Our Houses Aren't As Affordable As HDB Says

Originally Posted by lerevenant

Husky,

It will be useful if you can share with us your budget, requirements (no. of rooms, high-floor, etc) and the shortlist of location that you have. With this info, maybe we can give you a more comprehensive advice on what and what-not to look out for.

Do you work in HDB or MND?

I staying in HDB.

[Husky]

Originally Posted by lerevenant

Husky,

It will be useful if you can share with us your budget, requirements (no. of rooms, high-floor, etc) and the shortlist of location that you have. With this info, maybe we can give you a more comprehensive advice on what and what-not to look out for.

I just applied for the Oct Sale of Balance Flats Balloting Exercise. Wish me luck.

[lerevenant]

Originally Posted by Husky

I just applied for the Oct Sale of Balance Flats Balloting Exercise. Wish me luck.

Wishing you all the best!

[Husky]

Originally Posted by lerevenant

Wishing you all the best!

Thanks. I applied for Bukit Merah 3/4 room. 3 rm about $300k. 4 rm is about $450k. Problem is, I am now in between jobs... not sure if it will affect my HDB loan application. Will they like give me some grace period?

I dont think its just about being picky. I am 35 and I cant even afford a flat in the far flung outposts in Singapore. I cant qualify for a BTO flat, HDB loan or grant so and not even a resale flat with all these exorbitant cov. Owners are asking 20-60k cov for a 3 room flat even in those godforsaken corners.

Many years back, home buyers need to pay 20% downpayment in cash for a private property in Singapore and for those who cant afford the 20% in cash, they can choose to buy a hdb flat and use their cpf monies to pay the 20% downpayment. Today things are quite different:

3 room flat
valued at $220k
cov of $30k

Stamp Duty based on Selling Price of Flat ($220k+$30k=$250k)
1% on 1st $180k = $1.8k
2% on next $70k =$1.4k
Total Stamp Duty $1.8k+$1.4k =$3.2k

5% of downpayment in cash = $11k

Cash Upfront: $30K + $11K + $3.2k = $44.2k

Not too sure about legal fees for hdb but it shouldn’t cost too much.

5-10 years old 2 bedroom lease hold apartment not in the prime district
Valuation $590k
Sold at $600k

5% downpayment in cash = $30k

Stampduty = 3% of $600k -$5.4k =$12.6k

COV = at present $10k, call up a few banks to ask them to see if they can match the valuation to the selling price and its likely that one bank will do it as they want your business so cov = $0 (of cos the difference between the valuation and the selling price cant be too great).

Cash Upfront = $30k + $12.6k = $42.6k

Banks will usually subsidise a large portion of your legal fees.

Stamp duty can be paid from your CPF. If you do not wish to pay first you can pay an admin fee amounting to at most a of few hundreds and they will deduct directly from your CPF this will set the initial cash needed even further apart. $30k for private apartment vs $41k for HDB.

The calculations does not include other cost which may amount to a few hundreds to couple of thousands.

The newest 3 room flats are more than 20 years, so on top of that you will still need to set aside some money for renovations which will likely cost more than you will need for a private apartment.

HDB’s mission statement: We provide affordable homes of quality and value

I have just found a nice spot under the stairs at a block of flats in farrer road. Think i am going to set up camp there soon. not bad, living in district 10 for free. Maybe if more people are going to start squarting and build shanty towns then perhaps hdb will again be true to its mission.

Originally Posted by Unregistered

I have just found a nice spot under the stairs at a block of flats in farrer road. Think i am going to set up camp there soon. not bad, living in district 10 for free. Maybe if more people are going to start squarting and build shanty towns then perhaps hdb will again be true to its mission.

There are no homeless people in Singapore. Only in TV shows.

[Husky]

Originally Posted by Unregistered

I dont think its just about being picky. I am 35 and I cant even afford a flat in the far flung outposts in Singapore. I cant qualify for a BTO flat, HDB loan or grant so and not even a resale flat with all these exorbitant cov. Owners are asking 20-60k cov for a 3 room flat even in those godforsaken corners.

Many years back, home buyers need to pay 20% downpayment in cash for a private property in Singapore and for those who cant afford the 20% in cash, they can choose to buy a hdb flat and use their cpf monies to pay the 20% downpayment. Today things are quite different:

3 room flat
valued at $220k
cov of $30k

Stamp Duty based on Selling Price of Flat ($220k+$30k=$250k)
1% on 1st $180k = $1.8k
2% on next $70k =$1.4k
Total Stamp Duty $1.8k+$1.4k =$3.2k

5% of downpayment in cash = $11k

Cash Upfront: $30K + $11K + $3.2k = $44.2k

Not too sure about legal fees for hdb but it shouldn’t cost too much.

5-10 years old 2 bedroom lease hold apartment not in the prime district
Valuation $590k
Sold at $600k

5% downpayment in cash = $30k

Stampduty = 3% of $600k -$5.4k =$12.6k

COV = at present $10k, call up a few banks to ask them to see if they can match the valuation to the selling price and its likely that one bank will do it as they want your business so cov = $0 (of cos the difference between the valuation and the selling price cant be too great).

Cash Upfront = $30k + $12.6k = $42.6k

Banks will usually subsidise a large portion of your legal fees.

Stamp duty can be paid from your CPF. If you do not wish to pay first you can pay an admin fee amounting to at most a of few hundreds and they will deduct directly from your CPF this will set the initial cash needed even further apart. $30k for private apartment vs $41k for HDB.

The calculations does not include other cost which may amount to a few hundreds to couple of thousands.

The newest 3 room flats are more than 20 years, so on top of that you will still need to set aside some money for renovations which will likely cost more than you will need for a private apartment.

HDB’s mission statement: We provide affordable homes of quality and value

I really sympathize with your situation. A friend of mine is in a similar position. Earning a decent stable income as an engineeer but just happens to be less fortunate in the love department. He was lamenting to me that as a single, he finds it impossible to get a flat. And he's only 30, so... another 5 years to go for him. Hopefully, things have changed for the better by then.

What's new? Besides condo and HDB prices hitting highs this year, now our dear transport minister wants more people to take public transport - which indirectly means he'll raise ERP, COE, road tax, or what have you. Hurray!

Another point I want to make: 1 in 3 people here are foreigners now. Very soon, we will be drowned out by these "talented" people. I remember someone important said these so-called talents are here to help create more jobs for us and raise our income level and standard of living. I don't know about others, but I think we are much worse off than before. ANGRY!