Saturday, March 25, 2017

99-YEARS REALLY MEANS 99 YEARS? NOT FREEHOLD?!?!


Okay, I think it's good that MND Lawrence Wong has finally clarified AGAIN for all the stupiak people out there that are not so sure what "leasehold" means.

Some good quotes from the Straits Times article, but I highlighted my favourite one and it's the more important thing to note:

"... 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."

"SERS is only offered to HDB blocks locaited with high redevelopment potential"

"... only 4% of HDB flats have been identified for SERS since it was launched in 1995."


What is Lawrence Bro talking about SERS this SERS that? Very confusing hor?

Okay, let me break it down for you:

Outcome 1: 96% chance
You buy a HDB flat. Maybe resale, maybe BTO, it doesn't matter.
When the lease ends, your property is worth $0. You need to move out by then.

Outcome 2: 4% chance
You buy a HDB flat. Maybe resale, maybe BTO, it doesn't matter.
The lease can have 99-1 year remaining and the government thinks that the plot of land your HDB flat is built on could be better utilized. You tio SERS. Sian you lose your flat. Shiok you get priority for new one.

Fantasty Outcome 3: 0% chance
You buy a HDB flat. Maybe resale, maybe BTO, it doesn't matter.
When the lease ends, you kpkb a lot and complain that "new HDBs these days are all very expensive". The government hears your pleas and anger. You are so poor thing, aiyoooooooooo.
They renew your lease for another 99 years.
lol.


I was just talking to someone recently about what happens when the leases of property goes to 0. I don't understand why some people think that at the end of the leasehold period, THEY have the CHOICE to CHOOSE if they want to EXTEND OR NOT.

Er, hello? No?


It's up to the landowner that the land returns to to decide what they will do with the land. If the plot ratio is already being maximized, it would make sense to allow the existing residents to cough up money to extend their tenure. How much money? Roughly the same amount of profits if they smashed everything down, re-build brand new and sell it all. That's just logic.

If you really have a problem about leasehold and how "your flat is not really your flat", you are more than welcome to enter the private market and purchase a freehold property. Even better, can go overseas freehold market. Not only "freehold", but also very cheap! In Bolehland, I saw some listings selling freehold condos only $100 SGD PSF. Sell HDB, migrate! Property prices in Malaysia sure damn huat long-term. Don't just believe me. I triple check with my bomoh already.

9 comments:

  1. 99 years LH is more than enough for many of us to live/die in our home. Hope future Govt will not short it to 60 years LH then lifelong retirement planning is more challenging.

    ReplyDelete
    Replies
    1. Hi Uncle CW8888, I also think 99 years is long enough for oneself, especially considering that most people will start their lease (if they bought a "fresh" LH property with 99 years) at 20-30ish. That means they would have to live until 120 for them to be "homeless"!

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  2. I have known quite a number friends who also think that the government will bail them out and ensure that they will make a profit when they sell their flats. They have assumed that SERS is a sure thing. It's a good thing for the minister to remind flat buyers on the risks involved and to take note of the remaining lease period.


    ReplyDelete
    Replies
    1. Hi Anon, yeah that is very dangerous thinking. This should be taken as a learning opportunity for people to know that SERS is the exception, not the norm!

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  3. GMGH
    Like your Outcomes 1-3, loud and clear :)

    ReplyDelete
  4. SERS has 3-year lead time announcement. Hence for your Outcome 2, it should be 99-4 years remaining lease. But govt won't announce SERS for flats on their 98th or 97th lease year lah... Imagine I pay $1000 for a slum 98-yr-old 4-rm HDB flat about to collapse, and suddenly HDB announce SERS and price shoots up to over $500K.

    ReplyDelete
    Replies
    1. Thanks Anon for pointing that out. From 99-4 years then, haha! That's why I believe that SERS is really just an abnormal luck thing and shouldn't be taken into account when choosing a flat! I have read people who really bought just for SERS and got it, but I think it will be less common moving forward!

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  5. We have yet to see any flat approaching the 99th year?

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