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I am a Practitioner of 'The 7e Way of Leaders' where a Leader will Envision, Enable (ASK for TOP D), Empower, Execute, Energize, and Evolve grounded on ETHICS!

Monday, May 14, 2018

Daily Lessons from Life 13 May 2018 - HDB Flats - a depreciating asset?

1. Something bad happened on 13th May many years ago when racial clashes resulted in deaths n injuries to many from all involved in tgis part of the world. Now it is probably forgotten by many young people fr all races. Pr9bably a good thing as everyone should just focused on keeping the harmonious multiracial, multilingual n multireligious situation on forever n ever!

2. "Old HDB flats: Assets losing their value?

A growing number of HDB flat owners are holding on to properties nearing the halfway point of their 99-year leases, raising mounting uncertainties of depreciating values, which have run counter to long-held narratives that Singaporeans’ HDB flats are not just homes, but also appreciating assets.

Experts like Dr Fu Yuming put it starkly. “I know what will happen to a private estate when the land lease expires: it will revert to the government,” said the associate professor at the Department of Real Estate in National University of Singapore.
“But I don’t know what the government is thinking about for the lease management of HDB estates, since there is no open discussion about the issue. In theory, the estates revert to HDB when their lease expires. But will there be any lease renewal policy or re-housing policy? The uncertainty needs to be resolved to protect the interest of HDB homebuyers.”"
1st of all the government didn't lie. HDB flats can be bought n sold n the resales prices did go up, especially when the floodgate for more PR n foreigners was opened wide! Enterprising PRs bought the HDB flats n immediately rent the rooms out, despite it been illegal as enforcement is weak as most Sgp citizens, being very law abiding, would not hv dared to do this. When there is money to be made, some PRs bring their home countries' logic into Sgp: "Anything goes as l8ng as u r not caught. And if u r caught, try bribing the enforcers!!"
So, those who flipped their HDB flats UPGRADED to private 99-yr leasehold properties!! The "feel rich cycle" perpetuates itself n NOBODY want to face the reality. What happened when the lesse expired?
In private leasehold, maybe can extend n just pay to top up the leases. For HDB, if all voters, 90% supposedly r HDB dwellers, all want to extend, the government will relent for sure as long as it is still democratically elected!! Alas, the question is: do the voters/dwellers hv the MONEY to extend the leases!!
So, indeed the government has to tell the voters: when 99-yr lease expired, either all pay to extend or all hv to move out. It is as simple as that!!
Generations of Sgp citizens just hv to be able to hv jobs or biz or whatever income to afford a "home" to start a family. If not, what values to talk abt??
The state will hv to deal with this reality. Let the 4th gen tackles this!!

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