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Govt has more talk on HDB to $0 at end of lease

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Govt has more talk on HDB to $0 at end of lease

Postby Barnsley » Wed, 29 Mar 2017 9:40 am

Is the Government prepping the masses for other news?

http://www.straitstimes.com/singapore/housing/dont-assume-all-old-hdb-flats-will-become-eligible-for-sers-cautions-lawrence-wong

Why has it come out with the statement?

Noting that the Government will retain this strict selection criteria, Mr Wong said that for most HDB flats, their leases will eventually run out and the flats returned to HDB, which in turn surrenders the land the flats are on to the State.
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Re: Govt has more talk on HDB to $0 at end of lease

Postby x9200 » Wed, 29 Mar 2017 10:16 am

Barnsley wrote:Is the Government prepping the masses for other news?

http://www.straitstimes.com/singapore/housing/dont-assume-all-old-hdb-flats-will-become-eligible-for-sers-cautions-lawrence-wong

Why has it come out with the statement?

Noting that the Government will retain this strict selection criteria, Mr Wong said that for most HDB flats, their leases will eventually run out and the flats returned to HDB, which in turn surrenders the land the flats are on to the State.

Aren't all HDBs the 99y long only lease?

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Re: Govt has more talk on HDB to $0 at end of lease

Postby sundaymorningstaple » Wed, 29 Mar 2017 10:51 am

They are trying to prevent some locals from committing suicide by buying resale flats with short balance of leases left hoping for SERS. Since 1995 only about 4% have been designated as being available or marked for SERS. That is a very small percentage and the odds are probably less than one of the Roulette tables at Marina Bay Sands.

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Re: Govt has more talk on HDB to $0 at end of lease

Postby PNGMK » Wed, 29 Mar 2017 11:04 am

sundaymorningstaple wrote:They are trying to prevent some locals from committing suicide by buying resale flats with short balance of leases left hoping for SERS. Since 1995 only about 4% have been designated as being available or marked for SERS. That is a very small percentage and the odds are probably less than one of the Roulette tables at Marina Bay Sands.



You mean to reduce the price of those resale flats with short leases? Yes correct and a good play.
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Re: Govt has more talk on HDB to $0 at end of lease

Postby okonu » Wed, 29 Mar 2017 11:20 am

Yes, in London (where 99 year leases have been common for a long, long time, and the big property empires make sure that they have a few coming off lease every year for cash flow) people know how to price leases - at first like a freehold, then, as the lease comes near to an end, as a multiple of rent. There's a market for (say) 10-20 year leases too - cheaper than buying, more secure for the tenant than renting year to year, not subject to landlord's whims on allowing pets/ redecoration etc.

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Re: Govt has more talk on HDB to $0 at end of lease

Postby PNGMK » Wed, 29 Mar 2017 2:52 pm

There are short lease runs here too - Geyland and Kallang area have some that are running out in less than a decade and the price is a rent multiple.
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Re: Govt has more talk on HDB to $0 at end of lease

Postby PNGMK » Thu, 30 Mar 2017 9:05 am

I just looked at one near the old railway mall. $600,000 for 29 years of lease. $20k per year....
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Re: Govt has more talk on HDB to $0 at end of lease

Postby PNGMK » Thu, 30 Mar 2017 10:17 am

Singapore redditors picking this up as well.
https://www.reddit.com/r/singapore/comm ... lats_face/
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Re: RE: Re: Govt has more talk on HDB to $0 at end of lease

Postby Wd40 » Thu, 30 Mar 2017 10:45 am

PNGMK wrote:I just looked at one near the old railway mall. $600,000 for 29 years of lease. $20k per year....

A 2 bedder in Tampines goes for 350k with 60 yrs lease remaining. That is like 6k per year. Why would anyone pay 20k per year?

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Re: RE: Re: Govt has more talk on HDB to $0 at end of lease

Postby PNGMK » Thu, 30 Mar 2017 11:24 am

Wd40 wrote:
PNGMK wrote:I just looked at one near the old railway mall. $600,000 for 29 years of lease. $20k per year....

A 2 bedder in Tampines goes for 350k with 60 yrs lease remaining. That is like 6k per year. Why would anyone pay 20k per year?

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Landed property - open to all SC buyers (not HDB) - much wider scope of uses. Note that this would be a cash sale as no bank would lend. I know plenty of potential buyers - older businsess guys who for some reason are locked out of HDB and have the cash in hand and don't want the hassle of rent.
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Re: Govt has more talk on HDB to $0 at end of lease

Postby PNGMK » Thu, 30 Mar 2017 11:35 am

https://ink.library.smu.edu.sg/cgi/view ... e_research

Interesting article summarizing the history and rise/fall of land values in singapore since independence and how we now have a ponzi/mlm scheme instead of home owners for ~ 88% of singaporeans./
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Re: Govt has more talk on HDB to $0 at end of lease

Postby x9200 » Thu, 30 Mar 2017 11:48 am

PNGMK wrote:Singapore redditors picking this up as well.
https://www.reddit.com/r/singapore/comm ... lats_face/

I don't get why this is surfacing right now so much? Isn't just a common sense to take into account the remaining lease? I remember, when I was considering buying a property in SG few good years ago, this was probably the first thing I considered and generally I was not interested in the 99y leases.

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Re: Govt has more talk on HDB to $0 at end of lease

Postby PNGMK » Thu, 30 Mar 2017 12:07 pm

x9200 wrote:
PNGMK wrote:Singapore redditors picking this up as well.
https://www.reddit.com/r/singapore/comm ... lats_face/

I don't get why this is surfacing right now so much? Isn't just a common sense to take into account the remaining lease? I remember, when I was considering buying a property in SG few good years ago, this was probably the first thing I considered and generally I was not interested in the 99y leases.



I can only assume because;

1. Gahmen is definitely closing out leases in Geylang and Kallang that are now coming due (2020). These were short 30 year leases but give an indication that there is no free pass.
2. Some leases on HDB are no longer valid for loans or full CPF usage when lease is < 55 years to run- this is "new" as the country is only 51 years old!
3. A LOT of people are ostrich and hoping gahmen will just fix it.
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Re: Govt has more talk on HDB to $0 at end of lease

Postby Barnsley » Thu, 13 Apr 2017 11:08 am

Now Govt Minister saying that HDB are now a good store of wealth if decisions are taken wisely :mrgreen: :mrgreen: :mrgreen:

I guess some negativity from the ground has lead to a more positive outlook on home trending to zero dollar
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Re: Govt has more talk on HDB to $0 at end of lease

Postby PNGMK » Thu, 13 Apr 2017 12:23 pm

Barnsley wrote:Now Govt Minister saying that HDB are now a good store of wealth if decisions are taken wisely :mrgreen: :mrgreen: :mrgreen:

I guess some negativity from the ground has lead to a more positive outlook on home trending to zero dollar


As a real estate guru here once said to me; "No one knows what they will do when the HDB leases run out".
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