Nice article, tbh, I think this scheme really benefits more for the banks (who lowered their risk by only lending the 15%) and the developer.
Just would like to comment abit on the perpetual bond of 5% yield.
If this had gone big in the future, it may open up a secondary market where the investor could sell their share of the property. And since a new funding is required either via bank or FundMyHome after the 5 years tenor, investors should be able to re-obtain their capital + the appreciation, if any, unless the investor plan to re-invest into the same house. Of course, there may also be losses due to external factors or simply the buyer didn't take care of the house.
Actually, as they coming out with all these financing schemes and encouraging people to take debts and buy home, I'm more worried of the bubble :/.
What I don’t understand is why the Government is using analogies such as comparing to a car (https://www.straitstimes.com/singapore/a-99-year-leasehold-flat-is-an-owned-asset-not-a-rental-lawrence-wong)
A car in Singapore is artificially restricted to 10 years because of the COE. In some sense it is an asset because you own the item, and you can renew its use by buying another COE. Can a HDB lease be renewed?
Seems like they are taking the easy way out and using overly simplistic analogies. Why not just say a HDB is the same as buying any other 99 year private leasehold property?
I love to go cashless. Currently using 3 ewallets. I like to hide my CC behind ewallets. Probably get less point but I dont mind.
@rajpuga I do that as well, but I keep RM 100 more cash in wallet than you. Just in case. and that day I went to a clinic for annual medical checkup, total bill for me and my wife was 470. They didnt accept CC. LOL, I paid in full in case when we went back for the report.