Monday, April 23, 2018

Unhappy - HDB flats have no value at end of lease

75% of the people who voted in the Wisdom of the Crowd expressed their unhappiness that their HDB flat will have no value at the end of the lease.

Their reasons are:

a) They were misled by the PAP leaders

b) The PAP leaders owe a duty to the HDB owners to preserve the value of their investment

c) They will vote for a new government to find a solution.

Only 25% said that this is what a leasehold is. The HDB owners should accept this legal fact.

See the results here:
http://www.wisdomofthecrowd.sg/chart.aspx?ID=588

To solve this problem, the government should take these steps:

a) Allow CPF to be used for leases shorter than 60 years, so that buyers can get financing to buy the short leases and give liquidity to the existing owners to cash out.

b) Allow owners to extend their lease by 5 or 10 years at the end of the 99 year lease, provided that the buildings are still in good condition and there are no development plans. The owners will have to pay a premium for the extension of lease, but this can be set at an affordable rate.

I hope that the government will take these steps early, as many owners are now panicking and are selling their old HDB flats at depressed prices.

Do you agree?


Tan Kin Lian

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