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Here are the survey results based on the first 98 replies.
Wednesday, January 6, 2010
Asset enhancement
Since the mid 1980s, the Government implemented market pricing and the asset enhancement policy for public housing, i.e HDB flats. The aim was to allow the heartlanders to have a chance to enjoy the appreciation of their HDB flat, which represents the the key assets for most of them.
This policy has led to a more than 10 fold increase in the price of HDB flats during the past 30 years. For most HDB flat owners, the increase in asset price does not translate into real wealth. They still need a place to live in, as the HDB flat is the only home that they hold. If they sell the flat, they have to buy a private propety at an even higher price.
The only people who can benefit from the appreciation in the HDB flats are those who emigrate from Singapore and the few who are able to downgrade to a smaller flat. Some of these people are permanent residents who are able to cash out on the appreciation to return to their original country.
For the majority of Singaporeans, the increase in price is actually a financial burden, as the monthly installment will represent a larger proportion of their earnings. The high prices hit the future generation harder who now has to pay a much higher price and monthly replayment for a roof over their head.
Too many people are paying too much for a HDB flat. To be comfortable, a person should not spend more than four or at most five years of the combined family income (after deducting the cost of employing a maid) to buy a home. I believe that many people are over-streching to six years or more.
Tan Kin Lian
This policy has led to a more than 10 fold increase in the price of HDB flats during the past 30 years. For most HDB flat owners, the increase in asset price does not translate into real wealth. They still need a place to live in, as the HDB flat is the only home that they hold. If they sell the flat, they have to buy a private propety at an even higher price.
The only people who can benefit from the appreciation in the HDB flats are those who emigrate from Singapore and the few who are able to downgrade to a smaller flat. Some of these people are permanent residents who are able to cash out on the appreciation to return to their original country.
For the majority of Singaporeans, the increase in price is actually a financial burden, as the monthly installment will represent a larger proportion of their earnings. The high prices hit the future generation harder who now has to pay a much higher price and monthly replayment for a roof over their head.
Too many people are paying too much for a HDB flat. To be comfortable, a person should not spend more than four or at most five years of the combined family income (after deducting the cost of employing a maid) to buy a home. I believe that many people are over-streching to six years or more.
Tan Kin Lian
Improve transparency of prices of new HDB flats
The HDB (i.e. Government) should improve the transparency of the prices of new HDB flats. This can be done as follows:
(a) Publish the prices of new flats offered for sale
(b) Publish the prices of new flats purchased in recent years, with details of locations, size, floor level and other relevant factors
(b) Publish statistics on the average price of new flats by location, type and size.
This will set a good example to the market, of providing transparent information for the buyers to make an informed choice.
(a) Publish the prices of new flats offered for sale
(b) Publish the prices of new flats purchased in recent years, with details of locations, size, floor level and other relevant factors
(b) Publish statistics on the average price of new flats by location, type and size.
This will set a good example to the market, of providing transparent information for the buyers to make an informed choice.
Stabilising the market
The annual report of the Housing & Development Board (HDB) showed a variation of up to 50% in the price of a 4 room HDB estate in Punggol during 2008/09. Why should the price of the flat vary by so much for the same location, type and year? If we allow for closeness to MRT station or amenities, the difference should perhaps not exceed 15%. A large part of the difference could be due to the volatity of the property market during this year.
While the market was volatile during this period, due to speculation, it would be better for the HDB to stablise the market by setting the benchmark pricing, rather than add fuel to the speculation. If the HDB were to offer a large number of new flats at stable prices, it will give comfort to the home buyers that prices will be stable (and still reflect the market) and will not increase sharply due to supply shortage or speculative demand. It will reduce speculation and fear.
I hope that the HDB will play this important role of stabilising the market and still have prices that reflect the economic growth of the country and the income level of the people. The Singapore economy will be stronger, if the prices of housing and many other cost of business are kept stable (and still reflect the market price in Singapore or globally) and not manipulated by speculators.
Tan Kin Lian
While the market was volatile during this period, due to speculation, it would be better for the HDB to stablise the market by setting the benchmark pricing, rather than add fuel to the speculation. If the HDB were to offer a large number of new flats at stable prices, it will give comfort to the home buyers that prices will be stable (and still reflect the market) and will not increase sharply due to supply shortage or speculative demand. It will reduce speculation and fear.
I hope that the HDB will play this important role of stabilising the market and still have prices that reflect the economic growth of the country and the income level of the people. The Singapore economy will be stronger, if the prices of housing and many other cost of business are kept stable (and still reflect the market price in Singapore or globally) and not manipulated by speculators.
Tan Kin Lian
S'pore workers clock up longest work hours: ILO
http://business.asiaone.com/Business...05-189718.html
DESPITE the recession that hit towards the end of 2008, Singapore workers still clocked up the most hours, says a report by the International Labour Organisation (ILO).
Shorter work weeks and temporary lay-offs introduced to save jobs during the downturn trimmed working hours here to below the mandatory cap of 44 a week - but only slightly. With working hours still way above 40 a week, Singaporeans put in more hours than workers in 12 other countries used for comparison in the recent report, an update on ILO's Global Wages Report 2008-09 released in November 2008.
The report shows 11 of these 13 countries posted a fall in working time in 2008 and the first three months of 2009, compared with 2007. Average working hours in the 13 countries declined from 39 to 38.2 per week.
'Men and women have both been affected,' the report says. 'Among the six examples with disaggregated data, we find that hours worked by women declined from 36.4 to 35.8, while hours worked by men declined from 40.7 to 40.'
The report says the cuts in hours contributed much to slower growth in monthly wages, which eased from an average 4.3 per cent to 1.4 per cent for 53 countries. 'Overall, while a majority of countries could maintain declining but positive wage growth in 2008, more than a quarter experienced flat or falling monthly wages in real terms,' the report says.
One of them is Singapore, where real wages slipped one per cent. The others include the US (zero per cent), Germany (-0.6 per cent), Switzerland (-0.7), Japan (-0.9), South Korea (-1.5) and Iceland (-4.8). Wages fell 3.6 per cent in Taiwan and 6.2 per cent in Hong Kong.
'Compared with the annual average of 2008, real wages in the first quarter of 2009 fell in more than half of the 35 countries for which data is available,' the report says. Although the report was released recently and quotes International Monetary Fund figures from October 2009, it does not go beyond June last year.
Working hours overall, including those in Singapore, should have fallen further as the recession deepened in Q2 2009. And that means wages as well. 'The picture on wages is likely to get worse in 2009 - despite the beginning of a possible economic recovery,' the report says.
Only workers in Iceland - which nearly went bankrupt - put in almost as many hours as Singaporeans in 2008 and Q1 2009. South Korean workers, who, like Singaporeans, are expected to work 44 hours a week, clocked up fewer than 40. Taiwanese workers also put in fewer hours, while the Japanese held constant.
DESPITE the recession that hit towards the end of 2008, Singapore workers still clocked up the most hours, says a report by the International Labour Organisation (ILO).
Shorter work weeks and temporary lay-offs introduced to save jobs during the downturn trimmed working hours here to below the mandatory cap of 44 a week - but only slightly. With working hours still way above 40 a week, Singaporeans put in more hours than workers in 12 other countries used for comparison in the recent report, an update on ILO's Global Wages Report 2008-09 released in November 2008.
The report shows 11 of these 13 countries posted a fall in working time in 2008 and the first three months of 2009, compared with 2007. Average working hours in the 13 countries declined from 39 to 38.2 per week.
'Men and women have both been affected,' the report says. 'Among the six examples with disaggregated data, we find that hours worked by women declined from 36.4 to 35.8, while hours worked by men declined from 40.7 to 40.'
The report says the cuts in hours contributed much to slower growth in monthly wages, which eased from an average 4.3 per cent to 1.4 per cent for 53 countries. 'Overall, while a majority of countries could maintain declining but positive wage growth in 2008, more than a quarter experienced flat or falling monthly wages in real terms,' the report says.
One of them is Singapore, where real wages slipped one per cent. The others include the US (zero per cent), Germany (-0.6 per cent), Switzerland (-0.7), Japan (-0.9), South Korea (-1.5) and Iceland (-4.8). Wages fell 3.6 per cent in Taiwan and 6.2 per cent in Hong Kong.
'Compared with the annual average of 2008, real wages in the first quarter of 2009 fell in more than half of the 35 countries for which data is available,' the report says. Although the report was released recently and quotes International Monetary Fund figures from October 2009, it does not go beyond June last year.
Working hours overall, including those in Singapore, should have fallen further as the recession deepened in Q2 2009. And that means wages as well. 'The picture on wages is likely to get worse in 2009 - despite the beginning of a possible economic recovery,' the report says.
Only workers in Iceland - which nearly went bankrupt - put in almost as many hours as Singaporeans in 2008 and Q1 2009. South Korean workers, who, like Singaporeans, are expected to work 44 hours a week, clocked up fewer than 40. Taiwanese workers also put in fewer hours, while the Japanese held constant.
Practical Guide on Financial Planning - additional materials
After receiving feedback, I will be adding the following pages to the book:
Glossary of terms
Real life experiences - 5 people wrote to share their stories previously
Glossary of terms
Real life experiences - 5 people wrote to share their stories previously
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