The Premire @ Tampanies...The new breed of high class HDBs.
For those of you who haven't heard (i'm sure most of you have). The Gahmen has given private developers a chance at public housing. These new condo style HDBs come equiped with all the modern fixtures and deco which you will find in a normal executive condo.
You get multifunctional air-cons in every room, generous balcony space, executive style cabinets and some fixtures and fittings which are aesthetically pleasing to the eye. The units aren't BIG by any sense of the word, but they sure do look good. There aren't facilities like gyms and swimming pools though, but thats a minor gripe considering that such facilities are usu just a short drive away.
In other words, The Premire can be considered abit of a hybrid. Finally, there are homes which fill the price gap between a 5 room flat and an executive condo. Sounds good hey? People have been complaining that the disparity of prices between a 5-room and a condo leave many people stranded.
BUT WAIT, there is a catch (there are 2,3,4 and 5 room units, but I'll just talk about the 5 rooms for convenience sake). The income ceiling for the 5-room hybrid remains at 8k per hsehold. ZZZZZZZ..knew it was too good to be true. A 5 room hybrid costs anywhere between 308k to 450k, which is substantially higher than a normal 5 room. Sooooooo, why does the income ceiling remain the same? *scratches head*
I'll be honest, these hybrids aren't meant for graduates who plan to work for another 3-4 years and get married. How to afford??? Older couples who don't qualify for a normal 5 room due to the income ceiling...STILL don't qualify for the hybrid units.
I think there is an element of danger about this issue. Since the income ceiling remains, while the cost of the hybrid is higher.
1) You take a longer loan
2) You pay bigger installments and have a shorter loan.
Probably the result is, you get more DINKS (double income no kids). People might be tempted to rush down and put down deposits, w/o fully understanding the consequnces.
Assuming you both earn exactly 4k each (ur income is taxable by the way). And if you pay back maybe 3k to the bank every month, you're left with 5k...(prob less actually)...now you have to choose: Get a car which befits your status? Or get raise a child...hmmmmmmmmmmmm...I admit 8k combined is alot to many SG ppl no doubt.
However I don't think 8k is alot if you're gonna stay in a hybrid like that.
For those of you who haven't heard (i'm sure most of you have). The Gahmen has given private developers a chance at public housing. These new condo style HDBs come equiped with all the modern fixtures and deco which you will find in a normal executive condo.
You get multifunctional air-cons in every room, generous balcony space, executive style cabinets and some fixtures and fittings which are aesthetically pleasing to the eye. The units aren't BIG by any sense of the word, but they sure do look good. There aren't facilities like gyms and swimming pools though, but thats a minor gripe considering that such facilities are usu just a short drive away.
In other words, The Premire can be considered abit of a hybrid. Finally, there are homes which fill the price gap between a 5 room flat and an executive condo. Sounds good hey? People have been complaining that the disparity of prices between a 5-room and a condo leave many people stranded.
BUT WAIT, there is a catch (there are 2,3,4 and 5 room units, but I'll just talk about the 5 rooms for convenience sake). The income ceiling for the 5-room hybrid remains at 8k per hsehold. ZZZZZZZ..knew it was too good to be true. A 5 room hybrid costs anywhere between 308k to 450k, which is substantially higher than a normal 5 room. Sooooooo, why does the income ceiling remain the same? *scratches head*
I'll be honest, these hybrids aren't meant for graduates who plan to work for another 3-4 years and get married. How to afford??? Older couples who don't qualify for a normal 5 room due to the income ceiling...STILL don't qualify for the hybrid units.
I think there is an element of danger about this issue. Since the income ceiling remains, while the cost of the hybrid is higher.
1) You take a longer loan
2) You pay bigger installments and have a shorter loan.
Probably the result is, you get more DINKS (double income no kids). People might be tempted to rush down and put down deposits, w/o fully understanding the consequnces.
Assuming you both earn exactly 4k each (ur income is taxable by the way). And if you pay back maybe 3k to the bank every month, you're left with 5k...(prob less actually)...now you have to choose: Get a car which befits your status? Or get raise a child...hmmmmmmmmmmmm...I admit 8k combined is alot to many SG ppl no doubt.
However I don't think 8k is alot if you're gonna stay in a hybrid like that.
posted by Chris @ 8:56 PM
2 Comments:
At 6:12 PM,
blueblood said…
why? you looking for a house? ;)
The Premire is a "high-end", "high-class" HDB.. so it's natural that the price is steeper. It's a common pitfall where couples didn't plan well 10-15yrs down the road and got themselves into long-term debts... maybe one of the aim is to have couple married early when their combined income is still below $8K ( because gradually it will increase)? I think the $8K ceiling quite reasonable.. it prevents high-income people from grabbing these limited flats and putting low-income people to buy "lower-end", "lower-class" HDBs.
Assuming a couple takes a $240,000 loan.. they will need to repay almost $900 per month for 30 yrs (assuming they took the loan at age 25 yrs old). The only comforting thing is that the payment can be done through CPF. But bear in mind that the longer you stretch your loan.. the more interest you have to pay.. and the interest is quite substantial. If you want to know more about purchasing flats from HDB, feel free to ask me anything. I've done my own planning, my flat will be fully-paid in 5-yrs time and reno loan in 1-yr time. Although I'm not earning a lot, i'm hoping that one day my wife will become a full-time homemaker.
At 6:33 PM,
Chris said…
haha, no I'm not looking for a hse. The first place I buy, I shd be well into my 30s
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