A suggestion - affordable HDB flats

Hi Mr Tan,
I wish to offer my view to make the HDB flat more affordable to Singaporean.

1) Mass building of new HDB

2) Lower the selling price of new HDB price without affecting the price of the resale market. I humbly suggest using the following ways:
i) Giving more grants to SingaporeFor example: Current market price for 4-room flat: $350,000
Selling to resident: $250,000
Loan: 50%
Cash: 5%
HDB Grant: 45%
Note: HDB to collect back the 45% or lower (if the amount is lower than the purchase price) upon owner selling the flat.
ii) Increase the minimum period of stay to 10 years or 15 years. If the owner sells the flat within the minimum occupation period, it can only sell back to HDB at the purchase price with inflation.


FOLLOW UP POINTS
Hi Mr Tan,
If based on the suggestion that I had given earlier, the grant question will not be raised as HDB will take back the grant upon people selling the HDB flat if they sell it before the minimum occupation time.


If they persist and they object, the answer will be as follows:
1) The grant is too high --- The grant is ultimate be taken back by HDB if they sell the flat. It is as good as not grant at all. But the main cost is the interest rate which is taken up nearly 90% for a 30 years loan (That means Singaporean are paying 1.9 times of the loan amount). Thus is help Singaporean owner a flat less pressurise. All let scrap the grant all together, and HDB can have a cavent over the house and the money to be return to HDB upon selling the flat.
2) If the price is too low --- Let open the books. All cost (including Land Cost) + another percentage for margin (let say 20%). That way it will show government is more transparent and it will definitely keep the price low. Some may argue based on what for that the land price, let it had a panel of independent valuer under the president control to access that.


William Lim