1. "National Solidarity Party acting secretary-general Hazel Poa resigns - CNA 19 August 2015
Ms Poa says she "strongly disagreed" with the party's decision to contest MacPherson SMC"
It is good to see some politicians with conviction and integrity! I salute Ms Poa for her decision to step down after seeing the NSP CEC decided to contest MacPherson SMC against her strongly held position of not contesting to avoid a 3-corner fight.
2. "Elderly get more options to buy 2-room flats under new Flexi Scheme - CNA 19 August 2015
SINGAPORE: Elderly citizens will now get the flexibility of choosing the duration of their lease of their 2-room flats based on their age and preferences, under a new Flexi Scheme introduced on Wednesday (Aug 19).
First mooted by National Development Minister Khaw Boon Wan at the Committee of Supply debate in March this year, the new 2-room Flexi Scheme will merge and replace the existing 2-room flat and studio apartment schemes.
Under the scheme, applicants aged 55 and above can opt for shorter leases of between 15 and 45 years, in five-year increments, as long as it covers them and their spouse until they are at least 95 years old.
For example, those aged between 55 to 59 can purchase a flat with a 40-year minimum lease period, as by the time the lease expires, they will be between 95- to 99-years of age.
The new 2-room Flexi flats will come in two sizes: 36 and 45 square metres. They will be priced according to the lease tenure, and if buyers are first-timers or second-timers. This means flats with shorter leases will be cheaper, and first-time buyers who have yet to enjoy a housing subsidy will pay less for their 2-room flats.
The elderly will finance the purchase of the flats through cash or CPF savings, instead of a mortgage loan.
"Many of our retirees, they have assets but they don't have cash. So, the scheme provides another option, a more flexible option to for them to cash out their money from the assets and also at the same time, they have a home to live in till they pass on," said Mr Lim Yong Hock, key executive officer at PropNex.
HDB said prices of Flexi flats may differ depending on location, design features and prevailing market conditions at the time of offer.
The HDB gave an indication of the costs of such flats based on the average prices of 2-room flats in non-mature estates in 2014. The actual prices will be spelled out when one applies for it at Build-To-Order (BTO) launches.
For example, the base price of a 2-room flat with a 99-year lease – without taking into account housing grants and amounts payable – might cost around S$110,000. Flats with a 40-year lease might cost close to S$63,000, while those with a 15-year lease might be priced at around S$37,000.
However, Mr Eugene Lim, key executive officer of ERA Realty, said the methodology used to determine the prices of such flats should be made clearer.
"Given that there are many lengths of leases available for the elderly, perhaps some explanation should be given as to how the prices of flats with shorter tenures are derived," he said.
This scheme will be in place from the September BTO exercise. The Housing and Development Board (HDB) said it will launch more than 70 BTO projects with such flats in the next five years.
At least 40 per cent of such flats in a BTO project - subject to a minimum of 100 units in the project - will be set aside for the elderly. Under a new Senior Priority Scheme to be introduced, half of this number will be set aside for those who apply to live near their current flat or their married children.
Currently, studio apartments have a 30-year lease and are meant for senior citizens aged 55 and above. But they can soon have the flexibility of extending their lease. From April next year, they can apply to top up their lease by between five and 15 years at the prevailing market value.
This option is also be extended to buyers who have yet to collect their keys to the studio apartments.
"Owners of studio apartments are allowed to extend their lease so that it is in line with the newly-announced 2-room Flexi Scheme," said Mr Nicholas Mak, executive director of research and consultancy at SLP International Property Consultants. "Otherwise, the disparity between the existing studio apartments and the 2-room Flexi Scheme will be very wide. The owners of studio apartments may feel that they're buying a more inferior product."
More help will also be given to elderly home buyers. Currently, second-time buyers who sold their first subsidised flat before March 3, 2006 are liable to pay a percentage resale levy with accrued interest.
But a new ruling will waive the accrued interest for those 55 and above when they right-size to a new 2-room or 3-room flat. This means that they will only have to pay the percentage levy.
Also, HDB will give a refund if a senior citizen dies before the lease expires. This will be based on the remaining value of the lease and will go to the person's estate. Those who outlive the lease period will be granted an extension on a case-by-case basis."
LOL! So it is back to this ONE-Pony Trip again! Leverage on your 'appreciating housing asset' for your retirement till you expired!
Lessons for me are:
1. you ARE a leasee of a 99-year leasehold HDB flat whether you LIKE IT or NOT! So, if you want to UNLOCK your HDB flat VALUE, you MUST sell it at some point in time and hopefully the SELLING PRICE then is HIGHER, much HIGHER, than what you had paid in principal AND accumulated interests payment! There IS a PROBABLE chance that YOU can make some capital gain IF you had bought your flat 20- or 30-years ago when prices were low and recent market prices are 2x or 5x what you paid then!;
2. fast forward to the CURRENT batch of HDB flat owners at 30-35 years old. They will probably pay around S$400k/flat. In 20 years time, they will be 50-55 years old and they can OPT for, if we still have this FLEXI Senior Flat scheme, this 40-year CHEAPER price flat IF they can SELL their 40-year old 99-year leasehold HDB Flat at S$400k x 2 or 5x price!? And retire COMFORTABLY! Assuming the CPI and the cost of living etc do not increase annually too! (A myth for me since CPI does not truly explain housing price increases!). The BIG QUESTION is: is this 'probability' REAL?;
3. with a shrinking natural population, the ONLY WAY to keep the PRICEs of HDB flats at a CERTAIN LEVEL, there must be an increase in HDB Flat buying immigrants. In this way, the NEW immigrants will pay a HIGHER PRICE to the older existing citizens who will move to the FLEXI Flat with a tiny capital gain or cash to retire COMFORTABLY.
Does the picture make sense?
Can someone in higher authority and INTELLIGENCE enlightened someone like me, the ordinary citizens? Is it real?
Ms Poa says she "strongly disagreed" with the party's decision to contest MacPherson SMC"
It is good to see some politicians with conviction and integrity! I salute Ms Poa for her decision to step down after seeing the NSP CEC decided to contest MacPherson SMC against her strongly held position of not contesting to avoid a 3-corner fight.
2. "Elderly get more options to buy 2-room flats under new Flexi Scheme - CNA 19 August 2015
SINGAPORE: Elderly citizens will now get the flexibility of choosing the duration of their lease of their 2-room flats based on their age and preferences, under a new Flexi Scheme introduced on Wednesday (Aug 19).
First mooted by National Development Minister Khaw Boon Wan at the Committee of Supply debate in March this year, the new 2-room Flexi Scheme will merge and replace the existing 2-room flat and studio apartment schemes.
Under the scheme, applicants aged 55 and above can opt for shorter leases of between 15 and 45 years, in five-year increments, as long as it covers them and their spouse until they are at least 95 years old.
For example, those aged between 55 to 59 can purchase a flat with a 40-year minimum lease period, as by the time the lease expires, they will be between 95- to 99-years of age.
The new 2-room Flexi flats will come in two sizes: 36 and 45 square metres. They will be priced according to the lease tenure, and if buyers are first-timers or second-timers. This means flats with shorter leases will be cheaper, and first-time buyers who have yet to enjoy a housing subsidy will pay less for their 2-room flats.
The elderly will finance the purchase of the flats through cash or CPF savings, instead of a mortgage loan.
"Many of our retirees, they have assets but they don't have cash. So, the scheme provides another option, a more flexible option to for them to cash out their money from the assets and also at the same time, they have a home to live in till they pass on," said Mr Lim Yong Hock, key executive officer at PropNex.
HDB said prices of Flexi flats may differ depending on location, design features and prevailing market conditions at the time of offer.
The HDB gave an indication of the costs of such flats based on the average prices of 2-room flats in non-mature estates in 2014. The actual prices will be spelled out when one applies for it at Build-To-Order (BTO) launches.
For example, the base price of a 2-room flat with a 99-year lease – without taking into account housing grants and amounts payable – might cost around S$110,000. Flats with a 40-year lease might cost close to S$63,000, while those with a 15-year lease might be priced at around S$37,000.
However, Mr Eugene Lim, key executive officer of ERA Realty, said the methodology used to determine the prices of such flats should be made clearer.
"Given that there are many lengths of leases available for the elderly, perhaps some explanation should be given as to how the prices of flats with shorter tenures are derived," he said.
This scheme will be in place from the September BTO exercise. The Housing and Development Board (HDB) said it will launch more than 70 BTO projects with such flats in the next five years.
At least 40 per cent of such flats in a BTO project - subject to a minimum of 100 units in the project - will be set aside for the elderly. Under a new Senior Priority Scheme to be introduced, half of this number will be set aside for those who apply to live near their current flat or their married children.
Currently, studio apartments have a 30-year lease and are meant for senior citizens aged 55 and above. But they can soon have the flexibility of extending their lease. From April next year, they can apply to top up their lease by between five and 15 years at the prevailing market value.
This option is also be extended to buyers who have yet to collect their keys to the studio apartments.
"Owners of studio apartments are allowed to extend their lease so that it is in line with the newly-announced 2-room Flexi Scheme," said Mr Nicholas Mak, executive director of research and consultancy at SLP International Property Consultants. "Otherwise, the disparity between the existing studio apartments and the 2-room Flexi Scheme will be very wide. The owners of studio apartments may feel that they're buying a more inferior product."
More help will also be given to elderly home buyers. Currently, second-time buyers who sold their first subsidised flat before March 3, 2006 are liable to pay a percentage resale levy with accrued interest.
But a new ruling will waive the accrued interest for those 55 and above when they right-size to a new 2-room or 3-room flat. This means that they will only have to pay the percentage levy.
Also, HDB will give a refund if a senior citizen dies before the lease expires. This will be based on the remaining value of the lease and will go to the person's estate. Those who outlive the lease period will be granted an extension on a case-by-case basis."
LOL! So it is back to this ONE-Pony Trip again! Leverage on your 'appreciating housing asset' for your retirement till you expired!
Lessons for me are:
1. you ARE a leasee of a 99-year leasehold HDB flat whether you LIKE IT or NOT! So, if you want to UNLOCK your HDB flat VALUE, you MUST sell it at some point in time and hopefully the SELLING PRICE then is HIGHER, much HIGHER, than what you had paid in principal AND accumulated interests payment! There IS a PROBABLE chance that YOU can make some capital gain IF you had bought your flat 20- or 30-years ago when prices were low and recent market prices are 2x or 5x what you paid then!;
2. fast forward to the CURRENT batch of HDB flat owners at 30-35 years old. They will probably pay around S$400k/flat. In 20 years time, they will be 50-55 years old and they can OPT for, if we still have this FLEXI Senior Flat scheme, this 40-year CHEAPER price flat IF they can SELL their 40-year old 99-year leasehold HDB Flat at S$400k x 2 or 5x price!? And retire COMFORTABLY! Assuming the CPI and the cost of living etc do not increase annually too! (A myth for me since CPI does not truly explain housing price increases!). The BIG QUESTION is: is this 'probability' REAL?;
3. with a shrinking natural population, the ONLY WAY to keep the PRICEs of HDB flats at a CERTAIN LEVEL, there must be an increase in HDB Flat buying immigrants. In this way, the NEW immigrants will pay a HIGHER PRICE to the older existing citizens who will move to the FLEXI Flat with a tiny capital gain or cash to retire COMFORTABLY.
Does the picture make sense?
Can someone in higher authority and INTELLIGENCE enlightened someone like me, the ordinary citizens? Is it real?
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