What bugs me about our Government…

Unlike what the doyenne of PAP critics Catherine Lim claimed, I am one of millions of Singaporeans who trusts our Government, especially when it comes to my CPF.

This said, I have one bug bear.

The bug bear only came into my room in the last few years.

I had been considering moving to HDB in my sunset years, especially after I discovered that HDB flats as young as 3 years (!!!) could be bought in the resale market. These are SERS flats and they are in choice locations.

One of mum’s friends snapped up one in Tiong Baru when she was already 80! And she took the top floor of a high-high rise!

I visited and I was “sold”.

But like the careful person that I am, I looked to my left and right and then front and back and then pondered again.

Then wham! My option as a private property owner to buy HDB in the open market was taken away overnight. All in the interest of cooling our bubbly property market.

I might have accepted it as another of G’s policies to keep our good ship SG on even keel.

But what got — and still gets — my goat is that HDB home owners continue to enjoy the bonanza of being eligible to private property — whether to live or invest in — and continue to hold their HDB.

Why, I ask myself, especially if the HDB property owner is only a PR and not a citizen. 🙄

Where is the level playing field, between citizens with private property who want to acquire a HDB unit from the resale market and PRs owning resale HDB being allowed to buy private property?

Where is the level playing field between citizens and citizens, when on the one side are those like me — who have never benefited from the state’s subsidised housing — prevented from buying resale HDB and those who have had one or more bites of the hugely subsidised new direct HDB cherry and then are given the extra privilege to buy private, even as the Government is trying to douse the speculative sparks in the property market!

One way I can read this is the G’s way of closing the income and asset gap among Singaporeans! But since our really rich won’t contemplate HDB for love or money, it means those who are effectively held back are only the middle income who are truly squeezed by the falling value of their cash assets, the rising cost of living and their dwindling earning power which moves inversely with their rising age.

Thus if boy-oh Roy Ngerng and his looney gang had wanted some support, this would have been a better cause for them to adopt. At least where I am concerned.

Even then, I won’t have lent him one cent, let alone donate it, if it meant encouraging him to defame anyone, let alone the Prime Minister.

Meanwhile I reproduce a letter from the ST Forum Page which continues to express private property owners’ grief and grievance against the unfair treatment of better off Singaporeans. Resonates with me. Wholly!

THERE are four factors to be considered when discussing whether HDB flat owners who move to private property should be allowed to keep their old flats (“Let HDB landlords enjoy their rent”; Thursday).

First, one reason for banning private property owners from co-owning an HDB flat is the fear of driving up prices in the resale market that could become unaffordable for first-time home buyers.

Without the ban, affordability can be sustained only by channelling more public funds into building more new flats, rather than recycling the existing stock.

Second, residing in private property accords the owner the benefits of exclusivity, prestige and better facilities.

There is a price to be paid for these benefits, and not hoarding a public flat should be one of the costs.

The upgrader has already benefited from the first ownership of affordable housing in the form of an HDB flat that helped pave the way towards owning a private home.

The first-time home owner who goes straight into buying private property does not enjoy this benefit.

The argument that the rules penalise a flat owner for becoming wealthy is not convincing, as there is the option of not owning private property.

Third, there are already schemes allowing HDB owners to sublet their homes partially or in full.

A retiree can even rent out the whole flat after the mandatory five-year occupation period if he lives with his children.

It seems odd that a retiree would want to hoard an HDB flat to support his retirement when he could simply choose not to buy a private property.

Fourth, Singapore’s rental market is heavily leveraged on foreigners’ demand. Whenever the volume of foreign tenants declines, there will be many homes left unoccupied.

Unoccupied private homes are a poor investment. Unoccupied HDB flats point to public policy unwisely executed.

After all, HDB was founded on the basis of providing an affordable home, not providing an affordable investment.

Liew Eng Leng

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2 thoughts on “What bugs me about our Government…

  1. Pingback: Daily SG: 16 Jun 2014 | The Singapore Daily

  2. choose not to buy a private property.

    “Fourth, Singapore’s rental market is heavily leveraged on foreigners’ demand. Whenever the volume of foreign tenants declines, there will be many homes left unoccupied.

    Unoccupied private homes are a poor investment. Unoccupied HDB flats point to public policy unwisely executed.”

    HDBs are cash cow to most owners. Especially so for private owners. Every private homeowners will share the same idea if they want plenty if cash for their golden years – which is to downgrade.

    They will find ways to maximise their assets.

    With the government plan to milk more money from housing by building more and more private homes, a lot of the current private homes will worth little if at all because it will be very very difficult for you to sell, or rent out, once THE FOREIGNERS ARE DONE WITH US.

    Couple with a greying and diminishing core population, the property market is not looking good especially with an over supply AND OVER INVESTED market.

    The government is still building more and more private homes when they should stop and focus only on good public housing
    Stop building private homes and stop encouraging HDB owners to upgrade to private, hoping to sell and profit later, will stabilise the market.

    If everyone shares the same idea, you are doomed

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