There used to be a time when investments in property in Singapore was sure to yield high returns - very high returns. I remember my boss once said that there is certainty in the property business - you can't lose. That was back in the earlier 1990s, and indeed he was right. The company is now a major player in the property market in Singapore. I, in turn, bought an HDB apartment in 1993, and over ten years, saw its value more than double what I originally paid for it. I was not the only one. At that time, how much you made in property from your HDB apartments depended on how near you were to the head of the booking queue.Fast forward 10 years and the situation has changed drastically. Now, Singaporeans who bought 5-room and executive apartments for over $400K apiece are suffering negative equity - i.e. the current value of their apartments is significantly lower than the price they originally paid for them. Losing $50K on paper can be psychologically painful even in spite of the fact that they were aided along in purchasing that apartment in the first place by the government (read tax payers' money) to the tune of $40K. Some are asking who should pay for this loss, as if it is the government's fault that they bought into the property ownership dream. I hope they don't think it is the taxpayers' fault.
Property values, like the values of stocks and shares, rise and fall with the times. The only difference between the two perhaps is the turnaround time between the rises and the falls. Property cycles tend to be longer, but correspondingly, they are more stable investments and can yield rental income in the meantime, irrespective of the assessed value of the property. You either buy or sell stocks, you can't rent them. Speculators can dump their shares in a matter of days rather than years.
So should anyone bear the blame or be held responsible for a personal investment decision such as purchasing an apartment to live in, with a $40K gift from the government to boot? Saying 'yes' is ludicrous and shows a naivete characteristic of juveniles. To suggest that somebody else bear the paper loss shows an inability or unwillingness to take responsibility for an action nobody forced them into. Of course, there are those who would argue that their property prices were inflated in the first place by the government charging market prices for land on which these HDB apartments were eventually built. Yes, I agree about the price inflation part - but only on hindsight. But then, who has the benefit of hindsight when a purchase decision is made? We all hope to make money from the investment some day - sooner rather than later. Even I put money into .com companies that turned out to be .dud companies. Perhaps only those who have been burnt before, or who have lived longer and seen more of these cycles will be more cautious and are more circumspect. Even then, some experienced hands have been burnt before. While I sympathise with owners who are sitting on negative equity, they can hope that when the time comes, their paper loss can be converted to gains. The only problem is that this might take some time coming. In the meantime, enjoy your house and don't think too much about the present. A property is a long term investment. There are troughs and there will be peaks.
Somebody suggested that some government-built apartments (HDB apartments) that are 26 years old has served its useful life and should be torn down and replaced with new apartment buildings with lifts that stops at every floor. I agree that that may be the only option if retrofitting lifts that stop on every floor is just too prohibitively costly. On the other hand, I feel that we are becoming used to the recycling culture. Not that recycling trash is not a good practice. It is a commendable practice as it teaches one not to waste and to conserve the limited resources of our planet earth.
A reader of Today newspaper complained about the razor-thin (ok, I am exaggerating) walls that HDB apartments come with nowadays. I can understand that as I have lived in several HDB flats so far. Two belonged to my parents and the other belonged to me. When I moved into my spanking new HDB apartment in Pasir Ris about 10 years ago, I felt uncomfortable whenever I went to the toilet. No, I don't mean that kind of discomfort, which everybody suffers from whenever they make a trip there, but discomfort from hearing the gush of water that came from the pipes running along the walls from the ceiling to the floor. It was just so loud. I always told my wife that I could tell if my neighbour upstairs was taking a shower (or doing some serious business) any time of the day with the help of these pipes. From the writer's description of her woes in her HDB flat in Sembawang, these features that HDB built for a greater sense of community bonding seemed to have been enhanced (well, we must try to look at things positively, mustn't we?)
Some things never cease to amaze me. And I thought I understood my fellow Muslim citizens and friends. After all, I lived among Malays and Indians most of my school days in the Naval Base and made many Malay, Indian and even Sikh friends, some of whom I am still in contact with. Heck, I even had a Malay friend sit beside me for two years while I was in Secondary 3 and 4, so I thought I understood or at least was sensitive to their customs and beliefs. I know they fast during the month of Ramadan. I know they are forbidden from pork (as the religion considers pigs as unclean). I know that they can only eat halal food - food prepared according to Islamic rules. I know they attend Mosque on Friday afternoons and I know they face Mecca when they pray. I also know that they are obliged to perform the pilgrimage to Mecca (the Haj) at least once in their lifetime. I know their Holy Book is the Koran and I know it is originally written in Arabic. Actually I know all these by living amongst them for many years although I am not a Muslim. All these are well and good. Every religion has its own rules, obligations and restrictions. This does not stop anyone from having Muslim friends. It certainly hasn't stopped me.
James Gomez (JG) has gone to the police station for questioning over the last couple of days over the Minority Certificate issue. He has been there 3 times. WP's Sylvia Lim and Low Thia Khiang have also been called to assist in whatever investigations the police is conducting. The investigations are now over and Gomez has been given a warning. No fines, no slammer time.
The Singapore Elections Department has clarified the criteria it uses to determine if a person qualifies for a Minority Certificate that can be used to certify that a GRC has all the requisite people to form a GRC. In response to a reader's query why the Race on one's National Identity Card (NRIC) that all Singapore citizens hold cannot be used to certify eligibility, it wrote:
The PAP and Mr Lim Boon Heng can be sore losers. They may become sore losers. You do not win the people's vote and their hearts by threatening to abandon them. If the PAP abandons the people, that's OK. They will lose the country eventually. But how can the NTUC chief abandon the workers, whether they live in Chua Chu Kang or Ang Mo Kio? That is Lim Boon Heng's mesage to the rest of the workers in Singapore. If they don't vote PAP, he, as the boss of NTUC, will abandon them.
I am getting fed-up with the news that is reported on the on-going GE. The news is getting stale. Last night, I get bombarded again with at least 15 minutes of reporting on the Gomez affair. The Elections Department video was screen again (ad naseum), and George Yeo repeated the points he has made previously over the affair. The only thing new is MM Lee weighing in on the affair, but its the same affair, the same issues, the same party, the same attempt at psycho-analysis.
Who would have thought that these two words would characterise the early part of the Singapore GE 2006? But it has, with the PAP hammering the WP (no pun intended) incessantly for the last few days over Mr Gomez's oversight at the Elections Department and his threat of action against the Elections officials before he discovered that he, Mr Gomez, was the one who had made the mistake.
Evening news have become interesting over the last couple of days due to the extensive coverage that the local broadcast media are providing. Kudos to them. While listening to the latest juicy details of the goings-on and interviews of candidates in these elections last evening (Sunday evening), I was discomfitted by 3 comments made by the incumbent party candidates:
Often-times, I have asked myself what is wrong with the LTA (Land Transport Authority). There is the Nicoll Highway incident, where, as the Authority overseeing the project, questions have been raised as to the blame it should take. Then there is LTA's CCTV-on-buses project which caused commuters' to ask, rethorically, who will be paying for the increased costs that transport companies will incur. There are many more such examples if one goes further back. Granted, it is not one of the more naturally popular government agencies, together with the IRAS, but for one reason or another, it seems to go out of its way to irk residents.