Thursday, July 1, 2010

Affordable Housing

In 1988, I paid $43K for my 3-room resale flat. If my memory serves me well, I think we took a 10 year loan from the CPF. Today the apartment is easily $300K and you usually buy it with a mortgage period of 30 years. What does this mean? That you will work all your life to pay for your property? That your income will rise much faster so that you can pay it off early or more likely sell and upgrade? That you can sell it for a handsome profit later. Whatever, it assumes a very rosy future. I am unsure of such wisdom. There will be many unpleasant discontinuities over 30 years. I imagine a fair number will find the ride bumpy and a few will not survive the ride to the end.

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