I got to read this in one of the replies after TR posted LHL saying "Old folks can sell or rent their HDB flats during financial hard times" in a CNA live interview.
I am not the expert in HDB policies but if what he said is true, it is indeed shocking!
would anyone care to comment? GMS you are welcomed too if you happen to see this.
copied and pasted here without any amendments.
------------------------------------------------
Russell Teo
Biggest misconception that is very irresponsible if not properly explained:
HDB that reaches 39yrs of lease age with 60 yrs remaining cannot be sold
HDB wont even lend any1 any amt of $ for any lease that only has 60yrs remain in lease
No bank...s in Spore will lend u any $ for e same purchase as well.
Meaning, HDB with just 60yrs of remaining lease is worthless.
From another viewpoint, u paid heftily for a 39yrs lease, not 99!
What happen after ur lease hit 39yrs of age?
HDB will evict u for compulsary buyback and ask u to chose another flat anywhere in Spore.
U will be given priority to chose new 1, 2, 3, 4, 5rm, EA, EC, BTO & EF anywhere in SG.
BUT, remember, the compensation u receive from HDB is not 99yrs of ur prop mart value at e time of eviction.
It'll be pro-rated at 60yrs!!
Worst, HDB at the time of ur eviction could cost more.
Meaning, u may end up paying from CPF or ur wallet to top up the diff if ur compensation & ur choice of replacement flat is more urban & bigger.
Or, u could downgrade & encash some $ if u r retired or get cash top up in ur CPF if u r not.
Now, the question will be, will ur cash proceeds from this eviction be enough for ur retirement & be a good return of investment?
Remember, u need to include all ur renovation, maintenance & most importantly of all, interest on ur mortgage as cost of ur invt.
So, u could end up with nothing of negligible $ thanks to HDB with 39 yrs of age!
And some of ya will say 39yrs is very long away.
Wrong, when u collect ur keys for a new flat, the lease had run 2-3yrs as a vacant land waiting for redevelopment & 3-6yrs of construction.
Meaning, u actually paid for a 30-34yrs of lease & not 99yrs.
Lastly, u may say u may not be involved as u will sell way way before the flat reach 39yrs of lease.
Good for ya, but someone will be without a chair when e music stop.
Let us pray current all time low interest remain low 4ever & price con't to rise as Spore con't to attract migrants & companies here con't to provide jobs for yrs to come and employment rate remains high.
IF none of e above scenario happen in tandem, we're in for a rude shock.
The fault will not be PAP.
I am not the expert in HDB policies but if what he said is true, it is indeed shocking!
would anyone care to comment? GMS you are welcomed too if you happen to see this.
copied and pasted here without any amendments.
------------------------------------------------
Russell Teo
Biggest misconception that is very irresponsible if not properly explained:
HDB that reaches 39yrs of lease age with 60 yrs remaining cannot be sold
HDB wont even lend any1 any amt of $ for any lease that only has 60yrs remain in lease
No bank...s in Spore will lend u any $ for e same purchase as well.
Meaning, HDB with just 60yrs of remaining lease is worthless.
From another viewpoint, u paid heftily for a 39yrs lease, not 99!
What happen after ur lease hit 39yrs of age?
HDB will evict u for compulsary buyback and ask u to chose another flat anywhere in Spore.
U will be given priority to chose new 1, 2, 3, 4, 5rm, EA, EC, BTO & EF anywhere in SG.
BUT, remember, the compensation u receive from HDB is not 99yrs of ur prop mart value at e time of eviction.
It'll be pro-rated at 60yrs!!
Worst, HDB at the time of ur eviction could cost more.
Meaning, u may end up paying from CPF or ur wallet to top up the diff if ur compensation & ur choice of replacement flat is more urban & bigger.
Or, u could downgrade & encash some $ if u r retired or get cash top up in ur CPF if u r not.
Now, the question will be, will ur cash proceeds from this eviction be enough for ur retirement & be a good return of investment?
Remember, u need to include all ur renovation, maintenance & most importantly of all, interest on ur mortgage as cost of ur invt.
So, u could end up with nothing of negligible $ thanks to HDB with 39 yrs of age!
And some of ya will say 39yrs is very long away.
Wrong, when u collect ur keys for a new flat, the lease had run 2-3yrs as a vacant land waiting for redevelopment & 3-6yrs of construction.
Meaning, u actually paid for a 30-34yrs of lease & not 99yrs.
Lastly, u may say u may not be involved as u will sell way way before the flat reach 39yrs of lease.
Good for ya, but someone will be without a chair when e music stop.
Let us pray current all time low interest remain low 4ever & price con't to rise as Spore con't to attract migrants & companies here con't to provide jobs for yrs to come and employment rate remains high.
IF none of e above scenario happen in tandem, we're in for a rude shock.
The fault will not be PAP.
