Tuesday, March 11, 2014

Not Exactly Helping Hands

Lee Hsien Loong was the first to introduce the Pioneer Generation Package, stealing the thunder from Finance Minister Tharman Shanmugaratnam who bored everybody to tears in parliament - some ministers actually nodded off - while trying to extoll the benefits in his Budget speech. Even Minister for Law and Foreign Affairs K Shanmugam has admitted that there has been feedback of a "substantial disconnect" in awareness about the touted benefits. If it's that good, the reception says otherwise. Snake oil artists don't give up easily. "We are going to bring across the substance of the Pioneer Generation Package, and all the other substantial benefits that are in the Budget this year, to every single person,” said Mr Shanmugam.

"It is timely to revisit (the) reverse mortgage as an additional option for our seniors...," said National Development Minister Khaw Boon Wan in Parliament on Monday. Reverse mortgages are essentially loans taken up by a homeowner using his property as collateral, not unlike refinancing schemes resorted to by cash strapped commercial companies. Securitization, the exchange of assets for cash, comes with a price - the principal and interest on the debt.

Reverse mortgages have been tried before by NTUC Income, but only 24 households took it up between its introduction in 2006 and discontinuation in 2008. And for good reason, why should a senior citizen with no steady source of income want to incur extra bank charges?

The other alternative to pay the monthly bills is the Enhanced Lease Buyback Scheme, by which part of the homeowner's lease on the HDB flat is sold so that the proceeds can go towards topping up their CPF accounts. Which means that if there're insufficient funds to meet the Minimum Sum requirements, the money is as good as frozen in limbo, untouchable and unreachable for meeting even daily needs.

The problem is not limited to the old and the poor. The asset rich, cash poor anomaly is a common refrain.

Khaw promised, "This year, I want to do more for the elderly, the vulnerable groups, and help extended families live near one another." Seriously, the proof has to be in the pudding. All these schemes, some say scams, won't be of much help if the poor are still poor. And HDB flats continue to be over priced.

8 comments:

  1. If "they" are not giving out cash, this PGP is all bullshit.

    Why you think the PAP Ministers want their salaries to be paid in cash?
    You think PAP Ministers want their salaries paid in $1 million dollars in CPF top up?

    If it's not cash, it's not real.

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  2. The more the Rulers want to help, the more Sinkies have to worry. IT MEANS PEOPLE AS A WHOLE ARE HAVING PROBLEMS WITH LIVING.

    PROBLEMS IN FINDING JOB, GETTING A OWN HOUSE, START A FAMILY, PROVIDE FOR PARENTS AND CHILDREN'S EDUCATION ETC.
    SOME MAY EVEN HAVE PROBLEMS COPING WITH PERSONAL NEEDS OF FOOD, TRANSPORTATION AND HEALTHCARE EXPENDITURES.

    WHY DO THE PEOPLE HAVE TO FACE SUCH CHALLENGES?

    patriot

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    Replies
    1. The PGP is basically welfare by another fancy name. Without PGP, many old people are destitutes and will soon be sleeping on the streets in the world's most expensive city. That's not good for business and public image.

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  3. The real problems that the old and vulnerable in this little red dot face are the smart aleck mandarins. Full of brimstone and fire over sound good schemes, not real and substantive help. They always think that the ordinary citizen is dumb and the goodies have to be explained to them. Not so long ago the buzzword was "perception" which have to be set right. Just like short-sightedness, only a pair of spectacles is needed.

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  4. Yes, HDB is indeed overpriced. Despite the empteen rounds of cooling measures, prices are still doubling every five years. I expect a 4-room flat to hit 1 million by 2020. The younger generation would bear a lifetime of debt to support PAP's asset appreciation policy.

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  5. Does NTUC Income offer reverse mortgages free of profit, interest & other related fee charges ? If not, are they in any way different from those loan sharks out to fleece senior citizens of the remaining values of their assets ?

    I can still remember for some years NTUC Income increased the premium for insuring my old car despite its depreciating value & me reaching max NCB limit because having made no accident claims. I can only conclude that NTUC Income is no saint when it comes to making money, just like our greedy PAP ministers.

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    Replies
    1. But you still vote PAP right?
      Complain, complain ... but election time you vote PAP right?

      Delete
  6. I am disconbobulated by all the "help" that the MIWs are offering now. What's going on? Election near? Please, please, don't help. The more you help, the more we pay. You give a drumstick, you take back the whole chicken. Just leave us along. The best help is to stop the open door immigration policy.

    ReplyDelete