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Serious Price Collapse For 40 Years-Old HDB Flats! Buy!

JohnTan

Alfrescian (InfP)
Generous Asset
RCWvusg.jpg


Straits Times reported today ('Owners worry older HDB flats a depreciating asset', 15 Apr) that owners of older HDB flats are worried about the value of their flats hitting zero as the lease of their flats comes to an end.

Some were forced to sell their flats at a much lower price especially after National Development Minister Lawrence Wong came out last year saying that not all old HDB flats would be eligible for Sers redevelopment. Those not selected would be returned to the state when their 99-year lease expired, he said.

Mdm Chai was one of those affected. She received several offers when she first listed her 3-room HDB flat at Bukit Merah in January last year, after her mum passed away. She was asking for $340,000, comparable to the market price of 3-room flats in that area at the time. But her flat had only 54 years left on its lease.

Two months later in March, Minister Wong let the cat out of the bag when he told everyone that only 4% of old flats have been identified for Sers redevelopment since 1995 and for the rest of the HDB owners, their flats will be returned back to the government at the end of their lease.

That was when troubles began for Mdm Chai. All offers started to dry up for her after Minister Wong's announcement. Buyers told Mdm Chai that they were having second thoughts about buying her flat with only 54 years of lease left.

She then lowered her asking price to $320,000 but there were still no takers. Finally, after more than a year later, she managed to get rid of her old flat two months ago in February this year, at a much reduced price of $288,000 - some $52,000 less than her initial asking price of $340,000.

In other words, based on her selling price 2 months ago, the value of 3-room flats in Bukit Merah has dropped 15% in slightly more than a year, thanks to Minister Wong's announcement.

The promise made by his predecessor, Mah Bow Tan, about "HDB flats grow in value over time" has vanished overnight. Mah, then the National Development Minister told everyone just before GE 2011, "We're proud of the asset enhancement policy. (It) has given almost all Singaporeans a home of their own... that grows in value over time."

"Upon knowing the age, sometimes they won't even proceed with viewings"

In an accompanying report, ST also highlighted another case of HDB owner trapped in buying old HDB flats.

It featured a property agent, Janet Ow, who bought her 5-room flat with her husband, also a property agent, in the old estate of Telok Blangah. They bought the flat at $580,000 some 8 years ago in 2010. Currently, their old flat has just got 56 years left on its lease.

In 2016, they started marketing their flat at $680,000 to $690,000 hoping to make at least a $100K. Bids came in at $620,000 and $630,000 but now offers have also dried up. For more than a year now, they couldn't sell their flat.

"Those who called asked about the balance of my lease first," Ms Ow said. "The flat's age has now become a main concern after National Development Minister Lawrence Wong's reminder in March last year."

"Upon knowing the age, sometimes they won't even proceed with viewings. In 2016, when we put up an ad, we would get around 10 calls. Now, we don't even get a single call for one to two weeks," she added.

"If I don't sell now and prices keep dropping, I will be making losses on my flat eventually."

Ms Ow and her husband are hoping to sell their flat quickly so that they could get a condo with a fresh lease.

"At least we know we have a long lease ahead of us and can cash out," she said. "We don't want another HDB resale flat because the ageing lease problem will crop up again."

Property agent wants government to relax CPF rules for people to buy old HDB flats

One of the factors dampening demand for older flats is due to the restrictions imposed by CPF Board. Flats with lease more than 60 years (ie, newer flats less than 40 years old), can be bought with 100% CPF savings.

But for flats less than 60 years but with at least 30 years, only a percentage of CPF savings can be used. For example, a 30-year-old intending to buy an old flat with 55 years of lease left, he can only finance up to 55% of the purchase price with his CPF savings. The rest will have to be paid in cash. And for flats with lease less than 30 years, CPF savings can't be used at all.

So, in the case of older flats whose age just crossed the 40 years barrier, CPF financing for buyers nosedived considerably from 100% to 60% or less with them needing to cough up large amount of cash of 40% or more to buy the old flats.

Ms Ow said, "Perhaps HDB could look into allowing buyers of flats with less than 60 years left on the lease to utilise their CPF fully (ie, 100%) instead of partially."

"That will help to alleviate the worry of having to pay cash for part of the purchase. This will help buyers who need to buy flats in an oder estate to be near their parents who may be there," she added.

But of course, that would also mean whoever uses 100% of his CPF savings to buy such older flats, he will run the risk of expending large sums of his CPF savings now but having not enough to retire later when he could not also monetize his flat in later years due to the near-zero value of his almost expired flat.

In any case, at the moment, Ms Ow said she feels "insecure about the future". It's not known how much was taken in by Ms Ow and her likes with regard to the "Asset Enhancement Policy" espoused by the PAP government under then PM Goh Chok Tong in the earlier years.

https://www.theonlinecitizen.com/20...gs-comment-about-zero-value-of-expired-flats/
 

ginfreely

Alfrescian
Loyal
RCWvusg.jpg


Straits Times reported today ('Owners worry older HDB flats a depreciating asset', 15 Apr) that owners of older HDB flats are worried about the value of their flats hitting zero as the lease of their flats comes to an end.

Some were forced to sell their flats at a much lower price especially after National Development Minister Lawrence Wong came out last year saying that not all old HDB flats would be eligible for Sers redevelopment. Those not selected would be returned to the state when their 99-year lease expired, he said.

Mdm Chai was one of those affected. She received several offers when she first listed her 3-room HDB flat at Bukit Merah in January last year, after her mum passed away. She was asking for $340,000, comparable to the market price of 3-room flats in that area at the time. But her flat had only 54 years left on its lease.

Two months later in March, Minister Wong let the cat out of the bag when he told everyone that only 4% of old flats have been identified for Sers redevelopment since 1995 and for the rest of the HDB owners, their flats will be returned back to the government at the end of their lease.

That was when troubles began for Mdm Chai. All offers started to dry up for her after Minister Wong's announcement. Buyers told Mdm Chai that they were having second thoughts about buying her flat with only 54 years of lease left.

She then lowered her asking price to $320,000 but there were still no takers. Finally, after more than a year later, she managed to get rid of her old flat two months ago in February this year, at a much reduced price of $288,000 - some $52,000 less than her initial asking price of $340,000.

In other words, based on her selling price 2 months ago, the value of 3-room flats in Bukit Merah has dropped 15% in slightly more than a year, thanks to Minister Wong's announcement.

The promise made by his predecessor, Mah Bow Tan, about "HDB flats grow in value over time" has vanished overnight. Mah, then the National Development Minister told everyone just before GE 2011, "We're proud of the asset enhancement policy. (It) has given almost all Singaporeans a home of their own... that grows in value over time."

"Upon knowing the age, sometimes they won't even proceed with viewings"

In an accompanying report, ST also highlighted another case of HDB owner trapped in buying old HDB flats.

It featured a property agent, Janet Ow, who bought her 5-room flat with her husband, also a property agent, in the old estate of Telok Blangah. They bought the flat at $580,000 some 8 years ago in 2010. Currently, their old flat has just got 56 years left on its lease.

In 2016, they started marketing their flat at $680,000 to $690,000 hoping to make at least a $100K. Bids came in at $620,000 and $630,000 but now offers have also dried up. For more than a year now, they couldn't sell their flat.

"Those who called asked about the balance of my lease first," Ms Ow said. "The flat's age has now become a main concern after National Development Minister Lawrence Wong's reminder in March last year."

"Upon knowing the age, sometimes they won't even proceed with viewings. In 2016, when we put up an ad, we would get around 10 calls. Now, we don't even get a single call for one to two weeks," she added.

"If I don't sell now and prices keep dropping, I will be making losses on my flat eventually."

Ms Ow and her husband are hoping to sell their flat quickly so that they could get a condo with a fresh lease.

"At least we know we have a long lease ahead of us and can cash out," she said. "We don't want another HDB resale flat because the ageing lease problem will crop up again."

Property agent wants government to relax CPF rules for people to buy old HDB flats

One of the factors dampening demand for older flats is due to the restrictions imposed by CPF Board. Flats with lease more than 60 years (ie, newer flats less than 40 years old), can be bought with 100% CPF savings.

But for flats less than 60 years but with at least 30 years, only a percentage of CPF savings can be used. For example, a 30-year-old intending to buy an old flat with 55 years of lease left, he can only finance up to 55% of the purchase price with his CPF savings. The rest will have to be paid in cash. And for flats with lease less than 30 years, CPF savings can't be used at all.

So, in the case of older flats whose age just crossed the 40 years barrier, CPF financing for buyers nosedived considerably from 100% to 60% or less with them needing to cough up large amount of cash of 40% or more to buy the old flats.

Ms Ow said, "Perhaps HDB could look into allowing buyers of flats with less than 60 years left on the lease to utilise their CPF fully (ie, 100%) instead of partially."

"That will help to alleviate the worry of having to pay cash for part of the purchase. This will help buyers who need to buy flats in an oder estate to be near their parents who may be there," she added.

But of course, that would also mean whoever uses 100% of his CPF savings to buy such older flats, he will run the risk of expending large sums of his CPF savings now but having not enough to retire later when he could not also monetize his flat in later years due to the near-zero value of his almost expired flat.

In any case, at the moment, Ms Ow said she feels "insecure about the future". It's not known how much was taken in by Ms Ow and her likes with regard to the "Asset Enhancement Policy" espoused by the PAP government under then PM Goh Chok Tong in the earlier years.

https://www.theonlinecitizen.com/20...gs-comment-about-zero-value-of-expired-flats/
Super! Pap will now let me be sinkies savior to buy up old hdb flat. Sinkies will owe me again! Forever it’s sinkies owe me while I owe sinkies nothing!
 

halsey02

Alfrescian (Inf)
Asset
She forgot to play & sing this song...


Sure, sell double the price...or wait for 2020...miracles will come from the PAP..
 

JohnTan

Alfrescian (InfP)
Generous Asset
"If I don't sell now and prices keep dropping, I will be making losses on my flat eventually."

If somebody else buys that silly property agent's flat, that new buyer will be left holding the bag and making huge losses, while she upgrades to a new condo with 99 year lease.
 

zhihau

Super Moderator
SuperMod
Asset
Try asking how much a 40year old flat at Marine Parade costs...

Altogether now!!! HUAT AH!!!
 

tee_tah_beng

Alfrescian
Loyal
In this Dotard Country still got million Naive Greedy IDIOTS dreaming SECURITY form their HDB or Private Properties, dreaming rich and comfortable retirement or leaving assets for their children to enjoy wealth. ALL WILL TURN TO DUST. It is around the corner. Inevitable.
 

winnipegjets

Alfrescian (Inf)
Asset
If somebody else buys that silly property agent's flat, that new buyer will be left holding the bag and making huge losses, while she upgrades to a new condo with 99 year lease.

We are supposed to make lots of dough from ownership of HDB flat. Our retirement is supposed to be secured because of that.

All that bs is now confirmed to be false. Like that, how can sinkees sleep peacefully at night? More to worry. Vote PAP to worry more.
 

AhMeng

Alfrescian (Inf- Comp)
Asset
SB70 will still vote MIW. Lol :biggrin:
And to those SB70, vote riao mai comprain hokay ...
 

eatshitndie

Alfrescian (Inf)
Asset
nothing new and surprising anymore. warnings have already been posted numerous times on sbf about the pitfalls of “owning” a hdb flat. papsmearer has contributed extensively on this topic. the content is buried in threads but there’s no “hdb” nor property folders to contain them all. much of the opinions, debates, analyses, and info are there. forummers and sinkies affected can search for them. anyway sinkies will kpkb and wait for someone to do all the leg work for them. it’s beyond redemption. should just go to marina bay en masse and jump.
 
Last edited:

AhMeng

Alfrescian (Inf- Comp)
Asset
The message is simple..

Low SES poor hdb fuggers earn salary to pay rent rah. Only high SES can be land owning class.

So you peasants ...Mai Dream hokay..Lol :biggrin:
 

aurvandil

Alfrescian
Loyal
Only the foolish and gullible will believe what Lawrence Wong is saying.

The truth of the matter is that all the HDB flats will get SERS. They are however doing everything possible to ensure that that the SERS valuation of old HDB flats will not be 400k to 500k. With the restriction of financial loans and scare tactics that old HDB flat will become valueless, they hope to drop the market value of such old flats to between 50k to 100k. They can then get old HDB flats in prime locations for a steal. It seems unlikely that they will wait the lease to draw down to nothing to take the flats back for free. A more likely scenario will be to offer SERS when the flats are between 20 to 30 years.

If you PAP MP comes round with a proposal to SERS your 79 year old HDB flat for 100k, you should politely tell him to go ....

Some simple maths ... $100,000/(20 * 12)=$416. If you go into the rental market today, can you find a fully furnished HDB flats for $416? Assuming you rented the unit out at a low rate of $1,200 per month, you would collect $1,200 * 20 *12 = $288,000 over 20 years.

This simple calculation shows that the PAP loses money if they have to pay $400k to $500k for SERS. They can however expect to profit handsomely if they can force the SERS price for 20/30yr old units down to $50k - $100k.
 

JohnTan

Alfrescian (InfP)
Generous Asset
That was when troubles began for Mdm Chai. All offers started to dry up for her after Minister Wong's announcement. Buyers told Mdm Chai that they were having second thoughts about buying her flat with only 54 years of lease left.

She then lowered her asking price to $320,000 but there were still no takers. Finally, after more than a year later, she managed to get rid of her old flat two months ago in February this year, at a much reduced price of $288,000 - some $52,000 less than her initial asking price of $340,000.

The old hag probably bought her HDB flat for $50k or less.

If she could sell it for $288k, she made a profit of at least $200k over her original price. Ah Gong and Mah Bow Tan were right. HDB flats are truly asset enhancement. The old bitch is complaining that her profit is not big enough, and not that she lost money on her original investment.
 

ginfreely

Alfrescian
Loyal
The old hag probably bought her HDB flat for $50k or less.

If she could sell it for $288k, she made a profit of at least $200k over her original price. Ah Gong and Mah Bow Tan were right. HDB flats are truly asset enhancement. The old bitch is complaining that her profit is not big enough, and not that she lost money on her original investment.
What less than $50k? Should be less than $5k. I heard three room flat only $8k in 1970s.
 
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