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Taken from this blog:
http://amortal.wordpress.com/2009/02/17/hdb-lease-buyback-scheme/
HDB Lease Buyback Scheme.
Just another smart scheme.
As reported in the Straits Times on Monday, February 16 2006, by Jessica Cheam, it is clear that the bottom line of the HDB’s Lease Buyback scheme is to “go a long way in relieving the Government’s BURDEN to take care of elderly needs.” In form, this is highly praised by Ms Jessica Cheam as “one of HDB’s most innovative programmes in recent years”. In essence, this is really nothing new.
Many of the Government’s schemes have always been aimed at relieving the Government’s BURDEN to take care of the elderly, the needy, the sick, the poor and the BURDENSOME or at relieving the Government’s BURDEN to take ownership of its responsibility towards the citizenry. For example, the numerous CPF schemes, especially the CPF Life Scheme which is the mother of all CPF Board’s scheming that will relieve the Government of taking care of you when you retire; there’s the scheming of making private and independent charitable organizations to take over the BURDEN of the Government in providing social welfare to the people; and there’s also the scheming of indoctrinating into the mindset of the people not to develop a crutch mentality on the highly-paid, top-heavy and over-staffed Government .
Why are these people giving our A1 top-side first class First World Government so much troubles? Don’t they know that it is not the Government’s responsibility to look after them? Why are they still having this crutch mentality when we have been telling them for countless years not to depend on the Government?
Very BURDENSOME really! I hope one of these days, one super intelligent scholar elite would come along and think of one simple solution to solve all these BURDENSOME problems for our outstandingly extraordinary Government. Jokes aside. I am really really serious. Very serious. The number of old folks will reach 1,000,000 by 2030! That does not take into account the “New” citizens brining in their old parents and grand parents as well. Just imagine, one couple bringing in two or more old folks from China or India! I already have 4 New old folks as my next door neighbours last year.
The essence of this so-called most innovative HDB scheme of buying back the lease of your 99-year leased HDB flat is this:
You surrender your right of lease back to the HDB, and HDB will allow you to stay in that flat for 30 years. So if you are 62 years old at the point of signing the surrender document and happens to live until 93 years old, then at the age of 92 you have to vacate your flat and stay the remaining 1 year of your life at MRT stations, HDB void decks, etc. or, if you are still mentally alert and courageous enough, try to get yourself to stay in the comfortable Five Star Changi Prison with free meals and lodging as well as free body guards 24 hours a day, seven days a week, a privilege better than that of the President or the Prime Minister.
The Considerations.
What happens if you died at the age of 91 and you left behind a wife who is already 95 years old? She was expected to die before you because she is older than you but fortunately or unfortunately she happens to live longer than you. Where will she stay after the HDB’s 30 years’ grace is up? To the Khaw’s Company Pte Limited Johor Bahru Nursing Homes? Ah, that fix in very well, isn’t it?
What happens if you died at the age of 82 and you left behind a wife much younger than you, let’s say 50 years old? Your wife would have only 10 years left to stay in that flat. Where would she go after that? To the Prata Nathan & Co Pte Ltd Nursing Homes in Timbuktu or Siberia? Think about it before you sign blindly.
The Money You Get.
Now, the money part. Our esteemed Government will never forget to talk about money. This is very important to them, and also to you. HDB will buy the tail-end of your lease, after subtracting 30 years, at ‘Market Value’. And not ‘Market Price’! Be careful! There is a big difference here. ‘Market Value’ means HDB’s own valuation officer will estimate a value for your flat and “force” you to accept the price the HDB offers you; whereas ‘Market Price’ means you get your own independent valuation agency to value your flat for you and sell it at the price you want. From my own experience, HDB’s valuation is at least $30,000 below what you may get if you sell your flat yourself (meaning through a housing agent) at ‘Market Price’.
Whatever sum the HDB offers you, only after you have signed blindly on the dotted line without actually knowing how much your flat is worth, HDB will top it up with another $10,000 as grant. (What is $10,000 when you have been short-changed by $30,000?) From that $10,000 HDB will give you cash of $5,000 and the other $5,000 will be included in the sum which HDB has offered you for your flat. This total amount will buy you an annuity which will pay you $500 per month for life.
The Questions.
The questions to ask are:
1) Will the monthly $500 be sufficient for you and your wife to buy food and pay utility bills?
2) What happens 10 or 20 years down the road when inflation eats up the purchasing power of your $500 per month allowance? Inflation rate is between 4 to 8 per cent per annum.
Oh yes, HDB will allow you to rent out one room in order to supplement your monthly $500 allowance from HDB. So you may get another $300 - $400 extra cash to sustain your poor quality of life.
I know what you are thinking now. Your mental reflection goes back to the early years of your life, isn’t it? Those days when you were helping the young Lee Kuan Yew to gain power and to rule Singapore. Those days which were filled with hopes and aspiration for a better life for yourself and your children in the future, isn’t it? And you are now asking, “Why must it come to this state of affairs today?” isn’t it? Well, this is life in Singapore now. It is the reality. We have no choice!
How come we have no choice?
That is a very good question. You ask me, I ask who? You have to ask yourself and I have to ask myself. The answer is: We are the culprits. We are the old folks who have not bothered about the political developments in our country. We have been pathetic and apathetic - no hue, tida apa, bo chap! We are the old folks who have neglected to do the most important thing for our future generations. We are to be blamed. Yes, we are to be blamed for the situation we are in today. We have failed our children and our children’s children!
The people deserve the government that they have raised and supported. All governments in the world will aim at maintaining and prolonging their powers for as long as possible. All leaders in any government will aim at controlling the people’s mind, body and soul so that they will have the total power to do whatever they want to. Once people tasted power, it will be very hard for them to let go. It is a kind of addictive behaviour just like drug addicts. I think it is even worst.
Total control is the ultimate aim of any government. Why? Simply because it makes work and life so much easier for them. Your freedom is their serfdom. Your serfdom is their freedom. It is either you serve them or they serve you. On paper, they are to serve the people. In practice, the people are serving them. Have you noticed how the soldiers stand to attention and salute a minister whenever he passes by? Have you watched how a grass-root leader rush so hurriedly to open the door of the Mercedes car when a VIP arrives? Have you seen how a poor policeman shivers in his pants when censured by that Old Man that everybody fears but pretends to love?
Natural Resistance to Change.
Yes, I can see that you are resisting the scheme. It is only natural. Not to worry. Many others are just like you. You have company. No matter how innovative or how attractive a scheme may be, people will resist initially. But after a bit of persuasion and sales talk, they will buy into the scheme. In a few days time, the balls-carrying grass-root leaders are going to convince you to sign your surrender document on that dotted line. Will you sign? Are you going to sign? Should you or should you not sign?
Have you so fast forgotten the Minibonds and High Notes 5 fiascos? How much have you lost? $50,000? Too bad. Someone once told me that a dog that has eaten shit, will always want to eat shit. Do you want to be that dog? Or you prefer to be the mouse who barks?
Conclusion.
Basically, somebody is thinking that the 99-year lease has been a big mistake. It should have been a 30-year lease. This would give that bugger the option to pull down the flats every 30 years or so and replace them with new 30 to 50 storey flats which have smaller living space in order to maximize the number of units that can be built and sell them at a higher price to get a higher margin of profits. Basically, it is all about money. Big bucks for them and peanuts for you.
Once this scheme becomes popular, ten or twenty years down the road, all HDB flats will most probably be leased out for only 30 or 40 years, on a renewable basis, depending on your age when you purchased your flat.
The words are always clear but the meanings are usually blurred. Take my advice - DON’T SIGN!
Dedication: This article is dedicated to all the old folks in Singapore past, present and future.
http://amortal.wordpress.com/2009/02/17/hdb-lease-buyback-scheme/
HDB Lease Buyback Scheme.
Just another smart scheme.
As reported in the Straits Times on Monday, February 16 2006, by Jessica Cheam, it is clear that the bottom line of the HDB’s Lease Buyback scheme is to “go a long way in relieving the Government’s BURDEN to take care of elderly needs.” In form, this is highly praised by Ms Jessica Cheam as “one of HDB’s most innovative programmes in recent years”. In essence, this is really nothing new.
Many of the Government’s schemes have always been aimed at relieving the Government’s BURDEN to take care of the elderly, the needy, the sick, the poor and the BURDENSOME or at relieving the Government’s BURDEN to take ownership of its responsibility towards the citizenry. For example, the numerous CPF schemes, especially the CPF Life Scheme which is the mother of all CPF Board’s scheming that will relieve the Government of taking care of you when you retire; there’s the scheming of making private and independent charitable organizations to take over the BURDEN of the Government in providing social welfare to the people; and there’s also the scheming of indoctrinating into the mindset of the people not to develop a crutch mentality on the highly-paid, top-heavy and over-staffed Government .
Why are these people giving our A1 top-side first class First World Government so much troubles? Don’t they know that it is not the Government’s responsibility to look after them? Why are they still having this crutch mentality when we have been telling them for countless years not to depend on the Government?
Very BURDENSOME really! I hope one of these days, one super intelligent scholar elite would come along and think of one simple solution to solve all these BURDENSOME problems for our outstandingly extraordinary Government. Jokes aside. I am really really serious. Very serious. The number of old folks will reach 1,000,000 by 2030! That does not take into account the “New” citizens brining in their old parents and grand parents as well. Just imagine, one couple bringing in two or more old folks from China or India! I already have 4 New old folks as my next door neighbours last year.
The essence of this so-called most innovative HDB scheme of buying back the lease of your 99-year leased HDB flat is this:
You surrender your right of lease back to the HDB, and HDB will allow you to stay in that flat for 30 years. So if you are 62 years old at the point of signing the surrender document and happens to live until 93 years old, then at the age of 92 you have to vacate your flat and stay the remaining 1 year of your life at MRT stations, HDB void decks, etc. or, if you are still mentally alert and courageous enough, try to get yourself to stay in the comfortable Five Star Changi Prison with free meals and lodging as well as free body guards 24 hours a day, seven days a week, a privilege better than that of the President or the Prime Minister.
The Considerations.
What happens if you died at the age of 91 and you left behind a wife who is already 95 years old? She was expected to die before you because she is older than you but fortunately or unfortunately she happens to live longer than you. Where will she stay after the HDB’s 30 years’ grace is up? To the Khaw’s Company Pte Limited Johor Bahru Nursing Homes? Ah, that fix in very well, isn’t it?
What happens if you died at the age of 82 and you left behind a wife much younger than you, let’s say 50 years old? Your wife would have only 10 years left to stay in that flat. Where would she go after that? To the Prata Nathan & Co Pte Ltd Nursing Homes in Timbuktu or Siberia? Think about it before you sign blindly.
The Money You Get.
Now, the money part. Our esteemed Government will never forget to talk about money. This is very important to them, and also to you. HDB will buy the tail-end of your lease, after subtracting 30 years, at ‘Market Value’. And not ‘Market Price’! Be careful! There is a big difference here. ‘Market Value’ means HDB’s own valuation officer will estimate a value for your flat and “force” you to accept the price the HDB offers you; whereas ‘Market Price’ means you get your own independent valuation agency to value your flat for you and sell it at the price you want. From my own experience, HDB’s valuation is at least $30,000 below what you may get if you sell your flat yourself (meaning through a housing agent) at ‘Market Price’.
Whatever sum the HDB offers you, only after you have signed blindly on the dotted line without actually knowing how much your flat is worth, HDB will top it up with another $10,000 as grant. (What is $10,000 when you have been short-changed by $30,000?) From that $10,000 HDB will give you cash of $5,000 and the other $5,000 will be included in the sum which HDB has offered you for your flat. This total amount will buy you an annuity which will pay you $500 per month for life.
The Questions.
The questions to ask are:
1) Will the monthly $500 be sufficient for you and your wife to buy food and pay utility bills?
2) What happens 10 or 20 years down the road when inflation eats up the purchasing power of your $500 per month allowance? Inflation rate is between 4 to 8 per cent per annum.
Oh yes, HDB will allow you to rent out one room in order to supplement your monthly $500 allowance from HDB. So you may get another $300 - $400 extra cash to sustain your poor quality of life.
I know what you are thinking now. Your mental reflection goes back to the early years of your life, isn’t it? Those days when you were helping the young Lee Kuan Yew to gain power and to rule Singapore. Those days which were filled with hopes and aspiration for a better life for yourself and your children in the future, isn’t it? And you are now asking, “Why must it come to this state of affairs today?” isn’t it? Well, this is life in Singapore now. It is the reality. We have no choice!
How come we have no choice?
That is a very good question. You ask me, I ask who? You have to ask yourself and I have to ask myself. The answer is: We are the culprits. We are the old folks who have not bothered about the political developments in our country. We have been pathetic and apathetic - no hue, tida apa, bo chap! We are the old folks who have neglected to do the most important thing for our future generations. We are to be blamed. Yes, we are to be blamed for the situation we are in today. We have failed our children and our children’s children!
The people deserve the government that they have raised and supported. All governments in the world will aim at maintaining and prolonging their powers for as long as possible. All leaders in any government will aim at controlling the people’s mind, body and soul so that they will have the total power to do whatever they want to. Once people tasted power, it will be very hard for them to let go. It is a kind of addictive behaviour just like drug addicts. I think it is even worst.
Total control is the ultimate aim of any government. Why? Simply because it makes work and life so much easier for them. Your freedom is their serfdom. Your serfdom is their freedom. It is either you serve them or they serve you. On paper, they are to serve the people. In practice, the people are serving them. Have you noticed how the soldiers stand to attention and salute a minister whenever he passes by? Have you watched how a grass-root leader rush so hurriedly to open the door of the Mercedes car when a VIP arrives? Have you seen how a poor policeman shivers in his pants when censured by that Old Man that everybody fears but pretends to love?
Natural Resistance to Change.
Yes, I can see that you are resisting the scheme. It is only natural. Not to worry. Many others are just like you. You have company. No matter how innovative or how attractive a scheme may be, people will resist initially. But after a bit of persuasion and sales talk, they will buy into the scheme. In a few days time, the balls-carrying grass-root leaders are going to convince you to sign your surrender document on that dotted line. Will you sign? Are you going to sign? Should you or should you not sign?
Have you so fast forgotten the Minibonds and High Notes 5 fiascos? How much have you lost? $50,000? Too bad. Someone once told me that a dog that has eaten shit, will always want to eat shit. Do you want to be that dog? Or you prefer to be the mouse who barks?
Conclusion.
Basically, somebody is thinking that the 99-year lease has been a big mistake. It should have been a 30-year lease. This would give that bugger the option to pull down the flats every 30 years or so and replace them with new 30 to 50 storey flats which have smaller living space in order to maximize the number of units that can be built and sell them at a higher price to get a higher margin of profits. Basically, it is all about money. Big bucks for them and peanuts for you.
Once this scheme becomes popular, ten or twenty years down the road, all HDB flats will most probably be leased out for only 30 or 40 years, on a renewable basis, depending on your age when you purchased your flat.
The words are always clear but the meanings are usually blurred. Take my advice - DON’T SIGN!
Dedication: This article is dedicated to all the old folks in Singapore past, present and future.
