KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE

(14-02-2014, 11:51 AM)etan Wrote: Ok, back to the topic, imagine U buy a 37 yr old flat (lease bal. 99-37=62 yrs) at Marine Terrace for $880K. I call them paying insane prices for a flat.

Basically that person is buying a 126sm built-in for $880k for 60yrLH. Maybe he thinks it's worth it; he is paying a premium for some sea view, or near good schools, or he believes it is in a good district.

(12-02-2014, 04:59 PM)Tiggerbee Wrote: I thought the answer is abvious since the building will be fully depreciated by then and the value of the lease goes to zero. The same goes for private properties with 99 year lease.

Sea view wont be there in 20 years time. The Govt is reclaiming East Coast.

(14-02-2014, 11:32 AM)etan Wrote: Hahaha! As much as I like to do guess work, I think this is a piece of prime land sitting on high ground with full sea view. At the moment the area looks a bit untidy with a winding road going through in-between the blocks.

Well the govt can do wonders with the Land Acquisition Act.

Come 2027 when the port activities consolidate to Tuas, I guess this place will be transformed.

(13-02-2014, 11:04 PM)thefarside Wrote: PAP haters please do not flame me as this does not mean I am some kind of cheng hu lang who know how they work.

Spottiswoode Park is a misfit with HDB and privatised flats within the same block. I dont know what was the legacy issue.

Care to share where U got this info? TQ!

Sea view wont be there in 20 years time. The Govt is reclaiming East Coast.
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This is the interesting part! My wild guess: govt may harmonise the land titles, so it becomes clean, and sell off at huge profit!

(14-02-2014, 12:15 PM)opmi Wrote: Spottiswoode Park is a misfit with HDB and privatised flats within the same block. I dont know what was the legacy issue.

(14-02-2014, 12:20 PM)etan Wrote: This is the interesting part! My wild guess: govt may harmonise the land titles, so it becomes clean, and sell off at huge profit!

(14-02-2014, 12:15 PM)opmi Wrote: Spottiswoode Park is a misfit with HDB and privatised flats within the same block. I dont know what was the legacy issue.

Is SP a HUDC? If not, cannot privatise.

(14-02-2014, 11:51 AM)etan Wrote: I have seen people during their hay days they live in bungalow, but now they rent those 1 rm flat. Their work attitude is also like 3-days-wind 4-days-rain type. Somehow, it seems like they are racing against - Life vs money, who will finish faster. Hope you know what I am saying becos it's direct translation from Hokkien. I really don’t know what is up in their minds!

Anyway, I think it’s a good feeling to pass on some money or assets when we say bye bye to this world! Or do we prefer this saying: Come to this world with nothing, so leave this world with nothing?
Anyway, it's personal choice lah!

The bolded adage is not the problem. The problem is when you still around and left with nothing.

I liked to say that the aim of financial planning is to spend the last penny in your hand before you breathe your last. Problem is we know how much pennies we have, but not when we will breathe our last. The contingent liability is too big to ignore.

So in our context, as per my last post, I think it is pertinent to discourage people to think that their 99LH is an asset for retirement. It is for sure a roof over their head, but it is a declining "asset" ie "prepaid expense", as per fat el aptly put, before you breathe your last.

Some blocks are hdb flats, and some are HUDC.
You can check under URA & HDB resale.
Caveats show some were built in 1973 with 99LH.
Some were built in 1990 with 85LH.
To me, it looks like a messy piece of land.

(14-02-2014, 12:25 PM)opmi Wrote: Is SP a HUDC? If not, cannot privatise.

(13-02-2014, 05:19 PM)felixleong Wrote: I ask u all one question, if someone buys an hdb and lives in it. Is it an asset or liability? Since one day your hdb will become zero value

There are good and bad liabilities. Liability is part of your total asset.

(14-02-2014, 02:50 PM)etan Wrote: Some blocks are hdb flats, and some are HUDC.
You can check under URA & HDB resale.
Caveats show some were built in 1973 with 99LH.
Some were built in 1990 with 85LH.
To me, it looks like a messy piece of land.

(14-02-2014, 12:25 PM)opmi Wrote: Is SP a HUDC? If not, cannot privatise.

OK. Thanks

1973 - means 41 years. There is a limit to CPF Withdrawal for purchase of pte prop

.

(14-02-2014, 12:19 AM)opmi Wrote:

(13-02-2014, 05:40 PM)lanoitar Wrote:

(13-02-2014, 05:08 PM)opmi Wrote: Look at old master plans if u really want to know.

Unf, Master Plan 1958/1980 doesn't show plot ratio, while Master Plan 2003 shows pretty much the same plot ratios as 2008.
I agree with 'thefarside'. Think u can only get the info by doing the "ground work", unless u go for those super easy targets of 0.X plot ratio (aka HDB Terrace Houses).
Still, unless there's urgency in intensifying usage of a plot, the government can just let your lease run out. Low plot ratio + close to amenities might still not guarantee SERs, IMHO.

the older Master Plans have plot ratios. In term of people per hectare.
Of course, no guarantee for SERS. If look at HK, SG GPR can only goes up. It is cheaper to SERS near amenties than to build new infrastructure.

how to do "ground work" properly when u go there?
and is it cheaper to SERs near amenties than to build new infrastructure?
if govt build infrastructure at punggol, all are at cost with a bit of mark up..but sers at mature area involve tearing down the old flats and compensating the dwellers at market price