3/19/2012

Time to regret the high property prices

Medical bills in tens of thousands are increasingly common. How many average Singaporeans can afford to cough out this sum of money at one go? And bills of several hundred thousands are just as common in terminal cases or cancer treatment. What to do, everything is getting more expensive. And the medical professionals are humans too and need the money to pay for all the expensive things they need for a good life. The rentals for their office space do not come cheap. The $20m bungalow is something that they need for a more comfy life, and so is the $1m Lamborghini. It is not their fault and there is nothing wrong with them wanting the good life.

When the cost of everything goes up, especially housing, properties, the good life, someone must pay for it. And in professional services, the cost will be passed to the consumers, plus more profits added for good measures, or for the next property or the next car. The inflation game will be nice to play if money is available to everyone, especially the average Singaporeans who form the bulk of consumers. Unfortunately their income does not grow in the same rate and every little increment will be eaten up by the little increases here and there. And when a big medical bill drops into the mail box, it will clean up everything, and some may end up in debt.

Gan Kim Yong is going to make medicare more affordable. No one will be deprived of medicare. The cost will be manageable. Don’t be shy to ask for help. Don’t be shy when they mean test you. They mean well and you may be lucky the govt will provide some assistance through Medifund. And for the fortunate, the bills may end up as arrears in the hospital’s account. Did the patient abscond, in debt and unable to pay, or simply die? Whatever, it is a happy thing that so many people cannot pay their medical debt. Maybe the hospitals will close an eye. Surely they will not paint O$P$ on the debtors’ doors.

And since people have more money in their Medisave Accounts, more will be made available to pay for their affordable medical bills. This reminds me of the money in people’s Ordinary Account. Since they have so much money, HDB prices will be made affordable for them to pay through their CPF savings, and so affordable that nothing much is left for retirement.
I thought a better solution will be to stop people from accumulating too much savings and have more money to spend on other things. If the affordable bills will inflate according to the fattening of the Medisave Accounts, I am worried that it will end up like the empty Ordinary Accounts.

Every time the word affordable is mentioned, it sends a chill down my spine.

15 comments:

Chua Chin Leng aka redbean said...

This regret is only applicable to the average HDB flat owners where the higher price becomes a cost rather than a profit, higher property taxes and still not enough to pay for one big medical bill.

Matilah_Singapura said...

There is nothing to be gained by playing the "victim", not taking personal responsibility for one's life, and trying to blame everything and everyone else simply to let oneself "off the hook".

Rational people already know that you have to adapt yourself to your environment, or fuck off somewhere else.

Living in Singapore you have to make certain "allowances". Rational people do this>

For e.g.: CPF is bullshit. So, buy insurance to plan for the future.

Property prices are high, so if you do not have sufficient funds it might be a better alternative to rent or share.

Medical bill can mount up, so it could be wise to buy insurance, or ensure you have sufficient funds or make arrangements to go to cheaper cuntrees (like Thailand) for treatment.

If there is inflation, demand and good economy, property prices are apt to remain high or perhaps even go higher.

It is pointless complaining about it. I don't understand redbean. He reckons by writing a post now and then about expensive property prices is somehow going to ... LIKE MAGIC ... alter reality.

Chua Chin Leng aka redbean said...

High rapid growth and high inflation are great partners to great monetary wealth and sitting on properties without having to work. The main problem is that it is not sustainable and like all balloons, will bust.

And the bigger the balloon, the bigger the bang. Our little economy is very vulnerable to big swings in the international swing. It is better to go slower now that we are comfortable and not continue to pump in more drugs for more rapid growth.

Matilah_Singapura said...

Every economy needs to go bust once in awhile to rid itself of the "bad choices".

Nothing wrong with that.

Chua Chin Leng aka redbean said...

Agreed. What is wrong is that they don't think so and keep charging.

I remember Adolf has nice black hair instead of blond of the Teutonic stock.

Anonymous said...

Matilah,

Not sure why you are ranting about redbean.

I find his comments great and am encouraged by the courage he has to put them on the web.

I do all those things you mentioned, but everyday I believe I get a raw deal. Some of our key issues are avoidable, especially escalating property prices.

Anonymous said...

Can you believe it that our cost of living is much much higher than UK, US and Australia?

A stupid flat cost half a million at least. A stupid car cost $100k. A hospital bill can cost several hundred k.

What kind of great life is in store for the average sinkies?

Anonymous said...

"Medical bills in tens of thousands are increasingly common. How many average Singaporeans can afford to cough out this sum of money at one go? And bills of several hundred thousands are just as common in terminal cases or cancer treatment"

This is shockingly true. Many aging folks can't afford exorbitant health care costs and the luckier ones have their working children bear their financial costs. I have seen exorbitant bills for simple operations or common old age sicknesses amounting to tens of thousands of dollars(including hospital stay). After gov subsidies, family members still have to cough out more than ten thousand dollars(sometimes several tens of thousands)because under the "household/family income" they are deemed wealthy enough to pay.

I think if you have a system that bleeds the younger generation financially to care for th older generation, we will inevitably push the burden on their children because most don't earn enough to save for retirement.

Furthermore, with more unmarried folks and childless couples or single child parent etc these people will have no one to depend on. We are only pushing health care burden to the next generation and the next before the whole system collapses and many will be forced to an early, painful and humiliating death.

Anonymous said...

Real Estate/Monopolies 4 Ransom

http://vimeo.com/38500767

Doc on Rentier capitalism on how the

Tax code favors Speculators and Monopolies

Transferring Tax burdens on to the working

Class .....

Enjoy
Political Beng

Anonymous said...

Expect more and more to off load their bigger units and demand that the gunmen build them cheap studio apartment

I hope by then, their roofs will worth as much

asgporean said...

CPF is bullshit. Buy insurance. Question : how did a well intended scheme become so? Insurance can go down the same path. Then what? More shit? Stop passing the buck and star being accountable. Else fuck off.

Chua Chin Leng aka redbean said...

Thank you Political Beng.

That is a very important video fall all daft Sinkies to view. I took liberty to post it as an article to make sure that more will view its content and understand the shit they are in.

Chua Chin Leng aka redbean said...

Hi asgporean, welcome to the blog.

Many things started well with good intention until idiots appeared to mess them up. But the idiots will not see themselves as idiots but super talents.

Anonymous said...

Good observations, Read bean. GKY is learning fast from the shortie. Many would have noticed how medical costs are now described as "manageable", just like how HDB flats are made "affordable". There is very good reason to feel very very worried when either of these terms are mentioned. Like they say : In Singapore, you can die, but cannot fall sick

patriot said...

Even the 'tua chu'(Coffin in Hokkien Dialect) are getting more expensive.

Wonder if the Authority will allow the use of carton made of cardboard for wake and cremation??

patriot