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Serious IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Bargain!

Discussion in 'The Courtyard Café' started by JohnTan, Mar 29, 2017.

  1. JohnTan

    JohnTan Alfrescian (InfP) Old Timer

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    Minister's cautionary note that not all old flats undergo Sers may force buyers to weigh not just location and size
    Ng Jun Sen


    [​IMG]

    Last year, Ms Siah Yuet Whey bought a Housing Board flat that is older than she is.

    She is 28 years old. It is 44.

    This means that she will most likely outlive its lease - which runs out in 55 years. She will be 83 then.


    That did not stop her and her husband, 31, from paying more than $700,000 for the three-room unit in Jalan Ma'mor, in Whampoa.

    [​IMG]

    At 861 sq ft, it works out to $854 per sq ft - the third-highest amount paid last year for flats with less than 60 years of lease left. "It is a rare terraced unit in an area with a lot of character, and it does not feel like it is very old at all. We think it is a fair price," said Ms Wong.

    Just 40,000 flats picked for Sers since 1995

    Out of around a million Housing Board flats in Singapore, only 4 per cent have been selected for the Selective En bloc Redevelopment Scheme (Sers) since it began in 1995.

    This translates into 40,000 units.

    They are located on 80 sites. Of these, 73 have been completed - meaning that all residents have moved out, according to data from the HDB.

    These are typically sites where the land has not been well utilised and has good redevelopment potential, National Development Minister Lawrence Wong said last Friday.

    There must also be suitable replacement sites available for residents. The Government's financial resources will be considered as well.

    Under the scheme, the HDB will acquire and demolish old flats. Affected residents are compensated based on market rates. They are also guaranteed a replacement flat in new blocks, with a fresh 99-year lease.

    Depending on their eligibility, residents also get a fixed sum in the form of a Sers grant - $15,000 for singles and $30,000 for families.

    Sers residents will be given priority if they are to opt for a new flat in a Build-to-Order or Sale of Balance Flats exercise.

    Last Friday, National Development Minister Lawrence Wong, alarmed by a news report on old HDB flats that fetched high prices, sounded a cautionary note about such buying behaviour. Some appeared to have bought those units on the assumption that their flats will benefit from the Selective En bloc Redevelopment Scheme (Sers), he said in a blog post.

    This is not so, he said. Only a small minority qualify for Sers, which compensates home owners for their flats and gives them new ones with fresh leases. The rest of the flats will return to the state when their leases expire.

    In particular, he advised younger couples to buy a home "that covers you and your spouse to age 95".

    Mr Wong's comments have attracted a mix of bewilderment and concern, especially among those who live in old units.

    "It wasn't cheap, but I thought the value will keep going up," said IT engineer Andy Zhang, 40, who also paid top dollar for an older home.

    Last January, he paid $950,000 for his five-room Bukit Timah flat. It is 43 years old and has just 56 years of lease remaining. This was last year's record for an HDB unit with less than 60 years left on the lease.

    To pay for it, Mr Zhang sold a newer three-room flat in Clementi.

    Still, he said, he has no regrets. "The age of this flat was not an immediate consideration. I bought this place because my daughter's school is nearby and the location is good."

    Flats of a certain vintage are more popular on the resale market due to factors such as location - they tend to be in mature estates - size and amenities in the neighbourhood.

    Statistics show they account for a disproportionate share of transactions in the HDB resale market.

    Almost half of all resales last year were of flats older than 30 years. This is even though such flats make up only around one-third of the HDB housing stock.

    Even flats older than 40 sell well, despite loan restrictions on how much buyers can withdraw from their Central Provident Fund to finance such purchases. They form 11 per cent of transactions from 2014 to last year, even though just 7 per cent of all HDB flats are of that age.

    Mr Zhang, for instance, said his resale flat - at 1,346 sq ft - is larger than today's five-room units, an important feature for his family of four.

    Ms Siah, a property analyst, is confident she can find a buyer within the next five years or so, due to the rarity of HDB terraced units. There are only 285 left in Singapore.

    But generally, she acknowledged, buyers will be more cautious about older flats following Mr Wong's warning. Said the chief executive of property portal Digital Real Estate Assistant: "Location is still the prime factor, not age. But his comments mean that people may be a lot more concerned about the age component now."

    ERA Realty key executive officer Eugene Lim said: "It is going to be a lot more difficult to find buyers for older resale HDB flats. Prices for these flats may even take a big hit due to lack of demand. From now on, it is quite likely home buyers will view older 99-year flats differently."

    Still, the problem looms far in the future for Mr Zhang, now more concerned about the living conditions for his family.

    Asked what his plans are if his home cannot keep its value or if he is unable to find a buyer, he laughed. "That is something to worry about in 40 to 50 years' time. Who knows if I will still be around."

    http://www.straitstimes.com/singapo...-high-prices-for-old-flats-face-reality-check
     
  2. chootchiew

    chootchiew Alfrescian (Inf)

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    hi sir, Mr zhang has a split personality .
    he didn't care about the years of lease left as 55 years later he probably will be dead..But he never has any plans or whatsoever regarding the flat for his children.
    Yet he is willing to pay 960k for a flat to be near his children school for convenience.

    I also noticed that sinkie parents are very willing to pay extra money for their house to be near their children's school, as if the child is going to study in that school for a lifetime ;)
     
  3. Brightkid

    Brightkid Alfrescian Old Timer

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    What to expect these buyers to say to MSM? That they made a stupid mistake in spending so much to be written off to zero if no sers and lease is up?

    Must save some face and say whatever excuses so not to look stupid to the world right?
     
  4. potter

    potter Alfrescian Old Timer

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    these rare terraced units so called are low cost landed house in JB. :confused: wahaha..
     
  5. nayr69sg

    nayr69sg Alfrescian Old Timer

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    Sinkies stupid lah. Still recall papsmearer trying to educate me on how leasehold is no different from freehold.
     
  6. The_Hypocrite

    The_Hypocrite Alfrescian (Inf)

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    It's Easy...They will sell it to the next family who wants their kids to go to school nearby
     
  7. shctaw

    shctaw Alfrescian (Inf)

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    Same if the leasehold is 999,999 years.

     
  8. GOD IS MY DOG

    GOD IS MY DOG Alfrescian (Inf)

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    seriously.............i'm sure these flats and homes aren't built to last 99 years................if start to collapse then how ?
     
  9. The_Hypocrite

    The_Hypocrite Alfrescian (Inf)

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    If it collapses. Pap will give u a replacement for the remainder of the lease
     
  10. po2wq

    po2wq Alfrescian (Inf)

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    ah loon wil tel ya ...

    u wen in wif ur i's open ...
     
  11. Rogue Trader

    Rogue Trader Alfrescian (Inf)

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    The advice I took: money is a priority only when you invest in property, but not when you are buying a home
     
  12. chootchiew

    chootchiew Alfrescian (Inf)

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    not so easy lo. They must find a parent who's child study nearby and don't care to leave the asset to their children.
     
  13. frenchbriefs

    frenchbriefs Alfrescian (Inf)

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    Serious?....
     
  14. frenchbriefs

    frenchbriefs Alfrescian (Inf)

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    How old must u be to buy a resale flat if ur single?
     
  15. babuSingh

    babuSingh Alfrescian Old Timer

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    Really dumb sinkie to buy a 950k old flat in midst of a extremely bearish economic climate and uncertainity.

    He is paying close to $200k in compounded interest. This sum of money saved could have put to good use for her daughter's education in a good overseas university.

    He is basically looking for a quick buck to get some money in the bank through the sales of his previous flat without considering the long term implications of valuation limit (LV) where he can no longer service his loan through CPF and have to cough up cold hard cash to service his loan.

    He has basically sold his life to service a debt amount that should not be there in the first place.

    Good luck to him and others who follow in his footsteps.
     
  16. flatearther

    flatearther Alfrescian Old Timer

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    hdb.gov.sg/cs/infoweb/residential/buying-a-flat/resale/eligibility-schemes

    "Single Singapore Citizen Scheme
    Buy an HDB resale flat as a single.
    You must be at least 35 years old if you are unmarried or divorced, and at least 21 years old if you are widowed or an orphan.
    "
     
  17. AllahPUKI

    AllahPUKI Alfrescian Old Timer

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    Stupid Chinese. We allahpuki will sell our house, collect earnings, buy car, spend all monies and finally end up camping in East coast park.
     
  18. mojito

    mojito Alfrescian Old Timer

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    Re: IT Engineer Sold New Clementi Flat To Buy $950k Old Flat With 56 Year Lease! Barg

    Worth! When SERS that time will worth even more! :eek:
     

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