What Sort Of Subsidies Do Low Income Families Get When Purchacing Hdbs

[DreamHome1 0]

Hi guys, im currently earning less than 2k a month, with a family of 4 to feed.

All along i have been living in rented Houses and I'm constantly on the move in search for new places.

I don't think this is healthy for my children who are still currently very young,

Therefore i hope to get a permanent home soon, however i don't even have enough for the downpayment.

Is there any way that government subsidy Poorer families or any organization with could help out?

Thanks for your time.

[therat 18]

U must have miss out this news

Khaw Boon Wan clarifies Tharman's "buying HDB flat on $1K pay"

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1186651/1/.html

SINGAPORE: National Development Minister Khaw Boon Wan has clarified comments made by Deputy Prime Minister Tharman Shanmugaratnam, that a household with a S$1,000 income can afford an HDB flat.

Mr Khaw said the comment had caused a stir, as it sounded so incredible.

But he said Mr Tharman was referring to a two-room Built-To-Order (BTO) flat.

That's because such a flat would cost a first-time applicant - who earns S$1,000 - about S$40,000, after subsidies.

The mortgage payment, said Mr Khaw, can be fully paid through the applicant's CPF, without incurring any additional out of pocket money.

Mr Khaw added that most applicants of two-room flats earn above S$1,000.

And based on recent BTO launches, the median income for this group is about S$1,400.

- CNA/ck

[therat 18]

And this one

Buying HDB flat on $1K pay possible, says Josephine Teo

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1186756/1/.html

SINGAPORE: As for Deputy Prime Minister Tharman Shanmugaratnam's comment that Singaporeans earning S$1,000 could also own a home, Minister of State Josephine Teo said she was not surprised at the mixed reactions from netizens.

"They don't necessarily know that there are grants available from the HDB that will make the actual size of the loan for purchasing these houses not very big.

"With the grants, the loan amount is about S$40,000 and if you stretch it out over 20 or 30 years, the monthly instalment is in the range of S$100 to S$200," she said.

"On the one hand, people can't imagine that even a person earning S$1,000 can earn a home. On the other hand, the facts do show that with grant support and with regular jobs and CPF contributions, over time that goal can be reached even for those on the lower end of our income spectrum.

"So that's a strength of our society and we should make an effort to reach out to these individuals so that they too know they can fulfill their dreams of owning (a home), it is not out of their reach," she said.

- CNA/cc/ck

[therat 18]

He say one

$1k income can OWN flat

[therat 18]

He also say can

https://www.facebook.com/notes/tan-chuan-jin/earn-1000-a-month-and-you-want-to-buy-a-flat/338028739573241

Earn $1000 a month and you want to buy a flat?!

by Tan Chuan-Jin on Friday, March 2, 2012 at 9:01pm ·

Tears were shed by some, who lamented about the ability to buy flats for their parents in the future. Others raised their eyebrows when DPM Tharman made the point about the $1,000 income family being able to afford to buy a small flat. Online critics went to town to mock the im-possibility of this.

Well...

For a first time applicant, he can apply for a new 2-room standard BTO (Build-to-Order) flat in a non-mature estate. These flats are set aside for those earning $2,000 and below a month.

These households earning $1,000 can qualify for generous housing grants. Available to them are the Additional CPF Housing Grant (AHG) of up to $40,000, and the Special CPF Housing Grant (SHG) of up to $20,000. These grants could be used for the flat down payment. Total = $60,000

How much is a flat? Using the selling price of a new 2-room BTO flat in Fernvale Lea in Sengkang as an example, it is $100,000 (offered in the Jan 12 BTO exercise; the price range was from $83,000 to $112,000)

Deduct the $60,000. The applicant needs to pay $40,000.

With a loan for $40,000, repayment per month is as shown below:

- 30 years loan : $161/mth

- 25 years loan : $182/mth

- 20 years loan : $214/mth

For a young household headed by an income earner with a salary of $1,000 per month. He will have a total of $217 contributed monthly to his CPF Ordinary Account.

Monthly cash outlay = $0

This support for families enable them to move from rental to owning their own homes.

If they prefer to rent, rentals for those with income of about $1,000 is $90-123 for 1-room, $123-$165 for 2-room.

4300 of these 2-rm BTO flats have been built since 2006. More in pipeline this year. Situation is manageable.

Demand for rentals still remain high and we are increasing the building of rental flats. By 2012 we would have about 50,000 and waiting time would come down from 21 to 8 months.

This note will not be talking about the range of efforts undertaken for low income Singaporeans. It is meant to explain about one aspect of housing. We have other initiatives to help, amongst which are transfers, job provision etc. Many of these are existing measures and new ones which this Budget 2012 addresses.

But I will just mention Workfare. If he's aged 35-44, together with Workfare Special Bonus, he'd get $1,313 per year. If aged 45-54, $1,750 per year.

Miscellaneous Info for those interested in some data:

- The Average Monthly Household Income from Work among Resident Employed Households for the 1st-10th percent is $1,581 for 2011.

- 1 to 2 roomers comprise 4.6% of distribution of resident households.

- In Govt transfers, they receive an average of $3,270 per household member.

- Across the board, average household size is 3.5 For 1-2 roomers, average household size was 2.2

Key Household Characteristics and Household Income Trends 2011

An Inclusive Society...making it happen

Hdb Infoweb

Special Housing Grant

Additional Housing Grant

Help for low income families

ComCare Helping the Needy

Postscript 1: How the sums can add up for other sized flats

Postscript 2: ST Article on Singaporeans owning these flats

PS1

We used this 2012 Fernvale Lea example to illustrate the lower end 2R flats. Other flats:

3 Rm. Typical price about $170,000Couple earns $2,500. AHG= $30,000. Cost of flat = $140,00025 year HDB loan will see their monthly repayments fully covered by their CPF contributions (OA). No monthly cash outlay.

4 Rm. Typical price is $280,000Couple earning $4,500. AHG=$10,000. Cost of flat=$270,00025 year will see their monthly repayments being covered mostly ed by their CPF contributions (OA). $60 monthly cash outlay.

5 Rm. Typical price $350,000.Couple earns $6,000.25 year will see their monthly repayments being covered mostly ed by their CPF contributions (OA). $50 monthly cash outlay

On average thus far, most HDB loans taken from onset is about 22 or so months. As income rises, and people choose to repay earlier, period can come down.When I last shared this a few months ago, those aged 55 who have not discharged their HDB loans are about 12+%

PS2

Straits Times, 9 Mar 2012. Can a Singaporean who earns $850 a month afford to buy a Housing Board flat?

Mr Mohammad Charlie Jasni says yes.

The odd-job labourer earns that amount, and he and hisfamily will be moving into a new two-room HDB flat in Punggol by the end of the year.

BACKGROUND STORY

How he pays for his flat

Monthly income: $850

Total household CPF: $40,000

Cost of build-to-order flat in Punggol: $99,220

Additional CPF Housing Grant Scheme: $40,000

Remaining cost of flat: $59,220 ($99,220 less $40,000)

Estimated monthly instalment for payment: $83 for 30 years

Deduction from CPF: $83

Cash outlay: $0

He had successfully balloted for the 45 sq m build-to-order unit in August 2009.

It cost $99,220, but because he earns less than $5,000 a month, he qualifies for a government housing grant that gives him $40,000 to offset the flat's price.

This means he has $59,220 left to pay, which he will do using his Central Provident Fund (CPF) savings.

He and his wife already have about $40,000 in their CPF accounts, and this will grow as he continues to work.

Based on the Housing Board's calculations, he needs to pay a monthly housing instalment of $83 over 30 years.

'By paying the $83 out of my CPF, it means I have that little more for daily expenses,' said Mr Charlie, 33.

He is currently living with his wife and two children in a two-room rental flat in Beo Crescent. They pay $44 a month for that flat.

They are excited about their upcoming home and are already discussing renovation ideas and shopping for furniture.

'It is good to have a home of our own,' he said.

Mr Charlie's story puts a face to a statistic that has been debated in the last week.

In Parliament last Thursday, Deputy Prime Minister Tharman Shanmugaratnam revealed that 'a family with $1,000 income can now, through our housing subsidies, purchase a small flat'.

He was responding to Workers' Party member Gerald Giam's comments about Singaporeans being unable to afford a flat.

The minister's remarks sparked off much discussion in both cyberspace and coffee shops alike. Some wondered how $1,000 could buy anyone a flat, given that sum was hardly enough to support a family's daily living expenses.

The next day, National Development Minister Khaw Boon Wan explained that Mr Tharman was referring to a new two-room flat.

He added that the subsidised price of such flats was about $100,000 if the applicant was a first-time buyer. He would also be entitled to housing grants of up to $60,000.

The net selling price would thus be $40,000, and the monthly mortgage payment can be fully paid from his CPF contribution, Mr Khaw said.

In response to queries from The Straits Times, the Housing Board said it was unable to say how many households earning $1,000 a month own two-room flats. But it pointed to how that it has two schemes that target low-income, first-time buyers.

The Additional CPF Housing Grant Scheme (AHG) benefits households whose income is not more than $5,000 a month. The maximum grant quantum is now $40,000, and it benefits 8,000 households every year, said the Housing Board.

The Special CPF Housing Grant (SHG) is given to first-timer families earning up to $2,250 a month to buy a small flat. Those earning $1,500 or less get a $20,000 grant. SHG is over and above regular housing subsidies and the AHG.

The Housing Board estimated that about 700 tenants currently renting flats under the Public Rental Scheme can benefit from the SHG if they decide to buy a flat. To date, the scheme has benefited 53 households who have bought two-room flats.

The Housing Board also gave The Straits Times five recent case studies of households with monthly income of about $1,000 who bought two-room flats. Four managed to buy new flats with the help of both housing grants. The fifth used only AHG as SHG had not been implemented when he bought his flat.

Out of the five families, three were rental tenants who have bought a new flat without taking any loan because they used the housing grant and their own CPF savings. The other two were families currently living with relatives who have bought new flats using both grants and their CPF savings.

In one case, a couple who lived in a rental flat bought a new flat in Bukit Panjang. At the point of applying for a flat, their monthly income was $900.

The flat cost $106,350. They got the maximum total housing grant of $60,000 - $40,000 AHG and $20,000 SHG. This, together with their CPF savings, meant they did not have to take any loan.

In another case, a man and his mother bought a new flat in Sengkang for $117,750. They got $60,000 in grants, and took a 17-year loan with a monthly instalment of $131.

Schemes to help with expenses

The Straits Times visited five blocks of two-room flats in the Woodlands and Ghim Moh areas this week and spoke to people in over 30 homes.

Most of the residents there were renting their units.

Of the four who owned their flats, one had downgraded from a four-room unit, while three others had downgraded after selling their previous flat in the Selective En Bloc Redevelopment Scheme.

Among those renting, many were in their 60s and 70s and retired. They said they do not have much in their CPF or bank accounts, which is why they cannot buy their own units.

Madam Tan Chui Eng, in her 70s, and her husband, Mr Teo Kim Wee, in his 80s, said they have been living in a two-room rental flat in Ghim Moh for six years.

Most of the money in their CPF accounts has been used for medical expenses, they said. They have three daughters who pay their monthly rental of $61 and utility bills. 'Of course, we would like to buy our own flat, but we cannot afford it,' said Madam Tan in Teochew.

MPs said that with grants and other assistance schemes, households earning $1,000 should be able to afford a two-room flat.

Mr Vikram Nair, an MP for Sembawang GRC, said he knows of such households who rely on CPF contributions to finance their purchases.

As to whether $1,000 is enough for a family to survive, he said there are public assistance schemes, such as GST vouchers and Workfare Bonus, which can help low-income families cope with daily needs.

Mr Liang Eng Hwa, MP for Holland-Bukit Timah GRC, said regardless of whether they buy a flat, low-income households have little cash on hand. But rather than use cash to pay rent, 'why not use the CPF to pay for a flat?'

'The cash they save by not paying rent may not be much, but still it gives them that little more for daily expenditure,' he added.

For odd-job labourer Mr Charlie, every bit saved helps to pay for living expenses. His wife does part-time administrative work.

He did not think he could afford a flat 'but when the Housing Board reintroduced two-room flats again, I felt that perhaps I could afford one'.

In 2006, the Housing Board resumed construction of two-room flats after 20 years, to give more housing options to low-income households.

He decided to wait a bit because he wanted to build up his CPF account first. Now that he has bought a home, he feels the pressure of maintaining his CPF account so that the flat can be paid off.

'Some companies are cutting back on manpower and I'm scared that I may lose my job,' he said.

But he does not regret buying the unit. He hopes to pass the flat - or a bigger one should they ever upgrade - to his children.

[DreamHome1 0]

Hmm that sort of sums it up....

[DreamHome1 0]

But never is 1000 enough. what bout money for daily expenses. for old age security etc.

[gimz63251073 0]

Do note that for the $850 salary case, it is higly dubious.

1. based on $850 per monthly, it will take around 20 years to accumulate $40k in ordinary account.

This means there must be other income from another person or that that guy used to draw a higher pay.

2. Without the $40k down payment, some guy on the internet had computed that he would need to pay $237 from his ordinary account instead of $83. (i din bother to verify)

3. After paying for the house with a 30year loan, the guy will have neglible savings in CPF for retirement. So he might have to do sale and lease back of his house in future.

Common sense would tell you that a person earning $850 will have trouble getting by with daily expenses.

So by buying the flat, are we not in essence "paying for rental upfront"?

After the big hoo-ha, minister had to say the focus should not be on the $1k or $850 and instead, the focus is on the availability of help... You can draw ur own conclusions la....

my conclusion is that though you are smart, we may not be that stupid.

[therat 18]

The math question is can 1k salary buy HDB.

Math question didn't ask.. is 1k salary enough to buy HDB and feed the family of 4

[gimz63251073 0]

Buy on a 30 yr loan and have nothing in cpf? Tat is changing the problem from unable to buy a house to unable to retire.

[therat 18]

Buy on a 30 yr loan and have nothing in cpf? Tat is changing the problem from unable to buy a house to unable to retire.

U forget about the studio apartment.

They will propose u to sell away your HDB when you reach 65 yrs old. Buy a cheaper studio apartment.

Profit will go to your CPF retirement account.

See..

problem solve

[kalimantan 6]

topic here is to help the threadstarter on help availability on purchasing of hdb flats.

If outside topic of hdb, definitely $1k not enough. As to how to earn more than $2k, i am sure the breadwinner has to think of something, rather than we think for the breadwinner.

[gimz63251073 0]

U forget about the studio apartment.

They will propose u to sell away your HDB when you reach 65 yrs old. Buy a cheaper studio apartment.

Profit will go to your CPF retirement account.

See..

problem solve

the property in question is a 2 room flat, how different is it from a studio? What about the subsidy that you have to return to HDB..?

The statement by ministers need to be more clear, and not simply use 1 example to brush aside the issue. Actually i quite pity the ministers, they often have to say such things to defend their party's position. No such thing as speaking your mind.

[therat 18]

http://www.hdb.gov.s...om?OpenDocument

HDB offers 2-room flats for sale to provide more affordable housing options for the lower income households.

These flats are typically about 45 square metres in area. Each comes with

• A living area that may be subdivided into an extra room, if needed
• A kitchen
• One bedroom with attached bathroom and
• Storeroom-cum-apartment shelter

Eligibility Conditions
Citizenship

• You must be a Singapore Citizen
• Your family nucleus must comprise at least another Singapore Citizen or Singapore Permanent Resident.

Your average gross monthly household income must not exceed $2,000.

=====================

http://www.hdb.gov.s...pt?OpenDocument

Designed to meet the needs of elderly residents, HDB's Studio Apartments enable you to maintain an independent and active lifestyle. Sold on 30-year leases, the Studio Apartments are affordable and offer good value for money.

Size and Accommodation

Studio Apartments come in two sizes :

• 35 square metres
• 45 square metres.

Features
To spare you the hassle of renovation, the apartments are sold in ready-to-occupy condition.

Each apartment comes with:

• Floor tiles in the entire flat
• Built-in wardrobe
• Window grilles
• Built-in kitchen cabinet with cooker hood and stove
• Wall tiles for the bathroom/WC and kitchen

Features

To spare you the hassle of renovation, the apartments are sold in ready-to-occupy condition.

Each apartment comes with:

• Floor tiles in the entire flat
• Built-in wardrobe
• Window grilles
• Built-in kitchen cabinet with cooker hood and stove
• Wall tiles for the bathroom/WC and kitchen

Elder-friendly Features
For safer and more convenient living, the interior of each apartment is also fitted with useful and elder-friendly features such as:

• Lever taps
• Non-slip tiles
• Level flooring from one area to another
• Support hand bars
• Pull cords linked to an alert system in case of emergency

For safer and more convenient living, the interior of each apartment is also fitted with useful and elder-friendly features such as:

• Lever taps
• Non-slip tiles
• Level flooring from one area to another
• Support hand bars
• Pull cords linked to an alert system in case of emergency

You must be a Singapore Citizen
You must be at least 55 years old at the time of application.
The average gross monthly household income of all persons listed in your application must not exceed $10,000.
If you have previously sold two flats bought with housing subsidies, you can still apply for a Studio Apartment.
Offset of Resale Levy
Have you sold your first subsidised flat and paid the resale levy, and are now buying a Studio Apartment (SA) instead of a second subsidised flat? The resale levy which you have paid can be used to offset the purchase price of the SA.
Amount of Resale Levy Where the amount of resale levy paid is more than the selling price of the SA, HDB will only offset the levy up to the selling price of the SA.
The following will not be considered as part of the selling price of the SA :

• Stamp fees,
• Conveyancing fees, and
• Other miscellaneous charges incurred for the purchase of the SA

================================================

Base on HDB

Studio Apartment

- no resale levy

-the biggest unit is same size as 2 room HDB

- salary cap is 10k while 2 rm HDB is 2k

- min age 55 while 2 rm is 21 yrs old.

- 2rm HDB is 99 yrs while Studio apartment is 30 yrs old.