Recent survey shows .... 2.84 million singaporeans live in HDB flats (CNA report 21 june 05, HDB Household Survey). That's up 5.2%. The report does not show how many percent of the Singaporean population is that, but using 4million (2000 survey) as an estimate, it would make it about 71%.
Now the report also says ""buying" beat "renting" hands down - an overwhelming 95.6 percent of households interviewed prefer to own rather than rent a flat. ".
My question now would be:
1) How many of these people actually think that they "own" their 99 year lease hold flat?
2) How many of these people actually know that they are actually "renting" these HDB flats from the government, and not "buying" them?
3) Or are these people voicing their unhappiness that these flats are "leasehold"?
If they fall into (1) and (2), that means they need to be educated about how stupid they are, thinking that they "own" these flats. Thus more than 70% of Singaporeans are not home owners. And if we look upon houses as assets, then 70% of Singaporeans do not own any assets. Gulps ..... that truly sucks ....
Why HDB is a scam?
- They are 99 leaseholds.
- "lease" n. definition: A contract granting use or occupation of property during a specified period in exchange for a specified rent. Go read your HDB contract, you are a "leasee" and HDB is the "leasor".
- Assuming they cost between $200-$300,000 for an average unit, and assuming you are using 0% loan (only assuming) you are paying rent of $210 per month for a unit costing $250,000. In fact there are the new HDBs that costs more than $400,000 to "lease", so the monthly rent is even higher. But hey ... no one lives for 99 years, and in fact, I don;t think anyone even buys a HDB until they are at least married or 35 if you're single. So if u take that into account, the effective rental for the HDB per month goes up even more considering that you live there for only 30 to 40 years!! And at the rate of 30-40 years, the rental rate of a $250,000 zooms up to at least $500!! Assuming you'd still have to pay about $200 per mth for carparking, you're paying more than $700 for rent.
- I pay $500/mth for rental of a condo unit, with free parking and gym and swimming pool facilities. Compare that with the numbers above.
- Oh yes ... you are supposed to pre-pay your 99 year rent to the HDB for "leasing" their unit. I mean, the banks have to lend you the money to pay the HDB for renting their place! If you don't call this a scam I don't know what is?
Wait a minute? ... Isn't this supposed to be government property? And if it is, it is paid for by the tax payers money? So the government basically takes our money, builds some apts and we have to pay to use it somemore?
Food for thoughts ....