Stop thinking of HDB flats as retirement nest eggs

[The_King]

Recently, there has been a lot of discussion on the affordability of Housing Board flats. To me, it is not just about the price of the HDB flat, it is more about matching the life cycle needs of the average Singaporean. 

Consider a dream scenario. Two fresh graduates from local universities get married at the age of 25. They apply for a Build-To-Order (BTO) flat and go for the more affordable option, a three-room flat which would cost about $350,000.

This couple will be 30 by the time the flat is completed. By the time they finish serving the minimum occupation period, they may have a child, maybe even two, and need more space. Since they are unlikely to be successful in balloting for a larger flat their second time around, they have to look to the resale market, where prices are even higher. They will have to stretch their salaries to get a bigger flat, which would have an impact on retirement planning.

The current public housing system does not provide enough affordable and accessible opportunities for families to grow.

We need to stop thinking of HDB flats as nest eggs for retirement. They must fulfil the purpose of affordable housing first.

The Government should not have to consider market rates when it prices BTO flats. It could, for example, consider pegging BTO flat prices to average household income. This way, flat prices would rise when household incomes go up, instead of being driven by market forces.

 

 

For that to be feasible, all flat transactions should have to be with HDB, whether as buyer or seller.

[The_King]

ashley say liao, where ppl have been saying for ages. think of your home as a rental, and now not a retirement nest eggs (ya some ppl take MAX loan (25yr or 30yr) to pay for a 99 rental to just to buy a small 3 room) and now say not retirement nest eggs

 

 

by the time housing loan finish, then start to build cash for retirement

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[XianGe]

2 minutes ago, The_King said:

ashley say liao, where ppl have been saying for ages. think of your home as a rental, and now not a retirement nest eggs (ya some ppl take MAX loan (25yr or 30yr) to pay for a 99 rental to just to buy a small 3 room) and now say not retirement nest eggs

 

 

by the time housing loan finish, then start to build cash for retirement

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Ashley... Lol