I wanted to carry out some research into the cost of a new HDB flat, to see if it is still affordable. I had a difficult time to get the relevant information.
I visited the HDB website to find out what is the price of a new flat. I found this page but could not get the information that is needed. I was only able to find the prices of resale flats here. I don't know why HDB don't want to publish the price for new flats in a similar table, as this is helpful to home seekers.
After some effort, I was able to find some information about new flat prices from the HDB annual report but I was quite surprised at the wide range of prices (difference of up to 50%) for the same type of flat in the same estate within a period of one year.
Maybe, HDB wants to peg its place for new flats based on the market price for resale flat and for new home owners to be given a housing grant. I did some search for this grant and came to this page. It seems to be quite complicated to find out about the amount of housing grant that the buyer can get.
I do not know why buying a new HDB flat should be made some complicated, with no published price list for new flats and a complicated structure for the housing grant. I am afraid that, with this type of complexity, many people will not be able to make a sensible decision about getting the flat that they can afford, which is convenient for them to live in. It would be better if things are made simpler, so that the ordinary people can make the right decisions.
Tan Kin Lian
Monday, January 4, 2010
Investing savings of $10,000
Someone wrote to ask for my advice. He has savings of $10,000 and wish to have a better return compared to bank interest. He wanted to pick some stocks to buy and sell when there is a profit. I advised him that it is not suitable to trade in stocks, as the transaction cost and spread will eat away the gain from the stock. There is the risk of capital loss that he must also consider.
I hesitate to suggest that he invest in ETF, as the stock market is rather high and the economy is has not recovered. Do you have any suggestions?
I hesitate to suggest that he invest in ETF, as the stock market is rather high and the economy is has not recovered. Do you have any suggestions?
Financial Planning for Ladies
I am asked to write an article on financial planning for ladies. How are the needs for young ladies different from young men?
Most of the needs are similar, i.e. to save for the future, to have liquidity, to have a good yield and to protect against risk of premature death or illness.
There are some risks of female illnesses and events connected with childbirth. And females live longer than males, so there is a need for more savings to take care of a longer life expectancy and long term care.
There is also the special needs for unmarried females. However, this situation should also apply to unmarried males.
I like to invite comments on this matter, especially from ladies.
Most of the needs are similar, i.e. to save for the future, to have liquidity, to have a good yield and to protect against risk of premature death or illness.
There are some risks of female illnesses and events connected with childbirth. And females live longer than males, so there is a need for more savings to take care of a longer life expectancy and long term care.
There is also the special needs for unmarried females. However, this situation should also apply to unmarried males.
I like to invite comments on this matter, especially from ladies.
Sunday, January 3, 2010
Health insurance for an aging population
There is a school of thinking that the state should not provide health care for the aging population, as this would be too costly and, due to limited resources, this is best left to the private market.
I disagree with this argument. With limited resources, it is important that the resources are used efficiently and not wasted. The private market allocate these resources to those who can afford to pay, but it is likely that the limited resources will be used wastefully, especially as the final allocation is also also determined by the profit earned by the medical profession.
If health care for the elderly is provided or paid by the state, there will be control over the unnecessary medical treatment, as they would be disallowed by the state. Private individuals are not able to know what is necessary or not, but the medical experts working for the state would be in a better position to make this type of decision on the optimal use of the state resources.
Even in America, the health care for the elderly is borne largely by the state. There is a need to prevent excessive consumption of health care by the elderly, but this is a challenge that has to be faced and overcomed. Pushing the problem to the private market does not solve it, as it will lead to worse outcomes.
Tan Kin Lian
I disagree with this argument. With limited resources, it is important that the resources are used efficiently and not wasted. The private market allocate these resources to those who can afford to pay, but it is likely that the limited resources will be used wastefully, especially as the final allocation is also also determined by the profit earned by the medical profession.
If health care for the elderly is provided or paid by the state, there will be control over the unnecessary medical treatment, as they would be disallowed by the state. Private individuals are not able to know what is necessary or not, but the medical experts working for the state would be in a better position to make this type of decision on the optimal use of the state resources.
Even in America, the health care for the elderly is borne largely by the state. There is a need to prevent excessive consumption of health care by the elderly, but this is a challenge that has to be faced and overcomed. Pushing the problem to the private market does not solve it, as it will lead to worse outcomes.
Tan Kin Lian
Unfair application of exclusion
A policyholder took a travel insurance policy. He met with an accident and lost a tooth. He required immediate treatment overseas and follow-up treatment in Singapore. He submitted a claim for the dental expenses. He was told that his travel insurance policy excluded "all dental expenses".
This is an unfair application of the exclusion. The exclusion was intended to exclude claims for treatment due to poor dental health, but should not (in my view) be applied to dental treatment arising from an accident.
This is an unfair application of the exclusion. The exclusion was intended to exclude claims for treatment due to poor dental health, but should not (in my view) be applied to dental treatment arising from an accident.
Saturday, January 2, 2010
Economist debate: European Holidays
Motion: "This house believes that Europeans would be better off with fewer holidays and higher incomes"
Do Europeans take too many holidays?
Dear Reader,
We have a winner in our debate on vacation time. The team arguing against the motion has won the debate convincingly, with 79% against 21% of the votes. This house does not believe that "Europeans take too much holiday."
The voting record shows the weight of opinion has been consistently 4:1 against the motion from the outset, though the pro team's Robert J Gordon did shift his share of the vote by a few percentage points in the course of the debate. The final vote (and the many laments from the floor by overworked Americans) shows that most readers believe lost income is a price worth paying for extra holidays.
For his part, John de Graaf, arguing against the motion, eloquently made the case that there is more to life than work and money. His argument that Europe has established a better balance between work and leisure was bolstered by the contributions from guest commentators.
John O'Sullivan
Debate Moderator
Economics Correspondent
The Economist
Do Europeans take too many holidays?
Dear Reader,
We have a winner in our debate on vacation time. The team arguing against the motion has won the debate convincingly, with 79% against 21% of the votes. This house does not believe that "Europeans take too much holiday."
The voting record shows the weight of opinion has been consistently 4:1 against the motion from the outset, though the pro team's Robert J Gordon did shift his share of the vote by a few percentage points in the course of the debate. The final vote (and the many laments from the floor by overworked Americans) shows that most readers believe lost income is a price worth paying for extra holidays.
For his part, John de Graaf, arguing against the motion, eloquently made the case that there is more to life than work and money. His argument that Europe has established a better balance between work and leisure was bolstered by the contributions from guest commentators.
John O'Sullivan
Debate Moderator
Economics Correspondent
The Economist
UK Companies Investigation Branch
From UK Daily Mail
2 January 2010
Robert Burns has a blunt message for cheats who set up companies to con the public. 'There is an organisation that can take action against you and put you out of business,' he warns. That organisation is the Companies Investigation Branch. You may not have heard of it - much of its work is confidential - but it may have quietly taken action to stop you falling victim to sharp practice.
Some traditional types of malpractice recur. One involves 'land banking', where plots of land are purchased and sold to investors on the basis that planning permission will be granted.
'We find time and time again that the prospects of planning permission are south of zero,' says Burns.
'In one case, the land had everything wrong with it from a development point of view. It was green belt, a heritage site and was on a flood plain. There was just about every conceivable obstacle.'
2 January 2010
Robert Burns has a blunt message for cheats who set up companies to con the public. 'There is an organisation that can take action against you and put you out of business,' he warns. That organisation is the Companies Investigation Branch. You may not have heard of it - much of its work is confidential - but it may have quietly taken action to stop you falling victim to sharp practice.
Some traditional types of malpractice recur. One involves 'land banking', where plots of land are purchased and sold to investors on the basis that planning permission will be granted.
'We find time and time again that the prospects of planning permission are south of zero,' says Burns.
'In one case, the land had everything wrong with it from a development point of view. It was green belt, a heritage site and was on a flood plain. There was just about every conceivable obstacle.'
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