I think Andrew has a point there. Basically its an instrument for the gov to absorb excess liquidity in the market. The method you are proposing is to curb demand, at the expense of productivity cos no one will be motivated to work hard. Cmon..I thought your major is econ?Originally Posted by edutilos-
Andrew started off by proclaiming that CPF was a tool that made the housing market overfired:
I asked him what he meant, and he replied:It is because they allow you to use your CPF for housing that housing prices can rise correspondingly. This money too you do not see unless you suddenly don't need housing. If the government allow us to use CPF for COE and the price of COE then rise to 200k is that helping us?
I am still trying to understand how the second post leads to the first. Yes, definitely demand will go up when people have the means, but removal of the CPF and placing that as cash in people's hands ONLY leads to the scenario he describes if people do not have demand for houses. That seems to assume rather erroneously that the demand for houses today depends heavily on the presence of the CPF. Or perhaps you can explain what you think he means in another way?The prices of things depends on many factors, one of which is how much money that the buyer can raise and also supply and demand. So if you put more money into the buyers' hands in terms of loans or CPF etc, the price will just go up. How much do you think HDB will value and sell flats if every Singaporean can borrow a few million bucks from banks or draw from their CPF?
I would like to stress that the method I proposed in my last post, if you HAD bothered to read it properly, was deliberately ludicrous and isn't something that I propose any government should adopt. Or did you miss "based on your (Andrew) logic"?
What is the alternative that you are proposing? A world without CPF? Not allowing people to use CPF after their first house? Raise borrowing interest rates? How does that link back to your claim that the use of CPF for housing causes housing prices to rise?
Sorry if my comment was unclear
I only commented on his statement that the HDB is priced way above the cost, and not really addressing the CPF issue.
But what I think andrew was trying to say is.. to counter the effect of extra money floating around (from CPF or otherwise) that can be used for speculative purpose, HDB is pricing the unit above its cost. But clearly that wasn't enough either, recently they came up with extra ownership rules, and even extra stamp duty.
I think CPF is a good thing, in a sense that it will force people to save for the future, otherwise the money will be used to buy the latest toys
But it can be abused if the person is too sophisticated... well.. its a free market anyway.. so its legal..
Latest news from where I am living now:
1.Police and army personals gang up to commit robbery and theft plus internal discord within police service leading to arrest of police personal.
2.Police and army physical fight due to different political believe
3.Economy on the blink of bankruptcy and yet politician does nothing but continue to enrich their own wealth
Anyone plan on leaving Singapore and settling here?
I am glad that end of the day, I have Singapore to go back too!
Last edited by betta01; 16th June 2012 at 12:58 AM.
Mine full name-Betta Macrostoma
Can call me Betta.
Remove the army from there and it sounds like my country, the world's largest democracy.Originally Posted by betta01
Born didn't bring here, die wont bring away.Originally Posted by diver-hloc
Too many FT here lah,creating lots of social problems.As Singaporeans,we should be grateful & remain humble.
You know what they say about the two tragedy in life right:Originally Posted by diver-hloc
Tragedy 1: you die before you used up all your funds.
Tragedy 2: you exhausted your fund before you die.
So in Sg, unless it is a private property or your children do not own another HDB flat, there's no such thing as "passing down the family home to the next gen"
I get paid more shooting part time ...... damn, I should find more time to shoot part time