HDB En Bloc Nightmares!
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Actually there are lots of peoples same boat as you or even worst, but most like to keep to themselves becos of pride and face. So in the end, everything in Singapore looks normal, nice and rich to others. So why not all those peoples like you go sleep at bus stops or void decks to get attention, maybe the newspaper will feature you and make you famous..then maybe help will arrive.
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Hi PPP
Calm down .....
I am in the same situation as you but I don't remember paying so much levy. My family has private property and is on second direct purchase from HDB.
There are something puzzling about your case and I am trying to figure out.
Let me read and ask you some question, from there I try to help you out....
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"Forced" to pay Levy $75,000 to $78,000 (Not that I want to buy 2nd HDB direct)"
PPP
Can you tell me how you get the 75 to 78 K levy?
Is it based on your previous direct purchase or
Is it the new replacement flat?
You see there are two options of paying your levy. -
When one is making a complain or asking for help, it would be best if he is honest and straightforward, with full facts. Otherwise it would seem to be mischief being played.
I would give benefit of doubt to the threadstarter and blame it on ignorance then. Symphathies of 'old age, poor, etc' will only get you so far. But it is TRUTH that will set you free. Here are some facts:-
1. According to HDB,annex D of the SERs(enbloc) states clearly that:-
(f) Exemption from the payment of resale levy for the existing flats;
So what is levy are you harping about?
2. Should you buy another new flat of your choice, with HDB subsidies, in an area of your choice, there will be a resale levy, as it is a flat of your choice and not a 'replacement' unit for you. And that levy is only $15,000 for a 2room flat and between $30,000 to max cap $50,000 for other room types.
But if you buy in the open market, you need not pay the levy.
3. I know not where you stay, but basing on the current Commonwealth SER programme, the valuation of a flat there is between $200,000 - $230,000.
Owners are asking at a premium - $300,000 for their flats.
Assuming you sold yours at $$270,000, you would have made an investment return of $170,000:-
-initial capital = $100,000
-sold = $270,000
-cash on hand = $170,000
-in your CPF kitty = $100,000
Total asset value = $270,000 ( to buy new flat anywhere, putting $100,000 of your CPF as deposit and loaning the balance, eg:-
Resale 3rm flat in CCK = $200,000
less deposit = $100,000 deduct from CPF
loan = $10,000 loan over 30 years = est $694/mth ( depending on interest)
But take note: you would still have $170,000 CASH ON HAND. with an asset value of $200,000, HDB home, with a 99 years lease, not 30 year lease, at current market value, which will grow at 10% per year.
So, you are not as 'poor' or 'destitute' as you want us to thank. And this you would have to thank our founding fathers for making us owners of properties, a security for ourselves.
Americans and other envious people would prefer us to take on 30 year leasses, but the 99 year lease came at a time when leaders were more generous. Don't ever make them change to 30 years lease, it would be a business decision most leaders would want, but citizens will only suffer at old age.
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Why would anyone want to buy an enbloc flat?
Because:-
a) the flat would be situated at a central area with more amenities, unlike newer estate.(eg, commonwealth - near MRT)
b) 1st timers get 20% discount on the units there, on top of all other subsidies, if they qualify.
c.) 1st timers would have to wait between 3 to 5 years to get their new flats, but with enbloc/SERs, they can get it within 1 to 2 years.
Why should we have SERs/enbloc sales?
Because old flats are not land efficient, for they are mostly 10 storeys high, and built with not good construction furnishings. But by demolishing them and replacing them, they can be as high as 40 storeys, much more land efficient, and comes with better facillities such as gardens, playgrounds, access roads, cablings, etc.
Best of all, owners of existing flat getting replacement units have their leases extended another fixed 99 years, at a lower cost.
So why is the Threadstarter complaining?
Maybe because he love his home of many years and bemoan the leaving of his neighbours and way of life? People get upset with 'changes'.
But make no mistakes, no one person owns the land in Singapore. It is own by every citizen present and the future to come. Land use efficiency is a priority for economic growth. No growth = no future. Why waste the human life in inefficiency?
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Originally posted by xtreyier:
When one is making a complain or asking for help, it would be best if he is honest and straightforward, with full facts. Otherwise it would seem to be mischief being played.
I would give benefit of doubt to the threadstarter and blame it on ignorance then. Symphathies of 'old age, poor, etc' will only get you so far. But it is TRUTH that will set you free. Here are some facts:-
1. According to HDB,annex D of the SERs(enbloc) states clearly that:-
(f) Exemption from the payment of resale levy for the existing flats;
So what is levy are you harping about?
2. Should you buy another new flat of your choice, with HDB subsidies, in an area of your choice, there will be a resale levy, as it is a flat of your choice and not a 'replacement' unit for you. And that levy is only $15,000 for a 2room flat and between $30,000 to max cap $50,000 for other room types.
But if you buy in the open market, you need not pay the levy.
3. I know not where you stay, but basing on the current Commonwealth SER programme, the valuation of a flat there is between $200,000 - $230,000.
Owners are asking at a premium - $300,000 for their flats.
Assuming you sold yours at $$270,000, you would have made an investment return of $170,000:-
-initial capital = $100,000
-sold = $270,000
-cash on hand = $170,000
-in your CPF kitty = $100,000
Total asset value = $270,000 ( to buy new flat anywhere, putting $100,000 of your CPF as deposit and loaning the balance, eg:-
Resale 3rm flat in CCK = $200,000
less deposit = $100,000 deduct from CPF
loan = $10,000 loan over 30 years = est $694/mth ( depending on interest)
But take note: you would still have $170,000 CASH ON HAND. with an asset value of $200,000, HDB home, with a 99 years lease, not 30 year lease, at current market value, which will grow at 10% per year.
So, you are not as 'poor' or 'destitute' as you want us to thank. And this you would have to thank our founding fathers for making us owners of properties, a security for ourselves.
Americans and other envious people would prefer us to take on 30 year leasses, but the 99 year lease came at a time when leaders were more generous. Don't ever make them change to 30 years lease, it would be a business decision most leaders would want, but citizens will only suffer at old age.
Xtreyier
You are not quite right.
The above law only applies to the residents who are original buyers from HDB. In other words, those first residents who purchased direct from HDB and who are currently still the owner of the flats are exampted from paying the levy.
However, for those who have bought the current flat on the resale market and who have previously bought a direct flat from HDB, these group of ppl are not exampted from paying levy.
For this group of ppl, I pity them. They can be caught in the cycle of selling low and buying high and when they are caught in the Enblock stuff, they are financially unprepared .
Also, if anyone, original owner or subsequent owner, who owns a private property besides the current flat, will be asked to pay the replacement flat at the full cost (ie no subsidy). -
Originally posted by 4sg:
Xtreyier
You are not quite right.
The above law only applies to the residents who are original buyers from HDB. In other words, those first residents who purchased direct from HDB and who are currently still the owner of the flats are exampted from paying the levy.
However, for those who have bought the current flat on the resale market and who have previously bought a direct flat from HDB, these group of ppl are not exampted from paying levy.
For this group of ppl, I pity them. They can be caught in the cycle of selling low and buying high and when they are caught in the Enblock stuff, they are financially unprepared .
Also, if anyone, original owner or subsequent owner, who owns a private property besides the current flat, will be asked to pay the replacement flat at the full cost (ie no subsidy).Yes. You are right. But lets understand what HDB is all about. It is about giving citizen homeownership rights.
As a 1st timer, anyone of us citizen would support that right. But for a 2nd timer, that choice of home ownership is a luxury. As we all know, in Spore, one should live within his means and pay for what he can afford. No more valid reason to subsidize them. We do not have any natural resources, let alone infinite resources.
Private property homeowners, 2nd timers, etc, while do have my sympathies, but priority of right will always and must always be given to our new 1st timer citizens, espacially our young, a chance. This can only happen in Spore. No where else does any country gives a damn about the aspirations of the young in terms of cheap and good affordable housing.
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Originally posted by xtreyier:
Why would anyone want to buy an enbloc flat?
Because:-
a) the flat would be situated at a central area with more amenities, unlike newer estate.(eg, commonwealth - near MRT)
b) 1st timers get 20% discount on the units there, on top of all other subsidies, if they qualify.
c.) 1st timers would have to wait between 3 to 5 years to get their new flats, but with enbloc/SERs, they can get it within 1 to 2 years.
Why should we have SERs/enbloc sales?
Because old flats are not land efficient, for they are mostly 10 storeys high, and built with not good construction furnishings. But by demolishing them and replacing them, they can be as high as 40 storeys, much more land efficient, and comes with better facillities such as gardens, playgrounds, access roads, cablings, etc.
Best of all, owners of existing flat getting replacement units have their leases extended another fixed 99 years, at a lower cost.
So why is the Threadstarter complaining?
Maybe because he love his home of many years and bemoan the leaving of his neighbours and way of life? People get upset with 'changes'.
But make no mistakes, no one person owns the land in Singapore. It is own by every citizen present and the future to come. Land use efficiency is a priority for economic growth. No growth = no future. Why waste the human life in inefficiency?
Selling his current Enblock flat on the open market and reap some financial benefit out the scheme is a bright idea. But hold on a second. PPP has to understand something very important. And many ppl would not be aware of the following:
If PPP sells his HDB unit on the open market, reaps some financial reward and moves to an old 3 room flat, the story does not end here. Full stop!
If PPP sells his HDB unit on the open market, HDB threats him as consuming the second HDB flat subsidy. In other words, PPP can never buy direct from HDB again. If he later tries to buy direct from HDB, there would be many restriction placed on him.
If he choose to sell on the open market. What PPP has to worry or concerned about are the followings.
If he moves to another 3 room flat and this flat is Enblock, he will be caught in a more severe situation. Because PPP has consumed all the chances. Everyone is given 2 chances to buy direct from HDB.
So PPP, if you planning to reap some fincancial reward and moves to another open market 3 room flat, make sure the flat is an unpgraded unit. This type of flat will has lesser chance of being Enblock.
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Originally posted by xtreyier:
Yes. You are right. But lets understand what HDB is all about. It is about giving citizen homeownership rights.
As a 1st timer, anyone of us citizen would support that right. But for a 2nd timer, that choice of home ownership is a luxury. As we all know, in Spore, one should live within his means and pay for what he can afford. No more valid reason to subsidize them. We do not have any natural resources, let alone infinite resources.
Private property homeowners, 2nd timers, etc, while do have my sympathies, but priority of right will always and must always be given to our new 1st timer citizens, espacially our young, a chance. This can only happen in Spore. No where else does any country gives a damn about the aspirations of the young in terms of cheap and good affordable housing.
xtreyier
I, too, agree with some of your points. I have no dispute with you. While you are out to refute some of his points, I am not.
I understand what PPP is going through. HDB Enblock can be a frightening experience to go through, esp if one is unprepared and loss about many things.
Let be a little sympathetic, let me ask him some questions and figure it out (if I can for him). For I have gone thru the experience before. -
Originally posted by 4sg:
Selling his current Enblock flat on the open market and reap some financial benefit out the scheme is a bright idea. But hold on a second. PPP has to understand something very important. And many ppl would not be aware of the following:
If PPP sells his HDB unit on the open market, reaps some financial reward and moves to an old 3 room flat, the story does not end here. Full stop!
If PPP sells his HDB unit on the open market, HDB threats him as consuming the second HDB flat subsidy. In other words, PPP can never buy direct from HDB again. If he later tries to buy direct from HDB, there would be many restriction placed on him.
If he choose to sell on the open market. What PPP has to worry or concerned about are the followings.
If he moves to another 3 room flat and this flat is Enblock, he will be caught in a more sever situation. Because PPP has consumed all the chance. Everyone is given 2 chances to buy direct from HDB.
So PPP, if you planning to reap some fincancial reward and moves to another open market 3 room flat, make sure the flat is an unpgraded unit. This type of flat will has lesser chance of being Enblock.
That is sound advice. Just for clarification; the ' restrictions' and 'sever situation' is actually nothing more than:-
a) paying the levy if he wants a second chance at taking subsidies ( we the taxpayer's monies)
b.) buying the new replacement unit at a lower price from HDB than in the resale market if he gets caught at another enbloc situation.
c.) no need to pay ANY levy if he buys from resale market.
No matter how, he as a citizen benefits with HDB - our citizen ideal collective effort on home ownership as compared to other countries with similiar lack in natural resources, base on equality and merit, not by the color of your skin or the religion or language you belong.
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Xtreyier
All your points from a theoreticaql stand is correct. But while you and I seat here and debate, you also has to understand that there are real issues, real ppl out there and we cannot draw a line and say this is 'black' and this is 'white' stuff, yeah?
"As a 1st timer, anyone of us citizen would support that right. But for a 2nd timer, that choice of home ownership is a luxury. As we all know, in Spore, one should live within his means and pay for what he can afford. No more valid reason to subsidize them. We do not have any natural resources, let alone infinite resources."
Not true Xtreyier, I came across neighbour who fallen ill, had to fork out a hugh medical bill and therefore had to sell his direct HDB and moved to the smaller unit. When the smaller unit is Enblock, this ppl is caught in a diff situation."Private property homeowners, 2nd timers, etc, while do have my sympathies, but priority of right will always and must always be given to our new 1st timer citizens, espacially our young, a chance. This can only happen in Spore. No where else does any country gives a damn about the aspirations of the young in terms of cheap and good affordable housing."
The issue here is not about 1st timer owner. The issue here is about ppl flat being taken away and asked to move to another flat. Along this process, some ppl faces hardship. -
Originally posted by xtreyier:
That is sound advice. Just for clarification; the ' restrictions' and 'sever situation' is actually nothing more than:-
a) paying the levy if he wants a second chance at taking subsidies ( we the taxpayer's monies)
b.) buying the new replacement unit at a lower price from HDB than in the resale market if he gets caught at another enbloc situation.
c.) no need to pay ANY levy if he buys from resale market.
No matter how, he as a citizen benefits with HDB - our citizen ideal collective effort on home ownership as compared to other countries with similiar lack in natural resources, base on equality and merit, not by the color of your skin or the religion or language you belong.
You still don't get it, option (b) is a no no for him anymore. That is, if he goes down that pathway. And I am trying to warn him ot that.
It is two strikes and you are out. HDB allows all citizens to purchase direct from it only twice and no more. -
Originally posted by 4sg:
Xtreyier
All your points from a theoreticaql stand is correct. But while you and I seat here and debate, you also has to understand that there are real issues, real ppl out there and we cannot draw a line and say this is 'black' and this is 'white' stuff, yeah?
"As a 1st timer, anyone of us citizen would support that right. But for a 2nd timer, that choice of home ownership is a luxury. As we all know, in Spore, one should live within his means and pay for what he can afford. No more valid reason to subsidize them. We do not have any natural resources, let alone infinite resources."
Not true Xtreyier, I came across neighbour who fallen ill, had to fork out a hugh medical bill and therefore had to sell his direct HDB and moved to the smaller unit. When the smaller unit is Enblock, this ppl is caught in a diff situation."Private property homeowners, 2nd timers, etc, while do have my sympathies, but priority of right will always and must always be given to our new 1st timer citizens, espacially our young, a chance. This can only happen in Spore. No where else does any country gives a damn about the aspirations of the young in terms of cheap and good affordable housing."
The issue here is not about 1st timer owner. The issue here is about ppl flat being taken away and asked to move to another flat. Along this process, some ppl faces hardship.Funny thing is, i agree with you too. But law is law, applicable to all and across the board.
However, the law is not without mercy, and adverse situations will and had always been taken into considerations throughout the years since independence. There are channels and avenues to seek redress.
It's never easy accepting hard choices. But for the sake of rule of law, we must accept for the sake of others in our society. We, humans within a society, do not live alone or have the luxury of determining our own ways, for our way must conform with the needs of the society as a whole. Nothing theoratical in this, but a fact of life. Harsh, but true, and only in truth will it set us free - free from the bondage of illusionary 'individualism' propounded by self centred and selfish humans.
But back on topic, I would advise the Threadstarter to seek out a professional property agent for consultation and financial assesments/options. It is free and no obligation. Better to call up a reputable agency, than to find one from friends nowadays - friends get recommendation fees and their advise is often compromised, sorry and sad to say.
He is sitting on a 'goldmine' and don't even realized it, typical of many old folks and those not knowledgeable with housing investments. Even if he takes up the unit, but with a 'mercy debt relief' type options, in 5 years time, he can always resell it at a higher price for his unit is in a prime unit. Only prime units gets Sers.
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Originally posted by xtreyier:
Funny thing is, i agree with you too. But law is law, applicable to all and across the board.
However, the law is not without mercy, and adverse situations will and had always been taken into considerations throughout the years since independence. There are channels and avenues to seek redress.
It's never easy accepting hard choices. But for the sake of rule of law, we must accept for the sake of others in our society. We, humans within a society, do not live alone or have the luxury of determining our own ways, for our way must conform with the needs of the society as a whole. Nothing theoratical in this, but a fact of life. Harsh, but true, and only in truth will it set us free - free from the bondage of illusionary 'individualism' propounded by self centred and selfish humans.
But back on topic, I would advise the Threadstarter to seek out a professional property agent for consultation. It is free and no obligation. Better to call up a reputable agency, than to find one from friends nowadays - friends get recommendation fees and their advise is often compromised, sorry and sad to say.
True, singaporean like the word 'law-by-law'. We need standardization else chao.
However, human being human can falls into grey areas. Sometimes this grey areas are what they are. At times, this grey areas can be what the lower income or the lesser educated, by virtue of their situations and mental makeup, found themselves in.
For the former, situation changes, new situation arises. That why it is so important that we need channels for feedback. That is why the govt has to revamp and refine its policies from time to time.
For the latter, it is not a question of the person facing up to the hashness or the law not showing mercy. It is really the question of guidance or helping hand from whichever reliable source that can be utilized.
I tell you something funny. When I faced Enblock, I seeked out property consultants. About a handful 3 to 4, all interested in discussing buy/sell stuff with me, all interested in me signing contract.
When I ask about my options, my obligation, the law, HDB requirements - the look on their faces - sheeee.... -
From 4sg:
"So PPP, if you planning to reap some fincancial reward and moves to another open market 3 room flat, make sure the flat is an unpgraded unit. This type of flat will has lesser chance of being Enblock."
Advice of the day...I would say. Can't PPP qualify for studio apts?
Right from the word "go", PPP alrdy said he had financial difficulty and had to downgrade. And Xtreiyer insists that PPP is living beyond his means. And it is also HDB rules that if one were to have sold a flat before and his current flat is en bloc, then the levy is compulsory (God knows why...website doesn't say anything) which the same dud refutes again w/o researching into PPP's claim.
Lightning does strike twice, maybe three or four times huh, dude. Perhaps it's genetic...I mean that grey matter being thick lol.
Oh well, another option I would propose is not to take up any replacement flat but take all that en bloc money and rent a flat. This money should last for a number of years before children are financially independent. Look for those units with the possibility of staying long-term. Put the extra money in bonds and reap the interest.
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Originally posted by xtreyier:
Funny thing is, i agree with you too. But law is law, applicable to all and across the board.
However, the law is not without mercy, and adverse situations will and had always been taken into considerations throughout the years since independence. There are channels and avenues to seek redress.
It's never easy accepting hard choices. But for the sake of rule of law, we must accept for the sake of others in our society. We, humans within a society, do not live alone or have the luxury of determining our own ways, for our way must conform with the needs of the society as a whole. Nothing theoratical in this, but a fact of life. Harsh, but true, and only in truth will it set us free - free from the bondage of illusionary 'individualism' propounded by self centred and selfish humans.
But back on topic, I would advise the Threadstarter to seek out a professional property agent for consultation and financial assesments/options. It is free and no obligation. Better to call up a reputable agency, than to find one from friends nowadays - friends get recommendation fees and their advise is often compromised, sorry and sad to say.
He is sitting on a 'goldmine' and don't even realized it, typical of many old folks and those not knowledgeable with housing investments. Even if he takes up the unit, but with a 'mercy debt relief' type options, in 5 years time, he can always resell it at a higher price for his unit is in a prime unit. Only prime units gets Sers.
Dun preach dude. There's a difference between appreciated advice and unsolicited hot air.Yours? The latter and a little bit of the former. Show some sympathy, if not, empathy.
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Originally posted by Rock^Star:
From 4sg:
"Advice of the day...I would say. Can't PPP qualify for studio apts?"In PPP situation, there are 3 ways out
1) returns the flat to HDB and purchases a 3 rm or a studio apts direct from HDB (can be new or old). Whether new or old flat, if he purchases direct from HDB, ie at a subsidised price, he has to do it at a certain timeframe. (I would not know about this timeframe, he has to find out from HDB).
In this option, after everything is said and done, he is treated as consuming 2 HDB subsidies.
The restriction - he can only return his current flat to HDB and cannot sell it himself . However, HDB 3 rm or studio flats are limited. If it is in Sengkang, off you go.
2) returns the flat to HDB and purchases a 3 rm or a studio apts on the open market. In this option, after everything is said and done, he is treated as consuming 1 subsidy.
The danger - he has to be careful of the areas he selects. Make sure it will not an area that can undergoes Enblock. But if this open market unit is Emblock and he decides to go along, no worry. He has only consume 1 subsidy thus far.Plus point - his freedom of choice in location.
3) sells his current flat on the open market and moves to a open market 3 rm or a studio apt. At the point upon he selling his current flat on the open market, he can never purchase direct from HDB anymore. Why? HDB treats him as consuming the 2 subsidies.
Remember, if he goes down this pathway, he can never purchase direct from HDB again. When he source for his 3 rm or studio apt, it cannot be a direct purchase but a open market purchase.
Many dangers - he better make sure the open market flat is an upgraded one. This way the chance of Enblock is lesser. To this point, he has comsumed 2 subsidies. If he faces another Emblock again - no replacement flat for him.
The plus point - possibility of extra cash in his wallet.At this point, I have to warn PPP to do his sum.
When I tried to sell my unit on the open market (2 1/2 yrs back), the highest offer price I got was even lower than HDB compensation package.Also on selling on the open market, if you sell on the open market can you sell at a price that is
a) higher or comparable than paying the levy? or
b) higher or comparable than taking up the HDB compensation package?
PPP also has to know that there are two ways of paying the levy.
a) One is on his previous, direct purchased flat
b) another is by his upcoming replacement flat.
My advice, do your sum on the levy. At the time, when I did mine for my family, the diff was up to 20k diff.
PPP, I will not go on in this thread anymore. If you need my help, you can PM me. -
pls next Election U know who to vote
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hi uncle,
i pity your plight!
you should go to the speaker corners, write to our state media press to push thru your case.
but i doubt it will work coz our state manupulated press just arent interested in your cases which dont serve the despot ruling party any interest at all.
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u can avoid paying those levy by buying house direct from open market
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hdb flats are becoming more and more unaffordable these days..
the rich can go buy private property but the poor cannot even afford to buy a 3 room flat with all the restrictions.
those who earns beyond the average income but cannot afford to buy a flat due to other commitments, also not allowed to rent a flat..want them to sleep in the streets izit?
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Originally posted by reyes:
hi uncle,
i pity your plight!
you should go to the speaker corners, write to our state media press to push thru your case.
but i doubt it will work coz our state manupulated press just arent interested in your cases which dont serve the despot ruling party any interest at all.
No use.....
In Sg, one person - no political power, can't do much .....
Go Speaker Corner - only waste energy and bus fare......
Stay at home, swap fly and stomp ants to let off steam more therapeutic.... -
A lot of Singaporeans think their HDB is an asset.
It's a misconception.
The early portion of the lease is "like" an asset.. because people are able to sell the lease for a higher price. That why people thinks that since it appreciate in value.. therefore it must be an asset.
But.. are the buyers buying the property. or are they really just buying the "remainder" of your lease ?
Will a buyer buy the lease of a flat with 20 years left for the same amount as another flat with 70 years on it ?
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Originally posted by jojobeach:
A lot of Singaporeans think their HDB is an asset.
It's a misconception.
The early portion of the lease is "like" an asset.. because people are able to sell the lease for a higher price. That why people thinks that since it appreciate in value.. therefore it must be an asset.
But.. are the buyers buying the property. or are they really just buying the "remainder" of your lease ?
Will a buyer buy the lease of a flat with 20 years left for the same amount as another flat with 70 years on it ?
You speak well. Look at the site in Queenstown. The least is about 50 years left. One porton, the govt enbloc. The other portion, the govt upgraded.
Fast forward to 50 years from now, the enbloc site will has remaining of 50 years lease (enbloc site starts with new 99 years lease) but the upgraded site will has 0 year lease left.
Using the term ceteris paribus (other thing assumes being equal), what going to happen to the site with 0 lease left?
I shudder to think the possibility of political involvement. What happen 50 years down the road, the upgraded site is in the hand of the opposition? What the residents get or not get? Think about it.
The govt from the onset never shy away from saying that it can and will use HDB flat as a leverage. -
"u can avoid paying those levy by buying house on the open market."
Yes but there are some catches.
a) sell current flat on the open market.
b) return current flat to HDB and take up the compensation package.
a) Selling on open market may not nec fetch a good price.
Why? because the buyer has to stay in his old 3 rm flat while the replacement flat is being built. Can be up to 3-4 years waiting period, you know? While the attraction of staying in a prime area is good, who wants to move into a old 3 rm flat, stay 3-4 years than move again to the replacement flat?
I tried to sell mine - only got one offer and mine was a clean 4 rm flat, next to the MRT.
b) return current flat to HDB and take up the compensation package (ie the total lump of compensation).
Do you know that HDB compensation package is always on the conservative side, ie lower than the resale or the open market price?
So he would be returning low price to HDB and buying high price on the open market. Yeah, this way no need to pay the levy. But he is already in financial diff, can he do a sell low, buy high stuff?
That was why I said I undertand what PPP is going thru. Turn left - problem, turn right -problem.