Very few countries (or cities) in the world can young couples afford to buy a place of their own just after working for 5 years.
Singapore is one such place.
Of course I'm not talking about private properties.
But if it's HDB BTO 3 room in mature estates and HDB BTO 4 room in new (euphemism for ulu) estates - they cost about the same around $400K? Its more a choice between better location or bigger space.
And if you don't mind low floor as on 2nd level, can get for $300K.
You do the math.
20% of $400K is $80K, and divided by 2 people is $40K.
If you can't earn and save $40K after working for 5 years, why are you wasting your time talking about financial freedom and your goal of quitting work by 35?
Surely you have more pressing matters to attend to?
For those young couples amongst you who don't think you are "average", you better act fast before a quick flurry of promotions and pay raises will disqualify you from the 2 bites of the cherry HDB upgrade game.
Singapore is not cheap.
But one thing we should be thankful for is affordable public housing .
I know. Many will like to compare with third world emerging countries. But often you never compare the average salaries and affordability from local perspective there.
For those of you who don't like to tell little lies to oneself, its better to compare Singapore with cosmopolitan cities like Hong Kong, Shanghai, London, New York, Sydney, etc.
Singapore versus Hong Kong Housing Affordability
Singapore Man of Leisure (welcome to my blog; just google it!)
According to IMF, If I remember reading correctly some years back, anything above 3.5 times annual average income of a household is considered unaffordable. Above 5 times, highly unaffordable. Hong Kong is almost 20 times. Haha…super uber unaffordable! At the previous election, housing affordability issue cost Mah BT his job.
When Minister Khaw took over from Mah BT as National Development Minister, he promised Singaporeans that he will bring down affordability to four times annual income for a HDB BTO four room flat. Last year, our monthly medium household income is $8,600? Meaning an annual income of $ 103,200. Four years would be $412,800. At $412, 800, one can easily get resale HDB 4-rm flat in most rural areas anytime. At $310k ( 3 years annual medium household income) a Singaporean working couple can afford a new BTO 4- rm in a new satellite town with minimal cash of $2k only.
Minister Khaw has achieved it before he handed over Minister Lawrence Wong.
Fred.
Hello Fred,
And the good thing for singles nowadays is they can apply for BTO 2 room flats at age 35. And no size restrictions for resale HDB flats!
My time I can only qualify for resale HDB 3 room flats only :(
That’s why HK got real grievances. I’ve been there when they do road marches and protests.
Here?
Just keyboard say say only grievances.
This Buddhist Khaw is like Mr Fix-it,
Where there’s a crash got sound, they’ll send him there!
I wish him well in fixing our transport woes…
Its such a thankless task!