$8 Cow: HDB FLATS ARE WORTHLESS AFTER 99 YEAR LEASE

[h=1]LEASE BUYBACK CLARIFICATION CONFIRMS THAT FLATS ARE WORTHLESS AFTER 99 YEAR LEASE[/h]
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9 Sep 2014 - 10:53pm





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Lease Buyback will benefit from Sers?

We refer to the article “Lease buyback: Owners can still benefit from Sers” (Straits Times, Sep 9).

Value depreciates towards end of lease?

It states that “Mr Khaw responded: “So it doesn’t mean that for the first ‘X’ years of a lease to be retained, its value will equal the tail-end of the lease that the owner is selling to HDB.

It is not a straight line.”Mr Khaw pointed to two reasons for this. The first is the time value of money – a thousand dollars today is worth more than a thousand dollars in 35 years’ time.

The second reason is that properties with a shorter outstanding lease tend to depreciate faster than properties with a longer lease.”

HDB has always increased in value?

- We beg to differ with the above explanation because HDB flats have to date, historically always maintained their value and appreciation, due to SERS.

No value at end of 99 year lease?

If the value declines as we approach the end of the lease – then, does it mean that a HDB flat will be worthless when the 99 year lease expires?




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Asset enhancement?

If so, then perhaps the consistent rhetoric that HDB is an asset enhancement policy, may fall flat on its face.

In other words, the Government cannot have its cake and eat it too – that HDB is asset enhancement, but declines in value with the lease, when we calculate the lease buyback payment.

At least not to the extent that a 4 – room flat owner may lose about $1.1 million (as calculated in our previous analysis.

Reverse mortgage?
Moreover, in a typical reverse mortgage in other developed countries, the homeowner would borrow against the equity of his home, and receive the net proceeds of the market value less the loan plus accrued interest, on his demise or sale of the residence.

S Y Lee and Leong Sze Hian
P.S. Come with your family and friends to the 4th Return Our CPF protest on 27 September 4 pm at Speakers’ Corner https://www.facebook.com/events/516436478486589/

The greedy sinkies will not be able to accept this. They pay so much hoping the pap govt to bill them out when the time comes.

I'm always under the impression that the money we pay to HDB is "upfront rentals"

Which part of 99 year lease do Singaporeans not understand?

Check the definition of "LEASE".

Quit deluding yourselves.

Dumbfuck LSH have the gale to criticize HDB when he was the idiot who help SDP come up with a 99yr upfront HDB rental scheme and actively promote it. Hypocrite

SINKIES fail to understand that their HDB flats are PREPAID 99 years with frequent cash top ups for flat upgrading; just like the phone cards, EZ LINK cards etc. HDB dwellers don't own the land nor the prefab bricks of their flat!

wMulew said:

Dumbfuck LSH have the gale to criticize HDB when he was the idiot who help SDP come up with a 99yr upfront HDB rental scheme and actively promote it. Hypocrite

Click to expand...

Your masters were the original dumbfucks to insist that this arrangement is de facto 'home ownership'.

[video=youtube;zY2hGdl_ArI]http://www.youtube.com/watch?v=zY2hGdl_ArI[/video]

kiwibird7 said:

SINKIES fail to understand that their HDB flats are PREPAID 99 years with frequent cash top ups for flat upgrading; just like the phone cards, EZ LINK cards etc. HDB dwellers don't own the land nor the prefab bricks of their flat!

Click to expand...

Yeah, you also have to cough up your own money for the various 'upgradings' they shove down your throats... lift upgrading, bathroom upgrading (a.k.a Home Improvement Program). A most splendid business opportunity for the HDB.