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Not sure if the comparison apple to apple?
If not mistaken, the HDB couple stayed for 99 years whereas the condo couple stayed for 50 years and sold their condo without a replacement property.
How about compare to the case where the HDB couple stayed for 50 years and sold their BTO flat, without buying a replacement flat?
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17-12-2017, 12:04 AM
(This post was last modified: 17-12-2017, 12:05 AM by CY09.)
wsreader,
Even if we are to play a situation where the couple gets a condo with replacement with their $820,000 and then enbloc 50 years later. They lose about 130k. Hence in total, they lose a total of about $310,000. As compared to a BTO family losing the full $400,000 if they stayed through the entire 99 year lease.
In the other situation where a couple stays for 50 years and sell their BTO flat. In my context of this thread, I am following the line that the government does not renew the HDB lease and insists that the 99 year lease must be depreciated fully to zero (following from ex MND minister). In that case the first BTO family will bear only 24.3% of the BTO cost; while the second family will bear 75.7% for living out the remaining lease.
This is where I am asking: i) Should the govt stop allowing a fresh 99 year lease for every enbloc redevelopment or ii) should the govt allow HDB flats to go through a fresh 99 year lease top up like what is happening in private with redevelopments.
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17-12-2017, 11:05 AM
(This post was last modified: 17-12-2017, 11:06 AM by corydorus.)
HDB when sold at 50 years, there are still significant value. They probably fare even better than condo enblock at 50 years.
We also need to use ratio percent since condo quantum is higher on paid up.
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In Hong Kong, the land north of Boundary St up to the China - HK Border was previously leased from China and ended in 1997. Since 1997 operating as a Special Administrative Region (SAR) this area north of Boundary Street including my apartment building was given a 50 years lease and every flat owner now pays ground rent at quarterly intervals to HK SAR Government. So I am required to pay $823 every quarter or approx $3300 per year and some time in the near future the Government will have to extend the lease for another 50 Years. Why ? because the banks will refuse to lend and the economy will start to contract and the wealth of the people will vanish.
So in Singapore if your apartment block still has 50 years remaining, then I would expect in about 20 years time, the flat owners of the block will have to seek a lease extension and pay ground rent. I don't think the Government of the day will allow the economy to contract.
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(19-12-2017, 06:35 AM)soros Wrote: What is GLS?
Government Land Sales
https://www.ura.gov.sg/uol/land-sales?p1=find-gls-site
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