"Singapore’s home-ownership and asset enhancement policies have worked well: PM Lee
SINGAPORE - Less than a week after announcing long-term housing initiatives during the National Day Rally (NDR), Prime Minister Lee Hsien Loong on Friday (Aug 24) held up the success of the Government's home-ownership and asset enhancement policies, and chided those who claim that the 99-year leases of Housing and Development Board (HDB) flats is "merely extended rental and not a sale".
"I find this argument frankly amazing. Many private properties are held on 99-year leases too, and yet nobody argues that they are merely being rented," said Mr Lee. "HDB lessees have all the rights over their flats that owners of such leasehold private properties have. You can live in it, you can transact it, you can bequeath it to you children. In fact HDB owners enjoy extra privileges because HDB flats get upgraded from time to time, with generous government funding."
The Government could have adopted other forms of housing policies such as by leaving it largely to the private market — as in the case of Hong Kong — or by controlling rents like in San Francisco. Another option was to provide rental flats at subsidised rates to tenants, noted Mr Lee.
However, "none of these alternatives would have achieved the same economic and social results as home ownership", he pointed out. "Because the experience of other cities shows that the private market will not provide adequately for poor or even middle-income families."
If the Government adopted a rental housing policy, a "very different" mindset would have been created. "A tenant lives from month to month, rent to rent. He cannot sell the property or leave it to his children. He has no interest in the long-term value of the property," said Mr Lee.
In contrast, "a homeowner takes responsibility for his property, thinks long term, and does his best to protect its value". This can be done directly by ensuring good maintenance and upkeep, as well as indirectly by "upholding the society and system on which the value of his home depends"."
WAS going to let it go until PM Lee chided us, those who logically believe that HDB 99yrs lease is a LONG TERM RENTAL where we pay mortgage over 20-30 yrs to live up to 99yrs without having to move "home" becoz we can't afford the increase in rental by landlords for whatever reason!
IF we hold it till maturity, it's value will b a BIG FAT 0 as HDB has the right, n will, unless the gov changes the 99yrs lease term, take the "home" back. THIS IS A FACT n CANNOT b ARGUED AWAY!! Yes?
It is true gov has the HIP n HIP2 to make sure the estates r well kept n livable. Great gov work.
Also if VERS happened, the HDB owners can get at least the remaining 30yrs "value", whatever it maybe.
So, it is true that HDB owners benefitted fr gov assistance.
YET, at the end of 99yrs, it will hv a BIG FAT 0 value still!! That is an undeniable FACT!!
As for the arguments of going the Hkg SAR way, if the young can't afford a decent roof over their heads n can't escape elsewhere, guess where n to whom they will vent their frustration? Will there b a stable society to talk abt?
On the argument of renters not keeping their "homes" well. This is probably true if we hv LOW QUALITY people who can't look after themselves despite being educated in the world's best educational system!!
As for the private 99yrs, they will go to a BIG FAT 0 value too if held to maturity! No different in the end. They hv the en bloc thingy n how many times can this happen without the properties prices going up n up n up to UNAFFORBALE level n never fall?
So, let's JUST ACCEPT that 99yrs lease is a long term stay n WILL Revert to the state for next generation of citizens n people.
It is in lieu of renting on a short term basis where u n your family hv to move "home" every so often!!
Is this too much to ask??
U pays whether u rent rent constantly or u buy-n-stay till 99yrs expired!! Both r expenses n both will need u to spend some money!!
ps: given Sgp's fertility rate, i thot the worry is oversupply of HDB land taken back n no one to build for next!! Of course, it can b resolved with massive immigrants intake, assuming they want to come as their home country is STILL not as attractive as Sgp in 20-, 30- or 50-yrs!! True?
SINGAPORE - Less than a week after announcing long-term housing initiatives during the National Day Rally (NDR), Prime Minister Lee Hsien Loong on Friday (Aug 24) held up the success of the Government's home-ownership and asset enhancement policies, and chided those who claim that the 99-year leases of Housing and Development Board (HDB) flats is "merely extended rental and not a sale".
"I find this argument frankly amazing. Many private properties are held on 99-year leases too, and yet nobody argues that they are merely being rented," said Mr Lee. "HDB lessees have all the rights over their flats that owners of such leasehold private properties have. You can live in it, you can transact it, you can bequeath it to you children. In fact HDB owners enjoy extra privileges because HDB flats get upgraded from time to time, with generous government funding."
The Government could have adopted other forms of housing policies such as by leaving it largely to the private market — as in the case of Hong Kong — or by controlling rents like in San Francisco. Another option was to provide rental flats at subsidised rates to tenants, noted Mr Lee.
However, "none of these alternatives would have achieved the same economic and social results as home ownership", he pointed out. "Because the experience of other cities shows that the private market will not provide adequately for poor or even middle-income families."
If the Government adopted a rental housing policy, a "very different" mindset would have been created. "A tenant lives from month to month, rent to rent. He cannot sell the property or leave it to his children. He has no interest in the long-term value of the property," said Mr Lee.
In contrast, "a homeowner takes responsibility for his property, thinks long term, and does his best to protect its value". This can be done directly by ensuring good maintenance and upkeep, as well as indirectly by "upholding the society and system on which the value of his home depends"."
WAS going to let it go until PM Lee chided us, those who logically believe that HDB 99yrs lease is a LONG TERM RENTAL where we pay mortgage over 20-30 yrs to live up to 99yrs without having to move "home" becoz we can't afford the increase in rental by landlords for whatever reason!
IF we hold it till maturity, it's value will b a BIG FAT 0 as HDB has the right, n will, unless the gov changes the 99yrs lease term, take the "home" back. THIS IS A FACT n CANNOT b ARGUED AWAY!! Yes?
It is true gov has the HIP n HIP2 to make sure the estates r well kept n livable. Great gov work.
Also if VERS happened, the HDB owners can get at least the remaining 30yrs "value", whatever it maybe.
So, it is true that HDB owners benefitted fr gov assistance.
YET, at the end of 99yrs, it will hv a BIG FAT 0 value still!! That is an undeniable FACT!!
As for the arguments of going the Hkg SAR way, if the young can't afford a decent roof over their heads n can't escape elsewhere, guess where n to whom they will vent their frustration? Will there b a stable society to talk abt?
On the argument of renters not keeping their "homes" well. This is probably true if we hv LOW QUALITY people who can't look after themselves despite being educated in the world's best educational system!!
As for the private 99yrs, they will go to a BIG FAT 0 value too if held to maturity! No different in the end. They hv the en bloc thingy n how many times can this happen without the properties prices going up n up n up to UNAFFORBALE level n never fall?
So, let's JUST ACCEPT that 99yrs lease is a long term stay n WILL Revert to the state for next generation of citizens n people.
It is in lieu of renting on a short term basis where u n your family hv to move "home" every so often!!
Is this too much to ask??
U pays whether u rent rent constantly or u buy-n-stay till 99yrs expired!! Both r expenses n both will need u to spend some money!!
ps: given Sgp's fertility rate, i thot the worry is oversupply of HDB land taken back n no one to build for next!! Of course, it can b resolved with massive immigrants intake, assuming they want to come as their home country is STILL not as attractive as Sgp in 20-, 30- or 50-yrs!! True?
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