Justifying elites' housing subsidy
Recently, foreigners were making noise about restriction in owning private property and yesterday ST forum was filled with "patriotic" Singaporean supporting the ban. SLA website explains the rationale of restricting foreigner to buy landed property.
Since 1973, the Singapore Government has imposed restrictions on foreign ownership of private residential property in Singapore. Such ownership is governed by the Residential Property Act (the Act).
The Act seeks to strike a balance between giving Singaporeans a stake in the country by being able to buy and own residential properties at affordable prices......
Average Singaporean exposed to merciless competition in housing market
The claims to give Singaporean a stake in the landed property is a myth to all except the most privileged. First, the working class Singaporean living in HDB have already big problem in paying down their mortgages. Probably, very much less than 1% will be lucky to be rich enough to buy themselves in their life time, landed property.
In the eyes of PAP, Singaporean are simply not miserable enough. PAP mass import foreigners, resulting to a astronomical property hike. Poor and middle class Singaporean are in fact being forced by PAP to compete with the whole world for a humble shoebox housing, made only possible by incurring massive debt that can only be pay off in 30 years. The situation deteriorate much further recently that many young remain single because they are unable to afford a house.
Elites enjoyed huge housing subsidy
For the top 5% of the population, PAP is going to subsidize their dwelling, by an outright ban on foreigners. PAP gives them "a stake in the country by being able to buy and own residential properties at affordable prices".
Depend on the land size, a landed property may be converted to hundreds of units of apartments. For example, a landed house priced at $50 million may have a potential value of billions, if permit is granted to built apartments.
Landed property carries a potential premium, which is unlocked when permit is given to built high rise apartment. Second, even without such permit, many foreigners with deep pockets will be willing to pay the potential premium, if the ban on foreigner ownership is lifted.
Hence, the ban of foreigner is a de facto housing subsidy to elite, in my estimate excess of 70-90% in some cases. A lift of ban will raise the asset price of landed property overnight. It benefit the current home owner but our elites are not so stupid to price their children out of landed property.
Big stealth property tax break for elites
Our government website states "The amount of property tax you have to pay per year is a percentage of the Annual Value of the property. The Annual Value is the estimated yearly rent the property can fetch if it were rented out."
A landed house with dwelling area similar to a HDB flat may incur less property tax than the later, since the most important factor in determining rent income is the area of abode.
For example, a bungalow owner with a big garden and small living space covered by a roof top, may pay less or not significantly more property tax than a HDB owner of similar dwelling space. Adding to the insult, the HDB owner does NOT own even a fraction of the land where the flat is built (just 99 years lease).
Hypocrisy of foreigners landed property ban
While elites urge Singaporean to face relentless competition from foreigners, the elite class has not impose the same measures on themselves. Housing is just one example whereby they receive lots of stealth subsidies, by ducking foreign competition.
There is no free market competition for elite, only socialism. Competition is only for the people
Free market competition rhetoric is used only in the situation to exploit Singaporean. Upon the events or situation that would expose our elites to relentless onslaught of capitalism, government is quick to cover them with rules and regulations.
There are many other double standards yet to be told. In short, Singaporean elite class is one of the most selfish, foolish and tyrannical in the world, using lies and propaganda and enriching themselves on the pain of the people.
Recently, foreigners were making noise about restriction in owning private property and yesterday ST forum was filled with "patriotic" Singaporean supporting the ban. SLA website explains the rationale of restricting foreigner to buy landed property.
Since 1973, the Singapore Government has imposed restrictions on foreign ownership of private residential property in Singapore. Such ownership is governed by the Residential Property Act (the Act).
The Act seeks to strike a balance between giving Singaporeans a stake in the country by being able to buy and own residential properties at affordable prices......
Average Singaporean exposed to merciless competition in housing market
The claims to give Singaporean a stake in the landed property is a myth to all except the most privileged. First, the working class Singaporean living in HDB have already big problem in paying down their mortgages. Probably, very much less than 1% will be lucky to be rich enough to buy themselves in their life time, landed property.
In the eyes of PAP, Singaporean are simply not miserable enough. PAP mass import foreigners, resulting to a astronomical property hike. Poor and middle class Singaporean are in fact being forced by PAP to compete with the whole world for a humble shoebox housing, made only possible by incurring massive debt that can only be pay off in 30 years. The situation deteriorate much further recently that many young remain single because they are unable to afford a house.
Elites enjoyed huge housing subsidy
For the top 5% of the population, PAP is going to subsidize their dwelling, by an outright ban on foreigners. PAP gives them "a stake in the country by being able to buy and own residential properties at affordable prices".
Depend on the land size, a landed property may be converted to hundreds of units of apartments. For example, a landed house priced at $50 million may have a potential value of billions, if permit is granted to built apartments.
Landed property carries a potential premium, which is unlocked when permit is given to built high rise apartment. Second, even without such permit, many foreigners with deep pockets will be willing to pay the potential premium, if the ban on foreigner ownership is lifted.
Hence, the ban of foreigner is a de facto housing subsidy to elite, in my estimate excess of 70-90% in some cases. A lift of ban will raise the asset price of landed property overnight. It benefit the current home owner but our elites are not so stupid to price their children out of landed property.
Big stealth property tax break for elites
Our government website states "The amount of property tax you have to pay per year is a percentage of the Annual Value of the property. The Annual Value is the estimated yearly rent the property can fetch if it were rented out."
A landed house with dwelling area similar to a HDB flat may incur less property tax than the later, since the most important factor in determining rent income is the area of abode.
For example, a bungalow owner with a big garden and small living space covered by a roof top, may pay less or not significantly more property tax than a HDB owner of similar dwelling space. Adding to the insult, the HDB owner does NOT own even a fraction of the land where the flat is built (just 99 years lease).
Hypocrisy of foreigners landed property ban
While elites urge Singaporean to face relentless competition from foreigners, the elite class has not impose the same measures on themselves. Housing is just one example whereby they receive lots of stealth subsidies, by ducking foreign competition.
There is no free market competition for elite, only socialism. Competition is only for the people
Free market competition rhetoric is used only in the situation to exploit Singaporean. Upon the events or situation that would expose our elites to relentless onslaught of capitalism, government is quick to cover them with rules and regulations.
There are many other double standards yet to be told. In short, Singaporean elite class is one of the most selfish, foolish and tyrannical in the world, using lies and propaganda and enriching themselves on the pain of the people.
4 comments:
There are many other double standards yet to be told. In short, Singaporean elite class is one of the most selfish, foolish and tyrannical in the world, using lies and propaganda and enriching themselves on the pain of the people.
"foolish" ? typo?
Once again you have outdone yourself, excellent read. Comparable to zerohedge.
Re July 31, 2011 1:23 AM
Yes they are foolish. Our elite may be scheming and smart, but certainly they do not have wisdom.
Its TRUE this thing about the foolish rich who are cunning and street smart but actually have very low EQ (Wisdom)and self esteem.
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