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10-06-2014, 10:00 PM
An honorable member of the Coffee Shop Has Just Posted the Following:
1 Most ordinary citizens can forget about the available housing withdrawal limit (WL) of 120%. To be able to use the additional 20%, the CPF OA must first meet the Minimum Sum limit of $148,000 which has been increasing at 6% for the past 2 decades. The majority of HDB lessees would not be able to meet the MS requirement in future.
2 Allowing the use of maximum CPF for monthly installments in the initial years only masks the high cost of public housing. Another detrimental effect is this artificially inflates public housing prices to stratospheric levels.
3 A couple buying a 3-rm flat are likely to have a family. The strain on their disposable income increases every year is easily anticipated as well as the likelihood of insufficient cash when the VL is breached. The VL policy should not have ignored this.
4 As can be seen from Table A, the VL has created issues with cheap 3 room resale HDB flats. 4-rm HDB flats or bigger ones are even more unaffordable.
Dangerously high housing prices
1 Loans with floating rates are subject to unforeseen interest rate spikes. A rate increase of 2% and above will likely send the property market into a tailspin.
2 That affordability hinges on historically low rates places our real estate market in a precarious position.
The government should not be reactive, always await feedback
MPs should have come across thousands of cases. One such case was recently highlighted on TRS link and already highlighted on HWZ forum 2 years ago. An increasing number of such cases will continue to surface. Unfortunately, just like the MS scheme issue, our MPs are least bothered by an issue which does not affect them one bit.
Our MPs are likely to come up with an insulting suggestion ie downgrade. If that is the quality of our MPs, any Ah Beng or Ahmad could be an MP.
Suggestions - http://likedatosocanmeh.wordpress.co...b-to-detonate/ (http://likedatosocanmeh.wordpress.com/2014/06/09/2014069-government-awaiting-cpf-valuation-limit-time-bomb-to-detonate/)
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?183763-Why-you-can-forget-about-using-120-of-your-housing-withdrawal-limit&goto=newpost).
1 Most ordinary citizens can forget about the available housing withdrawal limit (WL) of 120%. To be able to use the additional 20%, the CPF OA must first meet the Minimum Sum limit of $148,000 which has been increasing at 6% for the past 2 decades. The majority of HDB lessees would not be able to meet the MS requirement in future.
2 Allowing the use of maximum CPF for monthly installments in the initial years only masks the high cost of public housing. Another detrimental effect is this artificially inflates public housing prices to stratospheric levels.
3 A couple buying a 3-rm flat are likely to have a family. The strain on their disposable income increases every year is easily anticipated as well as the likelihood of insufficient cash when the VL is breached. The VL policy should not have ignored this.
4 As can be seen from Table A, the VL has created issues with cheap 3 room resale HDB flats. 4-rm HDB flats or bigger ones are even more unaffordable.
Dangerously high housing prices
1 Loans with floating rates are subject to unforeseen interest rate spikes. A rate increase of 2% and above will likely send the property market into a tailspin.
2 That affordability hinges on historically low rates places our real estate market in a precarious position.
The government should not be reactive, always await feedback
MPs should have come across thousands of cases. One such case was recently highlighted on TRS link and already highlighted on HWZ forum 2 years ago. An increasing number of such cases will continue to surface. Unfortunately, just like the MS scheme issue, our MPs are least bothered by an issue which does not affect them one bit.
Our MPs are likely to come up with an insulting suggestion ie downgrade. If that is the quality of our MPs, any Ah Beng or Ahmad could be an MP.
Suggestions - http://likedatosocanmeh.wordpress.co...b-to-detonate/ (http://likedatosocanmeh.wordpress.com/2014/06/09/2014069-government-awaiting-cpf-valuation-limit-time-bomb-to-detonate/)
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?183763-Why-you-can-forget-about-using-120-of-your-housing-withdrawal-limit&goto=newpost).