How realistic is $8,000 income ceiling for flats?

THERE has been much debate on the $8,000 monthly income ceiling for the purchase of new HDB flats and the ever-increasing prices of resale flats.

The income ceiling is said to be in place to ensure that public housing subsidies are available to those who are unable to afford other forms of housing.

But how realistic is the $8,000 ceiling today? If two graduates have been in the workforce for five or six years, it is almost certain that their combined income would have reached $8,000.

Many of us would have taken on the bread-winner’s role in the family, and thus, would not have much cash savings to afford a resale flat where a 5 per cent cash down payment is required and, on top of that, a hefty cash-over-valuation amount.

We are Singaporeans but we do not enjoy any housing grant, even when we find a place to live that is just across from our parents.

Yvon Lim (Miss)

Source: Straits Times, 6 Jan 2010