CAN a Singaporean who earns $850 a month afford to buy a Housing Board flat?
Mr Mohammad Charlie Jasni says yes.
The Additional CPF Housing Grant Scheme (AHG) benefits households whose income is not more than $5,000 a month. The maximum grant quantum is now $40,000, and it benefits 8,000 households every year, said the HDB.
The Special CPF Housing Grant (SHG) is given to first-timer families earning up to $2,250 a month to buy a small flat. Those earning $1,500 or less get a $20,000 grant. SHG is over and above regular housing subsidies and the AHG.
The odd-job labourer earns that amount, and he and his family will be moving into a new two-room HDB flat in Punggol by the end of the year.
He had successfully balloted for the 45sq m build-to-order unit in August 2009.
It cost $99,220, but because he earns less than $5,000 a month, he qualifies for a government housing grant that gives him $40,000 to offset the flat's price.
This means he has $59,220 left to pay, which he will do using his Central Provident Fund (CPF) savings.
He and his wife already have about $40,000 in their CPF accounts, and this will grow as he continues to work.
Based on HDB's calculations, he needs to pay a monthly housing instalment of $83 over 30 years.
'By paying the $83 out of my CPF, it means I have that little more for daily expenses,' said Mr Charlie, 33.
He is currently living with his wife and two children in a two-room rental flat in Beo Crescent. They pay $44 a month for that flat.
They are excited about their upcoming home and are already discussing renovation ideas and shopping for furniture.
'It is good to have a home of our own,' he said.
Source: http://www.stproperty.sg/articles-property/money-matters/he-earns-850-an...
Teenage Investor