Cost of a home

Every family needs a home to live in. A high property price translates into the high cost of a home and a high cost of living. When a family buys a costly property, they have to work hard for many years to pay off the mortgage to the home. They cannot afford to be unemployed or to have reduced earnings, as they cannot afford to pay the mortgage.

There was a mistaken belief that high property prices benefit the people at large, as the value of their asset has increased. In reality, they are paying a higher cost of living and have to work harder to survive. They are not able to unlock the value of their asset, as they still need a place to live in (unless they move to a smaller size property).

A small number of people benefit from the escalating property prices - people who own land and properties that they can sell to those who need a home. The families that need a home suffer from the higher cost.

Tan Kin Lian