Hi, Mr. Tan,
As seen from yahoo.com.sg news as reported that most of the elderly citizens/residents who staying in the old HDB apartments, which are having slightly more than half of the 99-year leasehold balance, thus now find themselves cannot really enjoy better value of the premises(assents) as retirement benefits.
Due to depreciation, and value declinding because of lease-property, thus it could be detrimental to the expection of most elderly citizens/residents as what had been earlier told in the different sceanario.
As most of the elderly citizens/residents have lesser or even no retirement fund under CPF, it would be an hardship to all of them, and would HDB offer them better amount in the "Lease Sales Back" Scheme.....???
Thanks for your comment.
MY COMMENT:
HDB flat owners should understand that their HDB asset is a leasehold and a depreciating asset.
It is not different from buying a COE that last for 10 years only (and people are buying $50,000 or more for the COE) or a car that have a limited life span and will have no value at the end of its life.
They should not look at the HDB flat as an investment that will always appreciate in value. Instead, it should be just an advanced payment for the use of the flat for the remainder of the lease.
The seniors face a double whammy. They have a HDB flat that has depreciated in value due to a shorter remaining lease and to age. They also faced the additional short of a lack of demand for their flat.
The government can help to ease their burden in the following ways:
a) Encourage banks to provide a loan for short leasehold and allow the CPF to be used to pay off these loans
b) Provide financing for these old flats through the HDB.
Will the government step forward and do its part to reduce the burden for the seniors? Or will they neglect their duty?
Tan Kin Lian
As seen from yahoo.com.sg news as reported that most of the elderly citizens/residents who staying in the old HDB apartments, which are having slightly more than half of the 99-year leasehold balance, thus now find themselves cannot really enjoy better value of the premises(assents) as retirement benefits.
Due to depreciation, and value declinding because of lease-property, thus it could be detrimental to the expection of most elderly citizens/residents as what had been earlier told in the different sceanario.
As most of the elderly citizens/residents have lesser or even no retirement fund under CPF, it would be an hardship to all of them, and would HDB offer them better amount in the "Lease Sales Back" Scheme.....???
Thanks for your comment.
MY COMMENT:
HDB flat owners should understand that their HDB asset is a leasehold and a depreciating asset.
It is not different from buying a COE that last for 10 years only (and people are buying $50,000 or more for the COE) or a car that have a limited life span and will have no value at the end of its life.
They should not look at the HDB flat as an investment that will always appreciate in value. Instead, it should be just an advanced payment for the use of the flat for the remainder of the lease.
The seniors face a double whammy. They have a HDB flat that has depreciated in value due to a shorter remaining lease and to age. They also faced the additional short of a lack of demand for their flat.
The government can help to ease their burden in the following ways:
a) Encourage banks to provide a loan for short leasehold and allow the CPF to be used to pay off these loans
b) Provide financing for these old flats through the HDB.
Will the government step forward and do its part to reduce the burden for the seniors? Or will they neglect their duty?
Tan Kin Lian
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