SDP Housing Policy

[baijiazi]

\o/ both hand support!

coz some ppl just want a roof over their head....

its gives ppl a choice if they want it as an investment.

 

[ponpokku]

How is it subsidised when you just took out land cost?

What i foresee is that it will be a stagnant market due to controlled pricing of flats and the tagged to cpf interest rate.

Yes, many pple working in HDB currently will be affected as the revenue that they having now will become non-existant due to low margin of cost to sales.

How is it a huge risk to hdb when they are a stat board & cashflow is in theory infinite? The only thing that can crash such model is bad management & sudden stoppage of cashflow.

and the land cost ish fixed by them...

 

[runforyourlife]

wouldn't be approved as it takes a huge chunk off the govt's revenue, esp so when they raise the cap of housing grants, doesn't align with the policy where they are trying to attract more singaporeans in, and at the same time reduce the probability one may choose to go to private

 

[gravity_infinity]

\o/ both hand support!

coz some ppl just want a roof over their head....

its gives ppl a choice if they want it as an investment.

i also agree it is a very good idea.

but we need to fine tune it.. especially the loss of income for government. we have to see how we can balance this and also other ways which government can extract value elsewhere without imposing other taxes on citizens.

 

[PiPiChew]

How in heavens this is considered a good scheme is beyond me. Anything outside of a free market system is bad. Consider the huge amount of risk to be undertaken by the HDB. And in the first place, why should other tax payers subsidise others?

No one is subsidising for anyone. It costs totally nothing to start building a BTO on a piece of existing land. Of course it would cost money to reclaim land. That's what I'm saying.

So a piece of land sitting with no buildings on top. If HDB decides to build a BTO and after accounting for manpower and materials blah blah blah costs each unit 200k, buyer pays 200k. Maybe after AHG and SHG become 150k but hey almost everyone gets them yea.

The issue is why is it that a unit with cost price of 200k is sold for 500k, where the extra 300k is the "cost of land". The land was created naturally by nature and has been there for centuries. No one was using that piece of greenery and suddenly it costs 300k to unlock it for use? Who earns that 300k?

The moment I have money and am eligible for the AHG and SHG grants etc I'm gonna buy a BTO. If this new scheme by SDP is in place I would go for it. Is cheaper by a lot and with a 99 year leasehold I would die before the lease is up. I don't intend to shift house. If the BTO gets demolished etc at least I can get back some money to buy another BTO.

Either SDP wins and implement this idea (they better do it) or PAP copy this idea and implement it. Right now 300k to 400k for a 4 room BTO is expensive for me. Housing is something that how ex also have to buy one, that's why BTO prices are high but they would always be snapped up. Demand will always be there. It is simply not economical to rent a house from the landlord yet cannot renovate la etc etc.

Of course if SDP really gets elected etc and this isn't implemented by the next election, then we all know that it is empty talk from them.

Sent from 10 Buangkok View, Buangkok Green Medical Park using GAGT

 

[tfkmueh]

i won't be surprised if hdb is one of the cash cow.

Yeah but all the PAP politician denying this lol.

Khaw keep on harping that all HDB flats are heavily subsidised & HDB is loss making organization.

So if my scenario is true, then he been lying all along or at least partially.

 

[gravity_infinity]

No one is subsidising for anyone. It costs totally nothing to start building a BTO on a piece of existing land. Of course it would cost money to reclaim land. That's what I'm saying.

So a piece of land sitting with no buildings on top. If HDB decides to build a BTO and after accounting for manpower and materials blah blah blah costs each unit 200k, buyer pays 200k. Maybe after AHG and SHG become 150k but hey almost everyone gets them yea.

The issue is why is it that a unit with cost price of 200k is sold for 500k, where the extra 300k is the "cost of land". The land was created naturally by nature and has been there for centuries. No one was using that piece of greenery and suddenly it costs 300k to unlock it for use? Who earns that 300k?

The moment I have money and am eligible for the AHG and SHG grants etc I'm gonna buy a BTO. If this new scheme by SDP is in place I would go for it. Is cheaper by a lot and with a 99 year leasehold I would die before the lease is up. I don't intend to shift house. If the BTO gets demolished etc at least I can get back some money to buy another BTO.

Either SDP wins and implement this idea (they better do it) or PAP copy this idea and implement it. Right now 300k to 400k for a 4 room BTO is expensive for me. Housing is something that how ex also have to buy one, that's why BTO prices are high but they would always be snapped up. Demand will always be there. It is simply not economical to rent a house from the landlord yet cannot renovate la etc etc.

Of course if SDP really gets elected etc and this isn't implemented by the next election, then we all know that it is empty talk from them.

Sent from 10 Buangkok View, Buangkok Green Medical Park using GAGT

sdp can propose.. but ultimately those that control the parliament is pap.

u cannot blame it on sdp if it is not implemented.

 

[tfkmueh]

this loss in revenues need to be made up from elsewhere.

to prevent speculate of properties..

foreign buyers should be slap with a tax for flipping..if sold within x number of years.

I feel we should not penalize any1 for this.

As the enclosed market is separate from private market.

Thus the movement of either market does not affect the other greatly, thus govt should allow the private property prices to be decided by the market, the sky the limit.

Just like casino, the private market will attract all the players while NOM will be for working SGeans.

 

[LaoLeelorry]

400+k for a small pigeon hole is ridiculous
And have to return one day

 

[repentance]

For this proposal, this NOM system will eventually roll out to all further purchases?

Would it be worth considering two schemes for new buyers, NOM and OM, where the OM has the land prices factored in?

I personally would go for the NOM, but there will be people who view housing as investments, perhaps offering both choices can be done?

 

[gravity_infinity]

For this proposal, this NOM system will eventually roll out to all further purchases?

Would it be worth considering two schemes for new buyers, NOM and OM, where the OM has the land prices factored in?

I personally would go for the NOM, but there will be people who view housing as investments, perhaps offering both choices can be done?

yes. sdp proposal two.path. one is the original om path. the other is nom

this will separates buyers looking for capital gains to go om.

and those who just want a home to go nom.

this means introducing nom as an addition scheme not a replacement scheme.

 

[Tyrian]

i have a suggestion to the NOM scheme

to further impede capital gain, the price which owners sell back to the HDB will not be higher after factoring an implied rate. We can tag this rate to CPF interest rate, or inflation rate. so that their "asset" does not depreciate

and we should make NOM convertable to OM also.

 

[ICEMAN_ACE]

For people who go for such scheme, they have to bear in mind it is basically to rent a roof over your head till the day you died. You have to be satisfied that there is no opportunity factor for growth to upgrade in the future. But human nature, it is tough for most to remain satisfied and not look for better. If someone promise you all cost of living will never go up throughout your life but your pay no increase will you accept that too. I can understand there is a need to reduce the high cost for public housing for I feel hdb do profit, if only they come clean we will know where the cut to make.

 

[gravity_infinity]

i have a suggestion to the NOM scheme

to further impede capital gain, the price which owners sell back to the HDB will not be higher after factoring an implied rate. We can tag this rate to CPF interest rate, or inflation rate. so that their "asset" does not depreciate

and we should make NOM convertable to OM also.

that is a good suggestion.

 

[wwng16]

To be frank our wages cannot afford a 400k -500k hdb be in bto or resale.
SDP should come out with a rule stating that HDB owners can only resell their flat at their cost price plus 20% profit... Many of the ppl thought their subsidize housing are private property.

I really hopes PAP reads this.

 

[repentance]

yes. sdp proposal two.path. one is the original om path. the other is nom

this will separates buyers looking for capital gains to go om.

and those who just want a home to go nom.

this means introducing nom as an addition scheme not a replacement scheme.

Then I can't see why this proposal shouldn't be adopted. It gives choices rather than an inflexible umbrella rule.

This proposal will open up a can of worms on how much extra the "land costs" are bringing in for the govt, that would be one reason for them to resist it.

 

[Gribber]

i have a suggestion to the NOM scheme

to further impede capital gain, the price which owners sell back to the HDB will not be higher after factoring an implied rate. We can tag this rate to CPF interest rate, or inflation rate. so that their "asset" does not depreciate

and we should make NOM convertable to OM also.

to add on (in case i miss out - do correct me)

existing property owner should be classified under OM instead of NOM.

This helps not only to prevent backlash from existing owners it gives existing owners flexibility to change it to NOM to get back some savings as well without the need to sell their home.

 

[BreadPitt]

wow... nice. $240k for 5 room.

Like that can "paper" divorce wife and buy private to rent out!!!! swee swee no run water!

 

[BreadPitt]

Yeah but all the PAP politician denying this lol.

Khaw keep on harping that all HDB flats are heavily subsidised & HDB is loss making organization.

So if my scenario is true, then he been lying all along or at least partially.

Main cost is in land value. Which is owned by SLA? which supposedly goes back to state reserves.

Khaw might not be wrong (I never check their accounts) in saying HDB makes a loss after all the subsidies.

 

[satayxp]

Yeah but all the PAP politician denying this lol.

Khaw keep on harping that all HDB flats are heavily subsidised & HDB is loss making organization.

So if my scenario is true, then he been lying all along or at least partially.

he is being dishonest
HDB is making a technical "loss" bcos the proceeds from selling to HDB the artificial land cost component is transferred to SLA n the reserves.. thus incurring a "loss"