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KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE
08-08-2017, 09:04 AM,
Post: #231
RE: KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE
http://www.todayonline.com/world/hks-new...s522k-each

"""
HONG KONG — A real estate developer offering nano-sized flats in Mong Kok sold all the units on offer in one day despite the parking-space-sized apartments costing around HK$3 million (S$522,400), in another sign of their growing popularity.
...
After factoring in a discount of 9 per cent, the price will come down to HK$17,788 per sq ft (psf), or HK$2.79 million — the cheapest flat offered in the project.
"""

That's ~3k SGD psf.

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08-08-2017, 11:24 PM,
Post: #232
RE: KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE
(04-08-2017, 09:31 PM)tanjm Wrote:
(04-08-2017, 02:30 PM)cif5000 Wrote: I thought this is a good summary.
https://lkyspp.nus.edu.sg/wp-content/upl...gapore.pdf

Agree with tanjm that the use of CPF was a key policy - first by allowing it for HDB and then for private housing.

However, "over consuming housing at the expense of retirement savings" isn't the real issue here since public housing can be monetised for retirement. The real issue here is the uncertainty of the monetisation dateline if the value will be zero at Year 99. Like in a bubble, when should one leave the party?

Monetisation is not that easy. Reverse Mortages and LBS (Lease Buyback Scheme) is not popular at all. In fact, both NTUC Income and OCBC, which offered reverse mortgages, stopped offering it in about 2009 I think. 

It's not that popular in other countries either. 

The problem is that RMs have 3 key risks. Property Price risk, interest rate risk, and longevity risk. This makes it a problem for a ordinary person to feel certain about borrowing money on the home he lives in. 

Now that Singapore's economy is slowing down, house inflation is going to be subdued. As I mentioned before, housing is an inflation trade. New prospective house buyers should probably think about renting or buying smaller to save money. In the past, when house inflation was higher, it may have made sense esp when using CPF money to pay for it.

Monetisation can simply be selling the flat in the open market and preferably before the price falls off the cliff at 12 midnight. The tough part is not in the selling, but at the time they sell.

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10-08-2017, 03:13 PM,
Post: #233
RE: KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE
(08-08-2017, 11:24 PM)cif5000 Wrote: Monetisation can simply be selling the flat in the open market and preferably before the price falls off the cliff at 12 midnight. The tough part is not in the selling, but at the time they sell.

You might think so, but plenty of people prefer to "age in place". I will dig up a reference if required, but think about your friends and family. Does this not make sense? The community lurking in this forum are not representative.

They may only consider this only as a last resort, and by that time, they may have lost control over getting the best price for their flat, avoiding the stress from financial inadequacy (because a flat takes time to sell).

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11-08-2017, 10:36 AM,
Post: #234
RE: KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE
Hi cif5000,

Your comments just reminds me of another phrase in an article linked by another VB member:

"Those who leave early are saved, but the ball is so splendid no one wants to leave while there is still time. So everybody keeps asking - what time is it? But none of the clocks have hands."

The housing scene in Singapore might be an epitome of this

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11-08-2017, 04:24 PM,
Post: #235
RE: KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE
SGP ppty is still in the early stages. It is this type of mindset that make most keep missing chance after chance, until finally they cannot take it and take the plunge.

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11-08-2017, 04:27 PM,
Post: #236
RE: KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE
Most stock investors including gurus are actually quite lousy ppty investors. Better get ppty advice from the right channels

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