I support National Development Minister Khaw Boon Wan’s suggestion (“Radical idea: Remove income ceiling”; last Saturday).
The income ceiling for buyers of new HDB flats is just a number; it means nothing.
Newlyweds earning a combined income of $12,000, but with no children and few financial obligations, can have cash to spare for a vacation every quarter.
Another couple with a similar income, but with all the expenses that come with having children, elderly parents and a maid, will have little or nothing left over every month.
Yet it is this family that will require a bigger flat.
Applying the income ceiling means the couple can buy only a private property or resale flat, should they wish to move to a bigger home.
However, at today’s prices, how many such families can afford to do so?
I have friends and relatives who are stuck with huge housing loans because they had no choice but to buy private properties, as their combined incomes did not allow them to apply for new HDB flats.
The solution is to remove the income ceiling.
Take a family’s requirements and circumstances into consideration instead when assessing applications for HDB flats, especially the bigger ones.
Alex Yeo Eng Buan
* Letter first appeared in ST Forum (19 Apr).