Income Ceiling for BTO, EC raised

[rojak]

SINGAPORE - The qualifying income ceiling for both Build-to-Order (BTO) flats and executive condominiums (EC) will be raised.

The qualifying income ceiling will be raised from $8,000 to $10,000 for BTO flats and $10,000 to $12,000 for executive condominiums.

Speaking at the National Day Rally, Prime Minister Lee Hsien Loong said that this move was due to young couples' incomes increasing recently.

“One group most worried are those earning just below the HDB income ceiling of $8,000. More such couples, because incomes have gone up. Also people are marrying later, when their incomes have risen. Such couples are fearful of getting promoted and breaching the income ceiling before they get their HDB flat. Will raise HDB income ceiling from $8,000 to $10,000,” PM Lee elaborated.

PM Lee also said “the spike in property prices in the last two years has unsettled many. Especially young couples (and their parents) who worry they will not be able to afford their homes.”

In addition to the raised qualifying income ceiling, PM Lee also announced that another 25,000 BTO flats will be built next year to meet the demand for new flats.

With these measures, the Prime Minister is confident that that the government can meet demand, and keep prices of new flats stable and affordable.

 

[rojak]

So upsetting!! now BTOs are already oversubscribed. Yet they increase the number of people who can apply for BTOs, wouldn't that end up getting even more oversubscribed?!?!?! And the private developers will be able to say ohh, richer people are eligible for the ECs, so they can price it higher and the people can still afford! >.<

 

[gypsy2000]

Very interesting article as below.

FOR 17 years it had not been tweaked. The pleas to increase the income ceiling for Build-to-Order (BTO) flats, as well as for a readier supply of rental flats, were answered by the Government yesterday.

Prime Minister Lee Hsien Loong announced that the income ceiling for BTO flats would be raised from S$8,000 to S$10,000, while that for Executive Condominiums (EC) would go up from S$10,000 to S$12,000.

At the same time, the Housing and Development Board (HDB) will build another 25,000 BTO flats next year, on top of the 25,000 already slated for this year. With these measures, the Government is "confident" that it can meet the demand for housing and keep prices of new flats stable and affordable, said Mr Lee.

Describing housing policy as "a key expression of putting Singaporeans first", the Prime Minister noted that the sharp spike in property prices in the last two years "has unsettled many", especially young couples who are worried that they will not be able to afford their homes.

One especially worried group are those couples earning just below the HDB income ceiling. With more people marrying later when their incomes have risen, more are finding themselves in this dilemma. "You are not sure that (a pay raise) is good news or bad news," said Mr Lee, who had first hinted at an increase in the ceiling in May during the General Election.

Last night, he noted that the ratio of applicants to flats at BTO projects have started to come down. Since taking over the National Development portfolio, Minister Khaw Boon Wan has increased the BTO supply this year to 25,000 flats and conducted large-scale BTO launches to increase the chances of flat selection for applicants.

RENTAL FLAT SUPPLY UP

Mr Lee also announced that the supply of rental flats will be bumped up by 7,000 units in the next two years. The Government will postpone the demolition of some Selective En Bloc Redevelopment Scheme blocks for the flats to be used as temporary rental units.

The Government had said earlier this year that it was planning to build 5,000 more rental flats by next year and reduce the average waiting time for public rental flats to eight months, down from 21 months in 2008.

These measures were aimed at addressing unhappiness on the ground over the long wait for rental flats. In May, Mr Khaw had said "tens of thousands" of rental flats were needed, with demand coming from first-time buyers with urgent housing needs, single mothers and divorcees among others.

But Mr Lee said that while the increased supply would help ease the wait for a rental flat, it was not the fundamental solution for needy Singaporeans whose financial troubles must addressed. "Overall, I promise you we will keep housing available and affordable for Singaporeans," he said.

 

[yuki]

sigh, actually now incomes raised but the BTO prices are already very high to begin with

 

[Pinkpig]

the prices of HDB are increasing, if they dont raise it, less people will be able to bid. i only hope after this recession the prices will go down

 

[pinnpinn]

So upsetting!! now BTOs are already oversubscribed. Yet they increase the number of people who can apply for BTOs, wouldn't that end up getting even more oversubscribed?!?!?! And the private developers will be able to say ohh, richer people are eligible for the ECs, so they can price it higher and the people can still afford! >.<

not necessary lei. private property are actually very very expensive. even ECs. That's why ppl want to get a HDB BTO. Even if u have like a combined income of 9k, u still cant really afford an EC because monthly payment will be like about 2500, condo, even more. Moreover, you cant get HLE. Thus, more burden.

Im saying that because me and HTB calculated before. and it's really not worth it, have to really think before u spend money. And especially when u have to fork out cash for wedding. (Speaking from personal experience, especially when the combined income is only slightly above the cap of $8,000 previously)

We managed to get a BTO eventually though, due to appeals. which is a huge relieve to us. imagine minimal savings + wedding + house = starting marriage in debt

p.s. i can understand the anger of other ppl earning more and getting a house before you because we tried like 5 times before getting one (from below cap to above)

 

[rojak]

not necessary lei. private property are actually very very expensive. even ECs. That's why ppl want to get a HDB BTO. Even if u have like a combined income of 9k, u still cant really afford an EC because monthly payment will be like about 2500, condo, even more. Moreover, you cant get HLE. Thus, more burden.

Im saying that because me and HTB calculated before. and it's really not worth it, have to really think before u spend money. And especially when u have to fork out cash for wedding. (Speaking from personal experience, especially when the combined income is only slightly above the cap of $8,000 previously)

We managed to get a BTO eventually though, due to appeals. which is a huge relieve to us. imagine minimal savings + wedding + house = starting marriage in debt

p.s. i can understand the anger of other ppl earning more and getting a house before you because we tried like 5 times before getting one (from below cap to above)

wow how did you manage to appeal successfully? I had a friend who appealed (coz the were just out of the 8k mark at tt time) and weren't successful. In fact, they were simply told -- YOU ARE TOO RICH. *faint*

yeah, my htb and i also did our calculations, we think that the BTO is still the most feasible financially, without taxing on ourselves too much. Although the gov always says that we should be spending 25-30% of our income on paying housing loans, i don't really want to do tt lah. there are alot of other things we need to spend on (and save for). the attractive thing for an EC is that it is the size of a hdb but will be considered a condo eventually -- most people start buying smaller condos because of the ridiculous prices of condos, so most are like 600-900 sq feet. but for an EC, you can easily afford a bigger 3room with 1000-1200 sq feet for the same price! that's a lot less psf, and so you can jump straight to owning a big condo in much fewer years.

 

[pinnpinn]

we appeal during the GE period (slightly earlier) and mentioned that we contribute to household etc. and they will contact you after a while. it works! not only during the GE period but any time during the year. because my friend did it way before GE and got it too.

yea. htb always wanted a EC or condo and we *almost* got one till i stop him and told him that we really cant afford (after contemplating much). if we got a ec, it will be like almost 30% of our income! (crazy!)

 

[rojak]

ohhh that's so smart pinnpinn. GE is good. haha. my friend did it last yr, din't think she mentioned anything like contributing to the household.. but they appealed at some meet-the-[people session. did you go straight to hdb? I will keep your advice in mind.. and use it for any friends who need it. hehehehe

hee yes an EC is actually very tempting. i also went to see quite a few.. we decided not to in the end too (we also ALMOST got one, even have the number already!). affordability, we are sure in 2 yrs time our careers will progress very well and we will earn sufficient $$ to pay the instalments. BUT, then we wouldn't have the option ot have 1 person not work (e,g, ME ;p) so... not knowing if there will be 1 provider or 2 in the next 10 yrs, we should consider the "safer" option

 

[pinnpinn]

nah, i wrote in to hdb, my htb's friend wrote to mp and those meet-the-people session but they have yet to get a reply! (after trying a million times and waiting for damn long). so i think the most effective way is to write straight to htb, unless ur MP is some big shot and you have really convincing style of writing.

Here are what me and htb wrote that reflect current situation:
1) contribute to household
2) young couple with not much cash to get a re-sale
3) govt always encourage young couple to get married and start a family, but how can we start a family when it's so hard to get a house
4) cant get house = delay marriage and kids = reflect current situation and point 3
5) only recently get promoted and income slightly above
6) tried umpteen times before hitting the income ceiling but counldnt get it (hdb will have a record of which area and how many times u apply! so cannot lie. haha)
7) will like to stay near parents


something along this line my htb used some chim heading for the email. haha "Urgently Needed Matrimonial Accomodation" anyway, i dont mind sharing to you what he wrote if it helps

 

[snowy]

seems like after the GE they are not very proactive already. During the GE period i have heard many of my friends suddenly get a good number for BTO. i wouldnt want to commit to an EC, seeing my hubby to be work so hard i'm very heart pain. If later any one of us lose our jobs, how to sustain the payments? Even the basic BTO also very scared to lose job, every month is at least 1k repayment!!

 

[pinnpinn]

yes! mine's a 5room bto and we have to fork out like 1000ish for repayment. though it all can be cover with CPF, but there will be a point of time where there might be a possibility that i wont be working anymore :S
and i dont have a good number during the GE though ): just got a chance to bid for BTO, and got no priority.

 

[snowy]

yea pinnpinn, even thou BTO is supposed to be affordable, i dont feel that 1k a month is affordable.. even though can use CPF, but what if one day one of the spouse dont work, then even to keep the house is so hard. I'm really considering living with my in laws so that we wont have to be tied to a BTO, but thinking about living with their nagging is such a headache..