons of flyers, What are the chances that he will show an interest or keep the flyers for reference?
What are the chances he will pick u to sell his house?
Maybe u look handsome or attractive in the flyer.

They probably make better returns only from newly launched condo units, otherwise most of the agents are just breaking even by renting out units.

 

[zero o]

Think I'll die a poor man :bsmilie:

U have your flat and if prices keep escalating as what they have done historically over the years, you could be sitting on 500k ...

 

[vince123123]

Just as you feel others' expectations are too high, there will eb those that feel that you are living a life of luxury and that you can lower it even more . Take a leaf from your own book and lower some more; it will be good for you

Already very low :bsmilie:

I don't own a Car or Bike.... wear only T-Shirts & Shorts.... Own a simple but cozy 4Room flat. I either Smoke, Drink or Gamble... only eat alot.

All my $$$ are spent on Overseas Trip, Scuba Diving, Photography+Computer.... :sweat:

Think I'll die a poor man :bsmilie: