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http://www.straitstimes.com/forum/letters-in-print/tweak-property-policies-to-reduce-household-debt
Tweak property policies to reduce household debt
May 9, 2016
Dr George Wong Seow Choon's letter ("Act now to adjust to brave new world"; last Wednesday) is a reminder to adjust to the new world.
For the next decade, one has to anticipate the impact of disruptive changes, such as climate change, technological advancement and negative interest rates.
It is evident that past perceptions of growth momentum created by emerging markets, commodities like oil, labour migration and globalisation must be re-evaluated.
In future, global economic cycles will be shorter and more abrupt, driven by domestic and external factors within developed and emerging economies.
The first step to adjust to this new world is to reduce household debt.
The Government should tweak some policies related to property to ensure Singaporeans do not "securitise" all their life.
First, all property curbs should remain until our economic restructuring objectives and targets have been satisfactorily achieved.
Second, foreigners who buy local property should be compelled by law to resell to foreigners only.
This is to prevent foreign speculation and excessive asset appreciation that would render property prices beyond the reach of ordinary Singaporeans and have long-term economic consequences.
Third, the total debt servicing ratio should be further refined to restrict the total loan repayment tenure for the purchase of private property to a maximum of 18 years.
This will ensure Singaporeans pay all outstanding mortgages for their first property and comply with the Central Provident Fund minimum sum requirements before contemplating a second property.
The cost of owning private property will also increase over the years, and monthly maintenance fees and contribution towards sinking funds will go up as the cost of estate management and security and maintenance staff escalates.
This will affect owners and their monthly living expenses as they reach retirement age.
Long-term employment is no longer cast in stone, and Singaporeans should not plan their future with the anticipation of more subsidies, grants or financial assistance from the Government.
Sum Kam Weng
This is not tweak. It's called crash the market for me just for me please.
Why should ordinary Singaporeans buy private property?
But I agree Arcachon should pay off at least 1 property. I paid off 2. So unfair...
This is not tweak. It's called crash the market for me just for me please.
Why should ordinary Singaporeans buy private property?
But I agree Arcachon should pay off at least 1 property. I paid off 2. So unfair...
I did pay off one property, my mother in law 3 room HDB bought with full cash 65K with 30K Grant in 1995.
Dr George Wong Seow Choon mix HDB with private property guess he must be staying in Private and think all property in Singapore are the same.
Guess he better put more effort on his patient than property.
https://www.google.com.sg/#q=Dr+George+Wong+Seow+Choon
Long-term employment is no longer cast in stone, and Singaporeans should not plan their future with the anticipation of more subsidies, grants or financial assistance from the Government.
Private do not get all the above from the Government, in fact, it saves the money for the Government and pays more in Tax, create more job for security, landscaping worker, cleaner, security guard, condo management staff.
proud owner
09-05-16, 21:22
Who is he anyway ?
Similarly I think the government should just stop wasting tax-payers' money by throwing money at the general population in terms of utility rebates and conservation fees rebates etc to those who have more than enough to have comfortable life in Singapore, like those people living in 5-room and 4-room HDB flats who cannot be considered poor by any measure.......... (Otherwise they are admitting that they considered these people are living below poverty line and need government assistance???)
http://www.straitstimes.com/forum/letters-in-print/tweak-property-policies-to-reduce-household-debt
Tweak property policies to reduce household debt
May 9, 2016
Dr George Wong Seow Choon's letter ("Act now to adjust to brave new world"; last Wednesday) is a reminder to adjust to the new world.
For the next decade, one has to anticipate the impact of disruptive changes, such as climate change, technological advancement and negative interest rates.
It is evident that past perceptions of growth momentum created by emerging markets, commodities like oil, labour migration and globalisation must be re-evaluated.
In future, global economic cycles will be shorter and more abrupt, driven by domestic and external factors within developed and emerging economies.
The first step to adjust to this new world is to reduce household debt.
The Government should tweak some policies related to property to ensure Singaporeans do not "securitise" all their life.
First, all property curbs should remain until our economic restructuring objectives and targets have been satisfactorily achieved.
Second, foreigners who buy local property should be compelled by law to resell to foreigners only.
This is to prevent foreign speculation and excessive asset appreciation that would render property prices beyond the reach of ordinary Singaporeans and have long-term economic consequences.
Third, the total debt servicing ratio should be further refined to restrict the total loan repayment tenure for the purchase of private property to a maximum of 18 years.
This will ensure Singaporeans pay all outstanding mortgages for their first property and comply with the Central Provident Fund minimum sum requirements before contemplating a second property.
The cost of owning private property will also increase over the years, and monthly maintenance fees and contribution towards sinking funds will go up as the cost of estate management and security and maintenance staff escalates.
This will affect owners and their monthly living expenses as they reach retirement age.
Long-term employment is no longer cast in stone, and Singaporeans should not plan their future with the anticipation of more subsidies, grants or financial assistance from the Government.
Sum Kam Weng
I did pay off one property, my mother in law 3 room HDB bought with full cash 65K with 30K Grant in 1995.
Sorry I misunderstood.
Anyway, this article is written by Sum Kam Weng and not Dr George. Sum is lucky the last word in his name is not Gong.
If foreigners can only sell to foreigners resulting in a partial crash of private market, the China Chinese and India Indians will be all too happy to buy over all that Singaporeans give up. Whole private buildings will likely be bought over by them. And then the rich in Singapore buys property elsewhere if they wish to invest. Make sense bo???
Even Australia, where foreigners can only buy new properties, when they sell, the foreigners can only sell to Australians.
Where got such thing as property which can only be sold to foreigners???
http://www.straitstimes.com/forum/letters-in-print/tweak-property-policies-to-reduce-household-debt
Tweak property policies to reduce household debt
May 9, 2016
First, all property curbs should remain until our economic restructuring objectives and targets have been satisfactorily achieved.
Sum Kam Weng
Sum Kum Gong obviously does not know the govt has been talking about restructuring since the 90s with the end in sight. Lol
Why he didn't mention that to buy even NEW HDB BTO flats the buyers can only borrow 80% LTV and pay 20% in cash + CPF (which cannot be offset using housing grants etc)?
This surely will prevent HDB flats' buyer from over-leveraging and ensure these people have sufficient cash to retire!!! :drinking_coffee_ico
And to prevent cost of living from further escalating, which has been caused by ever escalating retail rentals, time to nationalize all the REITs which have been jacking up their rentals like no tomorrow to become NON-PROFIT national organizations (since OCR regional centre retail malls' prime retail space is NOW almost as expensive as Orchard retail malls' prime retail space!) :applause:
http://www.straitstimes.com/forum/letters-in-print/tweak-property-policies-to-reduce-household-debt
Tweak property policies to reduce household debt
May 9, 2016
Dr George Wong Seow Choon's letter ("Act now to adjust to brave new world"; last Wednesday) is a reminder to adjust to the new world.
For the next decade, one has to anticipate the impact of disruptive changes, such as climate change, technological advancement and negative interest rates.
It is evident that past perceptions of growth momentum created by emerging markets, commodities like oil, labour migration and globalisation must be re-evaluated.
In future, global economic cycles will be shorter and more abrupt, driven by domestic and external factors within developed and emerging economies.
The first step to adjust to this new world is to reduce household debt.
The Government should tweak some policies related to property to ensure Singaporeans do not "securitise" all their life.
First, all property curbs should remain until our economic restructuring objectives and targets have been satisfactorily achieved.
Second, foreigners who buy local property should be compelled by law to resell to foreigners only.
This is to prevent foreign speculation and excessive asset appreciation that would render property prices beyond the reach of ordinary Singaporeans and have long-term economic consequences.
Third, the total debt servicing ratio should be further refined to restrict the total loan repayment tenure for the purchase of private property to a maximum of 18 years.
This will ensure Singaporeans pay all outstanding mortgages for their first property and comply with the Central Provident Fund minimum sum requirements before contemplating a second property.
The cost of owning private property will also increase over the years, and monthly maintenance fees and contribution towards sinking funds will go up as the cost of estate management and security and maintenance staff escalates.
This will affect owners and their monthly living expenses as they reach retirement age.
Long-term employment is no longer cast in stone, and Singaporeans should not plan their future with the anticipation of more subsidies, grants or financial assistance from the Government.
Sum Kam Weng
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