PR never serve NS profit from HDB woes

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Australian FT: I become PR to buy HDB so as to avoid paying high rentals
by Kojak Bt on Sunday, December 4, 2011 at 5:35pm

The Straits Times recently published a news report ('More Australians Choosing to Move to Singapore', 28 Nov 2011 - http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_738845.html) boasting that Singapore has emerged as Australians' fastest-rising destination. There were 88,000 departures from Australia last year and Singapore overtook Hong Kong to become the 4th biggest destination for Australians. Over the past 3 years, there were about 20,000 Australians coming to Singapore to stay:

2008 5,431

2009 6,428

2010 6,952

Ten years ago, the figure was only 2,325.

Many Australians came for jobs and promotion opportunities which Singapore offers. The Straits Times highlighted one such Australian in its story - Peter Breitkreutz, a 45 year-old vice-president currently working in Citibank Singapore. He came to Singapore working as a global strategic sourcing manager at Motorola Singapore from 2007 to 2009 before hopping over to Citibank Singapore in 2010. His current job title is Vice President, Regional Business Operations and Services Category Sourcing Manager.

During the interview with Straits Times, he said that he has been living in Singapore for about 6 years and has no intentions of leaving Singapore. He lives here with his Shanghai-born wife and 2 sons who were both born in Singapore. He is a Singapore PR and has recently bought a HDB resale flat in Sengkang.

"We are in Singapore for the long run," he said. "We planted our roots... becoming a citizen has entered my mind. The only issue is that Singapore does not allow dual citizenship. I couldn't see myself giving up my Australian passport at this stage."

But he emphasized, "By becoming (permanent residents) and making that plunge, we have invested in an apartment, and do almost everything citizens can do. We have no real plans to move back to Australia."

Is this Australian foreign talent really as committed to Singapore as he has claimed by becoming a PR so that he could take the "plunge" to "invest" in a HDB resale flat for him and his family to "sink" roots here?

A cursory check online revealed that he had other reasons for "investing" in a HDB resale flat. This was what he said on his personal blog (www.aussiepete.com) in Jul 2008, published under the title "Foreigners Living In Singapore Want To Beat The 'Killer' Rental Market!" before he became a PR (http://www.aussiepete.com/2008/07/only-way-for-foreigner-living-in.html):

"We've been living in Singapore now for two years, and have watched the rental market spiral out of control. We currently rent a condo apartment in Woodsvale, and the monthly payment is absolutely exorbitant."

"Our plan is to apply for our permanent resident status over the next couple of months, which is academic as far as the approval. Once we have our PR and our current lease expires, we are eligible to purchase a resale HDB. Initial calculations indicate that by going down this avenue, show that we can purchase quite a large flat in a relatively 'opulent' zone, and we will still reduce our monthly expenditure on housing by almost a half. Unbelievable!!"

"It seems like we are not the only people doing this. Interestingly enough, the latest reports from local property agencies show that almost one in five HDB flats sold recently went to PRs... the number of apartments sold to permanent residents is a two-fold increase from a year ago."

In a way, Singaporeans can't really blame foreigners for wanting to exploit ways get a better life for themselves and their families. If we were them, we would do the same too. By buying a HDB resale, not only the monthly expenditure on housing is reduced, the foreigner stands to recoup all the money thrown into housing when the HDB resale is sold eventually prior to his leaving Singapore. With a bit of luck, he might even be able to make a little capital gain on selling the HDB resale flat. If the foreigner rents a flat, he will not be able to recoup any rentals when he leaves.

Hence, the question comes back to Government policy. Why did the Government decide to allow PRs to buy HDBs? In the past, young Singaporean couples who needed to find a HDB quickly so that they could get married or find a place close to their parents' could choose the HDB resale route. With the current high HDB resale prices pushed up by increasing demands from foreigners turned PRs, the HDB resale route is effectively out of reach for young Singaporean couples. They have to contend with buying new HDBs now. Hence, it's clear that the Government has failed to put the interest of Singaporeans first in this case.



On the question of commitment and sinking roots, Singaporeans have to endure 2 years of NS and sink in another 20 years of their lives in reservist trainings, all the time risking injuries and loss of limps. Are the foreigners willing to do that or willing to let their sons do that? How many will?

So, when this foreign vice-president of Citibank Singapore said they have planted roots in Singapore with no real plans to move back to Australia and by becoming PRs, they do almost everything citizens can do, would he be willing to send his 2 sons to serve NS like what Singaporeans do? Incidentally, in an online interview with an expat site, he mentioned that the only disadvantage (of being a PR) is that their son will be liable for NS (http://www.expatinterviews.com/singapore/peter-breitkreutz.html)...