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

[opmi]

said before, buy HDB flats got Aladdin "New for Old" embedded option.....

in 10 more years, those 70s flats will be ripe for SERS.

[chialc88]

said before, buy HDB flats got Aladdin "New for Old" embedded option.....

in 10 more years, those 70s flats will be ripe for SERS.

opmi,
elegant!
hope some Value buddy will benefit from your foresight.

Love Compassion



Earth day - save the world everyday.

[yeokiwi]

said before, buy HDB flats got Aladdin "New for Old" embedded option.....

in 10 more years, those 70s flats will be ripe for SERS.

opmi,
elegant!
hope some Value buddy will benefit from your foresight.

Love Compassion



Earth day - save the world everyday.

If they move the Paya Lebar air base to Changi, almost all the HDBs in the east will be able to enbloc easily. From 10-15 storeys to mighty 40-50 storeys HDB.

[chialc88]

If they move the Paya Lebar air base to Changi, almost all the HDBs in the east will be able to enbloc easily. From 10-15 storeys to mighty 40-50 storeys HDB.

Yes, "Transformation" stories.
I am extremely keen on biz/coy/stocks that had a transformation theme too.
Love to watch the process for them to turn into a beautiful butterfly.

rewarding result plus a satisfying journey too.

LC


Earth day - save the world everyday.

[pianist]

i think it is impt to note this motivation behind SERS now.

"31 blocks at Tanglin Halt Road, Commonwealth Drive to be redeveloped under SERS. "With every new HDB town becoming more modern, there is a need to ensure that older towns do not end up too far behind," says minister Khaw Boon Wan."

[opmi]

The Tanglin Halt SERS would help SERS more older Hdb estates in Bukit Merah to Commonwealth.

31 blocks of flats is big. Usually HDB SERS 2-5 blocks each time. Land released will be enough to build more replacement flats.


SERS planning is like playing Chinese squares puzzle. Cannot move a square unless u make space by moving another square.


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[specuvestor]

As per discussed in multiple threads but think I'll just post here. Now to see if HDB will continue to bail out that psychology of HDB flats won't lose money with SERS. This has huge policy implications.

http://www.channelnewsasia.com/news/sing...in-8961090

This should be a warning to the PRs who are "investing" in HDB for rental/capital appreciation. Many bought with the idea that the HDB prices will never fall.

Man on the street thinks long term HDB prices will never fall.

I've posted this before: if u assume some 4% nominal appreciation annual, you will see prices start to stagnate around 60-70 years old and decline thereafter. We don't have flats that old YET.

So the key is whether govt will allow HDB flats to enter a structural declining phase. This will have huge impact on the population psyche and perception. Serious implications for the property market and political environment. A way to avoid the paradigmn shock is of course HDB to recover flats that are more than 60 years ago via SERS or otherwise.

But on a policy point of view, 99 years make a lot of sense. It provides for renewal of landscape.

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

Your flat is an asset. Your mortgage is the liability. Hahha

How about:
Your flat is  prepaid rental expense in advance for 99 years. Mortgage is liability.

From layman point of view it's an asset because for most part of the 99 years it is appreciating partly due to inflation, plus the 4X leverage kicker... so positive reinforcement

From policy makers and econs point of view it is a COST. These are costs that contributes to our inflation and competitiveness... policy makers that focus on "asset appreciation" is either not very intelligent, smoking something or politically driven.. or all the above

Those who ''own'' an HDB , be it home or commercial are actually owning the lease , not the properties al at , all are tenants not owners of HDB.

I actually ask a HDB officer why we get title deed when we fully paid our HDB flat. Shouldn't it be master lease? Frankly I think there must be some legal implication in this arrangements that a lawyer would be able to explain. Which also comes to the next question below...

Just to share.

From a book that I had read, the word "Real" in the term "Real Estate" does not actually mean "real" in English language. Its from Spanish word that mean royal. In today's world, it means the our government. So the properties that people own actually belong to the government.

Excellent point... same meaning as the soccer team Real Madrid. End of the day the state is sovereign. That's why some say there is no difference between 99, 999 or FH since the state can take possession of it. But I do think there is subtle legal implications to it, just like strata titles. The anecdotal evidence is that FH preserve and increase in value much better than 99 over say >30 years.

[opmi]

these landed residents are small in numbers....easy to take them out...

HDB new towns has 180k households (X3 votes) each....how not to bow out to pressure....

unless the other residents gong gong watch HDB take out the neighbours' older flats, without considering their own future fates....
this part must learn from PRCs and rural HKers....

[CY09]

If am individual is paying 600k for a 60 yr lease resale with a combined income of 6k per month, it is financially imprudent and imo should not deserve a govt bailout

[HitandRun]

these landed residents are small in numbers....easy to take them out...

HDB new towns has 180k households (X3 votes) each....how not to bow out to pressure....

unless the other residents gong gong watch HDB take out the neighbours' older flats, without considering their own future fates....
this part must learn from PRCs and rural HKers....

I thought so too. I think it would have similar impact as attempting to raise the CPF withdrawal age from 55.....

Nevertheless, I think there's another risk that the govt should take into consideration in future: longevity => I expect further breakthroughs in cell therapies could extend human lifespans significantly within a decade or two. We might not have the opportunities to benefit from the therapies but our children definitely will.