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Serious Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old!

JohnTan

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Generous Asset
17883840_1440467345994604_2463323649740560803_n.jpg


SINGAPORE - Leasehold properties are still a good store of asset value, so long as you plan ahead and make prudent housing decisions, wrote National Development Minister Lawrence Wong in a Facebook post.

This is a follow-up to his cautionary note last month (March 24) on the high prices of older Housing Board flats on the resale market, which generated discussions and debate over the 99-year lease, he said.

HDB flats, like many private properties, are sold on a 99-year lease.


Wrote Mr Wong on Wednesday: "To begin with, Singaporean couples enjoy significant subsidies when they purchase a HDB flat for the first time, be it a new flat or one from the resale market."


A 30-year-old couple, for example, with a combined monthly income of $5,000 and looking for a resale flat in Woodlands near their parents can get up to $75,000 in grants off the resale flat price and should easily afford a flat with a lease of 90 years.


Mr Wong wrote: "Thirty-five years later, the couple will be 65 and the remaining lease of the flat will be 55 years. They still have an asset which can be monetised for retirement."

This is already happening in Woodlands, he added, sharing the example of a 65-year-old elderly couple living in a four-room flat with 55 years of lease remaining in Woodlands.


Through the Silver Housing Bonus scheme, the couple can sell their flat and right-size to a nearby two-room Flexi flat with a 30-year lease, while enjoying a bonus of $20,000 in cash.

Said Mr Wong: "They can also get quite a lot of money from the sale proceeds - around $100,000 upfront in cash, plus $500 per month of additional income for their retirement (on top of what they would get through CPF Life)."

Alternatively, they can apply for the Lease Buyback Scheme, which allows them to continue living in the flat for 30 years and sell the remaining 25 years of lease back to HDB, he pointed out.

This would give them $47,000 in cash and a monthly retirement income of $400 under the scheme, on top of a cash bonus of $10,000.

"The cash amount is not as much as if they were to right-size, but that's because they can continue to stay in the same flat, and also have the option to rent out a room," Mr Wong added.

These examples are typical of many HDB households today, he said.

He wrote: "The general point is that the HDB leasehold flat is not only a good home, but also a nest-egg for future retirement needs.

"That's what we have achieved and that's what we will continue to ensure - both now and in the future."

http://www.straitstimes.com/singapo...ggs-for-future-retirement-needs-lawrence-wong
 

nayr69sg

Super Moderator
Staff member
SuperMod
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

Total rubbish. What about the interest paid on the mortgage over the years! 47k? 100k can retire? Rubbish million dollar minister. You make that amount in ONE bloody month!
 

frenchbriefs

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Asset
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

this is why u cannot take a PAP minister's words seriously,the only thing u can really trust is CASH,investments,stocks and bonds,and other assets.even CPF is highly suspect.

all these nonsense about monetising ur flat for ur retirement,and spending ur whole life and garnishing ur cpf to pay for ur flat,its little wonder that sinkies have so little liquid wealth and savings besides their only "asset".and they make it sound so enticing,giving up ur already shitty tiny pigeon hole for a even more compact RIGHT SIZE pigeon hole,plus u get a $20k cash bonus,wow!!!u must be really poor if u are tempted by a 20k cash bonus,people who are truly rich and own their own real estate do not care about some measly 20k,they can generate 20k anytime in the property market.

the days of reaping huge returns on ur pigeon hole investments are over,if u think u can purchase ur flats for 70k and sell it for 300k,400 percent profit 20 years later,think again.what worked in the past is unlikely to work again.

all these nonsense about HDB and CPF,PAP is promising a pot of gold at the end of the rainbow,a retirement that will never exist......makes me want to work harder at building a nest egg and get the fuck out of this shithole.
 
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zhihau

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SuperMod
Asset
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

Total rubbish. What about the interest paid on the mortgage over the years! 47k? 100k can retire? Rubbish million dollar minister. You make that amount in ONE bloody month!

Payments for upfront rental with interests to boot! Bwahahahahahahaa...
 

HTOLAS

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Asset
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

They're trying to recover the votes they lost from aging estates after his first statement.
 

AhNehs

Alfrescian
Loyal
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

when they started lease buy back, it is already a signal to put weight of valuation on balance lease. however sinkies seem to be blind to think that a HDB flat that is already close to 30 years is worth buying and still want to make a windfall...
 

frenchbriefs

Alfrescian (Inf)
Asset
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

when they started lease buy back, it is already a signal to put weight of valuation on balance lease. however sinkies seem to be blind to think that a HDB flat that is already close to 30 years is worth buying and still want to make a windfall...

No such thing as free lunch in the world,why would PAP want to pay 120k for last 25 years of a lease that's worth nothing?
 

Brightkid

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Loyal
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

So, will there be someone left holding the hot potato while the value of aged HDB races to zero as tenure pass 65 years old?

LW is now suggesting to flip HDB as soon as you can to avoid being the last to hold the hot potato?
 

AhNehs

Alfrescian
Loyal
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

So, will there be someone left holding the hot potato while the value of aged HDB races to zero as tenure pass 65 years old?

LW is now suggesting to flip HDB as soon as you can to avoid being the last to hold the hot potato?

Yep, but the cat is out of the bag, market will adjust and those who are in above 30 years lease will be in shit :biggrin:
 

frenchbriefs

Alfrescian (Inf)
Asset
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

So, will there be someone left holding the hot potato while the value of aged HDB races to zero as tenure pass 65 years old?

LW is now suggesting to flip HDB as soon as you can to avoid being the last to hold the hot potato?

No worries,the garmen is waiting to buy back the last 25 years of ur lease for 47k plus 10k and $400 a month for the next 30 years or till u die whichever first.the only requirement is u need at least 55 years of lease remaining.
 
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AhNehs

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Loyal
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

Moral of the story?

The good times are over. Thats all folks :biggrin:
 

frenchbriefs

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Asset
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

The main party is over,let the after party begin.
 

frenchbriefs

Alfrescian (Inf)
Asset
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

theres nothing wrong with HDB flats,the fact that PAP is willing to place a value of 47k plus 10k plus $400 a month on the last remaining 25 years of the lease means they are setting a price floor be it a artificial one.by buying back 25 years of ur lease(what can u do with a 25 year lease?unless u planning to open a gambling den or brothel),the PAP is essentially shortening ur lease to 74 years,and returning part of the ponzi money back to u in ur old age.its amazing sinkies have no catch on to this yet.

hooray for PAP!!!!!PAP wan sui wan wan sui!!!!!
 

Bad New Brown

Alfrescian
Loyal
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

I believe that many Generation Y folks do not have a $20,000 cash saving in hand now.

Middle class Baby Boomers retired with about $100,000 while low income Boomers retired with $50,000 cash saving.

Yes most sinkies are really poor :(
 

Papsmearer

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Generous Asset
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

Total rubbish. What about the interest paid on the mortgage over the years! 47k? 100k can retire? Rubbish million dollar minister. You make that amount in ONE bloody month!

Please shut your cheebye mouth up. You are still confused on the difference between a HDB 99 year Lease, and a real Leasehold property, and yet you still want to come here and talk shit.
 

nayr69sg

Super Moderator
Staff member
SuperMod
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

Please shut your cheebye mouth up. You are still confused on the difference between a HDB 99 year Lease, and a real Leasehold property, and yet you still want to come here and talk shit.

https://www.99.co/blog/singapore/leasehold-property-99-years/

It is practically same thing lah. You are the deluded foolish ignorant naive brat. Stop hiding behind vulgarities. Only brainless uncouth youths do that.
 

ginfreely

Alfrescian
Loyal
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

https://www.99.co/blog/singapore/leasehold-property-99-years/

It is practically same thing lah. You are the deluded foolish ignorant naive brat. Stop hiding behind vulgarities. Only brainless uncouth youths do that.

Based on my layman knowledge, the difference between 99 year HDB and 99 year private property is the share values held in the estate. For private property, the unit owns a share value of the entire estate while for HDB, no such thing. Any expert here can confirm?
 

nayr69sg

Super Moderator
Staff member
SuperMod
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

Basically the difference is private 99 year lease got chance to sell enbloc to private developer. Also got chance to extend lease. But all must meet SLA approval anyway which is the govt.

Private 99 year lease properties not yet hit this 55 year left on leasehold yet.

For those already en bloc once 99 year leasehold the chance of going en bloc again and make money is low. How high can SLA approve to build again?

End of the day it is called a leasehold for a reason. Only fools think they actually own the property when they are granted a 99 year lease.
 

Papsmearer

Alfrescian (InfP) - Comp
Generous Asset
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

Based on my layman knowledge, the difference between 99 year HDB and 99 year private property is the share values held in the estate. For private property, the unit owns a share value of the entire estate while for HDB, no such thing. Any expert here can confirm?

u are absolutely 100% right. And so far from what i can see, you are one of the few here who understands the concept. Versus the moron Nayr69sg who claims to be a medical doctor, but can't understand this concept.

In the HDB 99 year lease, its just a straight rental. You have prepaid 99 years worth of rent up front to the landlord (HDB). You own nothing and you get nothing when the lease expires. That is why its called a lease.

In a private condo case, a 99 year lease is actually a leasehold. What they are leasing is the land for 99 years, but they hold (own) the building that sits on this land. So, all the owners that live in the building actually own their own units and a share in the common areas etc. because they own the building, they can do what they want with it. If all the owners decide to tear the building down after 50 years and build a new one, they can do so, and maybe without even any need to inform the landlord dependent on the terms of their lease. This is not possible at all with the HDB 99 year lease, as they are not the owners of the building.
 
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Papsmearer

Alfrescian (InfP) - Comp
Generous Asset
Re: Lawrence Wong: Leasehold HDB Good Store of Asset Value! Easy To Monetize When Old

Basically the difference is private 99 year lease got chance to sell enbloc to private developer. Also got chance to extend lease. But all must meet SLA approval anyway which is the govt.

Private 99 year lease properties not yet hit this 55 year left on leasehold yet.

For those already en bloc once 99 year leasehold the chance of going en bloc again and make money is low. How high can SLA approve to build again?

End of the day it is called a leasehold for a reason. Only fools think they actually own the property when they are granted a 99 year lease.

Truly, you are a fucking idiot. "Your logic is like 2 grains of wheat hid in 2 bushels of chaff, you shall seek all day and 'ere you find them, and when you found them, they are not worth the search". U have no understanding of it, but act like you know. So, you post this kind of shit and confuse and muddy the water further. Really moronic.
 
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