I was doing some research on getting a place of my own in the future. If local conditions are more favourable, I could have gotten a place a long time ago. It just so happens many people here pay a lifetime for a roof over their heads.
Some lucky ones who end up in high-flying jobs after graduation are able to get a small place after a few years. Normally these people earn at least five figures a month before they are able to so.
By small place, I mean a cosy studio apartment of a private condominium. Afterall, a bachelor or bachelorette pad need not be too big or spacious.
However not everyone is so lucky. Most of us are normal employees holding normal jobs. We cannot afford to spend a million just to get private property.
So most live in public housing. But the criteria for public housing is that, one must be married or going to get married, or one is married with kids or with parents staying with you.
The combined household income must not exceed S$8,000.00 a month.
If single, you must be of thirty-five years of age and above, and even then, you can only get the smaller kind of flats, not five-room or executive.
The thing is public housing is normally under joint ownership. So if one is single below thirty-five, one can still get public housing if we buy together with a family member, like if I buy with my mum or my brother.
One person can only own one public flat at any one time. So if I have a flat under my name and my mum's, if I get married, either I change my mum's name to my partner's name, or sell off the flat and buy one together with my partner.
It is unlike private property where one can own a landed house and a condominium together at the same time.
Unfortunately the demand of public housing exceeds its supply many a times. Hence many people are not able to have their choice units. It is usually on a first come first serve basis and then through bidding and ballotting.
It is also subjected to a race quota. Somehow the regulations do not allow one single race staying in all the units of the whole block. There should be a mixture of races.
So if we are of a certain race and there are too many of the same race buying the units in the same block, we may not get it too. Which makes me wonder, what if it is a mixed couple? What race shall they go under?
It is not like private property where as long as you can afford, you will never be deprived of a house no matter what your race is.
Even though there is an income cap, the flats still do not come cheap. They all cost six figures, which is what some people earn in their lifetime.
So how can one afford a place? Through our Central Provident Fund. Even so, the first five or ten percent of the purchase price has to be paid in cash, and that alone is quite a hefty sum.
The rest is through housing loans. Even then, we can only borrow eighty percent of the purchase price. The rest is via cash.
Just imagine if a household income is eight thousand and the couple buys a flat for four hundred thousand. They pay the downpayment of five percent, ie twenty thousand.
The rest will be paid by the Provident Fund or housing loan which can charge an interest of 2.5%. And we must ensure monthly repayments. All these exclude the renovation, furniture, and whatnot. Some housing loans may have a tenure of thirty-five years, in which case one would have retired. Is it any wonder why people take their lifetimes to pay for a roof over their heads?
What about those people who exceed the income bracket? To be honest, if both are graduates, there is no reason why they will be earning less than four thousand a month. So if they exceed eight thousand but less than nine thousand, they are not eligible for public housing, so have to look for private housing.
But they may not have enough for private housing. What can they do then? Continue living with their parents? Even if they can afford the lower end private housing, it will be in a rather awkward location which is out of the way to everywhere.
Luckily nowadays there are more choices. Now there are higher-class public housing that looks like private condominiums, without the facilities. And the units are pretty big too, unlike the prison-cell like flats we see nowadays. Apparently these flats are pretty popular.
And I just realize there is going to be a development near where I am currently staying, so if I have the chance to get a unit there, I will still be staying near my parents, in a condominium-like flat, complete with a view of water and a park!
That would be my first choice. If only the development will stop being shelved and start its launch soon, then I may just have my own place within the next few years!
The next option is an executive condominium, which is a condominium masquerading as a government flat. It has all the facilities of a normal condominium development, like swimming pool, tennis court, barbecue pit, but at a cheaper rate than a condominium, and a bit more costly than a normal flat.
Unfortunately, I have yet to come across any new or upcoming developments near my area. There is one development about three estates down but that is already ten years old. Even then the units look like prison cells.
No way am I going to stay in such a small place! It will be too claustrophobic for me! I am used to having lots of space so I want my own place to be just as spacious and airy!
- Posted using BlogPress from my iPhone
Some lucky ones who end up in high-flying jobs after graduation are able to get a small place after a few years. Normally these people earn at least five figures a month before they are able to so.
By small place, I mean a cosy studio apartment of a private condominium. Afterall, a bachelor or bachelorette pad need not be too big or spacious.
However not everyone is so lucky. Most of us are normal employees holding normal jobs. We cannot afford to spend a million just to get private property.
So most live in public housing. But the criteria for public housing is that, one must be married or going to get married, or one is married with kids or with parents staying with you.
The combined household income must not exceed S$8,000.00 a month.
If single, you must be of thirty-five years of age and above, and even then, you can only get the smaller kind of flats, not five-room or executive.
The thing is public housing is normally under joint ownership. So if one is single below thirty-five, one can still get public housing if we buy together with a family member, like if I buy with my mum or my brother.
One person can only own one public flat at any one time. So if I have a flat under my name and my mum's, if I get married, either I change my mum's name to my partner's name, or sell off the flat and buy one together with my partner.
It is unlike private property where one can own a landed house and a condominium together at the same time.
Unfortunately the demand of public housing exceeds its supply many a times. Hence many people are not able to have their choice units. It is usually on a first come first serve basis and then through bidding and ballotting.
It is also subjected to a race quota. Somehow the regulations do not allow one single race staying in all the units of the whole block. There should be a mixture of races.
So if we are of a certain race and there are too many of the same race buying the units in the same block, we may not get it too. Which makes me wonder, what if it is a mixed couple? What race shall they go under?
It is not like private property where as long as you can afford, you will never be deprived of a house no matter what your race is.
Even though there is an income cap, the flats still do not come cheap. They all cost six figures, which is what some people earn in their lifetime.
So how can one afford a place? Through our Central Provident Fund. Even so, the first five or ten percent of the purchase price has to be paid in cash, and that alone is quite a hefty sum.
The rest is through housing loans. Even then, we can only borrow eighty percent of the purchase price. The rest is via cash.
Just imagine if a household income is eight thousand and the couple buys a flat for four hundred thousand. They pay the downpayment of five percent, ie twenty thousand.
The rest will be paid by the Provident Fund or housing loan which can charge an interest of 2.5%. And we must ensure monthly repayments. All these exclude the renovation, furniture, and whatnot. Some housing loans may have a tenure of thirty-five years, in which case one would have retired. Is it any wonder why people take their lifetimes to pay for a roof over their heads?
What about those people who exceed the income bracket? To be honest, if both are graduates, there is no reason why they will be earning less than four thousand a month. So if they exceed eight thousand but less than nine thousand, they are not eligible for public housing, so have to look for private housing.
But they may not have enough for private housing. What can they do then? Continue living with their parents? Even if they can afford the lower end private housing, it will be in a rather awkward location which is out of the way to everywhere.
Luckily nowadays there are more choices. Now there are higher-class public housing that looks like private condominiums, without the facilities. And the units are pretty big too, unlike the prison-cell like flats we see nowadays. Apparently these flats are pretty popular.
And I just realize there is going to be a development near where I am currently staying, so if I have the chance to get a unit there, I will still be staying near my parents, in a condominium-like flat, complete with a view of water and a park!
That would be my first choice. If only the development will stop being shelved and start its launch soon, then I may just have my own place within the next few years!
The next option is an executive condominium, which is a condominium masquerading as a government flat. It has all the facilities of a normal condominium development, like swimming pool, tennis court, barbecue pit, but at a cheaper rate than a condominium, and a bit more costly than a normal flat.
Unfortunately, I have yet to come across any new or upcoming developments near my area. There is one development about three estates down but that is already ten years old. Even then the units look like prison cells.
No way am I going to stay in such a small place! It will be too claustrophobic for me! I am used to having lots of space so I want my own place to be just as spacious and airy!
- Posted using BlogPress from my iPhone
2 comments:
Err...
Your figures look a bit rosy.
Me and many of my graduate friends have even yet to sniff $4000 after working for 5 years.
As for "claustrophobia"... Well, human beings are pretty adaptable. I grew up in a huge house, but have no problems living in a 7 square meter (approx 80 sqft) room when I was in Japan.
Maybe it's the kind of industry or job scope? Most of my friends are earning at least five thousand and above. Some my age already own a studio apartment around Orchard or Farrer area and drive convertibles. But then again, most of my peers are either in the legal, IT, marketing or banking / finance industry, so perhaps they have more "market value" as compared to others.
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