Ridiculous HDB Prices
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More cash for elderly downsizing flat or selling lease
By DARYL CHIN
ELDERLY Singaporeans can now get as much as $100,000 in cash, plus up to $20,000 in cash bonuses, if they downgrade to a smaller home or sell the tail end of their Housing Board (HDB) flat lease back to the Government.
The hope is that these payouts will entice more low-income flat owners here to unlock the value of their homes in old age and be better funded for retirement.
The Ministry of National Development (MND) announced these changes to its Silver Housing Bonus and Lease Buyback Scheme yesterday.
Both schemes are targeted at the lower-income elderly, whom some commentators have termed "asset-rich, cash-poor".
Often, they own the flats they live in, but lack family and financial support, and need more cash to cope with daily expenses.
The Silver Housing Bonus is a new scheme announced in February. It aims to give a $20,000 bonus to elderly home owners who may no longer need a large flat, and choose to downsize.
However, before the scheme was even implemented, it was met with scepticism because rules dictated that to get the bonus, the net proceeds unlocked from the sale of a flat had to be used to top up the CPF Retirement Accounts of flat owners.
Because the top-up had to be sufficient to cover the CPF prevailing Minimum Sum, which currently amounts to $139,000 per person, or about $278,000 per couple, most flat owners would receive very little cash from the downsizing exercise. This, in turn, meant that the "Silver Bonus" of $20,000 was not a strong enough draw, said critics.
MND said yesterday that after receiving public feedback, it had decided that flat owners should need to top up only $60,000 into their Retirement Accounts per household, and be able to keep the next $100,000 of the net proceeds from the flat sale.
Any proceeds in excess of $160,000 will be used to top up CPF Retirement Accounts.
Yesterday, the Lease Buyback Scheme, implemented in 2009, was also made more accessible.
Under this scheme, elderly flat owners get to live in their homes for the next 30 years, but sell the remainder of their 99-year lease back to HDB. It has not been popular so far, with 466 households opting for it to date.
Previously, all net proceeds from the sale of the remaining lease - save for $5,000 in cash - went into the compulsory purchase of a CPF annuity.
Again, critics said this was not enough of a carrot for flat owners to take up the scheme.
MND said yesterday it has decided to allow flat owners to keep up to $100,000 of the proceeds in cash, so long as the specified top-up requirement in lessees' Retirement Accounts has been met.
The cash bonus for households has also been doubled - up to $20,000 - and eligibility rules relaxed so that former private property owners and those who have enjoyed more than one housing subsidy can also apply.
"We need to strike a balance between improving retirement adequacy by requiring a meaningful top-up to the CPF, and keeping schemes attractive by allowing adequate cash proceeds," National Development Minister Khaw Boon Wan said yesterday, giving the rationale for the changes.
Analysts said the schemes would likely attract more takers, now that less cash is locked away in forced savings.
SLP International head of research Nicholas Mak said: "This is a positive step for the elderly who are sitting on their wealth, yet are strapped for cash."
Applications for the schemes will start in February. Financial counselling will be available to those who want to know more. The hotline number is 1800-555 6363.
Top of the news, The Straits Times, Friday December 28 2012, Pg A1
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10 20k is not a lot lah. pay one time medical bills how much already?
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If you have a fully paid hdb flat and you're are already old, just rent out the rooms. Keep the flat and pass it to someone you think deserve it when you die or will it to some trustworthy charity organization after your death.
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Latest news!!EC penthouse sold over the two million mark!!! Talk about subsidized public housing ????? All these jokers!!!!!where is Mr Khaw- hello !!! Run away prices leh!
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Originally posted by Bikeforceful:
Latest news!!EC penthouse sold over the two million dollar mark!!! Talk about subsidized public housing ? All these jokers!!!!!where is Mr Khaw- hello !!! Run away prices leh!
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Times are bad.
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Originally posted by Bikeforceful:
Latest news!!EC penthouse sold over the two million mark!!! Talk about subsidized public housing ? All these jokers!!!!!where is Mr Khaw- hello !!! Run away prices leh!
You said it yourself, its a penthouse. And to get the facts straight, its 4350sq feet huge. $2million is honestly a good bargain.
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So is it hdb or not hdb ?
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According to HDB:
ECs are fully developed and sold by private developers. You may contact the respective developers directly with regards to your eligibility, or for more information on EC projects.
To me, the plot of land was bought by HDB, but leased to a private developer, hence HDB has no jurisdiction how the damn units should be priced.
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Then how come EC got some sort of subsidy from government?
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Got cpf housing subsidy.
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Because the developer leased the parcel at a huge discount from HDB, of course got to pass on the savings right? You tell me where to buy a 4350sq feet penthouse in singapore on freehold or 999 year lease for $2million?
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Originally posted by Summer hill:
99 year payment?
Maybe this will happen in the near future? Your kids have to pay for the property you've bought. I can't imagine if this become the norm in the near future?!
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Many are targeting ECs nowadays...yes the prices still going up and up....
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Originally posted by Demon Bane:
Maybe this will happen in the near future? Your kids have to pay for the property you've bought. I can't imagine if this become the norm in the near future?!
aiya if this happen i don't want to live anymore...
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Originally posted by Summer hill:
aiya if this happen i don't want to live anymore...
Hehe! The people with existing properties are happier than the ones trying to buy at current high prices!
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Times are bad.
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if you think the HDB prices are ridiculuos, try checking out your latest this year property tx, even more rediculous!
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Originally posted by troublemaker2005:
if you think the HDB prices are ridiculuos, try checking out your latest this year property tx, even more rediculous!
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Originally posted by charlize:
life is surreal......
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Originally posted by troublemaker2005:
if you think the HDB prices are ridiculuos, try checking out your latest this year property tx, even more rediculous!
If you don't have property, you won't have property tax.
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Originally posted by charlize:
If you don't have property, you won't have property tax.
Lol +1 lar all live under the bridge ba
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All your money go into your hdb flat, no more money to retire.
When you are 80 years old and hungry, you can bite the wall off your hdb flat.