Tuesday, 21 January 2014

There should be NPP instead of NAP

The NAP was a non event. I don't see the fuss over car prices when it is actually the property sector that should be monitored more closely by the government. For me car prices have not changed much since I started work some 15-20 years ago (no, I'm not telling my age lol). The share of my average income being used to pay my car instalment has actually declined, especially with low interest rate and longer period, and of course rising pay. I not only can buy the car I've dreamt of driving 20 years ago, in fact I got something much better than that.

But not for property. My income has risen by a decent multiple (no, I'm not telling my pay either lol), but I still can't afford that same terrace house I wanted to have 20 years ago.

When the news spread about a retirement fund planning to develop a massive township in Sungai Buloh, I realised I'm in a conflict. On one hand I think it is their duty to optimise the return on investment and benefit its members, but on the other hand I think the government should put measures in the property sector to restrict activities that I see as hoarding by speculators. Perhaps there should no longer be freehold property and foreigners should be ban from buying land, say. Or may be restrict new purchasers to only first time buyers, or only allow disposal after 5-10 years so that only real home owners who intend to stay will buy them. I know this is anti-free market but we must differentiate the `investment' demand of property due to high liquidity or speculation, from the `basic necessity' demand that should be fulfilled for every citizen in this country.

Perhaps by 2018 we all can live and sleep in our cheap cars and call it home instead.



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