The current govt policy is to allow CPF to be used to buy a leasehold property of at least 60 years. This is to ensure that the owner will have a place to stay for a lifetime, on the assumption that most people will buy their flats in their late twenties or later. The govt does not want to see the remaining lease run out while the owner is still alive.
When someone buys a property with a remaining lease less than 60 years, he can still use CPF to pay for the property but a formula is applied to reduce the amount of CPF that can be used. This formula is complicated, but effectively it reduces the use of CPF significantly.
The restricted use of CPF and the awareness that the HDB flat will have no value at the end of the lease has caused the prices of HDB flats over 40 years old to drop sharply. Someone told me that the value dropped by 20% after the national development minister said that the value of a HDB flat will be zero at the end of the lease.
Many owners of old HDB flats are not able to find a buyer at a price that they expect.
What can be done to solve this problem? Read here:
https://tklcloud.com/Feedback/feedback2.aspx?id=1018
When someone buys a property with a remaining lease less than 60 years, he can still use CPF to pay for the property but a formula is applied to reduce the amount of CPF that can be used. This formula is complicated, but effectively it reduces the use of CPF significantly.
The restricted use of CPF and the awareness that the HDB flat will have no value at the end of the lease has caused the prices of HDB flats over 40 years old to drop sharply. Someone told me that the value dropped by 20% after the national development minister said that the value of a HDB flat will be zero at the end of the lease.
Many owners of old HDB flats are not able to find a buyer at a price that they expect.
What can be done to solve this problem? Read here:
https://tklcloud.com/Feedback/feedback2.aspx?id=1018
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