895 HDB Homes Foreclosed By Banks!!!
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Only for the 1st year, thereafter it is a floating rate and can change as frequent as 4 times a year, varying between the different quarters. Interest rates during good economy is much higher and defintely a killer when your pay increment is not in tandem with the growth in economy.Originally posted by lionnoisy:The banks rates were lower than HDB market rates. -
Originally posted by oxford mushroom:
The fact remains unchanged that this Government has profitted tremendously from the artificially high sale prices of HDB flats built on land repossessed with compensation below market rates; built with cheap funds borrowed from Singaporean's CPF accounts; and sold at slightly below commercial home prices.
Why would people look at the irresponsible spending habits of Singaporeans when it is so convenient to blame the government for everything?
Is it not brilliant banking and accounting strategies - that after having built the flats with low costs CPF monies, the Government will charge a higher sales price for these HDB units ?
This exercise will end up with the Government's loan from the CPF being balanced off by the high selling price, and earning a windfall profit in the process - without the Government even attempting to return the loan.
Those who do not live in HDB flats will at least see the return of the monies that the Government has borrowed - although the rates paid will be at non-commercial bank interest rates for the loans taken.
The spending habits of Singaporeans are largely the result of the Government's policies.
One case in point is the wasteful consumption of purchasing cars that has a negative value at the end of the TEN-year COE period; and the government has moulded the consumption pattern based on the quantity of COE released - that are contrary to the declared objectives when COE was first introduced.
The ugly capitalist face of this Government has constantly resurfaced - and the most obvious is the renegading of its social responsibility by letting Commercial Banks take over the financing of HDB Houses - that were previously financed by HDB itself. -
Caveat emptor my @rse!!Originally posted by oxford mushroom:If you borrow money, you must be able to pay back. Borrowers are using the money that investors have deposited in the bank for interests. Why should investors suffer loss because you cannot pay back what you owe. Foreclosing the property is the only way to reduce the losses of investors.
You make a financial decision to take a loan. You understand the rules and you take the risk. Loans are just like any other consumer products...caveat emptor
Like always, you quote terms which you are clueless about.
ca·ve·at emp·tor
–noun let the buyer beware: the principle that the seller of a product cannot be held responsible for its quality unless it is guaranteed in a warranty.
[Origin: 1515–25; < L]
KNN, you must be living in the Renaissance period 14th century to 17th century. Irony of a person living in the 14th century telling someone not to live in the 1960s.
caveat emptor: [latin: let the buyer beware] A common-law maxim warning a purchaser that he could not claim that his purchases were defective unless he protected himself by obtaining express guarantees from the vendor. The maxim has been modified by statute: under the Sale of Goods Act 1979 (a consolidating statute), contracts for the sale of goods have implied terms requiring the goods to correspond with their description and any sample and, if they are sold in the course of a business, to be of satisfactory quality and for any purpose made known to the seller.
As usual, you prove beyond a reasonable doubt that you are an imbecile.
You do provide some form amusement, ever considering taking up job as a stand up comedian?
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Obviously you are clueless about interest rates in the Singapore context.Originally posted by oxford mushroom:HDB flats are sold at the market value with substantial discounts for those who are eligible. Buyers are fully aware of the price and the conditions of the loan. If you cannot afford to repay the loan, you should settle for a smaller flat.
As for the transfer of loans to the banks, why should the public continue to bear the risks of bad debts arising from HDB buyers who cannot afford to repay their loan? It is the tax payer who has to bear the cost when bad debts get written off. Let commercial banks do their evaluation of the risks and bear the consequences if they are wrong. Interest rates are dependent on market forces and it is right that the government should not continue to distort the economy if it is true that HDB loan rates are much lower than commercial rates.
For the poor who cannot afford to buy a HDB flat, they can rent one at a very substantial discount from HDB.
At a time when thousands of Singaporeans do not have basic housing, it might have been right for the government to provide cheap public housing below cost to Singaporeans. The situation is different now: large subsidies will only distort the market and is detrimental to the economy. It is right to let market forces decide the price for properties, with some safeguards for the very poor, such as cheap rentals for the low-income groups, as we have currently.
The HDB still has a role by providing much cheaper, high quality housing, which prevents private housing prices from shooting through the roof. However, it is not the role of the government to use tax payers monies to underwrite bad debts by Singaporeans who buy property beyond their means.
Incidentally, it is not in the interest of commercial banks to foreclose on housing loans lightly. Especially when the economy is not doing well, the last thing the bank wants is to end up with lots of HDB flats that nobody wants to buy. They would rather restructure the loan and keep the financial stream alive. They foreclose only because it is obvious the owner is never going to be able to repay the loan....and that person shouldn't have bought the property in the first place.
I think it's more likely that the highly inflated prices distort the market.
Was talking to a friend the other day, he was telling me how he paid $10,000 for upgrading works for his HDB, which the government subsidised 90%. He was commenting on how the government can justify saying that, they subsidised $90,000 for a small store room that he got.
Economy not doing well? I thought in your other post you gave us the impression that the Singapore economy is doing very well. -
Go back to school and learn some economics, kid and follow up your statements with some evidence, for goodness sake...Originally posted by maurizio13:Obviously you are clueless about interest rates in the Singapore context.
I think it's more likely that the highly inflated prices distort the market.
Was talking to a friend the other day, he was telling me how he paid $10,000 for upgrading works for his HDB, which the government subsidised 90%. He was commenting on how the government can justify saying that, they subsidised $90,000 for a small store room that he got.
Economy not doing well? I thought in your other post you gave us the impression that the Singapore economy is doing very well.
Prices in the housing market are determined by market forces. The resale market is buoyant and private property prices have shot up recently, pushed up the the good economy and news about the coming IR. Prices in the resale market has a close and direct bearing on the value of new property and vice versa. In fact, it is not in the interest of the government to have high property prices because it strips Singapore of our competitiveness.
The problem is that many Singaporeans aspire to a lifestyle they cannot afford. Too many kids fresh out of poly or Uni take up car loans and housing loans as if there is no tomorrow. It might be good for the government to turn more of a nanny state and restrict Singaporeans to the type of housing they are allowed to buy based on their income. Why should a fresh grad earning $2000 a month be allowed to take a car loan and buy a private car? That's the problem with respecting civil liberties.....rights without responsibility leads to disaster.
The estate upgrading covers more than the storeroom. How conveniently have you ignored the lift landings, the covered walkways, renovations to the loo and other improvements to the common areas
You need some lessons in English Comprehension. I did not say the economy is doing badly now. I said it is not in the interest of the banks to foreclose bad loans especially if the economy is not doing well because they cannot sell off the property. Ever heard of the Joseph cycles? We are moving towards the end of the years of plenty...the bull run in the stock market cannot go on forever. As one ST journalist said, the bear might come earlier than you think. Banks are not daft....they do not want to end up with armfuls of property when the economy turns for the worse with no customers in sight for the long, lean years to come.
For the banks to foreclose on bad debts, they must be convinced that the debtor is not willing or will never be able to pay. -
Yet you have shown us how well you understand economics. Like your previous understanding of "when interest rates rise, bond prices will increase" because more people will buy it as it pays better rates.Originally posted by oxford mushroom:Go back to school and learn some economics, kid and follow up your statements with some evidence, for goodness sake...
Prices in the housing market are determined by market forces. The resale market is buoyant and private property prices have shot up recently, pushed up the the good economy and news about the coming IR. Prices in the resale market has a close and direct bearing on the value of new property and vice versa. In fact, it is not in the interest of the government to have high property prices because it strips Singapore of our competitiveness.
The problem is that many Singaporeans aspire to a lifestyle they cannot afford. Too many kids fresh out of poly or Uni take up car loans and housing loans as if there is no tomorrow. It might be good for the government to turn more of a nanny state and restrict Singaporeans to the type of housing they are allowed to buy based on their income. Why should a fresh grad earning $2000 a month be allowed to take a car loan and buy a private car? That's the problem with respecting civil liberties.....rights without responsibility leads to disaster.
The estate upgrading covers more than the storeroom. How conveniently have you ignored the lift landings, the covered walkways, renovations to the loo and other improvements to the common areas
You need some lessons in English Comprehension. I did not say the economy is doing badly now. I said it is not in the interest of the banks to foreclose bad loans especially if the economy is not doing well because they cannot sell off the property. Ever heard of the Joseph cycles? We are moving towards the end of the years of plenty...the bull run in the stock market cannot go on forever. As one ST journalist said, the bear might come earlier than you think. Banks are not daft....they do not want to end up with armfuls of property when the economy turns for the worse with no customers in sight for the long, lean years to come.
For the banks to foreclose on bad debts, they must be convinced that the debtor is not willing or will never be able to pay.
When you have a managed floating foreign exchange regime, you are indirectly affecting the price of interest rates. Therefore the interest rate is not determined by the market forces. You don't even know what is the parity involved. Don't think it's my responsibility to teach you, I should let you remain an imbecile.
Why are always repeating the same points like a damaged record? About people living beyond their means, I have heard it like a million times.
Are all your posted relevant to what I commented? Read my posting again and understand.
Common areas are public areas, you cannot attribute it's usage to any particular household. What about strangers using the common areas? Don't they have to pay then? Next you will be justifying them charging a portion of the development cost to swimming pools and sports stadium, after all they are common areas. When you buy the apartment, do they allocate those common areas to you? Do you have the right and ownership of the common areas? If you don't have, what right have they to make you pay for it? In simple terms, it's just government's way of hoodwinking you to paying for other cost.Originally posted by oxford mushroom:The estate upgrading covers more than the storeroom. How conveniently have you ignored the lift landings, the covered walkways, renovations to the loo and other improvements to the common areas
Huh? You did not say that the economy is doing badly? I must be in the twilight zone or sumthing. I don't even know whether you are trying to tell us economy is good or bad right now.Originally posted by oxford mushroom:Incidentally, it is not in the interest of commercial banks to foreclose on housing loans lightly. Especially when the economy is not doing well, the last thing the bank wants is to end up with lots of HDB flats that nobody wants to buy. They would rather restructure the loan and keep the financial stream alive. They foreclose only because it is obvious the owner is never going to be able to repay the loan....and that person shouldn't have bought the property in the first place.
I wonder how many of the forumers think OM needs some basic English lessons? -
P*P must be blamed for pricing HDB at such ridiculous prices and then go around trumpeting that it is "affordable" - well it shows clearly that it is not affordable for many people and they must take the blame for it. As for whether these people must be blamed for "living" beyond their means, it is a red herring because, their compulsory CPF is supposed to pay for it.
Bottom line is, P*P must be blamed because they priced HDB flats at such ridiculous prices.