Sunday, March 14, 2010

Give us HDB Flats AT COST, NOT 30yrs mortgage Enslavement!

I have created a Facebook Group named as above. The reasoning is as below:

HDB used to be a very unique and successful socialist approach to provide basic adequate housing for Singaporeans. The HDB scheme was made possible by the power of Land Acquisition Act that allows the government of the day to acquire land at dirt cheap prices. It is a social contract between the people and the government to empower them to acquire land at cheap prices while in return, the people's basic housing needs are taken care of by the government providing HEAVILY SUBSIDIZED HDB flats to more than 80% of the population.

The break down of Cost price of HDB was made available back in 1981 when the government showed us how much COST SUBSIDIES have been given to the citizens.

However, since the introduction of "Asset Enhancement Program" in early 1990s and subsequently the introduction of "Market Price Subsidy" in the pricing of new HDB flats, new HDB flats are no longer cheap. The PAP government has subtly avoided their responsible embedded in the social contract. The PAP government has used very creative accounting to avoid showing how much money they have earned from selling new HDB flats while shamelessly claiming that a "Market Subsidy" was provided. This is no more than mere "DISCOUNTS" with no real subsidy given.

When asked to provide the breakdown of the COST of building these HDB flats, there was surreal silence from HDB. Why could they provide breakdown of cost back in 1981 while reluctance to provide it now?

We just want an honest price from HDB for our young Singaporean couples, at least a COST PRICE of HDB for our young in return for the enormous power that we have given the PAP government in Land Acquisition Act which it has used to acquired huge land stock at dirt cheap prices.

This group will act as a campaign to pressure the PAP government to fulfill their role as a responsible public housing provider. To fulfill their part of the social contract as embedded in the Land Acquisition Act.

Goh Meng Seng


Anonymous said...

i remember during my parent's time, they are able to get their flat at mere 20k, and paid off the loans within 8 years.

Now I have to get a simple house for 10 folds of that and pay off the loans for the remaining of my life (if i manage to stay healthy and no accidents) with little savings left... the mere thought of that alone chills me to the bone!

JeffGoh said...

Mr Goh

Good stand you are taking. It is an issue that sporeans can resonate with.

The problem is how do we verify that it is the actual cost but not inflated cost. This is something to think about. But this is a good start.

What about starting a group with-in your blog, for those who do not want to join face book.

Thank You


Anonymous said...

All this sound well and good but how will you address the loss that those who bought at market rates will suffer in the event that HDB reverts back to cost plus pricing as proposed by you?

Does that mean your party is only concerned about potential buyers but not existing owners with mortgages?

Anonymous said...

I want to join. And I'll get all my friends too.

Anonymous said...

It is easier said than done. Now that prices have been inflated to this level, how is anyone going transit back down to cost price? The entire property market deflate, and the economy will crash.

Anonymous said...

You are right. HDB should build affordable housing. Affordable should mean: "No need subsidies and loan can be repay within 15 years". That way, people still have some money for their retirement.

If I have a chance to vote, I will not vote for HDB. After all, how much worse can it get, after seeing HDB make such a big mess of the entire public housing market.

The worse that can happen is that the price keeps going up. Vote for PAP, price goes up; vote for opposition, price also goes up.

Anonymous said...

This proposal may sound appealing, but I wonder what is going to happen to the existing home owners? Do they then get a "refund" for the premium they paid when they bought their HDB flats? If not, why should we so heaviliy subsidize the younger population? Unless we are saying those who buy at cost can only sell the flats back to HDB at cost if they want to upgrade later?

Anonymous said...

good idea. now mr goh, would you practice what you preach and sell your flat(all your other properties if you have any) to us at cost or at the price you first bought umpteen years ago?

would you also convince all your friends, relatives and comrades to do likewise?

singaporeans are ready to buy all your flats at "cost" or at a price that set us free from financial slavery.

Chloe Ask said...

During the audit of the NKF accounts under TT Durai, it was discovered that instead of subsidising the cost of medication, they were profiting from it. e.g. NKF will purchase at bulk discounted prices at, say, $1. The medication is retailing at say $2. Instead of selling it at lower than $1, NKF sells it to the kidney patients at $1.50, and still maintain that the $0.50 difference is a "subsidy". The same accounting system is now applied at HDB. Dhanabalan once actually said that if the land is not used for building HDB flats, the Government can make more money by selling it to the private developers.

Anonymous said...

Nice idea, but stop being such an irritant in public events.