Former PM Goh’s asset enhancement policy is all hogwash. Any person of average intelligence knows that the value of a depreciating asset cannot be enhanced perpetually.
However, MSM has no choice but to continue to defend the indefensible with yet more hogwash. Otherwise, Lau Goh and PAP will lose face .
“To buy an old HDB flat or not, that is the question” (17 April) by Chua Mui Hoong should not even be a question. Public housing is not any commodity but the only roof over a majority of Singaporeans’ heads.
However, Chua doesn’t see this as a need and instead encourages buyers to game the system.
Chua: “Live in the flat for its minimum occupation period of five years. Then do your sums. If you want to cash out at the optimal time, current figures suggest selling your flat when it is under 20 years old. You will still get the proverbial HDB windfall.”
That a public housing system could even result in any “windfall” confirms the need for a revamp.
To help PAP kick the HDB can further down the road, Chua suggests buying a resale flat that’s under 20 years old. (Minister Wong used the example of a 10-year old flat) Instead of addressing the issue of affordability, Chua and her political masters prefer further complications. Still can afford to leave issue on the back burner?
Chua even went as far as encouraging buyers to buy with the intention of renting out. Chua: “I may also consider buying an old HDB flat if I intend to rent it out eventually. HDB flat yields remain attractive as their purchase price is low relative to private condos’.”
Question for PAP: Are HDB flats intended as investment property for wealthy Singaporeans like Chua? Since HDB subtenants (‘owners’ are merely HDB tenants) are almost 100% foreigners, does this not deprive Singaporeans of a flat constructed using tax dollars?
Chua: “What of the public policy perspective? Here, I think Mr Wong and the Government as a whole have a lot more explaining to do, in terms of what government intentions are as HDB flats age.” Chua has ignored our overpriced public housing and merely wants Minister Wong to better explain public policy.
But how is the you-die-your-own-business PAP able to explain a policy designed to benefit government coffers at the expense of the people? Will PAP suddenly agree to renew HDB leases for a token sum before leases run out?
Chua: “Mr Wong has done the right thing, reminding young home- buyers not to assume that Sers will prop up their HDB flat prices.” If public housing policy wasn’t flawed in the first place, Mr Wong might not have the chance to issue any reminder to home-buyers.
Chua: “As I wrote in a blog last week, the narrative of asset enhancement and generous government payouts may have held true in the 1990s, but has changed as we approach 2020.” How could Chua have bought into the PAP’s narrative when, clearly, a depreciating asset’s value such as a HDB flat cannot be permanently enhanced with limited tax dollars?
Chua: “A tighter fiscal position, an ageing population, a tighter immigration policy, and sheer political uncertainty (who knows which party will be in government when your HDB lease nears its end) mean we can’t assume that HDB flat prices will defy logic and remain high as the flats age into their third, fourth, fifth decades and beyond.”
Without PAP’s propaganda, especially Lau Goh’s, how many Singaporeans anyhow assumed HDB flat prices would defy logic, keechiu!
Chua is an intelligent person as evident by a number of her honest descriptions about PAP.