Hence the discount to private leashold property. At the end of day cannot have cake and eat it. HDBs are great wealth creators for majority of Singaporeans (70 to 80%) - those that buy directly from the HDB. Just face the facts - you buy an HDB 5 years ago - likely cost you $200 to 250K. If you bought it 10 years ago, it likely cost you $150 to $200K. These flats have a current market value of between $380 to $450K.
That is why current gov stay in power - people feel the wealth effect.
Given that 90% of population live in HDBs and most of them buy using HDB loans, I would not be surprised if there are more evictions in the private property market vs HDB despite fact that pte prop is only 10% of population. An HDB guarantees roof over your head and that is most impt reason for buy a home.
If you go bankrupt (much more frequent occurence and people getting evicted by HDB) your creditors cannot come after your flat. Try that for a 99 year leasehold - late 4 to 6 payments and banks come after you. Now if you finance with HDB loans, the number of repos are few compared to private banks.
So please compare the number of HDB evictions (taking into account that it applies to 90% of pop) vs private property eviction and I think you have a better chance of kena evicted in private property. Also, your private property can be take back if there is a national need to acquire it for a road or MRT.
In short HDB allows:
Easy entry (easy loans, grants, no partial payments during construction phase)
It is pretty much yours for life and creditors cannot touch
It is a great wealth creator (especially give how little $ you have to put up initially)
HDBs do have more restrictions, you cannot form your own homeowners association (every goes to town council), you have little say on maintainence of the outside facilities, you cannot sell to foreigners, etc. But I believe in the market and the current markets shows a $150K premium once the 5 year restriction has been lifted.
Since 90% of the population live in HDBs, policies have to be populist in nature or else we will have a new political party!
BTW please enlighten me on the reasons for HDB evicting a person after 5 years MOP.
Put on your thinking caps lah. A leasehold private property is yours and therein lies the difference. Assuming you fully paid for your 99 year leasehold property you own it for 99 years. For HDB, even if you have fully paid for it, you can still be evicted by HDB as they own the unit.
The arguments put forth do not address this whatsoever. Points about resale or whatever has nothing to do with this issue, much less comments comparing ownership of cars or leaving the country if you don't like it. What has that got to do with being Singaporean and having a HDB flat? Not everyone wishes to leave the country nor has the means to do so.
I am opening this subject as a Singaporean has been evicted for renting out his flat without HDB's approval. If you own a private property you don't need approval and do pretty much as you please, but not HDB, even though you have fully paid up the 99 years rental.
