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13-12-2022, 06:19 PM
Mdm Ho Ching has suggested that Singaporeans paying for their 99-year leased HDB flats that are priced at hundreds of thousands of Singapore dollars, think of it as paying for rental upfront as they can assure themselves that they continue to have a roof over their heads and a home even as their income declines post-retirement.
This was said by Mdm Ho in a Facebook post on Tuesday (13 Dec), where the former CEO of Temasek Holdings chimed in with her thoughts on the fiercely debated issue regarding the cost of HDB flats and their land costs component.
Mdm Ho, also the spouse of Singapore Prime Minister Lee Hsien Loong, suggested that Singaporeans could think of housing prices as an upfront payment for the ownership for a certain period of time.
Using an example of a 3-room HDB flat left with 60 years of its lease that costs $360,000, Mdm Ho says it is akin to paying a $500 monthly rental over 720 months.
Similarly, a new $356,400 HDB flat with 99 years lease would like to pay a $300 monthly rental for 99 years in today’s dollars over 1188 months, wrote Mdm Ho.
She noted that today’s dollar means inflation has not been factored in and that paying "$500 today is different from paying $500 in 50 or 99 years’ time".
Mdm Ho wrote that people would expect to earn more over time, until they hit around retirement age, when they expect their income to decline, and they may end up depending on various retirement savings.
"And a $500 a month rental in 50 years’ time is likely to be much much lower than the market monthly rentals by then."
By paying upfront, Mdm Ho reasoned that people could more or less assure themselves that they continue to have a roof over their heads and a home even as their income declines post-retirement. .. .
https://www.facebook.com/story.php?story...2YxAW1eEpl&id=14440041382&mibextid=Nif5oz
This was said by Mdm Ho in a Facebook post on Tuesday (13 Dec), where the former CEO of Temasek Holdings chimed in with her thoughts on the fiercely debated issue regarding the cost of HDB flats and their land costs component.
Mdm Ho, also the spouse of Singapore Prime Minister Lee Hsien Loong, suggested that Singaporeans could think of housing prices as an upfront payment for the ownership for a certain period of time.
Using an example of a 3-room HDB flat left with 60 years of its lease that costs $360,000, Mdm Ho says it is akin to paying a $500 monthly rental over 720 months.
Similarly, a new $356,400 HDB flat with 99 years lease would like to pay a $300 monthly rental for 99 years in today’s dollars over 1188 months, wrote Mdm Ho.
She noted that today’s dollar means inflation has not been factored in and that paying "$500 today is different from paying $500 in 50 or 99 years’ time".
Mdm Ho wrote that people would expect to earn more over time, until they hit around retirement age, when they expect their income to decline, and they may end up depending on various retirement savings.
"And a $500 a month rental in 50 years’ time is likely to be much much lower than the market monthly rentals by then."
By paying upfront, Mdm Ho reasoned that people could more or less assure themselves that they continue to have a roof over their heads and a home even as their income declines post-retirement. .. .
https://www.facebook.com/story.php?story...2YxAW1eEpl&id=14440041382&mibextid=Nif5oz
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