2/16/2011
No child be denied an education
This is the assurance by the govt. No money never mind, just ask and will be given. Any small prints to read? Any conditions attached? Will the parents be subject to mean testing? What income level is considered as affordable and disqualified from govt handouts? A $2000 household income for one child or $5000 income for four children qualified?
I think the first thing is to prove how challenging the family life is. The term challenging and affordable can mean anything to anyone. Nevermind, when a family is in that condition, no need be shy, just go and ask for help. The govt will be most happy to help.
The devil is in the details. Something like no one will be denied medical treatment in our hospitals. Then why are citizens going to Malaysia for treatment? Fail the mean testing, or too shy to ask or beg?
If only Malaysia agrees…
If Malaysia agrees to let us build all the facilities we need in Johore, like hospitals, schools, housing etc etc, we can save a lot of money from paying sky high prices for these facilities and services in the island. There are obvious competitive advantages in terms of land costs.
And if that happens, Singaporeans can all move over, hopefully can still work in their own country. And the whole country can be sold or lease to foreigners who can afford the high prices. As a hotel, there is nothing sentimental about this place. Let it go to the highest bidders. Singaporeans can go and park somewhere else. The cheaper land and labour costs will make living in those places much more affordable for the 21st century nomads.
And we can extend the work in progress in nation building forever. No sweat, as long as Singaporeans can be shifted out and rent out their expensive HDB flats and earn rentals to live cheaply in Johore. Medical and hospital services would also be cheaper. Come to think of it, renting out the whole island and live on the rentals is not a bad idea. Our beautiful island paradise can be home to the rich and famous, our world class hospitals to serve the rich and famous….
Provided Malaysia is willing. We can truly become the modern nomads, people without a home in their own country. Oops, got homes, but need to rent out to live on the rentals outside the island as the high cost of living becomes prohibitive to the average Singaporeans. OK, the average Singaporeans can also call themselves landlords, till the lease expires.
Isn’t this a damn great idea? No need to worry about nation building, no need to worry about country and citizens. Just treat the whole place as a hotel to make money for nobody. The concept of renting out our homes to collect rents and live simpler is already being in practice by some Singaporeans. Some have rented their private properties and live in HDB flats. And Singaporeans are already going to Malaysia and Thailand or elsewhere cheaper for medical treatments while our hospitals are doing fine business treating the rich from all over.
2/15/2011
Haunted by a living myth
Singaporeans are asset rich. Those who live in bigger flats, 5 rms and above, are better off. A Pavithran Vidyadharan, welcome to Singapore, wrote to the ST, ‘ I hope on Friday, when Finance Minister Tharman Shanmugaratnam announces this year’s Budget, he will be more generous with goodies for five room and HDB executive flat owners.
There is a misconception that such owners are high income earners, and they don’t need much help. It is not necessarily so. They could be living in the bigger HDB flats because their family is large; some could be taking care of their aged parents and in laws; and some could even be taking care of divorced or widowed siblings and their children.’
There are many other reasons why those living in bigger flats may not be better off. The older policies and pricing allowed many average Singaporeans to buy bigger flats as they were ‘really, truly’ affordable in every sense of the word. Some of them could now be retired and have lesser or no income. And with the great inflation Singapore Style, with no money in the pocket, life can be equally tough for those living in bigger flats.
The demons of inflation and false wealth will be knocking at the doors of these asset rich Singaporeans. The only solution is to down grade and down grade and down grade. This will also apply to the wealthy scions who have inherited wealth and big properties. If they don’t inherit a business to generate the same wealth to maintain the high living lifestyle, and not professional enough to command million dollar incomes, they too will join the down grade queue. Just to repaint a house can be tens of thousands.
And this is likely the main reason why the very rich do not think a few hundred millions would be enough for their children as the cost of living and inflation will soon erode whatever wealth there is there.
I am watching the property prices
I have been watching the property prices for more than 30 years. I have watched how the prices charged up and come tumbling down during a crisis. It looks like a roller coaster going up and down, beyond anyone’s control.
The most spectacular time would be the recent years. After the financial crisis when prices plunged, all was doomed. Then everything turned around with everyone cheering happily as the prices went up and up. The developers, the housing agents, the investors, the home owners were all smiling. The govt was also smiling.
I watch when there was an over supply of HDB flats. I watch when the HDB cut down on its building programme. I watch as the population grew with more PRs and new citizens flooding our shores. I watch how from a position of over supply turns into a position of severe shortages.
And I am still watching. I watch how the frantic release of land to build more flats and the demands continue to be strong. I watch how the affordable HDB flats continue to be affordable despite all the price hikes while salary remains crawling at a snail pace. And I am watching happily as everyone says property prices are very affordable, can still go up some more, and no need to panic as there are plenty on the supply side.
I am still watching. I never read the kpkbs in cyberspace and did not know what is happening. For the next 30 years, if I am still around, I will still be watching how the property prices go through the roof of the sky, and everyone claiming so affordable. It is such a wonderful past time just watching….
2/14/2011
What did Mah Bow Tan say in Parliament?
Singapore Minister: Will Take Further Measures On Property If Necessary
SINGAPORE -(Dow Jones)- Singapore Minister for National Development Mah Bow Tan Monday said the government is closely monitoring the property market and will take further steps to keep property prices at sustainable levels if needed….
"It is not the intention of the latest measures to crash the (property) market... but rather to cool the market," Mah said in response to a question in Parliament….
The above is quoted from Dow Jones. What is Mah Bow Tan trying to say? The current property prices are reasonable and sustainable. It also means that the prices can still go up and he is quite comfortable with it. There is no intent to bring the prices down and there is still no bubble yet.
When there is a bubble, when the prices are unsustainable, more measures will be introduced. When or at what kind of prices will be enough to bring in new measures?
What is not said is that for a $400k property, if the price goes up by 10% or $40k, the young people waiting to buy will effectively receive a pay cut of $40k. How many young people can tahan such a pay cut when their pay rise is normally $200 to $400 or $3k to $5k annually? And if the current prices are sustainable and no cause for alarm or stopping it to climb further, the young couples are as good as chasing a rainbow that only gets further away by the days.
Salary increases, $4k pa, housing price up by $40k pa. Sure die one.
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