"Affordable HDB Housing", Myth or Fact? - Part 1

Fact? Yes, 10yrs ago, maybe.... Today, it's definitely a myth... A BIG FAT MYTH!!

Let's do the maths....

Using the above picture as a reference, the median Household Income of a 4-Room Flat applicant (25yrs old) is (SGD)4K.

Using yet another picture above, this is the prices of resale flats sold in Seng Kang, the existing new town that the gahmen is developing. Let's take the average price of a resale 4-Room Flat to be 400K.

Based on a salary of 4K, this household would have a total CPF contribution as shown below....

Assuming the household being eligible for the 40K Additional CPF Housing Grant and that they also had 60K in their CPF before buying the flat, the finalised loan amount will come up to 300K.

Refer to the following picture for the monthly repayment amount if the loan is stretched to the maximum tenure on HDB's fix-rate 2.6% interest :

The monthly repayment is 1,201 while the monthly contribution is only 920. Looking at the state of things, the couple will have their monthly CPF + 300 cash going to HDB. Leaving ZERO DOLLARS from their CPF Contributions to accumulate inside their OA. Extrapolate this 30yrs ahead, how much would they have inside their OA when they reach 55?

Answer : BIG FAT ZERO!!!

With retirement staring in their faces 10yrs down the road, they not only have nothing to withdraw, they also had to meet the CPF Minimum Sum shit!!

The questions now for the gahmen :

1. Where on earth is the couple going to find money to meet the Minimum Sum so that they can enjoy their "Savings"?

2. Is making someone pay 30yrs for their home and ending up having nothing for their retirement your definition of affordable public housing?

3. With new BTO flats costing up to 390K (in SK), the applicant might as well buy from the resale market since it's only about 20K-40K more?

4. Going along this line, how can new flats STILL be considered affordable?

5. You always tell us a house is an asset. At such sky-high prices, my main worry would be : "Will I break even on the house?" I've already given up trying to make money.... Is this what you call affordable?

Mr Horse, where did you pluck your facts and figures from?

Feel free to rebutt me if my above is incorrect....