Property Tenure

[abbby]

When does the 99 years lease start for properties? Does it start on the year developer acquired the land or TOP date?

[PNGMK]

JR8 (who we think has passed away) would have loved this topic. It starts from when the title was created but can be "topped up" by developers. You can usually enquire as to how long is left.

[abbby]

With a property of 70+ years left in Singapore, do you think such condos are worth buying? At about $1100 psf. It just feels like there's not much left to it...

[ProvenPracticalFlexible]

70+ years is not much left? Of course if you plan to have it for your children's retirement home then I'd agree. That is still well pass Singapore 100 years national day celebrations.

I know most Singaporeans prefer to pay the freehold 30% or so premium. I wouldn't as I count it as part of my living cost. And rather save that to somewhere else. But for the price that really depends more on the location. I prefer the old condoes built or designed before Asian financial crisis, when unit and room sizes were bigger. And those are in that 70 years left range exactly.

But seeing how things are built I don't think most condos are worth maintaining for 99 years, but rather enbloc and bulldoze after 50-70 years.

[PNGMK]

The primary problem is the banks stop lending when the lease falls below a certain period - I think it's 50 years?

[ProvenPracticalFlexible]

Yes more difficult to get a loan or smaller amount, but not if there's any law or regulation about it, it's more each banks risk assessment and policies. But there's some limitations for using CPF money related to the lease time. Was it something that must be long enough to you reach the age of 95. Plus not for properties with less than 30 year's lease left etc.