Posts Tagged ‘loan’

SG Citizenship is worth about $7,503-$10,583 more than PRs a year

Sunday, November 1st, 2009

According to salary.sg, they calculate how much the Singapore citizenship is worth over a permanent resident. Their figure came up to an advantage of $4,511/year.

They break it down this way:

Child Birth: Baby Bonus + Ward Stay = $531/year (based on 1 kid)
Childcare Subsidy: $3600/yr
School Fees: $180/year
Housing: Insignificant
Health Subsidies: $4511/year

Salary.sg treats housing advantage as insignificant since most would turn to the resale market, like PRs. However, by not including HDB Grants and access to HDB loans, this greatly distorts the yearly figure! (more…)

Ever wonder why HDB prices keep going up?

Saturday, October 24th, 2009

It’s a one word answer: VALUATION.

Valuation is important to both sellers and buyers. Sellers have to get apply for a valuation, where a HDB accredited surveyor would come down and value the flat, and buyers would need to pay for that valuation report, so that they can get a loan from the bank.

The purpose of valuations is to protect the lenders. If Mr Ang is asking $300k for his 3 room flat, but its current market value is only $250k, banks will only lend Mr Ang $200k. The other $100k, he would have to pay cash. This way, if Mr Ang defaults on his payments in future, and the bank repossess the flat, they would still be able to recover some, if not all their money after selling the flat to someone else. If they had lent him $240k, and they can only resell it at $200k, they would have instantly lost a lot of money. That’s how valuations came about.

What’s this all got to do with HDB prices? (more…)