Someone asked if I could try to calculate how much one would have, in a sense. lost until age 65, and in his lifetime, when he buys a HDB BTO flat?
Well, if we assume that the flat price is $200,000, and purchased at age 30:
At age 65:
$40,000 down-payment @ 2.6% for 35 years until age 65 = $98,224
$722 monthly mortgage repayment for 25 years @ 2,6% = $304,012
$304,012 @ 2,6% for 10 years until age 65 = $392,974
So, the grand total at age 65, is $491,198 ($98,224 + 392,974)
With 1,019,120 “sold flats” – does it mean that the cumulative total loss, at age 65, may be about $500.6m?
At the end of the 99-year lease:
$40,000 down-payment @ 2.6% for 35 years until the end of the 99-year lease = $235,087
$722 monthly mortgage repayment for 25 years @ 2,6% = $304,012
$304,012 @ 2,6% for 44 years until the end of the 99-year lease = $940,532
So, the grand total is $1.18m ($235,087 + 940,532)
With 1,019,120 “sold flats” – does it mean that the cumulative total loss, at the end of the 99-year lease, may be about 1.20t? https://www20.hdb.gov.sg/……/ebooks/key-statistics.pdf
Another way of looking at it, may be that if you are not allowed to use your pension fund (CPF) to purchase residential property, like most countries in the world – you may have accumulated (on the average in this example) $491,198 at age 65, and $1.18m at age 99 (end of the typical 99-year lease), for your next generation
