Can $1,000-a-month salary really buy you a HDB flat?
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Minister of State for Manpower and National Development Tan Chuan-Jin on Friday evening took to Facebook to clarify the comment made by Deputy Prime Minister Tharman Shanmugaratnam in Parliament on Thursday.
In a Facebook note titled "Earn $1,000 a month and you want to buy a flat?!", Tan intended to clarify and break down the process that permits a household that earns a combined monthly income of $1,000 to purchase a two-room Housing and Development Board (HDB) flat.
Taking the example of a two-room Build-to-Order (BTO) flat in Fernvale Lea in Sengkang, that was offered in January this year, Tan took its selling price of $100,000, from a price range of between $83,000 and $112,000.
He said first-time applicants who earn $1,000 in combined monthly income qualify for the Additional CPF Housing Grant of up to $40,000, as well as the Special CPF Housing Grant of up to $20,000, which can be used for the down payment for the flat purchase. This will amount to offsetting $60,000 from the selling price.
With a loan from HDB for the remaining $40,000, Tan demonstrated the repayment as follows:
- Taking a 30-year loan: $161 per month
- Taking a 25-year loan: $182 per month
- Taking a 20-year loan: $214 per month
He pointed out that for an income earner with a $1,000 monthly salary, he has $217 contributed monthly to his CPF Ordinary Account, which means that his monthly cash outlay will be $0.
"This support for families enable them to move from rental to owning their own homes," said Tan, who added that rentals for families with total monthly incomes of $1,000 come up to between $90 and $123 for a one-room, and between $123 and $165 monthly for a two-room flat.
Beyond that, Tan wrote that 4,300 two-room BTO flats that have been reserved for families that earn less than $2,000 per month were built since 2006, with more to come this year. He described the situation as "manageable", adding that the Ministry of National Development (MND) is increasing its building of rental flats, so that by this year there will be about 50,000 of them, cutting down waiting time for a rental flat from 21 to eight months.
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can the person earning 1000 per month be guranteed work for 30 years to pay off the loan?
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You expect some one who treat the life of $1000 family life like math problem to answer your question.
1 + 1 is not always equal to 2.
They are only seeing 2% of the issue and ignoring 98% of the other factors for the house situation.
Food, Study, Transport, PUB, Tax, Phone, Internet, Clothing, Tution, Insurance are factors that are not included in the equation.
It is very difficult and hard for them to understand the situation if they are still working in the air con office all day.
As more croonies come forward to defend this $1000 house issue, the more they are showing how ignorant and lost on the speech that was prepared for them without doing a reality check.
They may be right if it is a math problem, sadly, it is a real life situation in which they will never understand.
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What image you have in your mind with the word, "flat".
Three room flat, Four room flat, Five room flat, condominium apartment?
Whether a person earning $1000 per month can buy a flat, depends on the person himself.
The same factors apply to a person earning $10,000 per month, whether he can afford to buy a spacious bungalow. Its how a person prudently plans to live within his means.
Many people, no matter how much they earn, are poor planners.
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"wise" statement given by a bunch of millionaires toking cock in parliament
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only gullible people with lack of intelligence lower IQ andwould think gov has 30% truth in what it says.in fact i think its like -30% truth
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even if $1000 a month salary can buy a 2 room flat, that will only be enough space for the husband and wife to stay.
How are they going to have kids when there is no space for the kids to stay?
Now you know why the birth rate in singapore is falling
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unless HDB sell them at SGD50,000 for a 3 room flat.
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Originally posted by Jacky Woo:
unless HDB sell them at SGD50,000 for a 3 room flat.
Posted rate for a three room flat was $47,000, before the posted rates were abolished and market rate allowed to run. That was sometime in 1993 or 1994.
I know because I bought one then, $47K swee swee on paper, but pay an extra $5K cash to the seller, just in time before Mr Dhanabalan abolished the posted rates.
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Seriously.. Back in 70s or even 80s, the kids ended up living in the living room
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It happens even now, it all depends the family arrangements, what ever the type of home.
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Originally posted by mancha:
Posted rate for a three room flat was $47,000, before the posted rates were abolished and market rate allowed to run. That was sometime in 1993 or 1994.
I know because I bought one then, $47K swee swee on paper, but pay an extra $5K cash to the seller, just in time before Mr Dhanabalan abolished the posted rates.
oic. no wonder people complained bitterly on sky high prices, all thanks to dhanabalan.
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you guys still fucking don;t git it?
what they want is someone with the 'talent' to be able to survive on 1k per month. and those foreign ones - tehy can, so they are indeed - the talents
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Fairy tale happening in singapore.
Emperor new cloth.
Emperor is naked and every one are praising the emperor is wearing a nice gown.
Show us REAL LIFE example of singapore earning $1000 and owning a flat.
Dun get millionsters to tell us that it is the truth.
They can spend $1000 for one meal.
What is $1000 to them ?
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they are telling us that, if we earn 1k - pardon me to beat that record, it has to be S$999/- then we can be the talent of talents
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I wonder if this group of people still need to pay interest for their hdb loan?
They are already earning so low, I think it would be a good idea if hdb grants them an interest free loan.
This means they can pay off their loan faster instead of 30 years.
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wait nong nong arh
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Originally posted by troublemaker2005:
wait nong nong arh
But my suggestion is good right?
I am trying to help the poor.
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Originally posted by charlize:
But my suggestion is good right?
I am trying to help the poor.
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well, he also got collick say flood in sg is 50 years once...
he also got collick say minus their pay = affect their standard of living, $1k to them should be less then peasant pay...
he also got another collick support others using cable ties...
I dun think he is very far off from them
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Originally posted by SevenEleven:
Why you laugh?
I am serious.
MPs should ask whether the poor are paying interest in this case.
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Originally posted by ^Acid^ aka s|aO^eH~:
well, he also got collick say flood in sg is 50 years once...
he also got collick say minus their pay = affect their standard of living, $1k to them should be less then peasant pay...
he also got another collick support others using cable ties...
I dun think he is very far off from them
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Originally posted by mancha:
What image you have in your mind with the word, "flat".
Three room flat, Four room flat, Five room flat, condominium apartment?
Whether a person earning $1000 per month can buy a flat, depends on the person himself.
The same factors apply to a person earning $10,000 per month, whether he can afford to buy a spacious bungalow. Its how a person prudently plans to live within his means.
Many people, no matter how much they earn, are poor planners.
$10,000 a month can afford a bungalow of you stretch out the loan to 100 years.
Realy.
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Originally posted by charlize:
I wonder if this group of people still need to pay interest for their hdb loan?
They are already earning so low, I think it would be a good idea if hdb grants them an interest free loan.
This means they can pay off their loan faster instead of 30 years.
Please join the next elections and say these to the people to vote for you