this whole thing is so fishy,after u sold part of the lease back to the government,what is the actual lease life of the hdb flat left?can hdb resell the flat on the market?what determines the lifespan of a hdb flat?
and this sounds like a losing transaction for the flat owner......in exchange for a certain sum,the owner gets to stay in the flat for another X amount of years....lets say the 4 room flat owner decides to keep 20 years of his lease,he gets $1k per month X 12 months X 20 years =$240k,after which the government gets ur flat.....essentially the government will never lose,since they are buying ur flat for cheap below the market price and letting u stay for another 10 or 20 years.......and this 240k does not account for inflation and devaluation of currency and purchasing power......since it is paid over the length of 20 years,and not a lump sum upfront payment of 240k today......$1000 in the future is worth much much less than $1000 today,currency loses approximately 33 percent of its value every 20 years......which is like another discount over time for the PAP.....who knows if u wanted to sell ur 4 room flat 10 years later,4 room flats could be worth 500k by then assuming 5 percent inflation in housing per year.and u lost out on another 150k of value.....thats another 150k into PAP's pockets.