Do not underestimate the true significance of the current pricing of the flats in bidadari and geylang in the latest bto intake exercise. Public housing flats shouldn’t be priced so out of reach for citizens to apply.
In this latest bto intake the lowest selling point of a four room flat is at $475000 while the highest is at $604000. Just the initial cpf ten percent down payment will be $47500 to $60400. How many years does it takes for a person to accumulate such a large number of money in their cpf is already a big factor to consider. But that is just the tip of the iceberg.
The true killer is the remaining balance of the house.Even after taking away the $39000 housing grants the remaining balance sum is still at $436000 to $565000.
For the next 25 years people will be paying monthly instalments for these bto flats and the lowest monthly mortage is roughly $1453 to $1883. Husband and wife each shoulder the monthly mortage equally together for 25 years,each will have to pay $726.50 to $941.50 every month.
Even if both husband and wife each earn $4000 per month with a combined household income of $8000 they will still not be able to afford paying for their flats in full using cpf alone.
They will have to use cash top up and God show mercy on these families as they will have to shoulder the mortage debt for 25 years. They cannot fall sick or lose their jobs and neither can their salaries decreases. This is only for the four room bto flats in that area only. The calculations for the five room bto flats will be even higher.
The electricity bills and housing loan interests haven’t even been calculate into it yet at all. Too many people have blindly rush into it to apply for these flats without realising what they are getting into. It is a nightmare waiting to happen.
These people will become slaves to their houses for their entire lives.