As a Singaporean, I find it very fascinating when people describe Singapore this way. What you wrote is 100% factual, but there are nuances that make reality less rosy. It's impossible to get to in the short span of a comment, but in short the projects that you speak of are somewhat of a lottery system. If you get a unit, it's great because you buy it cheap and sell it in the open market. Many people build wealth that way. And if you do not, you lose out on this wealth-building opportunity that everyone else has.
And to the question of whether Singaporeans trust the government... we have been ruled by 1 party since independence. We had an interesting election this year. I think this article sums it up: https://www.ricemedia.co/did-we-hope-for-too-much/
Thanks so much for the comment!! It’s amazing to hear your thoughts. So if one loses the lottery or sells the units, where do they live?
And, just read through the article, very interesting where it’s headed; and I like the ending note - it’s not about better candidates, but specific changes/policies for a better future.
If you lose the lottery and never get subsidised housing, you either continue to live at home (which is more normalised than in US), rent (but it is extremely frowned upon so people don't take this option) or buy (which you do on the open market and it's not accessible to the average person without extra financial help e.g. from family).
In Singapore, property prices are always rising so property agents will tell you to sell your (originally subsidised) unit at a profit. For a unit that people pay ~$400k for, it can sell for >$1m in ~ 5 years. So we are talking quite substantial profits made off public housing schemes.
So after you sell that unit, you then buy on the open market. Your profits can help you with a downpayment. Property agents will tell you to use the downpayment and buy two separate properties. You cover one mortgage yourself (e.g. through your income), and rent the other one out to cover mortgage and make a little bit of profit.
I think this philosophy is also present overseas when people used to buy up multiple houses / airbnbs. Except in Singapore, there is an additional aspect where this is made possible because of a government scheme that makes some people better-off than others.
It is somewhat controversial, yet also an accepted fact of how our housing system works. So it is always interesting to get to share these with other non-Singaporeans! Thanks for this opportunity.
Very intricate advice from these property agents, makes sense and ultra capitalist! And if the stats say 80%+ reside in public housing, what % actually won the lottery? And it seems like this is a one time scheme, so either ones that benefited from or missed out on this opportunity, what’s the standard of living like for them, career paths etc (haha I have so many curiosities).
great read!!! and thanks for the shout :)))
loved your stats!! and thank you for reading :)
As a Singaporean, I find it very fascinating when people describe Singapore this way. What you wrote is 100% factual, but there are nuances that make reality less rosy. It's impossible to get to in the short span of a comment, but in short the projects that you speak of are somewhat of a lottery system. If you get a unit, it's great because you buy it cheap and sell it in the open market. Many people build wealth that way. And if you do not, you lose out on this wealth-building opportunity that everyone else has.
And to the question of whether Singaporeans trust the government... we have been ruled by 1 party since independence. We had an interesting election this year. I think this article sums it up: https://www.ricemedia.co/did-we-hope-for-too-much/
Thanks so much for the comment!! It’s amazing to hear your thoughts. So if one loses the lottery or sells the units, where do they live?
And, just read through the article, very interesting where it’s headed; and I like the ending note - it’s not about better candidates, but specific changes/policies for a better future.
If you lose the lottery and never get subsidised housing, you either continue to live at home (which is more normalised than in US), rent (but it is extremely frowned upon so people don't take this option) or buy (which you do on the open market and it's not accessible to the average person without extra financial help e.g. from family).
In Singapore, property prices are always rising so property agents will tell you to sell your (originally subsidised) unit at a profit. For a unit that people pay ~$400k for, it can sell for >$1m in ~ 5 years. So we are talking quite substantial profits made off public housing schemes.
So after you sell that unit, you then buy on the open market. Your profits can help you with a downpayment. Property agents will tell you to use the downpayment and buy two separate properties. You cover one mortgage yourself (e.g. through your income), and rent the other one out to cover mortgage and make a little bit of profit.
I think this philosophy is also present overseas when people used to buy up multiple houses / airbnbs. Except in Singapore, there is an additional aspect where this is made possible because of a government scheme that makes some people better-off than others.
It is somewhat controversial, yet also an accepted fact of how our housing system works. So it is always interesting to get to share these with other non-Singaporeans! Thanks for this opportunity.
Very intricate advice from these property agents, makes sense and ultra capitalist! And if the stats say 80%+ reside in public housing, what % actually won the lottery? And it seems like this is a one time scheme, so either ones that benefited from or missed out on this opportunity, what’s the standard of living like for them, career paths etc (haha I have so many curiosities).
And so appreciate you sharing these!!
The title photo sequence hurts my brain. Might I suggest slowing it down?
Just changed the image :)