Movement for change Review the policy on home ownership
The Singapore govt encouraged home ownership during the past decades. It is time to review this policy.

Home ownership was promoted with the following policy goals:

a) Encourage citizens to have a stake in Singapore
b) Give the citizens a chance to own an appreciating asset
c) It make social more stable when the citizens do not have to worry about being chased out of a rented home.

While the policy has produced real benefits in the past, it has now become questionable. Here are the reasons:

a) The high cost of property has now become a burden for the citizens
b) Home ownership forces the citizen to the tied to a specific property and discourages the owner to move to a new home closer to the place of work.
c) The heavy cost of the down payment delays the marriage of young people by a few years, while they accumulate sufficient savings to meet the down payment.
d) The appreciating value of the homes allowed the citizens to cash out their profits and migrate to countries with lower cost of living
e) The home owners now realize that the properties will decrease in values as the lease becomes shorter. This is known as lease decay. It is no longer an appreciating asset.

It is now important for the govt to review its policy on home ownership to take into account the negative effects, which has been observed in recent decades. 

What is the solution?

I propose the following:

a) Give an option for young people to rent HDB flats from the govt and enjoy the same subsidy given to home ownership.
b) If a young person rent the flat, he can be exempted from contributing to the CPF, so that the money can be used to pay rental.

This approach will reduce the financial burden for young people and allow them to get married at a younger age. It also gives them the flexibility to change jobs and to move to a new home that is closer to their place of work.

Tan Kin Lian

Vote - do you agree with my suggestion?
 

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