ST: S'pore debt levels 'among highest in Asia'

G is targeting BTO price to be about 4 times of annual income so using this guide line. So a $380k BTO flat assuming a loan of $300k over 20 years at interest of 3% can likely be supported fully by CPF OA of dual income family having $100k annual income.

(04-07-2013, 10:20 AM)egghead Wrote: G is targeting BTO price to be about 4 times of annual income so using this guide line. So a $380k BTO flat assuming a loan of $300k over 20 years at interest of 3% can likely be supported fully by CPF OA of dual income family having $100k annual income.

If the G "recommends" that, then is debt of 151% of annual income a concern? That gives 300% debt to annual income level. Only half way there now.

(04-07-2013, 11:39 AM)NTL Wrote:

(04-07-2013, 10:20 AM)egghead Wrote: G is targeting BTO price to be about 4 times of annual income so using this guide line. So a $380k BTO flat assuming a loan of $300k over 20 years at interest of 3% can likely be supported fully by CPF OA of dual income family having $100k annual income.

If the G "recommends" that, then is debt of 151% of annual income a concern? That gives 300% debt to annual income level. Only half way there now.

There is a difference between commenting on headline numbers that averages up the entire population; and on individual case.

My own number is >300% but I am not concerned at all because my gearing is <20% with fairly liquid assets.

(04-07-2013, 12:41 PM)egghead Wrote:

(04-07-2013, 11:39 AM)NTL Wrote:

(04-07-2013, 10:20 AM)egghead Wrote: G is targeting BTO price to be about 4 times of annual income so using this guide line. So a $380k BTO flat assuming a loan of $300k over 20 years at interest of 3% can likely be supported fully by CPF OA of dual income family having $100k annual income.

If the G "recommends" that, then is debt of 151% of annual income a concern? That gives 300% debt to annual income level. Only half way there now.

There is a difference between commenting on headline numbers that averages up the entire population; and on individual case.

My own number is >300% but I am not concerned at all because my gearing is <20% with fairly liquid assets.

So the question is what is the value of this article? After all these discussion, I find that it is virtually zero.