The figures said it all. $850K – $950K for a stupid 4 room HDB. To the government, that’s ‘affordable’.
How nice. And they kept bragging about how housing grants of up to $160K can help offset the property price. Just show us the figures how many percentage of people actually got the $160K grant? 1%? 90%?
And the mighty CPF. Ah yes, you just pay with you CPF with no cash outlay. Provided one doesn’t lose the job or get a pay downgrade.
BUT, in reality, let’s say a family had the means to pay for $950K. So what do you think the next selling price will be? Is this family going to sell at a loss?
Of course it a big fat NO. Considering the government’s claim that up to $160K housing grant and paying with CPF, the seller is definitely going to build in the 2.5% accrued interest plus opportunity cost in their next sale.
So what’s next? $1.2M BTO for a stupid 4 room BTO? Sky’s the limit?
But again the government will always say buyers are wise and should know their budget. Again, everywhere we look, prices of HDB are crazily high.
In the end, if we stay till old age, we are left with a ‘rich’ asset but CPF and cash poor.
If we sell the HDB, we can sell high but the next house is going to be high as well.
