Lawrence Wong: HDB leasehold flat is not only a good home, but also a nest-egg for future retirement needs

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My last blog on choosing a HDB resale flat generated some discussion and debate. Let me share some additional perspectives.

HDB flats, like many private properties, are sold on a 99-year lease. They provide a good store of asset value, so long as you plan ahead, and make prudent housing decisions.

To begin with, Singaporean couples enjoy significant subsidies when they purchase a HDB flat for the first time, be it a new flat or one from the resale market.

Take for instance a 30-year-old couple, with a combined monthly income of $5,000, looking for a resale flat in Woodlands near their parents.

They can get up to $75,000 in grants off the resale flat price, and should easily afford a flat with a reasonably long lease of 90 years.

35 years later, the couple will be 65 and the remaining lease of the flat will be 55 years.

They still have an asset which can be monetised for retirement.

In fact, this is already happening in Woodlands.

A 65-year-old elderly couple living in a 4-room flat with 55 years of lease remaining in Woodlands can sell their flat and right-size to a nearby 2-room Flexi flat with a 30-year lease.

They can enjoy a Silver Housing Bonus of $20,000 in cash. They can also get quite a lot of money from the sale proceeds – around $100,000 upfront in cash, plus $500 per month of additional income for their retirement (on top of what they would get through CPF Life).

Alternatively, if they prefer to stay in the same flat, they can apply for the Lease Buyback Scheme or LBS. This means they continue living in the flat for 30 years and sell the remaining 25 years back to HDB. They can enjoy a cash bonus of $10,000. In addition, they will get $47,000 in cash plus $400 a month for retirement (again on top of CPF Life).

The cash amount is not as much as if they were to right-size, but that’s because they can continue to stay in the same flat, and also have the option to rent out a room.

I have given some simple examples. But they are typical of many HDB households.

The general point is that your HDB leasehold flat is not only a good home, but also a nest-egg for future retirement needs.

That’s what we have achieved and that’s what we will continue to ensure – both now and in the future.

 

* Facebook post by PAP Minister Lawrence Wong.

 

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29 Responses to “Lawrence Wong: HDB leasehold flat is not only a good home, but also a nest-egg for future retirement needs”

  • Nest-egg? How???:

    Nest-egg for future retirement needs? How?

    Unless they are paid for by the younger generations coming onto the market.

    Lawrence Wong, are you able to understand why the younger generations are not having babies or are emigrating in droves?

    And you pay yourself millions for not having the ability to understand?

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  • What Do I Get If I Vote PAP?:

    I will lose my car after 10 years
    I will lose my HDB flat after 99 years.
    I will never get my CPF money back when I am 55 years old.
    I will likely lose my job to a foreigner when I turn 40 years old.

    So what do I have to lose by voting Opposition?

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  • LW, what r u talking about?:

    What nest-egg are you talking about, Lawrence Wong?

    Whatever gains I may be able accrue from my HDB aren’t be enough to help pay for my two grown-up children to buy their flats. I even have to dig into my own savings to help pay for their flats or they wouldn’t be able to afford one.

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  • Nest-egg or Ponzi scheme?:

    What nest-egg, LW? You mean Ponzi scheme?

    I’m glad I was able to catch that boat to some saner shores to escape that ponzi scheme to pay for the nest-eggs of the generation before me.

    Neither would I want my children to have to pay for my nest-egg.

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  • Nest-egg or Ponzi scheme?:

    Nest-egg or Ponzi scheme?:
    What nest-egg, LW? You mean Ponzi scheme?

    I’m glad I was able to catch that boat to some saner shores to escape that ponzi scheme to pay for the nest-eggs of the generation before me.

    Neither would I want my children to have to pay for my nest-egg.

    SG is in dire need for more intelligent leaders.

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  • opposition dude:

    “They can get up to $75,000 in grants off the resale flat price”

    The devil is in the details and this is PAP’s sneaky way of making something look and sound good. We all know that a couple earning a combined $5k per month isn’t going to get too many subsidies. Let’s not forget that resale is more expensive than BTO in the first place.

    So since you know you won’t be getting anywhere close to 75k discount for that resale then you also know that your housing loan would take most of the 25 years to pay off.

    And let’s be frank, how much cash do you actually get in your bank account when you downgrade to say a 3 room or studio these days? After all the money + interest goes back into your CPF how much cash do you actually have on hand from the sale?

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  • LIONS:

    FRANKLY,THE minister shud say that to his FTs/PRs who bought HDBs n capitali$e on them subsequenltly before leaving SG after making their $$$$$$$$$$????????

    minister lawrence wong,DONT ANYHOW SAY SAY,IT SHOWS HOW STOOPID YOU ARE.

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  • work till you die:

    Lawrence Wong is another PAP bugger who speaks with a flippant forked tongue.

    Just recently he warned Sinkies about buying resale flat because at the end of the 99 years lease, its value will become zero.

    Because he is a minister and his words have an effect on the resell market. The prices of resale flats will definitely be affected by his kay kian, flippant and careless words. Who dont know? Simple maths. Shut your mouth Lawrence Wong.

    The PAP and the HDB have a so called ‘monetise your old flat by downsizing to a smaller one as you grow old’ plan for older Sinkies who are short of funds to see that they have a decent retirement.

    Lawrence Wong was likely told that he had his foot in his mouth for saying resale flat will eventually become zero value at the end of its 99 lease. This is because there are people who had applied for smaller bto hdb flats and will be selling their existing bigger flats when they get their keys once their smaller flats are built.

    So your Lawrence Wong surfaced again and did a flip flop and attempted to clarify on his earlier speech about the “zero value” HDB resale flats.

    Whats the fucking use is that? Because of his c***b** mouth, resale flat value will drop furter and people who are justing waiting to sell….WELL! SONG BOH? DID YOU VOTED FOR? When you get your keys to your bto smaller flats, your old flats that you are required to sell off, its value will had dropped even further.

    DOUBLE WHAMMY from the PAP. First it was the loan eligibility tightening and now “zero value” for resale flats. So bye bye to your “monetising your old flat” and living a DECENT retirement thereafter.

    Song bo? Still want to vote for the PAP?

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  • song song:

    work till you die:
    Lawrence Wong is another PAP bugger who speaks with a flippant forked tongue.

    Just recently he warned Sinkies about buying resale flat because at the end of the 99 years lease, its value will become zero.

    Because he is a minister and his words have an effect on the resell market. The prices of resale flats will definitely be affected by his kay kian, flippant and careless words. Who dont know? Simple maths. Shut your mouth Lawrence Wong.

    The PAP and the HDB have a so called ‘monetise your old flat by downsizing to a smaller one as you grow old’ plan for older Sinkies who are short of funds to see that they have a decent retirement.

    Lawrence Wong was likely told that he had his foot in his mouth for saying resale flat will eventually become zero value at the end of its 99 lease. This is because there are people who had applied for smaller bto hdb flats and will be selling their existing bigger flats when they get their keys once their smaller flats are built.

    So your Lawrence Wong surfaced again and did a flip flop and attempted to clarify on his earlier speech about the “zero value” HDB resale flats.

    Whats the fucking use is that? Because of his c***b** mouth, resale flat value will drop furter and people who are justing waiting to sell….WELL! SONG BOH? DID YOU VOTED FOR? When you get your keys to your bto smaller flats, your old flats that you are required to sell off, its value will had dropped even further.

    DOUBLE WHAMMY from the PAP. First it was the loan eligibility tightening and now “zero value” for resale flats. So bye bye to your “monetising your old flat” and living a DECENT retirement thereafter.

    Song bo? Still want to vote for the PAP?

    and the price of new hdb bto flats are they cheaper now?

    instead of selling new hdb flats a lower price, PAP choose to pluck sinkies’ backside by forcing their resale flats prices to drop.

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  • covering backside:

    After having made a statement about the HDB 99 year lease becoming worthless, this clown is trying very hard to cover his st#*^king backside by contradicting his earlier statement, saying that your HDB flats are also nest-eggs for FUTURE retirement needs!!
    Don’t know whether to laugh or to show middle finger!!

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  • oxygen:

    YOU SELL OUT YOUR 5-roomed HDB, where are your kids going to stay (if they not yet married and can’t locate suitable life partners)??

    AFTER YOU SOLD, most of the residual proceeds WILL BE HARVESTED AND IMPRISONED by CPF (in PAPpy claw of financial entrapment) instead of your possession (but diminishing in value) which your kids can live in at least.

    EITHER WAY, PAPpy’s housing politics bundled up with CPF is a SCAM – head I win, tail I also win – YOUR CPF IS MY HOSTAGE in bondage – pick your choice of the devil or the deep blue sea.

    70% of the daft – too stupid to realize they are stupid – still vote for serfdom bondage and happily mortgage their a*ses for $500K for BTOs. In Down Under what you pay is yours forever. A frog in a well doesn’t know what is reality outside.

    Wonder why PAPpy so hostile against “quitters”. We see the real thing and know the differences.

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  • Hell o:

    AhWong houses never come down. Only end of 99 years. In the 70 a three rooms unit only cost about $15,000 today it is worth $300,000 in Toa Payoh. What talking you? In the 70 one bowl of mee pok came with 8 pieces of fish balls only 50cts. Today same bowl of mee pok costs $4 with only 2 fish balls. What talking you again?

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  • Samuel S:

    So LW is saying HDB is still worth buying despite the fact that we Singaporeans own nothing after 99 years leases over. Look like this government is sucking blood out from her own people. First they started flats enhancements which ultimately push up flats prices. As a result the members CPF become low. And after 99 years they loose both the houses and CPF. Then at 55 they change rules and stop us from drawing our own money (saying we will loose the money if we withdraw, hence they are keeping for us!). And the story repeats – the expired HDB flats will return to government and they start new building programs for another batch of Singaporeans who have no choice as the prices will definitely higher than current. And 99 years later the value becomes zero. Singaporeans please wake up and start campaign against this ungrateful government!

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  • Lee Hsia Lan:

    Wa! Clever. Pian lao nang. No wonder my uncle’s so happy. Says he can get thousand over dollars a month. Yuan lai it’s $400 on top of CPF Life. And he thinks he’s getting so much from his flat thru the scheme.

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  • William C:

    Why created all these schemes and make every a slave to service a 30 years mortgage loan. After fully redeemed, nothing is left in the CPF for retirement.

    If people have to downgrade their HDB for retirement, then why service the loan in the 1st place?

    It likes paying advance rental for year 31st to 99th. Then why not make all HDB rental homes?

    If we can pay monthly rent based on a 99 years period, then the monthly payout with CPF or cash is very minimum. This allows us to have a huge retirement fund in CPF. We continue to live in the same home until my NOK surrender my pink NRIC back to the Register.

    With this, we don’t have to go through all these fabricated schemes. Fake Robin Hood.

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  • kf:

    20 years ago, ah boy was a teenager while his watched a captain helm a sampan.
    Captain (smiling) : Buy and upgrade and your flat will enhance your asset!
    Ah boy didn’t stood up to debunk the story line.
    20 years later, ah boy became a sampan rep under another captain.
    Sampan Rep (smiling) : See ? If you right size your flat by selling it during old age, your flat can be a nest egg for retirement!
    While captains and sampan reps are busy heaping assets onto themselves all these 20 years.

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  • In some countries, you sell:

    your kidney to raise cash. At least here in Singapore, you just sell your home . . .

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  • New Egg Yoke:

    This is ONE dangerous, ambitious and power hungry SNAKE fighting for power grab and this CB mouth will be ONE of the MAIN snakes that will DESTROY Stinkabore. Dun believe, keep watching.

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  • Manipulative Political Value:

    Sure there’s a store value in HDB flats ownership which is based on PAP intrinsic selfish political-economics when they need votes.

    Once votes are in the bag, those values are negated by TRANSPORT FARES, C and C, ELECTRICITY and WATER PRICE INCREASES! !!

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  • Manipulative Political Value:

    Manipulative Political Value:
    Sure there’s a store value in HDB flats ownership which is based on PAP intrinsic selfish political-economics when they need votes.

    Once votes are in the bag, those values are negated by TRANSPORT FARES, C and C, ELECTRICITY and WATER PRICE INCREASES! !!

    AND CPF, our money is also part of PAP supply and demand of money for playing in “investments”.

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  • ali baba:

    Pay and pay from birth to death, what nest-egg? We only see the partee reaping the eggs from start to end.

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  • Old Moon:

    Every country or society has its own unique problems. Which country does not have its own problems? America has problems, so has Switzerland…
    Human needs and aspirations are varied and limitless.
    What worries all of us is uncertainty and the need for security.
    The framework or the structure (for want of a better term) that can confer the people some form of certainty and security for the future is the country and the government.
    Singaporeans are not ready to entrust their future to the opposition just yet!

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  • well-run country:

    Old Moon:
    Every country or society has its own unique problems. Which country does not have its own problems? America has problems, so has Switzerland…

    I would be glad to have all the problems Switzerland has, if I can also get to enjoy the fruits of their well-run country.

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  • oxygen:

    @ Old Moon,

    THIS IS EXACTLY WHAT I CALL ‘CATERPILLAR MENTALITY’ – if you noticed carefully, each caterpillar behind follows the caterpillar blindly ahead up the thin branches UNTIL A PASSING BIRD flew in and have both for its dinner. Hours later, the bird will excrete what it eaten as poo on the other exit.

    Native Sinkies are like that which adequately explains the daft 70%’s behavior. They will extinct whilst neighbors and foreign influx prosper. SAD.

    Old Moon: Every country or society has its own unique problems. Which country does not have its own problems? America has problems, so has Switzerland…
    Human needs and aspirations are varied and limitless.
    What worries all of us is uncertainty and the need for security.
    The framework or the structure (for want of a better term) that can confer the people some form of certainty and security for the future is the country and the government.
    Singaporeans are not ready to entrust their future to the opposition just yet!

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  • BuyMeBakKutTeh:

    Do reply to his FB

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  • Old Moon:

    So some of you think that the “Opposition” is ready to govern and lead?

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  • vote oppostions dont be scare:

    Old Moon:
    So some of you think that the “Opposition” is ready to govern and lead?

    in terms of numbers, members and headcounts they might not be ready. this is the way i see it. BUT if we dare not give our votes to the oppositions, then nothing will change and move. we will just remain as kpkb kings. we will forever be asking the question – are they ready, so play safe lah just vote the MIW?

    the way PAP is behaving now people should send in more oppositions into parliament to wake up their ideas. LHL is no longer capable of telling apart a bad ideas that are put forward to him by his inner circle, among them many are YES man who recyles old ideas from the past into new packages and wrappings. many of them are dishing out policies and doing money wasting things just to be seen as doing somethings. fixings things that are not broken.

    it is about 2 years after the general electon. what is the PAP doing now to you to your pockets. the economy is not performing so well and they resorted to generate revenues by raising the cost of things, eg….

    voting in more oppositions into parliament is good for the future of SG. the PAP will also work harder. it will also gives oppositions members opportunity to be exposed to the workings of parliament.

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  • Old Moon:

    All these arguments to vote for the opposition are all too familiar. The fact is 70% of Singaporeans dared not or didn’t vote for the opposition.
    The call to vote for the opposition is like trying to wake up the dead. Perhaps, they are all braindead!

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  • ahloong loves mingyang:

    nest but filled with pest such as cost going only upwards and does this takes into account the time value of money???

    moron pap milionaire minister, 10k 30 years down the road is shit in singapore lah….

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