Minister Lawrence Wong’s latest hogwash: HDB flat a depreciating asset = a ‘good store of asset value’
MND Minister Lawrence Wong has offered even more hogwash in an attempt to explain Lau Goh’s asset enhancement (AE) scam, .
Wong recently caused panic among hundreds of thousands of HDB lessees when he stated the obvious: HDB flats are depreciating assets worth $kosong at the end of their 99-year lease.
Out of the blue a few days ago, Wong decided to insult HDB lessees and also contradicted himself by claiming that “HDB flats (are) a good store of asset value“.
Wong has many thinking citizens scratching their heads and asking WTF was he trying to say.
A home is supposed to be …. a home but Wong doesn’t seem to think so. He believes that a HDB flat should also double up as a “retirement nest egg”. Hmm … will MOT Minister Hara Kiri soon insist that private vehicles are also a good store of asset value?
Instead of reforming the failed CPF Ponzi scheme, Wong would rather retirees sell their homes and move into unfamiliar surroundings away from family members, relatives and friends. To Wong, a former civil servant who has earned millions in tax dollars, social issues are … no issue.
Question for Wong:
Will you ask your parents to move into a 2-room HDB bird cage after they have slogged a lifetime because of our failed CPF scheme?
No society is perfect but downgrading/selling our homes at retirement should be an exception, ie monetisation of citizens’ homes should not be the norm.
Wong has also continued to mislead the public when he illustrated his “good store of asset value” with this ideal scenario:
– 30-year-old couple
– combined income $5000
– $75,000 maximum grant to buy resale flat
– Resale flat 10 years old
– Downgrade to 2-room flat with shorter lease
– Retire at 65 with a remaining 55-year flat lease
But in the real world, how many 10-year old flats are available? How many couples have been given the maximum $75,000 grant?
According to official statistics, there are about 350,000** HDB flats which are 30 years or older. In 10 years’ time, 218,000 flats will be added to this pool of old flats. (** Some discrepancies which I will highlight in another post.)
Question for Wong:
Should couples buying a resale flat in 2027 not be able to select from any of the 30 years or older 568,000 resale flats because they need to plan for retirement? What is the CPF scheme for? Not for retirement but to support real estate prices?
Wong mentioned the Silver Housing Bonus of $20,000 but intentionally left out downgrading costs such as removal costs, agent commissions, stamp duty, minor renovation, furnishing (old ones cannot fit into smaller flat), etc. What about paying back up to $55,000 resale levy highlighted by Leong Sze Hian?
Singaporeans are no longer living in an age when information was controlled by PAP. Wong shouldn’t assume otherwise or he will be make an ass of himself.
A depreciating asset = a good store of value? What will Minister Wong be saying next?
* The author blogs at LikeDatOsoCanMeh.