Review property cooling measures: Foo Mee Har

[reporter2]

http://www.straitstimes.com/archive/...e-har-20140527

Review property cooling measures: Foo Mee Har

Published on May 27, 2014 2:04 AM


SOME property market cooling measures should be reviewed to make it easier for more Singaporeans to upgrade their homes, Ms Foo Mee Har (West Coast GRC) said in Parliament yesterday.

This would help give more Singaporeans "a chance to realise their aspirations and 'level up'", she said during a debate on the President's Address.

For instance, additional buyer's stamp duty (ABSD) could be collected upon the completion of a new property rather than upfront, she said.

And if a genuine upgrader sells his first flat within a certain period, he should not need to pay ABSD at all.

Singaporeans pay no ABSD on their first home purchase, but incur a 7 per cent levy when buying a second home.

Upgraders can already get an ABSD refund if they sell their HDB flat within six months of getting a private home, subject to certain conditions.

Ms Foo noted yesterday that property upgrading has become "much more difficult for the middle income group", due to recent property market curbs such as ABSD, loan-to-value (LTV) limits and a total debt servicing ratio (TDSR) framework which caps home buyers' total debt repayments at 60 per cent of gross monthly income.

"This aspiration to upgrade is important to the middle class; many had worked hard towards this goal, only to be frustrated just when they thought it was within reach." She added that although TDSR was important to keep home buyers from taking on too much debt, it has "already raised the bar for many".

The "combined burden" of lower LTV ratios and having to pay ABSD upfront would usually put an upgrade out of reach, she said.

She suggested that the Government allow a higher LTV ratio of 80 per cent for those upgrading to a private home who ultimately end up owning only one property.

The LTV ratio indicates how much cash a buyer has to put down when buying a home. A lower LTV ratio means buyers have to use more of their own cash rather than borrowed money to finance home purchases.

MELISSA TAN

[Kokono]

Ms Foo Mee Har (West Coast GRC) got it all wrong.

If her objective is to help give more Singaporeans "a chance to realise their aspirations and 'level up'", the opposite must be done, ie, she should be asking for the CMs to stay on but revoke the rule that forbid private property owners from buying HDB resale.

Let me explain.

When she says her objective is give more Singaporeans "a chance to realise their aspirations and 'level up'", I suppose the segment of home owners she is trying to help is current HDB owners who are priced out to upgrade into private condo. I don't think she can refer to 3-room flat owners who want to upgrade to 4 or 5 rooms flats, because, this group can easily apply as 2nd timer get their choice BTO 4-5 rooms units.

The HDB to private condo want-to-be owners are facing falling HDB resale prices situation, limited finance choices due to TDSR.

I think the only way to help this group of HDB to private condo want-to-be owners, is to allow private property owners to buy HDB resale again.

Doing so will definitely help to prop up the falling HDB resale prices.

The TDSR will continue to be a limiting factor to keep private pty prices low.

And tada, the suddenly, the HDB to private condo want-to-be owners will find the gap much more easier to cross.

I hope my views make sense.

Please don't flame me.

Cheers.

[walkthetiger]

Ms Foo Mee Har (West Coast GRC) got it all wrong.

If her objective is to help give more Singaporeans "a chance to realise their aspirations and 'level up'", the opposite must be done, ie, she should be asking for the CMs to stay on but revoke the rule that forbid private property owners from buying HDB resale.

Let me explain.

When she says her objective is give more Singaporeans "a chance to realise their aspirations and 'level up'", I suppose the segment of home owners she is trying to help is current HDB owners who are priced out to upgrade into private condo. I don't think she can refer to 3-room flat owners who want to upgrade to 4 or 5 rooms flats, because, this group can easily apply as 2nd timer get their choice BTO 4-5 rooms units.

The HDB to private condo want-to-be owners are facing falling HDB resale prices situation, limited finance choices due to TDSR.

I think the only way to help this group of HDB to private condo want-to-be owners, is to allow private property owners to buy HDB resale again.

Doing so will definitely help to prop up the falling HDB resale prices.

The TDSR will continue to be a limiting factor to keep private pty prices low.

And tada, the suddenly, the HDB to private condo want-to-be owners will find the gap much more easier to cross.

I hope my views make sense.

Please don't flame me.

Cheers.

.....should be fair to upgrader, should not make it too difficult for them, as long they don't hold multiple properties, Singapore is too small for most people to own multiple properties..

[Arcachon]

.....should be fair to upgrader, should not make it too difficult for them, as long they don't hold multiple properties, Singapore is too small for most people to own multiple properties..

Got money don't know how to invest, what will they do.

44K can buy 2 PC and a HDB. It's all in the mind.

http://news.asiaone.com/news/singapo...ght?page=0%2C0

HOUSING ASSETS

Two apartment units in Bishan Point
HDB flat at Block 113, Ang Mo Kio Avenue 4
125 and 127, Lavender Street
13, Park Villas Rise
Three apartment units at The Sail at Marina Bay, 2 Marina Boulevard
One apartment at D-Leedon, 13, Leedon Heights
One apartment at Rivergate, 99, Robertson Quay
Block 45, Telok Blangah Drive, #01-169
Two apartment units at The Interlace, Depot Road
One unit at Block 214, Serangoon North Avenue 4
One unit at The Parc, 9, West Coast Walk
Two units at 8@Woodleigh, 8, Woodleigh Close
HDB flat at Block 123, Yishun Street 11
One apartment at Watermark Robertson Quay, 7, Rodyk Street
These apartments include those that are currently owned and those that have been bought and sold.

[Arcachon]

http://blog.moneysmart.sg/property/s...st-to-live-in/

[walkthetiger]

.....should be fair to upgrader, should not make it too difficult for them, as long they don't hold multiple properties, Singapore is too small for most people to own multiple properties..

….there are many versions of upgrade, sometimes it all depends on the upgrader.... For instance, from an old and simple 5 rm HDB to a tiny 2 rm new PC, upgrade or downgrade? Debatable.... Spending more don't always seem like an upgrade, a sweet home is more important than a new and big house.

[Kelonguni]

….there are many versions of upgrade, sometimes it all depends on the upgrader.... For instance, from an old and simple 5 rm HDB to a tiny 2 rm new PC, upgrade or downgrade? Debatable.... Spending more don't always seem like an upgrade, a sweet home is more important than a new and big house.

Upgrade in ability to use space. Improved quality of space plus improved intimacy.

[Arcachon]

It got nothing to do with upgrading one's living space, it about when the government print money how to share with everyone.

CPF before the crisis and money printing do they have problem, why suddenly CPF got so much problem.

Property also the same, 2006 you can get a 2 Bedroom PC for SGD 535,000 now where to find. Did Singapore suddenly reduce in size, anyone without a roof over their head.

[minority]

It got nothing to do with upgrading one's living space, it about when the government print money how to share with everyone.

CPF before the crisis and money printing do they have problem, why suddenly CPF got so much problem.

Property also the same, 2006 you can get a 2 Bedroom PC for SGD 535,000 now where to find. Did Singapore suddenly reduce in size, anyone without a roof over their head.

Question is when printing stop what will happen? will things normalised?