Asset-rich Singaporeans should stop badgering the govt for..
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With Reverse Mortgage facilities dime a dozen, Asset-rich Singaporeans should stop badgering the government for handouts and free gifts.
References as appended:
- Reverse mortgage - Wikipedia, the free encyclopedia
- List of banks in Singapore - Wikipedia, the free encyclopedia
- ST,05Dec2013: 'A question of fairness'
Pls note that there are "at present, 111 commercial banks" in Singapore, so commercial banks can handle the reverse mortgage of private properties and the CPF can handle the reverse mortgage of HDB properties (all sizes), only when the per capita home equity of a person should fall below say SGD50K should a person be granted be granted full medifund subsidies (sans congenital illness that is)- this of course is just a ball park suggestion, other suggestions should equally be considered.
Living in a private residential property in Singapore is undeniably a luxury, and now that the government budget is short "..to pay for the slew of healthcare, housing and infrastructure initiatives announced by Prime Minister Lee... A more probable ... for us to increase GST from the current 7 per cent to 10 per cent." ('GST hike ‘more likely’ if Govt needs to raise revenue for new initiatives'), we all know that GST is a regressive tax since it hits the poor more than the rich, so asset rich Singaporeans shouldn't expect the government to subsidize their necessities just so that they can enjoy their daily extravagance(big landed properties in land scarce Singapore).
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Quote:Reverse mortgage
A reverse mortgage, also referred to as a Home Equity Conversion Loan, is a financial instrument that allows seniors to access the equity in their home without income or credit qualifications. Seniors must be a minimum age (country-specific), live in their own home, and have equity in it. The important distinction between a reverse mortgage and a conventional mortgage is that there are no principal or interest payments required on the home while the borrower occupies the property. In the case of two borrowers being on title, should one permanently leave the property due to a death or hospitalization, the other borrower continues to remain in the home. Repayment is only required if the borrower sells the home, or moves out of the property for more than 365 consecutive days.
In a conventional mortgage, the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases by the amount of the principal included in the payment, and when the mortgage has been paid in full, the property is released from the mortgage. In a reverse mortgage, the home owner is under no obligation to make payments, but is free to do so with no pre-payment penalties. The line of credit portion operates like arevolving credit line, so a payment in reduction of a line of credit increases the available credit by the same amount. Interest that accrues is added to the mortgage balance. ... ...
Reverse mortgage - Wikipedia, the free encyclopediaQuote:List of banks in Singapore
This is a list of banks with operations in Singapore. Location of incorporation is provided in brackets for foreign banks. There are, at present, 111commercial banks, 49 merchant banks, and 45 banks with representative offices in Singapore.
List of banks in Singapore - Wikipedia, the free encyclopediaTags:Quote:The Straits Times, Published on Dec 05, 2013
A question of fairness
I AM a 66-year-old retiree living in a condominium unit worth about $1.35 million. I have never forgotten that the appreciation in value of my home was possible only because of good government policies and planning.
If I should need cash one day, I will sell my condo unit and downgrade to a three-room HDB flat.
Some retirees living in private landed properties worth millions of dollars are expecting the Government to give them financial assistance so they can continue living in their homes, which they intend to leave to their children when they die.
Is it fair for them to have their cake and eat it, too? Do they not know that they are the envy of thousands of retirees living in rented one- and two-room flats?
Is it fair or even wise of them to vote irresponsibly because they are envious of the help given to these asset-poor, cash-poor retirees, who have also contributed to the success of Singapore and deserve much more help?
Lee Hong Leong
Copyright © 2013 Singapore Press Holdings. All rights reserved.
A question of fairness
Retirement, Annuity, assets, equity, Singapore, financial, banking, mortgage, prudence, welfare, GST, CPF, reverse,poverty, gini, governance, planning,__________________
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You are forgetting that when a guy is selling his house for lot of money, he has to pay lot of money to buy a new apartment.
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Hdb or private property?
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Sell already live where?
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Originally posted by charlize:
Sell already live where?
go live with your parents lah.
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East coast park still have space?
Heard damn crowded now.
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Originally posted by Bio-Hawk:
You are forgetting that when a guy is selling his house for lot of money, he has to pay lot of money to buy a new apartment.
Hi Bio-H, reverse mortgage is similar to normal mortgage in that the property owner CAN stay in his own property, except that bank has lien on the title deed until the loan is repaid.
Home owners ought not overindulge savings in property purchase since they also need savings to see them through retirement. Unless one has no sentimental attachment to a particular property, one should refrain as far as possible from using such property as a source of funds through reverse mortgage but have other fund for daily expenses, like an insurance, such a reverse mortgage ought be for emergencies only, so as to minimise the risk of loosing a prized possession except under dire necessity.
For those however who choose to live up the good life (private property), have spare properties or like to continue property investment/speculation even during their retirement years, I believe many banks do provide reverse mortgage schemes to allow people to monetise physical assets, OCBC wealth management as I noted on Google is one of them providing such wealth management:
OCBC Wealth Management: Reverse mortgages help supplement your retirement income
October 2006OCBC Wealth Management: Reverse mortgages help supplement your retirement income
October 2006
A reverse mortgage allows senior citizens to unlock the value of their property and turn it into a steady stream of cash. It allows you, the homeowner, to borrow against your property and receive a monthly cash payout from your lender, while remaining resident in your home. Also, the loan does not have to be repaid until you pass on, or when you sell your home. Does this sound too good to be true? How exactly can a reverse mortgage help homeowners who are “asset-rich but cash-poor” pay their bills without being forced to make significant changes to their lifestyle?...
OCBC Wealth Management: Reverse mortgages help supplement your retirement incomeOCBC Wealth Management: Reverse mortgages help supplement your retirement income
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Originally posted by charlize:
East coast park still have space?
Heard damn crowded now.
Heard? go and see lah...and go after midnight, cause many don't live there.
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I don't dare go out after 9 pm.
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Originally posted by charlize:
I don't dare go out after 9 pm.
just be careful where you go for cheap drink after 9, wait kena rioted. East coast park is ok, got free sea water.
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Can those who cannot even afford public health care afford to maintain their sprawling sanctuaries???!!!
Hi, me again, just a curious thought, if the elderly in freehold landed properties CANNOT EVEN AFFORD to either keep healthy (few health problems) or else afford their own health care costs, what makes one think that they are fit enough to do the 5step mozzie wipeout which probably includes paying pest control guys $$$ to check the roof gutters for mosquito breeding spots?
The govt subsidises class C wards at 80% without the need for means testing so it can possibly be said that some mosquitoes from cash-poor elderly's homes have resulted in unfortunate govt expenses being paid out in terms of subsidies for Singaporeans struck by dengue-fever due to lack of mosquito larvae erradication by asset-rich, cash-poor persons living in large freehold houses.
Thus from a public health perspective, such asset-rich, cash-poor elders would do better to downgrade and the earlier that they do so, the more productively and effectively limited health care dollars can be spent on unavoidable illnesses such as congenital disease etc.
Again, fewer asset-rich, cash-poor folk struggling to cling onto status symbols and the enviable honour of bequeathment of a fully paid up freehold property, the cheaper housing prices would be in Singapore as more dwelling units can be built upon the same plot of land that an old house once stood- even with excess land freed for the enjoyment of all (parks, exercise facilities etc).
For practical purposes, those living in private properties ought to be sophisticated enough to not only maintain their sprawling properties, but also their own health.
Additional government healthcare subsidies should thus be reserved for the asset-poor, cash-poor folk only, after all, who wants unhealthy stress in life paying ever increasing GST (~10%, see Pict below) just so that asset-rich folk could have their cake and eat it too, not to mention inflate the property bubble to ever hideous proportions that such unbalanced government funding policies cause.
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Honourable citizens pay property tax willingly to support public funded programmes.
Quote:The Straits Time, Published on Dec 23, 2013Quote:The Straits Times, Published on Dec 14, 2013
Questions remain on property tax
IN ITS reply ("Why property tax must be levied on vacant homes"; Tuesday), the Ministry of Finance did not answer the question raised by Mr Geoffrey Kung ("Don't levy tax on vacant properties"; Dec 3).
It did not explain why there was a need to change the policy on property tax refunds for vacant homes. Was it to plug a loophole or to generate revenue? Was it introduced because of a concern that more properties are becoming unoccupied as a result of the cooling measures and the cut in the influx of foreign workers, who typically stay in rental homes?
When there is a change in policy, it would be good for the people to know the rationale behind it, instead of leaving them to speculate.
Also, I am interested in the ministry's view that property tax is the only tax on wealth in Singapore. How does it define wealth, which can come in many forms such as cash, equity, or fixed assets like property?
When wealth is accumulated from income, it is already taxed. But if it is kept in the form of cash, there is no tax. However, when the same cash is invested in property, it is taxed as "wealth", regardless of whether that property generates rental income.
Ang Miah Boon
Copyright © 2013 Singapore Press Holdings. All rights reserved.
Questions remain on property tax
Vacancy refund for property tax removed to ensure consistency
MR ANG Miah Boon asked why the rationale for the removal of the vacancy refund for property tax was not shared with the public ("Questions remain on property tax"; Dec 14).
As property tax is a tax on wealth in the form of property ownership, it should be levied irrespective of whether the property is vacant or occupied. The vacancy refund scheme was thus removed, consistent with this intent of property tax.
The change coincides with the introduction of a new and more progressive property tax schedule on residential properties in 2014. The rationale for the removal was explained in the Budget statement in February this year, and when the amendment Bill was tabled in Parliament in October.
Mr Ang also asked why property tax is the only tax on wealth in Singapore. We eliminated estate duties in 2008 as its greatest impact was not on the wealthiest, who tended to manage their financial assets globally.
In doing so, the Government explained that property tax would be retained as a wealth tax. Property taxes are more efficient, and can be structured more equitably, with the owners of more valuable properties paying more.
We also do not levy wealth taxes on any other forms of wealth such as cash or equity for practical reasons - monies can easily be shifted to similar assets in other financial centres, and such taxes will impact Singapore's competitiveness as a financial centre.
Lim Bee Khim (Ms)
Director, Corporate Communications
Ministry of Finance
Copyright © 2013 Singapore Press Holdings. All rights reserved.
Vacancy refund for property tax removed to ensure consistencyMr Ang should understand that owning a Singapore property is like using a bank investment facility, regardless if of profit or loss, there is always an annual management fee payable (1-2% of capital invested). Everyone knows that Singapore has a "world class government" attracting world record salaries. The military, despite running on lowly paid conscripts and ad hoc reservist, is also not cheap to maintain (>S$10billion p.a.).
Living in a Singapore property, in this regard is an opportunity for a good life in a "world class country" and being well taken care of by an extremely expensive military, resulting in a sense of safety and security unparalleled anywhere else in the world. There are of course many other variables affecting one's quality of life such as one's relationship with spouse, relatives, neighbours etc.
Just as a public lottery ticket allows a holder to enjoy the hope of winning a million dollars, there is contractually no refund if the holder either does not win due to unexceptional luck, or because he misplaced the ticket all together.
Mr Ang was unable to rent out his property either because he snubbed all offers hoping for a handsome return, or because his property was designed like a dungeon- regardless, NSF and NSmen still slogged their backs off to keep his sanctuary secure and safe and PUB flood prevention staff burnt midnight oil- every time it rained- at a high $ cost to the government, not least including intangible ways: e.g. injury by NSmen injured in the course of duty, need for fertility treatment due to work stress etc.
Just as the lottery buyer desires the opportunity of winning, Mr Ang desires an impressive rental return from a tenant's peaceful (+/- wonderful) life in Singapore consequent of renting Mr Ang's property or apartment- unfortunately, what was deemed reasonable by clients was probably snubbed by Mr Ang who prefers to keep his property in mint condition- as his second residence (??mistress??).
Property price and rental manipulators like Mr Ang who constantly revise upwards their rental price demands and leverage upon property-tax waiver loopholes to subsidise their vacant freehold properties/ land only add misery to genuine foreign talents and Singaporeans alike who have to contend with unreasonably high rentals and property prices should switch to other more moral 'investment' vehicles for their investment needs e.g. donate to charity/ buy 4D/ singapore sweep (emotionally rewarding), buy precious metals/ collectables (good hobby), invest in unit trust (pay fund manager's salary), invest in equity (share holder profit at arm's length) or as cash/ savings deposits which Mr Ang rightly mentioned- not just attract zero tax but is govt guaranteed to S$50K.
Property owners unable to tenant out their vacant properties (for reasons be-knowest only to themselves) should thus willingly pay property taxes for the needless stress that they have placed on NSmen guarding Singapore/ their properties and these costs range from fertility treatments for wives married to psychologically scared NSmen, latchkey kids needing proper reform and education due to neglect by double working parents unable to cope with cost of living, and not least, already poorly paid NSmen sacrificing their lives for Singapore's security etc.
A freehold landed property receives special mention and privilege in land scarce Singapore; especially in today's property price bubble market where monetisation opportunities aplenty, property owners shouldn't quibble with the attendant cost (/taxes) added/ applied as an opportunity cost for a luxury that 90% of HDB housed Singaporeans cannot enjoy.
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Property tax waivers:
PS: whilst property tax rates might increase across the board, there should be rebates for Singapore citizens and PRs residing in a property (BOTH owner AND tenant) (and not absent from Singapore for more than 6 months in a row): e.g. a bungalow housing a large 20 member Singaporean family might get a waiver of 20 X S$4000= S$80K off property(annual value) tax; with the final result of per capita tax payable perhaps being less that a single Singaporean staying alone in a large lesser value property ( less waiver for inefficient use of space). Property tax would however be collected from the owner after particular citizenship waivers have been factored in, (income tax on property rental earnings remain separately payable too). Special waivers for NSmen, lesser for PRs apply. -
Gahmen always want to increase GST to 10% long time liao, it's a matter of time, tt time lose GRC so dare not implement...
Cut minister's salary lah overpaid SGD1 million per month dun even know one tube of toothpaste SGD4.00 plus(without promo)...
Worse, ministers allowing the pulling of plug of Teletext, the constant flooding of SG, the close to 3 months of Dengue outbreak in Orchard Rd still not resolved, breakdown of trains, overcrowding of public transport, letting bosses get away will CPF non payment, ill treatment of foreign workers, sub par standard in HDB new flats(tiles popping out), has these all been resolved?!
When price go up, finance minister say SG open economy, will be subjected to price fluctuations, but he dun realise that once price goes up, it will not go down.
Even our hawker centre "BETTER" to upgrade for better eating environment, aft tt wat happen, hawker centre owner(NEA/HDB) increase rent wic will affect hawker wic will then forced to inc price, ordinary SGreans pay more...
PAy more neber mind(this is wat most singaporeans say when they are interviewed by ST, local media). They like to show off in front of local media but behind camera, curse and swear.
When coys hear tt SGreans dun mind paying a bit more, they will increase price a bit more, gahmen will then seize on these interviews and say that Sgreans can afford a increase in price of food/necessities...Just like fairprice always say that their housebrands are cheaper than normal brands, tts bull shit!
the fairprice brand of noodles is more expensive than Myojo onion chicken, curry,hot pepper
It is a cycle, so fellow citizens in the red dot, next time when local media interview you, dun act garang and say increase a bit is ok, it is ok for you and not for those in the low income or those supporting the elderly and have school going kids...
Think before you speak coz it will come back and haunt you and hurt rest of us... -
They think oredi mr acx1688. They think for themselves lol.
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"Freehold" does not mean cheap.
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What?
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Originally posted by charlize:
"Freehold" does not mean cheap.
"freehold" does not mean free.
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What?
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When retired, can monetize hdb flat?
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Reverse mortgage is not for everyone. It is another money making tool for banks.
Basically you "transfer" the title to the bank, you still pay the insurance, property taxes, maintenance and other expenses. Bank charge you interest on the money they give you. By the time you die/sell, the interest will likely cost you whatever appreciation you have gained in the years you lived there. ( hopefully not more than what the house is worth). So you basically die broke ( literally).
Bank will always win. they are money making entity, not charity.
Always read the fine prints.. and do your calculations dilligently.
There is no such thing as free money from banks.
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Singapore really lacks proper senior living options.
http://thehillford.com/
is supposed to be for 65+, but due to its lack of age restrictions, young couples are snapping it up , directly competing with the seniors for such housing.
If it's truly meant for old people.. they should only limit to buyers who are at least 55+.
and at almost $400K a pop... 60yrs lease. It's est to rental of $600 per month. Not a bad deal.
We need more of these kind of housing option.. but need tighter regulations.
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People just want a simple retirement.
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If need be.
