Buy rent marry

Minister Khaw Boon Wan has made me feel young again. In a blog post on Boxing Day 2013, he admits to being outdated, that his assumption that people get married first and then get a home is no longer valid. Instead he appears to have been caught off-guard when told by his YOUNG Sembawang activists, that Singaporeans now buy an apartment first before getting married. I don't know how young his young activists are, but this is certainly not news to me. I have been married 21 years. I remember that one of the first things I proposed to my fiancee (now my wife) was to put in an application for a HDB apartment. It was like dowry, except that it is shared by the couple - both fork out their CPF monies.  Marrying and renting just wasn't "on the cards" for us. We were young, just starting out on our careers, and didn't make a pile of disposable cash. So every dollar was valuable, which we would rather put away for tomorrow than spend it today. And so it was for my generation then. The received wisdom then was to head on over the HDB, not the ROM, to get married. And that was more than 20 years ago. At that time, Singapore was not exactly awashed with available HDB apartments. I had to ballot for mine.

So I was amused when Minister Khaw reported his ignorance. I wonder how young his "young activists" are. Is this another case of being fed the wrong and/or outdated information from the ground or being out of touch in the first place, or perhaps both?

Yes, I agree with Minister Khaw that couples, while waiting for their flats could get married, rent an apartment, get a head start in making babies, and then move into their newly minted HDB BTO (whatever) castle. But the argument against this has always been that the money spent on "non-recoverable" rental could have gone into payment for/investing in a HDB apartment, so why spend when you can invest, right? This was exactly what my fiancee and I thought when we embarked on our marital journey more than 20 years ago. From the wisdom of the young activists I see that nothing much has changed all these many years.

Burning money

Bishan Town is in the news again. No, it's not just about its newest landscaping, though that is noteworthy. But more than anything else, Bishan is known for its expensive public housing. Many years ago, in the 1990s, during the height of the housing bubble, someone paid a million dollars for a public housing apartment there-an astonishing sum in those days! Today, one of its new private condominium, the Sky Habitat @ Bishan, is reportedly asking for S$1,700-S$1,800 psf  for its apartments. For a 1,200 square foot apartment (about the size of a 5-room public housing  apartment), the price will come up to S$2.04m - an insane price. For comparison, a 5-roomer public housing apartment could be got for $500k plus or minus $100k As our politicians have explained, that is not including the generous subsidies that they routinely dole out for 'needy' people. One wonders if it is the property developer who is insane, or the prospective buyer is, or both of them are, based on the willing-buyer/willing seller principle? What's so insane, you ask?

Well, first, it isn't a landed property. If it were, in land-scarce Singapore, that will make sense in the long run. Second it doesn't sit on free-hold land. Its only a 99-year leasehold property. Third, it isn't in a prime district like Bukit Timah. It is located in a suburdan part of Singapore, somewhere in the middle of the island and is surrounded by plenty of public housing apartments. It doesn't boast of fantastic scenery (yeah, don't believe the advertisements which invariably paint a scenic picture of the locality). In fact, within living memory, this place used to be a cemetery,  not that I have anything against that. I used to, as a boy, visit some relatives who lived in the kampongs in Bishan (Peck San Theng, I remember my father calling the place where the relative stayed) then during the Lunar New Year. And I do remember the small bridge made of wooden planks over the stream that I had to go over to get to my relative's house.

Over the years, it has developed into a much sought after place to live in, but it isn't exclusive in any way. There are those who say it is served by the MRT station. That's true of and increasingly true of every town in Singapore. I know of other places where it is even more well-served by the MRT. Others say that the island's premier Raffles Institution (RI) being nearby is a big plus. Yeah, it probably is, but how many years do you expect your child to stay in RI for this to be remain a 'plus'? Of course, there is more than an even hope that others may be looking to move in, so you may have a sale-able apartment location. But at this price, I wonder what margins you will gain, anyway? Yet others point to the brand name designer behind the condo. Well, I don't know who he is, I am not in this line, but the visual are quite attractive, which is true of other developments elsewhere on the island.

So really, I see no reason beyond insanity to buy this place at this kind of prices. The only reason one would do so is if you have money to burn, and these are not those that you bring to the cemetery.

Stratospheric Air

A HDB apartment owner is asking for $900,000? Shocking? Well, not really. I once owned a HDB Execute Apartment (a 5-roomer). In the heady days of 1996, it was not inconceivable for me to fetch $700K on the market for it. My brother actually sold his for a cool $600,000. That was the price at which it was valued at that time. Fast forward 15 years today. $900,000 looks right, in a red hot property market where all rationality has gone out the window. But when you consider how people have been willing to pay the high prices for DBSS apartments although they have the same restrictions as a public HDB apartment, you know the time is now to make a killing on your humble public housing apartment.

Why should anyone begrudge another about making good money on their properties? If I had the same opportunity, I'll put out my apartment too on the market at stratospheric prices, so long as people are willing to pay the asking price. And you say it's crazy? Honestly, who do you think is crazy? The one who can make half a million on a single property sale, tax free mind you, or the one standing red-eyed thinking about it? Come on, don't be hypocrites! Say you love the money. It'll certainly come in useful, if not for yourself, at least for your children?

How I love the Singapore property market. The only thing left to do is to cash out of the country and go find a more down to earth place to live.

The door is that way

It appears that Minister Mah Bow Tan hasn't heard the people at all. Not even after 9 days of intense voices coming from all corners, including the public, that HDB apartment prices are too high and has given many people, especially the young ones, grief in securing a decent home to start a family. He practically called people who are crying out about high prices of HDB apartments liars - yes, liars. He said, "Look at the interior furnishings (of houses around you)...many do up their house lavishly. Look at the car parks. They are full every night...you also see Mercedes and BMWs. So how is it possible, if our flats are supposedly unaffordable?" (Today, Friday 6 May 2011, page 14). As if everybody owns Mercedes Benzes and BMWs...sheesh.

Yes Mr Mah, there are these things, but have your ever asked how people finance these things? First, they have to borrow to pay for the apartment, then they borrow more to pay for the renovations and furnishings, and then they borrow even more to buy that car (and they aren't necessarily Mercedes and BMWs), and...

People in Singapore have had to mortgage their lives over to the banks to get the good things in life while the PAP government, and Mr Mah, boast to the rest of the world that Singapore people are property owning people, that its housing policies are probably second to none, that its National Development Minister probably deserves a Noble Prize in National (Housing) Development...

Clearly, while PM Lee and Minister George Yeo have seen the light and learnt to commiserate with the people, Mr Mah is still as stuck up as ever. He insists on mowing down the electorate, calling them liars. He has lost my respect and any claim to represent the people.

Singapore goes to the polls tomorrow. It doesn't happen everyday. You can only vote once every 5 years (or thereabouts). So exercise your voting power tomorrow. People of Tampines GRC, do the right thing. Do the rest of Singapore a favour. Show him the door. Vote him out. Let Mr Mah know once and for all that Singaporeans cannot be bullied!

DPM Teo said that we need good people to help PM Lee govern better (Today, 6 May 2011, page 4). But you know what, Mr Teo? Mr Mah isn't one of them. But let's also show some compassion. Give him a chance to run for the Presidency in August. Give ALL Singaporeans the opportunity to  k***k him in the b**t, again.

No money no house

In these Elections, the PAP has warned (actually, I was thinking of using the word 'threatened') that the value of Singaporean's properties, which mostly refers to their houses, will likely fall if the Opposition Parties were to win in their constituencies. The latest came from none other than SM Lee Kuan Yew, with (surprise?) Mr Mah Bow Tan, the Housing Minister (formally the Minister of National Development), sitting beside him. Earlier on, Mr Mah had criticised the Workers' Party for proposing that public housing prices not be pegged to the resale market prices, but instead to the median income of Singaporeans. He warned that doing so will cause property prices to fall and thereby possibly wipe out a substantial value of every Singaporean's house. Well, I won't go into the arguments which have swung back and forth and will probably still be debated long after the Elections.

My point is so what if the valuations dropped? The increased values of our houses are first of all, unrealized gains. What good is it to be told that my house is worth $900K when the house that I need to replace it with, should I want to cash out, will probably cost me $900K, if not more? So what real gains are there, really? How much more wealthy have we become with all the touted asset enhancements brought to the people by the PAP government?  Now I would admit that this is true for the older generation, those that bought their HDB apartments relatively cheap, direct from the government. They probably paid $120K to $180K, or thereabouts, for a 4 or 5 room apartment back in the 1980s and early 1990s, but have since then made a real pile of money as the values of their properties have increased 3 or 4-fold. Well, the younger Singaporeans among us have found that this is no longer true. They have to pay through their noses nowadays for their first HDB apartment, and more if they have to settle for a resale one. And part of the reason is that the government had decided to price public housing according to market rates. So the Workers' Party does have a point. The disappointment is that the PAP cannot see the point, or at least is pretending not to. A climb-down now during these Elections will cause a lost of face, if not votes.

I admit that I am one of those who benefited from the relatively cheap housing in the early 1990s, and I voted for them in every election. But you know, I don't gain any more benefit from the rising value of my house today. On the other hand, the increased (and increasing) valuation of my property only attracts higher property tax. The real beneficiary of asset enhancements is the government. So, tell me, Mr Mah, how has PAP's recent housing policies really benefited me and the many property-owning Singaporeans?

See also Mr Wang Says So

More or Less

Singapore's property prices have burst above the roof and is heading for the stratosphere. That's the general talk now in the coffee shops. A coffee-drinker pal of mine remarked the other day that he cannot see himself buying an apartment for more than S$1,000 psf, and he wasn't thinking of the uber-ultra luxury apartments and properties along Orchard Road and Sentosa Cove. It's just the run-of-the-mill condos that people seem to have an insatiable apetite for nowdays that he was referring to.

I couldn't agree more, or umm, well, less. I agree because I can't see myself buying at those prices, but I do have a private apartment which I suppose I can sell at those prices too, which will give me no end of pleasure, not to mention, wealth. So you will find me talking like a snake nowadays - depending on whether you are with people who want to buy or sell.

Well, whether it is to buy or sell, I find it hard to believe REDAS' Simon Cheong (I really really would want to believe him) when he insisted that if developers got land cheaper from the government, they would price their apartments lower. Yes, they CAN price their apartments lower, but would they? Unless you are facing a housing glut, and everybody is either dead broke or the environment is just not favourable, no self-respecting property developer will price their property below the market price. That's doing good business. Developers are hardly charitable organisations, and Mr Cheong, of all people, should know that.

So on the whole, I agree with the MND. I'd rather the government make the money, for which it can then use to spread around the benefit to the public rather than have the developers build and buy more property with the inflated margins that they have already made, which they can then sell at inflated margins, etc. etc.

Actually my grouse with property developers nowadays is that almost every condo they develop leaks water. I thought it was my apartment, until I keep hearing the same stories from anybody and everybody I meet who has bought into a condo in the last 10 years or so. When you find out about the leaks, the one year warranty would be over,  and its your problem, buddy. I cannot understand this. Even TV manufacturers give 3-year warranties, but condo developers (and I think HDB too) are only confident their apartments will hold together for only a year.

So I have this advise for people making a beeline, or who have already put down the deposit for their dream condo. Go through every room and every wall, and every inch of the floor, and the ceiling (particulary false ceilings), the cornices and the air-con pipes to look for cracks, hollow-sounds and damp trunkings - all within the first year. Frankly, the quality of condo apartments sucks and if you are going to pay more than a thousand dollars psf for that apartment, you owe it to yourself to minimise any grief that you will certainly face some months or years down the road.

Slow and steady

Minister Mah is correct. Young people/couples (and perhaps the not so young) in Singapore are too much in a hurry to get that first high-rise apartment which has, among other idyllic features:

1. A high-floor with a view (think Pinnacle@Duxton);
2. Water-body facing apartment (think Pasir Ris/Punggol, Bedok Reservoir, etc.);
3. Quiet and calm surroundings (think Holland V);
4. Near amenities such as Bus, Train stations, Markets, Malls (think Toa Payoh Central);
5. Strategic locations - near Schools and Playgrounds (especially 'brand-name' ones) - (think Bishan);
6. Have relatives (mainly parents) who live close by (so you can fob the kids out to); and
7. (Fill in your own dreams and fantasies).

It is no wonder that many public apartment buyers cannot find one that suits them and repeatedly reject those offered to them by the HDB. And some end up paying an arm and a leg for such an ideal apartment and shackle themselves to a 30-year loan, without much possibility of their apartments appreciating in value (because they paid an arm and a leg) over the next 10 to 15 years.

They should take a leaf out of Minister Mah's experience about living humbly (albeit not of his choice) and moving up and on years later. My first HDB apartment was far away from the train station (at least 20 minutes walk), about 10 minutes walk to the nearest neighbourhood centre (yeah, not even the town centre) - meaning a 20 minute 'walking commitment' if I wanted to, say, go for a hair cut, which itself would take no more than 10 minutes. It was also only served by one feeder bus, which came infrequently and erratically, and what's more, the apartment faced the expressway and had a corridor. It wasn't the stretch of flats I had been eyeing when I was invited to select an apartment then. I was devastated when they were all taken because my queue number was too far back. However, I chose to look at the positives. It was a quiet place, an expressway looked stunning towards the evening, and I could put in some walking exercise that is sorely missing in my life. It wasn't perfect, but it could do.

After living in it for close to 8 years, I sold it for S$200,000 more than the price I paid HDB for it, first-hand. Many would say that S$200K over 8 years is small potatoes, but it gave me enough to upgrade to a condo, which is now worth about S$200K more than what I paid for it. The other day, I was told that I had enough cash in the bank and CPF to redeem my entire loan, so I'd own, without any further financial encumbrance, this $200K shy of a million $ home (according to current market prices). And did I say that this condo is located next to the MRT station, the Bus station, has a large shopping mall beside it, has a 'branded' school 10 minutes walk away, has a wet market 5 minutes walk away, has a public library in the mall beside it, has a SingHealth Polyclinic across the road, has a Post Office, also across the road, and...*pant*pant*...and it you lived in a high enough floor facing the right direction, has a sea view and is surprisingly quiet though it is situated at a major crossroads of human traffic and activities (I did say that the MRT/Bus was easily within reach). And did I say that a public bus that travels on the expressway 4/5 of the journey takes me directly to my mother's place in less than half an hour?

And if I wanted to, I could just hop onto a train that will take me to the Harbourfront MRT station, from which I can then transfer onto the Sentosa train to visit the RWS, all with minimal need to wait and walk. Of course my weight has ballooned, a trade-off for extreme convenience.

Perhaps some people may say I am lucky. I don't believe in this vague thing called luck. I am not a savvy investor. All my bets in the Stock Market have bombed. All I can say is, I am willing to take whatever comes, and through shrewd moves, make the best of what HDB has gifted me. In other words, take your time, get a place which may not be great but which will certainly appreciate in value over time (especially virgin, ok ulu, places like Simpang/Tengah, for those very young now) - in Singapore, any property has a high chance of appreciating in value, if only because it is good politics by the sitting PAP government! The only caveat is if the property is acquired by the government (;-). Meanwhile, bide your time, hunt around and I am sure something better will come along. By then, you would have built up your finances, which will go a long way towards owning that new idyllic place you are eyeing.

Young man/women/couple/fiance/fiancees, learn from Minister Mah.

Heavenly house

Housing people in Singapore has been a challenge. It always has been, and probably will continue to be. Back in the early days - the 1960s/70s, it was building enough public housing apartments fast enough. Today, it is trying to put people into their preferred houses fast enough - high floors, not situated in some remote and god-forsaken corner of the island, near where their parents live, has a full suite of amenities - wet markets, supermarkets, shopping mall, adequate parking, schools (the more well-known ones the better), convenient public transport (bus, MRT, LRT), has a view, preferably of the sea, or at least some greenery, etc. etc.

You can never satisfy all of them, but can you blame people with this laundry list of demands when the price of a public housing apartment these days is upwards of S$200,000? In some countries, you can get a bungalow for that kind of money. The government does not seem to get it. I think anybody will be happy with any public apartment if the prices weren't so stratospheric. But when you are potentially tied down for the rest of your life servicing the mortgage, you'd naturally want something better. Frankly, whatever subsidy that the government provides for nowadays is "peanuts", to quote a distinguished citizen. No, it wouldn't be practical to have all the items on the laundry list checked off, but you try to get the best. And this is why, I suppose, some people reject apartments offered to them time and again.

Having said that, however, people should look at the practical side of things. When it is your first apartment with your fiance/wife, take any flat that is offered, even if it is in the most remote corner of the island. Someone said that Punggol is in one corner of the island (read "remote"). Singapore is a small island, and no part of the island that is remote today will remain so tomorrow. The reason why our parents made so much money from their public apartment over the years is because of this belief. They didn't mind Toa Payoh when it was a swamp-land, ditto Ang Mo Kio, Bishan, etc. With the redevelopment of the surrounding land courtesy of the government, the value of the real estate naturally soared. Many cashed out and moved to more virgin parts of the island to repeat their conquests of new land and more value. Sure, you need to put up with the inconvenience at first, and probably the sneers and jokes from relatives and friends about your living in an ulu place, but you probably will have the last laugh when you cash out again and buy that dream condo, and then have something left over for a good meal of curry fish-head.

The value of your apartment may not appreciate as much today compared to 15-25 years ago, but property will always be valuable in land-scarce Singapore. If the government wants to build apartments in a particular part of the island, you can be sure that they already have big plans for redeveloping that piece of land and its surroundings. Don't be short-sighted and go for instant gratification. Every good investor will tell you the same. Isn't a house an investment rather than an expense?

Castle in the air

It was James Otis who first said that a "man's house is his castle; and whilst he is quiet, he is as well guarded as a prince in his castle...". Well, I am sad to observe that in Singapore, even the Law acknowledges that this is not necessarily true. There was a recent case where 2 people sued a man for not being dressed at all while he was in his house's kitchen. The inside of this kitchen faced a public area, and as the newspaper account went, these 2 women were walking pass it when they saw the man of the house all naked sitting in his kitchen. Their modesty was so outraged that they sued the man. The Courts agreed with the women and fined the man $2,000 for the indecent exposure and a follow-up act of agression against the same.

So now, I am very careful about being decently dressed while I am at home. All the more so as many public, and might I say also private, apartments face public wakways and other apartments' windows. I once observed that in Hong Kong apartments, you could just reach out with your hands to touch your neighbours' window. Such was the congestion and design of their houses. Nowadays you can say the same about Singapore. At least you could see clearly into someone else's apartment.

Why would anyone move around in his/her apartment dressed to the zeros (as opposed to nines, i.e.?) Well, given Singapore's hot and humid climate, this would be the most sensible thing to do, actually. Nowadays, I sweat even when I remain still, sitting on my sofa chair in the living room. Sometimes, I take off my shirt and go around the house in nothing more than a pair of shorts. How short is my shorts? Well, that is my business. But that is exactly the issue. How much or how little must you have on before you offend the modesty of some prudish women (or men for that matter) and land up in court on the opposite side of the law? Nobody is forcing anyone to look into somebody's castle...err house. You are not forced to be a kay-poh. You choose to be one. If you take a look and see a naked man or woman in the house and am offended by what you see, that is your problem. You shouldn't even contemplate taking the owner of the house to court for exposing whatever. We talk of being tolerant when religion is concerned, but we must be equally tolerant of what the master of the house chooses to do, short of committing a crime. An act of indecency you say? What is indecent to you may be common sense to another, so long as it is done in his castle.

Never brought to mind

The year is coming to a close. In the immortal words of Queen Elizabeth II, this has been an Annus Horibilis. No, this is not a dirty word, at least not in the "common" way it is understood (tsk tsk, what are all of us thinking of on the last day of 2008?)

It started out promisingly enough, coming off a year (2007) that saw record profits for businesses and stratospheric growth of wealth by individuals in en-bloc'ing their private properties - typically their houses. For those who don't know what that means, it is a collective sale of an entire block property such as a condominium, for hundreds of millions of dollars, the proceeds of which is then allocated to the owners according to their share values in the property. A friend of mine received over a million dollars for his townhouse, which was part of a bigger cluster development. No wonder that erstwhile neighbours became mortal enemies when such en-bloc sales were blocked because they couldn't garner the 80% minimum 'ok's' to proceed with the sales. A few lawsuits are still pending in the courts over these disagreements, and people have even complained through the press above the oppressiveness of Sales Committees who just cannot stop thinking about selling their houses.

The year is ending with much less optimism though, amazingly, there are people who still want to go ahead with their en-bloc projects. One wonders if these people have lost so heavily in the stock market, or business, or whatever bombs they had bought into that cash has suddenly taken a critical dimension in the grand scheme of things.

The year is ending with bitter memories for many over the Lehman Brothers debacle, where older people would have lost their entire retirement savings had not DBS done some refunding on compassionate grounds. Of course goodwill and reputation also meant a lot to the bank. Well, never mind, if you are short of cash, there are ways to raise money, such as the rights offering on 22nd December 2008, a third of which was taken up by Temasek Holdings. In these times, you really need Temasek to come in because there aren't much free money sitting around as it used to. And whatever money that many imagined they had have just gone up in smoke, either in the stock market, or in Bernard Madoff, whose estimated US$50 billion loss was the largest any individual had managed to lose - on behalf of his clients, i.e. That's why I have never believed in pyramids where money is concerned, however respectable they are always dressed up to look.

And people are beginning to be out-of-pocket where jobs are concerned. Again, DBS started the ball rolling by putting 900 people out of work. It got an obligatory tongue-lashing from Mr Lim Swee Say, the Trade Union chief, over this action, but it is not likely that retrenchments will stop at DBS Bank, in spite of what the Union leaders say. When the business dries up, when the money stops flowing anymore, you've got to close shop - its a fact of life. What the government can do is pump money into the economy to sustain it, but this can only be a short term measure. Hopefully, the economy will recover at the end of 2009, as some high government officials have dared to predict, but the majority opinion seem to be that this depressing state of affairs is going to last much longer.

And it is sad that the year is ending with news of abandonment of foreign workers by Singapore contractors, who suddenly find that they have no more jobs for people whom they have brought into the country. What's worse, these workers have reportedly not been paid for some time now and some are starving and are no worse off than beggars.

And to end it all, the symbolic Wheel of Fortune, the Singapore Flyer broke down on the 23rd December 2008, trapping 175 people on board at the time. Truly tonight, the last day of 2008, when thousands of people throng the various new year's eve parties on the island, they'd be singing Auld Lang Syne with a new gusto, and especially agree on the question:

Should all acquaintance be forgot and never brought to mind...

Goodnight and goodbye, 2008.


Image: morgueFile.com. Author: elemenoperica

Warranteed

I find it rather ludicrous that the Housing and Development Board (HDB) needs to give warranties on the public apartments it builds. In this case, they are giving warranties on apartments (flats) built not too long ago. Most Singaporeans know that the HDB has been in this building public housing business for more than 30 years - and are proud of this fact. It has, over the years housed a great many Singaporean families, upward of 80% if I am not wrong.

Yet in all these 30 years, it has not learned to build apartments where the walls and ceilings do not leak water. I remember the first apartment that my parents moved into in the late 1970s. There was spalling concrete at the toilet ceiling. We wondered if we would not be dumped with various types of 'soil' as we squated while doing our business. Those whose apartment were located at the end of a block also suffered from leaking walls, when it rained, ruining the paintwork and raising worries about how secure their homes were. I remember the senior engineer trooping into our apartment with a bunch of trainees in tow, pointing out the spalling concrete problem. I assume the purpose of that was to train them not to do build houses with this problem in future.

That was more than 30 years ago. Yet many public apartments still report spalling concrete problems as late as a few years ago. And my private apartment wall was leaking water during a heavy downpour earlier this year. Was nothing learnt by civil engineers all these many years?

Incredibly, in today's ultra-modern HDB apartments in Punggol, the HDB found it fit to issue warranties against spalling concrete and leaking walls - but only for 5 years for external wall leakages and ceiling leakages in the toilets and kitchen. It would appear that they are not all that confident to extend that warranty period to 10 years, which, admittedly, they have done for spalling concrete. My point is, when you build a house that costs upward of $200,000 (which is heavily subsidised, we are told), a 5 or even 10-year warranty seem to say very little about the confidence that they have in what they have built. Though they lease the entire apartment to its customers for 99 years, the longest warranties they are confident in extending is only a tenth of the lease period. That's really incredibly uninspiring show of confidence. I can understand if a TV set breaks down, or a washing mahine in 5 years, but have you heard of a house falling apart except in a category 3 - 5 storm or earthquake - the former of which is unheard of in Singapore?

Frankly, I would hesitate to hang up such warranties (which were given to the house owner all framed up) for fear that visitors to the house might take their leave earlier than expected after they learn that it has been occupied for ten years. Well, ok, its just the ceiling in the kitchen and toilet and the external walls. Nobody said that the whole apartment would collapse. But in kiasu Singapore, it wouldn't be surprising that people would behave that way.

What is the lesson in all this? When you own a house in Singapore, you need to buy insurance for it. But then nowdays insurance companies themselves are known to collapse too....sigh. Are there no certainties in this world anymore, except death and taxes?

Image source: morgueFile.com. Author: Kenn W. Kiser

Unwelcome

I wrote about foreigners in our midst some time ago. It appears to be haunting residents in Serangoon Gardens, especially those that are living in the semi-detached private houses. A petition has even been started to stop the government's plans to relocate some 1000 foreign workers to a dis-used school compound nearby. The stated concern is that these people will probably clog up their roads. Some even view it as a security concern, as if the government is moving a bunch of misfits and shady characters into their neighbourhood. I think these people have lost sense of reality and are showing their prejudicial and snobbish side all too obviously.

If these foreigners are not welcomed in their midst, do they then think that somebody else's neighbourhood is more suitable? Who do they think they are? The heavenly host up there whose peace cannot be disturbed no matter what? That the rest of Singapore, where the minions live, are more suitable for such (dare I say), 'low life'? Well, ok, many of these people do have million dollar properties they are sitting on. Are they worried that the value of their properties will drop a notch if 'low life foreign workers' move into their neighbourhood? Are they worried that these 'low life' will roam their neighbourhood to steal, rob and rape, or at least swagger around drunk and noisy in their neighbourhood? 

Well, yes, they are foreigners and may have habits that we are not used to. They may congregate more and speak a decibel louder than us. But these do not make them criminal. Our fathers were once foreigners in this land, and they managed to rise up to own property and land, which they have passed down to us, their children. Truly we have forgotten our roots. So instead of petitioning against these people, they should try to make these people feel at home, or at least not treat them as 'low lives' and suspects. Many of them probably have families in faraway lands, families they are supporting and feeding by coming to this place to toil and sweat. If we treat others shabbily, they will always be shabby as far as we are concerned. If we treat them well, we may get rewarded. How do we know that amidst all the sea of brown, black and yellow, there is not an angel amongst them who might save and protect us someday? 

We are talking of a gracious society. There is an opportunity to show our graces. We should practice charity, for surely it must begin at home. Otherwise, whatever civility we may have cultivated among ourselves is only skin deep, and that skin is particularly thin for people living in the private houses in Serangoon Gardens.

 

Image source: www.morgueFile.com. Author: LaRae

A nest of our own

The young'uns in Singapore, they are a spoilt lot, really. In the past, many have written to the press complaining about the sheer impossibility of securing a new public housing apartment (i.e. HDB built and subsidized apartment). And why are they complaining? Because they cannot see themselves getting married without first securing a personal love-nest of their own. Gone are the days when renting an apartment, or a room or living with mum and dad upon marriage is a consideration. In Singapore, marrying no longer means extending the family, but removing the family to some corner of your own, preferably a place that overlooks an idyllic lake or the sea, or at least overlooking some lush greenery, never mind if that that place will set you back by half a million dollars or more (public housing only, i.e.).

The fact of the matter, as the HDB has pointed out, is that people, the young'uns, are a choosy lot. They apply for a chance to purchase a public housing apartment but when one is offered, they reject it, and then write to the press complaining that it is impossible to get a public apartment in Singapore. What they mean, really, is that they don't want an apartment that is situated on the 2nd floor, or one that faces the West sun, or, worst, one that looks out into the multi-storey card park or is next to the centralised refuse collection dump. Well, I can understand the reluctance, but you have to start somewhere when you cannot afford to start with buying a re-sale apartment, or a private apartment, right? There is a Chinese saying, that these people are trying to reach heaven in a single bound (yi bu deng tian). Totally unrealistic, unless you have backers like rich parents who will think nothing of shelling out hundreds of thousand of dollars, millions even, to secure the dream home for you.

So what do the typical Singaporeans who cannot get what they want do? They write to the press admitting as much as what I have said here - that they cannot accept any public housing that is not close to heavenly proportions. And they reason that that is because, for the money they have to pay, they deserve something better than a 2nd story apartment. I can understand the thought process and the reluctance, but that is life in Singapore and the cost of living here. Is there no way forward other than getting the government to build that dream home for you (and by extension), everyone else? That is impossible. There are only so many directions where the sun does not rise and set. To get to the 12th heavenly floor, you need to start at the first. Given Singaporean's appetite and penchant for cars, a road must wind somewhere around some apartments. We have had to clear so much greenery to build the roads and apartments that HDB has compensated with building roof-top gardens on top of multi-storey car parks. What do these young PMEDs want for the money that they have (or more precisely, don't have)?

The solution is rather simple - be patient and build up your love nest gradually. I have a relative who rented a room after marrying, then bought a HDB apartment that looked out into a small patch of grassland, sold it at a decent profit, bought a private property and rebuilt it into a three storey semi-D. My first public apartment upon marriage was situated along a public corridor, and what's worst, faces an expressway directly. That was in the early 1990s. The only saving grace was that it was on the 7th floor., not the ground floor. Much as I disliked it (I was eyeing an apartment on offer that was situated along a river), I took it and made the best of it. I sold it 8 years later at a tidy profit (didn't know that it appealed to some people) which enabled me to buy an apartment that is the envy of many. So young man and young women, practice patience and search around while your apartment appreciates in value. Property prices rise and fall - you don't have to take my word for it. See what happened last year! You will reach your heavenly nest some day, but not immediately, not tomorrow. Just be patient. Investing in a house is for the long term.

 

Image source: morgueFile.com. Author: K-etana

My rights

Incoming Singapore Law Society President, Mr Michael Hwang is right. One should never take the word of a civil servant, or even a senior civil servant to be the last word on anything. Singaporeans are all too docile and often 'kow-tow' when the government says that something is not allowed, or something cannot be done because of 'the rules'. Well, one must ask, what are these rules and who set those rules in the first place? What is the basis for those rules and, more importantly, are they fair? Are those rules set down to make the work of the government department more convenient or are these rules made after due consideration to the people's general welfare? One must understand that many rules made by government departments are not laws duly considered in and approved by, Parliament. Thus they do not carry the full weight of the law. Often, Singaporeans confuse the law and the rules and think of them as one and the same, for after all, isn't the government the law? Well, not really...

Some years ago, I took possession of my spanking new HDB apartment. I was upset when HDB told me that I was not allowed to hang my air-con compressor unit outside bedroom window. It said that since my apartment came with a utility yard, the compressor had to be installed there. Further, if the wall did not come with a wooden casement expressly designed for the installation of air-con compressors, then installing one was forbidden. All this according to the HDB rule books. Of course, I wasn't happy. Putting that gigantic compressor in my small utility yard only took away space, for example, to hang my clothes indoors, particularly on rainy days. So I took a walk around the neighbourhood and noticed some apartments came with the wooden casement whereas mine did not. Was this omission intentional or did the builders forget about the casement in the first place? If it were the latter, then HDB had done me an injustice by removing that choice from me.

So I went up to the HDB branch office and spoke to the civil servants there. Of course, they explained the rule to me, but I countered with my observation and told them flat out that their rules were unevenly applied and thus unfair. I made a fair bit of 'noise' and submitted the mandatory written appeal, and to their credit, they finally relented and allowed me to hang my air-con compressor outside my bedroom window instead of in the yard, which was some way away and would have cost me extra, according to my air-con contractor. What was gratifying in the whole episode was that I noticed other apartments also started to install their air-con compressors outside their windows which had no wooden casements, similar to mine. I would like to have thought that my effort paved the way for them. And all this was achieved without involving any lawyer. So yes, Michael Hwang is correct. We should question the rules and determine if right is on our side. And if it is, why are we not claiming our rights?

Image source: morgueFile.com. Author: Ettore

Testing times

Health Minister Khaw Boon Wan has been drawn out to comment on how he intends to charge people for Singapore's Health services this past week. Nothing is new. The richer will enjoy less subsidy, the poorer more subsidy. That's reasonable, fair and to be expected in a place with the governance principles like Singapore.

But the problem lies in how you judge whether a person is rich or poor or in-between? The most obvious way is to look at how much a person earns, whether from his or her salary, annual dividends, etc. But the whole means testing thingy has become complicated and controversial because it ropes in the family in the computation of wealth. How many mouths does a particular person's salary goes toward feeding? How many people share in this clothing and feeding responsibility in a household? Some even want to count the number of cars a person maintains to determine healthcare affordability - the more cars, the higher the wealth scale the person is on and thus the greater degree of affordability and consequently the less amount of subsidy deserved. What next? The family dog?

So that age-old issue of how to separate the haves and have-nots is raised. And without surprise, the type of house one stays in is proposed as an objective measure of wealth. That is, the smaller the size of the public housing apartment one owns and lives in, the more subsidy that family will be entitled to. So for example, a family that owns and lives in a 3-room apartment will be entitled to greater consideration for subsidy compared to one who stays in a 5-room apartment. Many people have weighed in on why this may be a flawed measure. This is the same measure that is used to allocate more or less subsidies on utility and conservancy charges whenever the government deigns to use tax-payers' money for its social programmes and policies during times of recessions or elections, as the case may be. So if you stay in private apartments or own private properties, you probably will pay the most and get the least subsidies.

I am not here to argue the merits or demerits of means testing and why it should even be used. It looks like a done deal, no point arguing about it. But a consequence of this policy will see smaller type public housing apartments rise in value over time. I wouldn't be surprised if 3-room apartments become more expensive than 5-roomers in time precisely because of greater demand. When I grow old and my children have formed their own families and bought their own subsidized housing, I plan to buy a 3-roomer, or even a 2-room HDB public housing apartment so that my trips to the hospital, which will increase in frequency in direct relation to my age, will be more bearable - cost wise. I just cannot bear to see all my life savings depleted pronto just because I own a private apartment (which has been made possible through years of hard work and thrift). This will decrease the probability that I die of a heart attack upon reading my hospital bills. I may have a million dollars in the bank, but 3-rooms are enough for my wife and myself. Anyway, we were brought up in our fathers' houses which had less rooms, so when we die in a house with more rooms than those that our fathers could afford, that's an improvement, isn't it?

What about my children? They will be left with the 3-roomer, which will probably fetch a tidy sum as it will be worth more compared to bigger apartments. This is what happens when you have more greying heads on the island. The point is, values 'go out of wack' when a flawed measure is used to determine wealth.

Hint: Its time to acquire small public housing properties, maybe even those overpriced ones sitting on the edge of the city. Remember, it must be public housing.