Rilek1Corner

Tag: expensive

  • Many Expats On Localised, Perk-Free Packages

    Many Expats On Localised, Perk-Free Packages

    Some people assume that Western expats get luxurious perks and lead a glamorous lifestyle here but two of them say the reality can be different.

    Ms Elaine Young, 43, left Scotland 12 years ago to be a writer here.

    She buys her groceries at NTUC FairPrice and her clothes from Uniqlo, and eats at hawker centres near her Tiong Bahru rental apartment.

    Ms Young says: “I wish I could walk into Burberry and buy anything I want but the reality is I wear basic clothes like an average person here.”

    She did not imagine the cost of living here to be so high.

    .

    PHOTO COURTESY OF ELAINE YOUNG

    And she did not know she had the option of renting an HDB flat since property agents serving expats here often recommend private properties.

    “Had I known about renting HDB flats then, my husband and I would have done so to save more money,” she says.

    She and her husband, who is an Asia Pacific sales director with IHS Energy, pay about $6,500 a month for their three-room apartment.

    SAFER

    Apart from the haze and high cost of living, Ms Young says: “I’ve never felt safer and the people here are lovely.”

    She has made many local and expat friends, and they organise outings and dinners for the weekends.

    Ms Young intends to move back to the UK to look after her mother in a few years.

    She says: “We love living here but are well aware that we are guests in the country. It’s home now but not forever.”

    Thirty-year-old Dane Jesper Rasmussen, an operations manager in a shipping company, says he usually eats at hawker centres.

    He jumped on the opportunity to work in Singapore the moment he saw his company post the opening and has been here for more than two years now.

    Mr Rasmussen had another motivation to move here: His girlfriend, whom he met in Denmark, is a Singaporean.

    She was stationed in Denmark for three years in the same shipping company.He had never been to Singapore although he travelled around South-east Asia over a few years before his move here.

    So, the high cost of living here came as a surprise to him, especially since his experience with South-east Asia mainly involved Laos, Cambodia and Myanmar.

    MOST EXPENSIVE

    Singapore is the world’s most expensive city, according to research by the Economist Intelligence Unit this year.

    During the first three months alone in Singapore, Mr Rasmussen overspent because he did not know about hawker centres and cheaper supermarkets.

    His girlfriend returned from Denmark and took him to hawker centres and food courts, showing him ways to save money.

    He says: “It’s great to have someone local to show me around. Had it not been for her guidance, I would still be spending a lot of money on the wrong things.”

    He rents a two-room condominium unit in Farrer Road and pays about $3,400 a month.

    Mr Rasmussen says that sometimes it is hard to adjust and make new friends as an expat because people know that he won’t be here for long.

    “Many have their own groups of friends and sometimes it’s hard for them to invest time in a person who will leave.”

    Both Ms Young and Mr Rasmussen have noticed expats switching to localised packages to secure a job here. They also say that many expats here do not live a life of luxury.

    “Like Singaporeans, each individual earns a different amount of money and leads different lifestyles,” says Mr Rasmussen who spends his weekends visiting his girlfriend and her family in Woodlands.

    I’ve never felt safer and the people here are lovely.

    – Ms Elaine Young from Scotland has been working here for 12 years

    Like Singaporeans, each individual earns a different amount of money and leads different lifestyles.

    – Mr Jesper Rasmussen, who is working as an operations manager in a shipping company

    Expats who are on localised package do not get perks

    Most Western expats no longer receive big income packages.

    “Today, a sizeable percentage of the expat community move here on a localised package,” says Dr Yvonne McNulty, founder of Expat Research.

    Dr McNulty is a scholar-practitioner by training. She is on the associate faculty at SIM University and is co-author of Managing Expatriates: A Return on Investment Approach (Business Expert Press).

    She adds that half of the expats here receive localised packages that do not include perks such as extensive allowances, a car and sponsorship of school fees for their children.

    “These expats who are here on a localised package don’t live in big houses and it isn’t easy for expats to rent in the heartlands,” she says.

    According to the HDB website, the quota for subletting to non-Malaysian foreigners is set at 8 per cent at the neighbourhood level and 11 per cent at the block level.

    INCOME

    For expats on a localised package, their accompanying spouses need to find work to supplement the household income.

    “Because the quota for foreign employment has been changed, it has become harder for expats and their spouses to find jobs,” says Dr McNulty.

    International schools are expensive and expats with children also face problems when trying to get their children into local schools.

    “The cost of putting them in local schools is about $12,000 a year, so it is still very costly.”

    Dr McNulty also says that while some may have started on expat packages, they switch to localised packages later to remain in Singapore.

    “Firstly, it could be that it is a critical point for their school-going child such as the Primary School Leaving Examinations.

    “Or, they do not foresee getting a job back in their home country.

    “Or it could be because they find living in Singapore good for the family because it is safe.”

     

    Source: www.tnp.sg

  • Malay Wedding – Not A Budget Affair

    Malay Wedding – Not A Budget Affair

    EDIT: Okay, I wasn’t expecting so many shares. I’m sorry if this offended anyone, but I would like to say that of course the figures vary, and it CAN vary greatly. The only reason this one costs this much is because almost everything an average Malay wedding has was factored in. However, and with that being said, this infographic is NOT implying that you have to spend this amount. Of course it’s a DUH thing (common sense!) to spend within your budget. The whole point of this is to inform the uninformed that Malay weddings are definitely not $50.
    _____

    I would say 8 out of 10 non-Malays I know are often plain ignorant when it comes to the expenses involved in a Malay wedding. In fact, I have met many of such people who have this impression that a Malay wedding only costs so much. To help address this common problem as well as to educate the non-Malays, I decided to create a simple visual graphic that breaks down the expenses of a Malay wedding in Singapore.

    Disclaimer: These are average figures I got from speaking to my married and about-to-get-married friends, and they do not necessarily represent the mass. Also, the figures are based on only one side of the couple. So yes you are right – multiply them by two to get the final figures for both bride and groom’s events.

    To all my Malay friends, if you have any input(s)/comment(s) on this, drop me a message!

    P/S: Oh, I would also like to add one more point – Malay weddings usually never expect monetary recoup. We don’t complain even if we receive $10 (common amount, honestly) after feeding your family of 8!

     

    Source: Nur Haryanti

     

  • MND: Most Wiling To Pay More Than Average Price Of Flats

    MND: Most Wiling To Pay More Than Average Price Of Flats

    In a recent survey of nearly 1,500 residents, MND said it showed that majority of prospective flat buyers are willing to pay more than the current average prices.

    However, the survey also showed that people continue to view the new BTO flats as expensive. The survey was conducted in November last year.

    Last year, the average price of a 4-room HDB flat in a non-mature estate was $295,000. Eighty per cent went for under $350,000.

    MND said a third of the respondents did not know how much such flats cost, while 40% overestimated the price. The most common estimate MND said, was between $300,001 and $400,000 for a 4-room unit.

    That estimated price range was higher than the average $295,000, MND said.

    The survey also found that those who intend to buy a flat in the next 1 to 2 years are willing to pay as much as or more than actual BTO prices in non-mature estates:

    • 3-room flats (avg price $186,000 in 2014) – 58% willing to pay more than $200,000
    • 4-room flats (avg price $295,000 in 2014) – 61% willing to pay more than $300,000
    • 5-room flats (avg price $391,000 in 2014) – 51% willing to pay more than $400,000

    However, it’s not known if MND is aware that a person willing to pay more does not necessarily mean he is happy to do so. The 2 matters are not the same.

    In any case, the better approach to measure affordability of a flat is to take the ratio of the price of the flat over the annual household income of the owners.

    Many BTO HDB flats still remain unaffordable

    After Mr Khaw Boon Wan took over the job as National Development Minister from Mah Bow Tan in 2011, Mr Khaw told Parliament that more would be done to reduce BTO flat prices relative to income, so as to reduce the financial burden of housing on the young. He said [Link]:

    “Many are now clamoring for the HDB to return to basics and its original mission of helping Singaporeans own a basic home. But what does ‘returning to basics’ mean?

    The primary mission of HDB to offer an affordable flat for the majority of Singaporeans will remain unchanged. Fortunately this is within our control as we set BTO prices and HDB is the largest housing developer.

    We have stopped BTO prices from rising by delinking them from resale prices. We can now pause and see what else we can do to bring BTO prices in non-mature estates to, say, around 4 years of (annual) salaryas it was before the current property cycle started.

    One thing is clear. We are committed to restoring and maintaining the affordability of new HDB flats to the vast majority of first-timer Singaporean households. Their Singapore Dream of owning their own flats, like their parents’, is safe. We will make sure of that.”

    Note that Mr Khaw used the term “restoring” the affordability of new HDB BTO flats, which implies that in his predecessor’s time (i.e. Mah Bow Tan), the HDB BTO flats were already unaffordable.

    In the 70′s, a graduate’s starting pay was around $1,000 per month. Then, in Marine Parade HDB estate, the price of a new 3-room, 4-room and 5-room flat was $17,000, $20,000 and $35,000 respectively. A young graduate could easily afford a 5-room flat at a Price-to-Annual Income Ratio, also known as the Affordability Ratio (AR), of slightly under 3 (i.e. 3 years of annual income to match the price of the house). Even households earning $500 a month could easily afford a 3-room flat priced at $17,000 (AR under 3).

    The World Bank considers a ratio of 5 or under as affordable for local residents, while the United Nations has set the bar lower, at 3 (see Link). In any case, anything above 5 is considered unaffordable by both the World Bank and the United Nations.

    By 1990, the average price of a new 5-room flat was $70,000 and a young graduate earned about $2,000 a month. The AR then was still under 3 – very affordable.

    Examining the affordability of current new HDB BTO launches

    TRE took the opportunity to examine the affordability of new HDB BTO flats launched in November last year. A total of 7,568 flats were launched by HDB for sale in a mix of mature and non-mature towns on 25 Nov 2014 [Link]. This was HDB’s final sales exercise for 2014.

    Sembawang Sun Breeze

    Typical 2-room (I):

    • Nett selling price less grants = $30,000
    • Applicants’ median monthly household income = $1,600
    • Price to annual household income = 1.6

    Typical 2-room (II):

    • Nett selling price less grants = $50,000
    • Applicants’ median monthly household income = $1,600
    • Price to annual household income = 2.6

    Typical 3-room:

    • Nett selling price less grants = $115,000
    • Applicants’ median monthly household income = $2,500
    • Price to annual household income = 3.8

    Typical 4-room:

    • Nett selling price less grants = $240,000
    • Applicants’ median monthly household income = $4,200
    • Price to annual household income = 4.8

    Sengkang Anchovale Fields

    Typical 2-room (I):

    • Nett selling price less grants = $45,000
    • Applicants’ median monthly household income = $1,600
    • Price to annual household income = 2.3

    Typical 2-room (II):

    • Nett selling price less grants = $70,000
    • Applicants’ median monthly household income = $1,600
    • Price to annual household income = 3.6

    Typical 3-room:

    • Nett selling price less grants = $135,000
    • Applicants’ median monthly household income = $2,500
    • Price to annual household income = 4.5

    Typical 4-room:

    • Nett selling price less grants = $270,000
    • Applicants’ median monthly household income = $4,200
    • Price to annual household income = 5.4

    Yishun

    Typical 2-room (I):

    • Nett selling price less grants = $30,000
    • Applicants’ median monthly household income = $1,600
    • Price to annual household income = 1.6

    Typical 2-room (II):

    • Nett selling price less grants = $45,000
    • Applicants’ median monthly household income = $1,600
    • Price to annual household income = 2.3

    Typical 3-room:

    • Nett selling price less grants = $115,000
    • Applicants’ median monthly household income = $2,500
    • Price to annual household income = 3.8

    Typical 4-room:

    • Nett selling price less grants = $240,000
    • Applicants’ median monthly household income = $4,200
    • Price to annual household income = 4.8

    Typical 2-room (I):

    • Nett selling price less grants = $30,000
    • Applicants’ median monthly household income = $1,600
    • Price to annual household income = 1.6

    Typical 2-room (II):

    • Nett selling price less grants = $50,000
    • Applicants’ median monthly household income = $1,600
    • Price to annual household income = 2.6

    Typical 3-room:

    • Nett selling price less grants = $115,000
    • Applicants’ median monthly household income = $2,500
    • Price to annual household income = 3.8

    Typical 4-room:

    • Nett selling price less grants = $235,000
    • Applicants’ median monthly household income = $4,200
    • Price to annual household income = 4.7

    Conclusion

    For 2-room and 3-room BTO flats in Sembawang and Yishun, they are considered affordable at 4 years of applicants’ median annual salary or less. However, for 4-room flats, the AR is 4.7 to 4.8, way above Mr Khaw’s own target of 4.

    In this case, 4-room BTO flats should be priced around $201,600 (4 x $4,200 x 12) instead of the current $235,000 to $240,000 in Sembawang and Yishun (i.e, prices after grants).

    For Sengkang, the situation is worse. 2-room flats are priced below AR of 4 but 3-room and 4-room flats have ratios of 4.5 and 5.4 respectively, again, above Mr Khaw’s own target of 4.

    In fact, Sengkang 4-room BTO flats (AR of 5.4) are considered unaffordable by the standards laid down by the World Bank and the United Nations. Sengkang 4-room flats, instead of selling for $270,000 (after grants), ought to be selling at $201,600 (4 x $4,200 x 12). They are overpriced by 34%.

    One can only conclude that Mr Khaw has yet to fulfill his promise of bringing down ALL the BTO prices in non-mature estates to 4 years of annual salary, especially for first-time Singaporean buyers. The middle-income group appears to be squeezed by the higher new HDB flat prices for 4-room and above. For mature estates, the AR of new BTO flats would naturally be even worse.

    So, regardless of what MND is trying to say in its recent survey, the fact of the the matter is, new BTO flats remain expensive and not affordable even by Mr Khaw’s own measure, generally speaking.

     

    Source: www.tremeritus.com

  • When Is A Good Time To Buy A Car?

    When Is A Good Time To Buy A Car?

    Is it a good time to buy a car?

    I get that question a lot but, in recent months, it has almost become a de facto greeting. Instead of “hello”, “how are you?” or “it’s a hot day, isn’t it?”, I get: “Is it a good time to buy a car?”

    I will try my best to answer the question which has obviously been keeping many Singaporeans awake at night.

    I will start by saying it is an irrelevant question – for the vast majority, anyway. Today, your decision to buy a car depends much less on where certificate of entitlement (COE) prices are at, than how old your current vehicle is.

    More than half of Singapore’s private car population is currently more than seven years old.

    That is quite a phenomenon, especially when you consider that we had one of the youngest car populations in the world merely a decade ago.

    The state of affairs has to do with how COE supplies are determined here, but more on that later.

    So, with so many old cars on the road, the pertinent question is: How many more months do you have before you need to scrap your current ride?

    Got it? Now, just before the end of that period would be a good time to buy.

    Going by anecdotal evidence, this is how motorists have been behaving. Because COE prices are so high, most people are keeping their cars until the last possible day of the vehicle’s 10-year statutory lifespan.

    I say most people because there are those with means who will buy regardless of price. These folks do not ask “is it a good time to buy a car?” Rather, their de facto greeting tends to be “what is a good car to buy?” If you belong to that group, you can stop reading now and go to Life! Motoring to check out this week’s suggestions.

    For the rest of you, and I count myself among you, I stand by my earlier recommendation: Use your car to the fullest – it not only makes good economic sense, but it is also environmentally sound.

    That is exactly what I am doing with my Toyota Wish, which is 91/4 years old now. I bought it in 2006, with a $9,000 COE.

    COE premiums are highly unlikely to ever go back to that level. Singapore’s human population has grown by 23 per cent – or one million people – since 2006.

    So, demand for cars has gone up significantly.

    The way COE supply is formulated has also changed. Today, supply – determined every three months – hinges on the number of vehicles scrapped in the preceding three months.

    Thus, supply tends to lag behind real demand. In the past, the allowable annual growth of 3 per cent might have masked this lag. But now, with the allowable growth rate at 0.25 per cent, any new injection of COEs is too minuscule.

    To illustrate, this rate translates to merely 134 fresh car COEs per month in the current quota period. Or 3.5 per cent of the total number of COEs available to car buyers.

    It is not a pretty picture. Nevertheless, the quota is poised for a dramatic growth between now and 2017, before it starts to taper again from mid-2018.

    With this supply explosion, prices will be on a downward trend. They could be as low as $30,000 for Category A (cars up to 1,600cc and 130bhp) and $40,000 for Category B (cars above 1,600cc or 130bhp). When? Sometime between 2016 and 2017.

    But that is irrelevant if your car is due to expire earlier.

    If your car has a couple more years before its time is up, you are in a good position because the ensuing COE bonanza is likely to translate to prices substantially lower than at present.

    This will happen provided the Government does not hold back some certificates for the next “dry spell”, which is due to start in late 2019.

    Even though Transport Minister Lui Tuck Yew first mooted this three years ago, there has been no word yet on whether he will do it.

    There has been much speculation. One recurring theory is that the Government will not do anything that is as unpopular as this before elections.

    And indeed it will be unpopular even though, over the long term, it will lead to more stability for car buyers and sellers. Unpopular because it will lead to tens of thousands of car-owning households not being able to own a car, at least in the medium term. And it will lead to COE prices heading for the moon in the near term.

    This implies that any decision to hold back COEs will be made after the polls.

    I know what you are thinking now. Better buy soon, before the election is called. But that would be foolish. One, very few people know when elections will be called. Two, a pre-election rush to the showroom will lead to only one thing: higher prices.

    Barring systemic changes, I stick to my original advice: Buy only when your car is near expiry. And if prices are still high then, consider revalidating your COE for another five or 10 years. It may still be a costly move but, in the long run, far less expensive than buying another car.

     

    Source: www.straitstimes.com

  • What Will It Take For Singaporeans To Give Up Cars

    What Will It Take For Singaporeans To Give Up Cars

    Many foreigners are baffled as to why a Singaporean would want to buy a car, paying several times the price of a car in their own home countries. After all, they insist, the MRT system is fantastic and so much better than the subway in New York or the Tube in London. Others argue that car ownership takes on an aspirational veneer in Singapore, and people are willing to pay a lot of money to realise the dream.

    However, as any Singaporean knows, public transport can only get you so far if you don’t live near an MRT station and don’t go out after midnight. In order to really change Singaporeans’ attitude to car ownership, some changes need to happen first, like the following.

    Increased accessibility to public transport

    The occasional breakdown and daily shoving matches not withstanding, the MRT is fairly efficient. While it pales in comparison to its counterparts in Hong Kong, Tokyo and Taipei, it does offer the quickest way to get from Jurong East MRT station to Bugis MRT station, especially considering the jams on the road.

    But the problem is that most Singaporeans live in suburban areas quite a distance from the central zone, and unless you actually live within wallking distance of Jurong East MRT in the above example, getting to the station can be a big headache in itself. I can’t pretend I’m not just a little bitter about this, as I live in an area with only one bus, which has taken up to 1 hour to arrive in the past.

    When you think about all that lost time spent waiting for the bus in order to get to the MRT station, it’s not hard to see why many Singaporeans don’t mind shelling out the cash to buy a car. Either driving to work or using the park and ride scheme to get to an MRT station can save you more than an hour each day—a life saver if you have to work long hours.

    Cheaper late night transport options

    While raising the prices of cars can deter people from buying them, those who routinely travel after midnight save much less, which then increases the attractiveness of having your own transport. Taxi fares in Singapore have risen quite a bit over the last ten years, and taking a 30 minute cab ride after midnight can easily cost you more than $25.

    If you go out for late night suppers a lot, get the urge to shop at Mustafa at 3am or work the graveyard shift but have a meagre transport allowance, getting a car makes a lot of sense. While we do have NightRider and Night Owl bus services, these are limited and operate only only Fridays and Saturdays and the eve of public holidays, presumably to cater to partygoers.

    I personally think the NightRider services are great, and if they could be extended to the other days of the week and serve a wider range of areas, going out at night would be a lot more affordable, considering the cost of two beers and a cab ride home with midnight surcharge could easily set you back $50.

    More independence and free time for kids

    Many Singaporeans I’ve spoken to seem to be of the opinion that a car becomes a necessity when you have kids. However, unless you ferry your kids around every single day, the odd taxi ride to the zoo or the clinic would probably still cost much less than a car.

    The problem is that many Singaporeans actually do ferry their kids around every single day. I live just outside a primary school, and every morning and afternoon the road gets jameed by an insane number of parental cars just waiting to drop their offspring off at the school gates. Many parents prefer to get stuck in a neverending queue of parents’ cars than to drop their kids off a 5 minute walk away.

    Singapore is one of the safest countries in the world and actually the perfect place for kids to learn how to use public transport on their own, since there’s little fear of their being kidnapped and sold as slaves.

    On the other hand, very often it’s not that kids aren’t able to take public transport on their own—but rather that they have too many after school activities. Parents need cars so they can drive frantically from tuition centres to piano lessons to Young Genius seminars.

    If kids are allowed to be independent and free up enough time in their schedule to remove the need for parents to become chauffeurs, more people might realise that it is indeed possible to parent without a car.

    Greater comfort on public transport

    If you’ve ever had a migraine, been pregnant or just damned tired after another 12 hour work day, you’ve probably sworn that you would either quit your job or buy a car. For many people, their biggest bugbear about having to rely on public transport isn’t commuting time—it’s comfort level.

    To be fair, the MRT and buses in Singapore are actually quite comfortable on their own. Nobody’s asking for velvet cushions or free foot massages during their commute. But when the trains and buses are packed to bursting point, you have to stand throughout an hour-long commute and you’ve got armpits in your face and heels stabbing at your feet, a car looks that much more appealing.

    Unfortunately, even if SMRT started being more generous about the air con on the trains and hiring smiling greeters to wish passengers a pleasant commute, the crux of the matter is that for those with a long commute, standing for an hour or more causes enough discomfort to send them running to car dealers. When you’re already exhausted from work, trying to balance on the steps of an overcrowded bus or having to grab for the poles as the driver makes yet another emergency stop can take its toll.

    With office decentralisation already starting to happen and the government making efforts to improve the capacity of the public transport infrastructure, let’s hope this problem gets solved someday.

    Do you have a car and why did you buy one despite the high cost? Share your reasons in the comments!

    Source:http://blog.moneysmart.sg