Housing Loans Eating Up Funds For Retirement
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as at dec more than 25000 people age 55 and above are still using their cpf to pay for loans.
a man took up a loan of 340k. he has to pay $1600 per month. his monthly salary is $1700.
why and how did they approved his application in the first place?
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This man has to take some responsibility for being an idiot and not doing his sums. and he has a 10 month year old daughter. So old already and still want to have kids. I feel sorry for the kid but he has to take responsibility for putting himself in this situation. HDB is not his nanny.Originally posted by dragg:a man took up a loan of 340k. he has to pay $1600 per month. his monthly salary is $1700.
why and how did they approved his application in the first place? -
he has himself to blame. but why was he given such a big loan when he can hardly afford it?
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Why don't you provide the article or the link. Without much info we're unable to comment on the issue. But my guess is that the man probably was earning a very much higher salary before. This is a very common but sad situation for many Singaporeans since year 2000.Originally posted by dragg:as at dec more than 25000 people age 55 and above are still using their cpf to pay for loans.
a man took up a loan of 340k. he has to pay $1600 per month. his monthly salary is $1700.
why and how did they approved his application in the first place? -
Originally posted by pearlie27:Why don't you provide the article or the link. Without much info we're unable to comment on the issue. But my guess is that the man probably was earning a very much higher salary before. This is a very common but sad situation for many Singaporeans since year 2000.
I read the article in the "Sin Min Ri Bao" today. Good thing must be expensive and remember no to go for cheap one.. cause cheap one no good 
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I've said abt this long time bef already
On our part now as time is ticking away is to look at ways to make the money grow
Got enough money, buy shares that give good divd and stable price or FDD -
So you blame the bank for lending you the money to buy a property when you should have just rented a flat instead? For goodness sake, Singaporeans grow up!Originally posted by dragg:he has himself to blame. but why was he given such a big loan when he can hardly afford it?
The bank will extend the loan since they get the property if he cannot pay up... -
Originally posted by oxford mushroom:
Are Singaporeans blaming the Banks, or are they blaming the Government ?
So you blame the bank for lending you the money to buy a property when you should have just rented a flat instead? For goodness sake, Singaporeans grow up!
The bank will extend the loan since they get the property if he cannot pay up...
Singaporeans are blaming the Government for being greedy in their double accounting to justify the price increases of HDB Flats, which are generally priced just slightly below Private Flats.
Is the Government absolve from the troubles of Singaporeans, when it is this greedy bunch of white collared administrators - justifying their high salaries - that is responsible for high prices so as to increase the revenue flow into the National Treasury.
Singaporeans are blaming the Government for failing to honor the pledge of their PUBLIC SERVICE to Singaporeans by transferring the HDB Home Financing to Private Banks based on Commercial Rates - as well as Terms and Conditions.
This situation becomes the worst nightmare for Singaporeans, when at the same time that Private Banks are taking over the long term lease for HDB Flats, the idea of CPF Cuts and short term employment contracts have been vigorously encouraged by the NTUC and the MOM.
Almost TWENTY-SIX Years ago, the 1984 HOWE Yoon Chong Commission to review "the Problems of the Aged" had already seen the impending crisis due to the insufficient CPF accounts of many Singaporeans needed to tend to their old age medical issues.
Yet despite all the tinkering with the CPF system - including CPF contributions by the Employers and Employees - nothing was done by the Government to bring costs down for the benefit of the majority of Singapore Population that is totally dependent on the Government for all such public housing and medical services.
Costs for Public Housing and Privatised Medical Services (but owned and operated by the Government ) remain too high for most Singaporeans.
This has resulted in a large stock of unsold HDB Flats that are priced high; and a costly Medical Service that the older Singaporeans can only visit once and its entire savings will be wiped clean.
Even a graduate working for five years, can hardly afford to buy and pay for the monthly instalments for either a simple 3-room or 4-room HDB flat based on current salary levels. -
double post
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did i say anywhere that i am blaming the bank? i am referring to the regulators!!! i am sure there are regulations as to what extent the banks can go as far a housing loan is concerned.Originally posted by oxford mushroom:So you blame the bank for lending you the money to buy a property when you should have just rented a flat instead? For goodness sake, Singaporeans grow up!
The bank will extend the loan since they get the property if he cannot pay up...
everyone with common sense must agree the above loan is not appropriate. (not from the bankers point of view of course) -
Yes, there are regulations about how much to loan given the valuation of a property.Originally posted by dragg:did i say anywhere that i am blaming the bank? i am referring to the regulators!!! i am sure there are regulations as to what extent the banks can go as far a housing loan is concerned.
everyone with common sense must agree the above loan is not appropriate. (not from the bankers point of view of course)
But the other side of the loan story cannot be regulated. Who is the tell the borrower the limit his mortgage payments to 10%/20%/40% etc of his gross monthly income? Should not that be the discretion and choice of the individual?
Why blame the government? -
Retire in Singapore?
1. There is no such thing as retirement in Singapore
2. Current plans, is that we will soon be moved to JB to retire like old farm animals who cannot work are put out to the pastures. Be aware some farmers would put down the animals who worked to build riches for the farmer and sell the animal meat for that last bit he can squeeze from the animal. This scenario might happen one day
3. The rules will change to suit someone calling the shots.
4. The bulk of Singaporean might just give up their 3rd class citizenship to be 2nd class citizen in other countries to retire -> Invade China???
5. The future is unknown. 66% might slide ... -
But was the pay $1700 at the time of the application for the loan? That's another critical piece of information.Originally posted by dragg:as at dec more than 25000 people age 55 and above are still using their cpf to pay for loans.
a man took up a loan of 340k. he has to pay $1600 per month. his monthly salary is $1700.
why and how did they approved his application in the first place?
There could have been a loss of income from the past to the present. -
come on. how can someone service a loan of 1600 a month with a monthly salary of 1700?Originally posted by ObiterDicta:Yes, there are regulations about how much to loan given the valuation of a property.
But the other side of the loan story cannot be regulated. Who is the tell the borrower the limit his mortgage payments to 10%/20%/40% etc of his gross monthly income? Should not that be the discretion and choice of the individual?
Why blame the government?
the bank should know better. of course will argue that the bank wouldnt care as long as they are offered a collateral. but MAS are the one that should regulate how bank operates.
it shouldnt be a free for all. -
how did the guy con the bank???
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it is still unconfirmed who actually conned who.Originally posted by mistyblue:how did the guy con the bank??? -
As for houses, really, just buy 1 for your own needs
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You sure got the REAL picture right for the aged in Singapore, mistyblue.Originally posted by mistyblue:Retire in Singapore?
1. There is no such thing as retirement in Singapore
2. Current plans, is that we will soon be moved to JB to retire like old farm animals who cannot work are put out to the pastures. Be aware some farmers would put down the animals who worked to build riches for the farmer and sell the animal meat for that last bit he can squeeze from the animal. This scenario might happen one day
3. The rules will change to suit someone calling the shots.
4. The bulk of Singaporean might just give up their 3rd class citizenship to be 2nd class citizen in other countries to retire -> Invade China???
5. The future is unknown. 66% might slide ... -
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Critics of the government complain that they have made Singapore into a nanny state, and yet you want the government to control how much you spend and how much you borrow. Are Singaporeans so dense that they cannot be trusted to handle their own financial affairs?Originally posted by dragg:come on. how can someone service a loan of 1600 a month with a monthly salary of 1700?
the bank should know better. of course will argue that the bank wouldnt care as long as they are offered a collateral. but MAS are the one that should regulate how bank operates.
it shouldnt be a free for all.
If the person you mention is typical of Singaporeans, then I suppose that's true. In that case, we need a more paternalistic and authoritarian regime, not less. We cannot be trusted to handle our own affairs, much less affairs of state. -
yeah, I am getting there soon. Must think ahead and at least not 'lose' in this game the party is playing.Originally posted by ShutterBug:You sure got the REAL picture right for the aged in Singapore, mistyblue. -
Originally posted by Atobe:
Blame the heads of singapore....greed are human weakness. So as the heads of singapore...they should not mislead its own people..by painting ilusion pictures....and entice its people into making wrong decisions...instead the gov should educate the public....
Are Singaporeans blaming the Banks, or are they blaming the Government ?
Singaporeans are blaming the Government for being greedy in their double accounting to justify the price increases of HDB Flats, which are generally priced just slightly below Private Flats.
Is the Government absolve from the troubles of Singaporeans, when it is this greedy bunch of white collared administrators - justifying their high salaries - that is responsible for high prices so as to increase the revenue flow into the National Treasury.
Singaporeans are blaming the Government for failing to honor the pledge of their PUBLIC SERVICE to Singaporeans by transferring the HDB Home Financing to Private Banks based on Commercial Rates - as well as Terms and Conditions.
This situation becomes the worst nightmare for Singaporeans, when at the same time that Private Banks are taking over the long term lease for HDB Flats, the idea of CPF Cuts and short term employment contracts have been vigorously encouraged by the NTUC and the MOM.
Almost TWENTY-SIX Years ago, the 1984 [b]HOWE Yoon Chong Commission to review "the Problems of the Aged" had already seen the impending crisis due to the insufficient CPF accounts of many Singaporeans needed to tend to their old age medical issues.
Yet despite all the tinkering with the CPF system - including CPF contributions by the Employers and Employees - nothing was done by the Government to bring costs down for the benefit of the majority of Singapore Population that is totally dependent on the Government for all such public housing and medical services.
Costs for Public Housing and Privatised Medical Services (but owned and operated by the Government ) remain too high for most Singaporeans.
This has resulted in a large stock of unsold HDB Flats that are priced high; and a costly Medical Service that the older Singaporeans can only visit once and its entire savings will be wiped clean.
Even a graduate working for five years, can hardly afford to buy and pay for the monthly instalments for either a simple 3-room or 4-room HDB flat based on current salary levels.
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The gov are also the parents to its people...so..it is the gov's responsibilty to educate its people. otherwise, they will have to f u ck off.
All I know the gov are blurr and lost with earning multi-millions dollars and living in luxuries. -
i am not talking about control. what are regulators for? to regulate right? do you mean as long as the both party agrees the govt shouldnt interfere?Originally posted by oxford mushroom:Critics of the government complain that they have made Singapore into a nanny state, and yet you want the government to control how much you spend and how much you borrow. Are Singaporeans so dense that they cannot be trusted to handle their own financial affairs?
If the person you mention is typical of Singaporeans, then I suppose that's true. In that case, we need a more paternalistic and authoritarian regime, not less. We cannot be trusted to handle our own affairs, much less affairs of state.
look at hdb why are they interfering in how things are done? they keep introducing new rules to control things not in their favour.
why not in this instance? -
Regulators regulate business transactions to ensure that banks stay within the law. It's not their job to decide how you should spend your money.Originally posted by dragg:i am not talking about control. what are regulators for? to regulate right? do you mean as long as the both party agrees the govt shouldnt interfere?
look at hdb why are they interfering in how things are done? they keep introducing new rules to control things not in their favour.
why not in this instance?
Imagine...suppose the government decide to legislate and prohibit anyone from taking a housing loan that will require repayment of more than 35% of your monthly salary (a figure I got from my financial advisor as a prudent cut-off), will Singaporeans prefer that? Suppose you are already 40, should the government therefore legislate that you are not allowed to take a 30-year loan, because your salary is likely to drop after 55?
If you want the government to regulate your finances, you are asking for a more authoritarian state. Be careful what you ask for....your wish might come true
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You want the government to babysitOriginally posted by dragg:i am not talking about control. what are regulators for? to regulate right? do you mean as long as the both party agrees the govt shouldnt interfere?
look at hdb why are they interfering in how things are done? they keep introducing new rules to control things not in their favour.
why not in this instance?
I mean everyone have to have some form of self-responsibility.
If by the age of 55, you still cannot figure out what is good for you,there is seriously something very wrong.
Seriously, I think anyone who can't do their sums and try to live beyond their means, deserves the financial burden which they brought onto themselves. They have no one to blame but themselves. We cannot just push self-responsibility onto the government.