Hi Tan,
I just posted an article on my blog entitled “100 Painless Resolutions for a Healthier, Happier, Fitter New Year” In n case you thought it interesting enough to drop a quick mention on your site about it as I’m trying to increase readership of my blog.
Thanks,
Jeanne Peterson
Tuesday, January 26, 2010
Pricing of new HDB flats
The HDB now sets the price for new flats based on the market for resale flats. But, the market for resale flat is subject to temporary supply and demand factors and speculation. It is also fueled by greed and fear, and iinformation can be manipulated by property agents at the expense of the consumers.
It would be better for HDB to set the benchmark for the pricing of their flats. The prices can be set at a multipole of the annual earnings of the ordinary workers. If earnings increase, the prices can move up. If it falls, the price can stay stagnant until the earnings recover.
HDB should publish the prices of all the available flats in advance, to set the benchmark not only for new flats but also for resale flats. The prices of individual units can vary according to location, floor level, facing and distance to MRT station and amenities, but the average should price reflect the average wage level. If there is strong demand for a specific unit, the unit can be balloted.
This transparency and pricing policy will remove the fear of escalating prices. The stability of the prices, albeit reflecting the average earnings, will remove the speculation of capital owners and property agents. If there is increased demand, HDB can build more flats. In the meantime, those on the waiting list can rent their accommodation or stay with their parents.
It will be a more transparent and fairer market, and will actually reflect the true market forces.
Tan Kin Lian
It would be better for HDB to set the benchmark for the pricing of their flats. The prices can be set at a multipole of the annual earnings of the ordinary workers. If earnings increase, the prices can move up. If it falls, the price can stay stagnant until the earnings recover.
HDB should publish the prices of all the available flats in advance, to set the benchmark not only for new flats but also for resale flats. The prices of individual units can vary according to location, floor level, facing and distance to MRT station and amenities, but the average should price reflect the average wage level. If there is strong demand for a specific unit, the unit can be balloted.
This transparency and pricing policy will remove the fear of escalating prices. The stability of the prices, albeit reflecting the average earnings, will remove the speculation of capital owners and property agents. If there is increased demand, HDB can build more flats. In the meantime, those on the waiting list can rent their accommodation or stay with their parents.
It will be a more transparent and fairer market, and will actually reflect the true market forces.
Tan Kin Lian
Affordable flats
What is the affordable price of a HDB flat?
In my book, Practical Guide on Financial Planning, I suggested that the flat should represent 4 to 5 years of the combined family income (after deducting the cost of employing a maid). If the combined family income is $5,000 and the cost of the maid is $800, an affordable price for a flat is $4,200 X (48 to 60) = $200,000 to $250,000.
The monthly repayment should be within 25% of the family income and the loan can be repaid within 25 years or before reaching age 55. If the monthly repayment is more than 25% of the income, you are paying too much for your flat (or private housing).
If you have used CPF or personal savings towards the down payment for your flat, your monthly repayment should be reduced proportionately below 25%, as you need the difference to be saved to restore back the savings that have been used for the down payment.
Tan Kin Lian
In my book, Practical Guide on Financial Planning, I suggested that the flat should represent 4 to 5 years of the combined family income (after deducting the cost of employing a maid). If the combined family income is $5,000 and the cost of the maid is $800, an affordable price for a flat is $4,200 X (48 to 60) = $200,000 to $250,000.
The monthly repayment should be within 25% of the family income and the loan can be repaid within 25 years or before reaching age 55. If the monthly repayment is more than 25% of the income, you are paying too much for your flat (or private housing).
If you have used CPF or personal savings towards the down payment for your flat, your monthly repayment should be reduced proportionately below 25%, as you need the difference to be saved to restore back the savings that have been used for the down payment.
Tan Kin Lian
Enhanced SingPass
For the past decades, Singaporeans has enjoyed the convenience of a common NRIC that is used for many personal transactions. This has since been extended to the SingPass, which is used for identifying the person for many transactions with Government departments.
It is time to enhance the SingPass system, to be used more widely in the online world. Some suggestions:
- Make SingPass available to use with private organisations and websites
- Allow the SingPass owner to be linked to a 2FA token, i.e. the token that is used for internet banking
- Allow the registration of an e-mail and mobile phone
- Allow the registration of a unique user name to complement the NRIC.
This enhanced infrastructure will facilitate the adoption of online transactions in the public and private sector and improve national efficiency. Many websites can use this common login, rather than create a separate password to be stored in each website.
Tan Kin Lian
It is time to enhance the SingPass system, to be used more widely in the online world. Some suggestions:
- Make SingPass available to use with private organisations and websites
- Allow the SingPass owner to be linked to a 2FA token, i.e. the token that is used for internet banking
- Allow the registration of an e-mail and mobile phone
- Allow the registration of a unique user name to complement the NRIC.
This enhanced infrastructure will facilitate the adoption of online transactions in the public and private sector and improve national efficiency. Many websites can use this common login, rather than create a separate password to be stored in each website.
Tan Kin Lian
Secret in picking the right stocks
After trying the Pro-Investor simulation game more than 100 times, I managed to find a secret that work well for this game. I click on the tab "Pick:" and sort the stocks in descending order of the column "Yield - 1 year". This sorting is done by clicking on the heading of the column. I pick the top 4 to 7 stocks in this list. I usually pick all of them, but may exclude 1 or 2 stocks. I found this method to yield quite good results based on the simulation formula used in the game.
The prices are generated based on a formula that reflects random changes for the country, sector (industry) and type of company. These prices will be random, but reflect certain underlying trends. If you adopt a certain formula, you may get good results on some occasions, but disappointing results on other occasions. But, I found the above strategy to work quite well. This strategy works on the concept that the best performing stocks in one year is likely to perform better than average during the following year (but may not be at the top), as the underlying trends is likely to persist for more than one year.
Try it here. You have to register an account to play the Pro-Investor game. You can read the Guide for a better understanding of the underlying concepts behind this simulation game.
The prices are generated based on a formula that reflects random changes for the country, sector (industry) and type of company. These prices will be random, but reflect certain underlying trends. If you adopt a certain formula, you may get good results on some occasions, but disappointing results on other occasions. But, I found the above strategy to work quite well. This strategy works on the concept that the best performing stocks in one year is likely to perform better than average during the following year (but may not be at the top), as the underlying trends is likely to persist for more than one year.
Try it here. You have to register an account to play the Pro-Investor game. You can read the Guide for a better understanding of the underlying concepts behind this simulation game.
Improved user interface for Pro-Investor
The user interface has been improved. It is now easier to select the stocks and learn from the results. Read the Guide to get the tip on how to sort the stocks for easy selection. Click here.
In the next upgrade, we will include a Tab to record the Champions who have reached Level 9.
In the next upgrade, we will include a Tab to record the Champions who have reached Level 9.
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