Tan Chuan Jin ‘said that his ministry tracks “very closely” the incomes of Singaporeans, to make sure that HDB flats are priced and subsidised so they’re affordable at different income levels.’
What is the govt’s definition of affordable housing? Two pay checks and 30 years to pay the mortgage. Right? Affordable in the past was one pay check and 15 to 20 years to pay. The difference between the two formulas for affordability is like heaven and hell. In the first formula it means two persons working for 30 years and leaving not much for retirement. Further, with two persons working, there is no way for the wife to stop work and look after babies as there will not be enough to pay the housing loan. See where is the source of baby problem?
In the second formula, the wife has the option to work which will provide more extra cash for a better and less financially stressful lifestyle. And if the wife so chooses to make more babies, it will not hurt the repayment of the mortgage. And in 15/20 years, the loan will be fully paid up and the rest can go to their retirement savings.
Both formula are technically right in terms of affordability. But one means work and work and hope that nothing goes wrong with the income before the loan is fully repaid. The other has a lot more slack without both spouses working to keep up with repayment of the loan.
What kind of quality of life and what kind of affordability are we talking about? This is the same kind of situation where some jokers said the island can take in 6m or 9m people while some say 5m is already too much. Everyone is right but at what cost and what consequences.
So very affordable huh? $1000 pm income can afford a 2rm flat. What about the life of the family? What kind of life? Would Tan Chuan Jin’s ministry track the affordability of one income and work on that basis and not one that would empty the savings of two incomes?