Elections day is drawing near and the ruling party has begun throwing all they can into the arena, hoping to lead the voters into their school of logic.
One good example is Mr MBT and his example of how a young couple can afford a flat, as extracted in the news report below.
Mr Mah cited an example of how a young couple below 30 and earning a combined income of S$4,000 can pay the 5 per cent downpayment for a new four-room HDB flat with no cash after working for half a year to build up their CPF, and pay less than S$50 for their monthly mortgage payment.
He told reporters: “You would get a flat with zero deposit. Now, how many countries in the world can say that? How many housing ministers in the world can say what I have just said?"
Now, if we were to look in depth at his words, as advised by his colleague, our deputy PM Wong KS, the sums do not seem quite right.
With a couple, both working for half a year, what would be the amount of CPF they have inside the Ordinary account?
Income = $4k
CPF contribution = 35.5% which will amounts to $1420
Ordinary Accounts (combined) = $920 (22% of wages)
For 6 months, Ordinary account = $5,520
Now we have the amount inside, let’s see what is the price of the house they will be getting.
Deposit = 5% of house price
If $5,520 = 5%
House price 100% = $110,400 excluding stamp fee duty, option fee and whatever fees HDB charges.
What 4 room flat can one get with $110,400?
Which 4 room flat cost this amount nowadays?
Thats why, i wonder if MBT really knows what is going on.