Do you think HDB flats will go to $0? Share your thoughts! Store - stackedhomes.com/store/?.com&GQ_3Dl5F9kM Website - www.stackedhomes.com/?.com&GQ_3Dl5F9kM Instagram- instagram.com/stackedhomes Facebook - facebook.com/stackedhomes TikTok - www.tiktok.com/@stacked.homes
It's all in the hands of the garment. If they want to suck money from you, they will ask you to top up hugh amount of money when lease run out. To reset to another new 99 Yr lease when it reaches 0 Yr. If they want to support you, they give you SERS. But garment already hinted that SERS will be slowly phased out and replaced by VERS which is useless as little benefit will be given. So therefore I said, whether your property is left to decay and rotten, or whether it is given the chance to re born itself all lies in the hands of our garment.
$0 would be fair only if the value of leasehold properties is directly correlated to the remaining lease. For example at 99 years balance lease the value of the flat should be the highest then at 49 years old its value halves, then $0 when lease expires. If someone buys a 49 years old HDB flat for half the price of a HDB flat with 99 years balance lease then it would be fair, but in reality there's 40 years old HDB flats selling for a million dollars, which means although these HDB flats are ageing their values are still going up for now. This is why $0 is problematic because instead of the value decaying over a period of 99 years, its highest value point often isn't at 99 years balance lease. Pegging the value of leasehold properties directly to its remaining lease may be unrealistic as various factors can negate the price depreciation effects of lease decay like location, inflation, etc, which is why after year 2000 when BTO sizes started shrinking, people started paying higher prices for 1990s or older flats with larger sizes, resulting in the inverse effect of older HDB flats increasing in value.
@@contrarian2496 So in the end who control everything? Its the garment. Garment manipulate all the market prices. Then I always get to hear the resale is a free market forces of demand and supply. All bull shit. Garment is the mother suxkers who manipulate everything.
Tay Kheng Soon, renowned sg architect said due to civil engineering constraints, flats 99 years the material degrade requiring demolishment for Safety. Is this true? He said something like this in a speech online
Just to add on- from HDB source. Sers is 3-4% of the HDB housing population and only popular areas. To Clarify make it clearer - A replacement flat is just letting you to choose another BTO flat (you still have to pay for it) not free. All can be found black and white in HDB. Past rally, LSH mentioned and states they want HDB to be demolished and rebuilt which cost is cheaper than maintaining and keeping it so chance of gov letting extension happen it’s not possible :) cheers! With Love!
No need to wait until 99 years because when crossing the 50 years mark the value depreciate, the pipes are worn, the flooring crack, the design are out of dated, family unit is getting smaller and Singapore is running out of land to build more HDB. Some dont even want to wait for 99 yrs if given a choice to en bloc.
As such, only 50 HDB flat blocks will be allowed to stay on until the end of the lease. The majority of the HDB flats, will have to be en-bloc and being replaced which involves phasing out of old estates. This is what it has been done in Tampines Court, Tanglin Halt and Florence Regency before. So, if it reaches the end of lifespan, do the procedure of buying the house, moving out, cancellation of power supply and change of NRIC address. Renting a house or stay with others should be done at last resort.
@@StackedHomes Lets say you're single, so you can only buy at 35. (Which basically means resale because you ain't getting a BTO at 35). Definitely will take the full 30 years repayment if its resale. because prices are ridiculous and as a single, you will get minimal grants. You'd be 65 with an empty retirement fund that didn't get to compound interest. Huat ah.. But ah, prices start depreciating drastically after 50 years... which is where you're at if you bought resale. So if you sell, you lose money and won't be able to afford a new house. And if you don't sell your house, you'd need to keep working past 70 to live out your final 5 years. 4G leadership: Not my problem. I'll be gone by then. 🤣
Very informative. HDB should pay attention to this old flats. Growing old in older estates with not much savings / high cost of living seems to be a growing problem in Singapore. We need help!
Very difficult to get the old folk to move. I talk to my parent about his lease decay flat. He bo chup .....just want to see his friends who are downstairs everyday.
When one gets old and money is no longer the priority, friends and time spent with family outweigh all other factors. There are times in life that we follow our heart while letting what is sensible and logical overwhelms us. When we close our eyes, all is nothing but just experiences.
It is his house, his decision to stay at his forever home. lease decay? it will still have at least 40 years left when he pass on, so lease decay will not affect him and the unit he bought must be less than 15k.
In my opinion we are going to have a property crash in about 10 to 20years. Just like what he said, there will be too many people who will inherit their parent's houses and since you cant own two property (in which one is a HDB), we going to have a wave of people trying to get rid of the houses as quickly as they can.
There is always privatisation! and given Singapore attractiveness as a stable economic hub attracting talent and wealth all over the world, I think a crash is unlikely, provided Singapore economy and employment is manage well perpeatually!
The crash is unlikely, as the both the population numbers and the rules for not allowing to own more than one HDB can be changed. So, all can be controlled, and nothing can be predicted upfront.
Lease renewal is not a good option as the building and interior would have age. A better scheme is for HDB to use rent per month to compensate the owners. For eg 20yrs remaining for a 4room HDB which can command a rental of $1200, the payout would be $288K, owner(s) can use the money and leave with kids to retire or buy a HDB studio flat. HDB then takes back the land and redevelop with another new lease of 99yrs to sell to new couples....
The only real solution is for the lease to never appreciate, and only depreciate in line with the remaining lease. A BTO price should be it's peak price in a flat's lifetime. That covers literally everyone except speculators.
When you say there are some degree of involvement in private developer; how accurate is this? At 100% rate? What are the sort of the percentage that 99 years old will be converted? And which area? These are not proven theories. As a fact, it is net $0 dollar for a 99 year hdb.
Future generations, a possibility many will inherit housing and insurance payout from their parents too esp those with just 1 or 2 kids. Will this drive up the property prices with future generations inheritance
3 and 4 room flats especially should let them move to new flats with at least help of deposite non cash payments or sure downpayment loan as this will ease owners with stresses of finding cash .. owners still needs lots of money when move in to new homes . I pity those owners that had never been able to move house cos of many restrictions abt moving to new homes or change to smaller ones cos of bank loans for senior ... only 3 to 4 rooms low and average income home owners gov should forcast .. many reall are force to rent their rooms out for survival....not for extra cash for enjoyment
Many in their 30,40s i talked to believe without evidence the old flats will all get EnBloc , free house to replace old one f.o.c. I asked them, where did you get that info? Where will the billions come from. Then they kept quiet. Education system . Sigh😅
what happens at Year 0 of the property lease is simply dependent on POLITICS. A govt can be dead serious about zero value in 2022 and the same govt can also be dead serious about enbloc in 2042 if the political margin is thin... its simply about survival. What the govt THINKS is the point where the population will vote it out....
Yes, I think my million $ HDB flat will go to $0, that should happen if I live to 110 years old. I am so looking forward to live until I die in it. 😀I hope never kenna SERS.
In regards to your point on private developers unable to en-bloc HDB flats, could you explain how the flats at Kampong Silat has develop into a condo development, Avenue South Residence.
All HDB that has turn condo will have to be either be SERS and land resold to condo developer or is actually a HUDC that has been turn private and en-block by condo developer.
The most important is to have good and strong government financially is sound therefore the government can do good jobs for his people,otherwise no money no action.
1. I think HDB will demolish flats after 99 yrs and re-built new flats for a much larger profit. After 99yrs HDB can take back the flats at $0 cost. 2. Re-selling old flats after 99 yrs, the profit is low for HDB and lease needs to be extended. 3. The structural integrity of the building might be at risk, leaking, concrete spalling, etc. after 99 yrs. 4. By 99 yrs I will be re-located to Haven Development Board (HDB) for sure. 😇 …or Hell Development Board.👹
HDB buyers don’t have cash. Want full loan with zero or little COV. Compare $/psf of properties in an entire area without taking into consideration the condition of the flat. Honestly, don’t bother renovating because buyers don’t care. HDB transactions website data doesn’t care. Nothing you spend on a HDB flat will be worth it cos buyers don’t give a f***. They want it cheap and if it’s all poor quality and imitation brands, they honestly don’t care. Singaporeans are the best at trying to impress with imitations and fake stuff. They don’t value quality at all. Just “value for money”.
Depends if you buy old flats or not. A lot of young people are buying older flats today. Cheaper and bigger. But have to consider the potential capital loss and difficulty in buying another property later.
Great video & thanks for discussing this very important issue. I wish the govt is leading the discussion about solutions etc instead of keeping quiet about it. One of the govt's claims for their successful leadership is their ability to provide home ownership to the majority of the population. When the lease runs out for many blocks / estates built in the 1970s or 1980s, if the govt is going to displace a part of the population without offering alternative solutions, they're going to either have a riot on their hands or the homeless on the streets, so I hope they're thinking hard and working hard on it.
Most people purchase their HDB at 30 years old + 99 Years (HDB) = 129 Years old. The oldest verified person is 122 years old. Few people will outlive their HDB.
@@bldbld3697 Oversimplified and unrealistic. That math doesn't add up when you factor in property flipping every 5 years. If a 30 year old buys a 60 year old flat because it only starts becoming affordable for him at that age, he would absolutely outlive it.
If the family had money to burn paying so much for a property with a low remaining leasehold, then they shouldn't complain. They should have done their homework first and not have been swayed by sweet sales talk. I doubt they'd have bought the property with their eyes closed.
Why is it not fair? The terms are clear. You enter into the agreement when you purchase it. No one has forced the buyer to pay that price. You’re not forced to buy it, you can walk away and pay for something else. It’s ridiculous to cry that it’s “not fair”. What are you? 5 years old?
❤Hard or Soft question to Investment experts : 1. Must hdb flat be demolished after 99 years ? Is it a Hard problem , that is, an engineering, structural issue or constraint? 2. Is LEASE PERIOD purely Artificial? If so, lease can be extended after 99 years. So, is lease a Soft issue? 😅
HDB is no longer an investment when you bought one less than 80 years old. look at the BTO being build and how much they sell for second hand? a DBSS at Boon keng is $400k++ when it was brand new, and now it has been sold at $800+k.
I inherited my parent's flat and it has a remaining lease of 43 years. I would be almost 100yrs old by then. Let the living worry while I stretch my pair of legs and enjoy watching how heaven looks like in the ground 🤣
HDB is for affordable housing, not for investment/profit. What is so hard to understand? HDB is already heavily subsidied using taxpayer's money which are meant for the needy who can't afford basic neccessities, not for HDB owners to earn profit. Want to profit? use your *own* money to *invest* and not *taxpayers' money*. Simple as that.
Especially for central area even if it’s old one should not worry. Easily able to generate high rental or able to get a new house in the same area if SER. It’s only going to be more expensive to own a hdb in central area.
Lousy explaination, trying to complicate matters. DPM Lawrence Wong already say it will be return to the state as it is part of our reserve. So pls....
Maybe a good middle ground is at the 0 year mark, give a final +20/30 year lease top up scheme where existing owners will pay upfront additional lease but can no longer resell the flat or resell the flat to new owners who also get the additional lease top up but also can no longer resell the flat. Upon passing, balance lease will be returned to the NOK and HDB can use as rental flats. This way there is some price discovery in the cost of the additional lease, an option for the residents and certainty to the people, all while ensuring our land isn't under utilised.
Lease Renewal will not happen because most HDBs were designed to last 100 years. The amount of renovation damage, wear, and tear makes a 100-year-old HDB too risky to stay in.
could this be a possibility - HDB top up its head lease with the relevant authorities, and then the top-up premium is shared equally by all flat owners? This way you get an extension of lease.
Any leasehold property around the world does not go back to zero after 99 years. Spore private 99 leasehold property also go back to zero , what more for public housing. SERs / VERs is akin to private sector Enbloc - the difference being one is initiated by the estate residents viz a vis HDB solely at the discretion of authorities.
Hey! Thanks for your feedback. Perhaps this video is not meant for you as we do get these questions asked. Feel free to explore our other videos. Thanks for dropping by!
If u are looking purely at black and white without concern for emotion and social economic impact on people life and retirement saving and net worth sure it's simple!
There is some serious mis-information about your video. You make the assumption that depreciation of HDB in the coming yrs will not nose dive. Wrong. This was true in those decades ago but if you look at the real number of flats built from 1980 to late 1990s, this is where the sheer large number of flats were built back then. To give a estimate which someone did research into the numbers , it was well over 550,000 flats of all types, having lease shorter or less than 60 yrs in 15 yrs from now. With such numbers ,the gov sure would not be able to offer any viable rescue package for these group of folks but for them to eithier sell it off cheap, if they can or do lease buy back scheme by HDB with is subject to their approval. Eithier way, most of these owners only have that one roof over their heads and it is not that after selling off their old HDB, they can afford to retire and live elsewhere. As to extending their lease with a top up sum, most of these flats already have serious maintanence issues as in such older flats and doing so might be penny wise pound foolish and have consequences that goes way more than dollars and cents( eg collapse of concrete sturctures which did happen). For those who have not woken up to these facts and are owners of such units, i guess the right analogy for them would be like a ostrich sticking its head in the sand and what they don't see or hear, would not affect them!!😆😆😆😆😆
Hi! We need to consider that the older folks who are living in these flats will pass on, and these HDBs would be willed to any of their loved ones left behind. Due to how strict HDB ruling is, the HDB may need to be disposed of since the children would likely have their own place. For the folks who start seeing their HDB depreciate in value, it may be the case of not needing to sell and retire elsewhere too, as the HDB already provides a roof over their head and is all they really need. In the end, the HDBs cost over its lifetime would still be cheaper than paying rent elsewhere, up until perhaps the last few years of its life when the monthly cost of the property gets closer to the rental value. Of course when the property price would start to nosedive is a mystery as it hasn't happened yet, but the price depreciation wouldn't "nosedive" in the sense that 10% of the value drops in 1 year. It'll likely depreciate over the years at an accelerating until it reaches 0, with the new buyers of old property going in well aware that prices are moving down in this fashion. So we think the scarier part is that younger folks are buying these really old HDBs - and if they do this hoping for a price increase, then it would be very risky and I would say that's akin to burying one's head in the sand and hoping for things to work out. If they're buying with their eyes open knowing that money should be made elsewhere, not from their HDB, then that's okay. But for the older folks who are already staying there, they'll likely not outlive the remaining lease so they aren't as naive as one would think. After all the minister already said it'll go to $0 when the lease is up 😂 It's just something people have to / or have accepted.
"We intend to keep the value of these homes up, it will never go down. Because it will be renewed, the surroundings will improve, and as Singapore prospers, GDP goes up, the value of homes will go up." Lee Kuan Yew 2013
Everyone shld take it that after 99 yrs u need to pay for a new flat, that is if you are still alive. If u want to pass it to your children then work harder get a freehold.
Yes, that's basically what a 99-year leasehold is at the end of the day. You pay for a 99-year leasehold price today,, if it were freehold, it would've costed more!
Pte condo 99Y most if not all will get enbloc when it lease run down by 40-50 years, for hdb only 5% will undergo SERS. So risk for hdb is higher while pte developers can come in enbloc a 99 pte.
Do you think HDB flats will go to $0? Share your thoughts!
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It's all in the hands of the garment. If they want to suck money from you, they will ask you to top up hugh amount of money when lease run out. To reset to another new 99 Yr lease when it reaches 0 Yr. If they want to support you, they give you SERS. But garment already hinted that SERS will be slowly phased out and replaced by VERS which is useless as little benefit will be given. So therefore I said, whether your property is left to decay and rotten, or whether it is given the chance to re born itself all lies in the hands of our garment.
$0 would be fair only if the value of leasehold properties is directly correlated to the remaining lease. For example at 99 years balance lease the value of the flat should be the highest then at 49 years old its value halves, then $0 when lease expires.
If someone buys a 49 years old HDB flat for half the price of a HDB flat with 99 years balance lease then it would be fair, but in reality there's 40 years old HDB flats selling for a million dollars, which means although these HDB flats are ageing their values are still going up for now. This is why $0 is problematic because instead of the value decaying over a period of 99 years, its highest value point often isn't at 99 years balance lease.
Pegging the value of leasehold properties directly to its remaining lease may be unrealistic as various factors can negate the price depreciation effects of lease decay like location, inflation, etc, which is why after year 2000 when BTO sizes started shrinking, people started paying higher prices for 1990s or older flats with larger sizes, resulting in the inverse effect of older HDB flats increasing in value.
@@contrarian2496 So in the end who control everything? Its the garment. Garment manipulate all the market prices. Then I always get to hear the resale is a free market forces of demand and supply. All bull shit. Garment is the mother suxkers who manipulate everything.
Will My 99 year Leasehold Condo Be Worth $0 After 99 Years?
Tay Kheng Soon, renowned sg architect said due to civil engineering constraints, flats 99 years the material degrade requiring demolishment for Safety. Is this true? He said something like this in a speech online
Just to add on- from HDB source. Sers is 3-4% of the HDB housing population and only popular areas. To Clarify make it clearer - A replacement flat is just letting you to choose another BTO flat (you still have to pay for it) not free. All can be found black and white in HDB. Past rally, LSH mentioned and states they want HDB to be demolished and rebuilt which cost is cheaper than maintaining and keeping it so chance of gov letting extension happen it’s not possible :) cheers! With Love!
Thanks for sharing!!
Nice voice easy on the ears and a comfortable delivery .
Great content to talk about how our housing will contribute to the societal issue in the long run. Very real issue. Keep it up.
Thank you!!!
Ryan’s ability to explain in layman terms yet with foresight and non biased opinions .. amazing
Thank you, Darren!! We hope you find it informative! 😊
No need to wait until 99 years because when crossing the 50 years mark the value depreciate, the pipes are worn, the flooring crack, the design are out of dated, family unit is getting smaller and Singapore is running out of land to build more HDB. Some dont even want to wait for 99 yrs if given a choice to en bloc.
HDB's are often slated for refurbishment >30 years.
As such, only 50 HDB flat blocks will be allowed to stay on until the end of the lease. The majority of the HDB flats, will have to be en-bloc and being replaced which involves phasing out of old estates. This is what it has been done in Tampines Court, Tanglin Halt and Florence Regency before. So, if it reaches the end of lifespan, do the procedure of buying the house, moving out, cancellation of power supply and change of NRIC address. Renting a house or stay with others should be done at last resort.
Pay and pay using cpf for your HDB till the end no savings for retirement and flat become 0
Well to be fair the payments should end in 25 years. So you'll be debt-free (housing-wise) if you bought even a 30 year old flat today! 😀
@@StackedHomes Lets say you're single, so you can only buy at 35. (Which basically means resale because you ain't getting a BTO at 35). Definitely will take the full 30 years repayment if its resale. because prices are ridiculous and as a single, you will get minimal grants. You'd be 65 with an empty retirement fund that didn't get to compound interest. Huat ah.. But ah, prices start depreciating drastically after 50 years... which is where you're at if you bought resale. So if you sell, you lose money and won't be able to afford a new house. And if you don't sell your house, you'd need to keep working past 70 to live out your final 5 years.
4G leadership: Not my problem. I'll be gone by then. 🤣
😢
Very informative. HDB should pay attention to this old flats. Growing old in older estates with not much savings / high cost of living seems to be a growing problem in Singapore. We need help!
Thanks for sharing your thoughts!
Very difficult to get the old folk to move. I talk to my parent about his lease decay flat. He bo chup .....just want to see his friends who are downstairs everyday.
When one gets old and money is no longer the priority, friends and time spent with family outweigh all other factors. There are times in life that we follow our heart while letting what is sensible and logical overwhelms us. When we close our eyes, all is nothing but just experiences.
It is his house, his decision to stay at his forever home. lease decay? it will still have at least 40 years left when he pass on, so lease decay will not affect him and the unit he bought must be less than 15k.
In my opinion we are going to have a property crash in about 10 to 20years. Just like what he said, there will be too many people who will inherit their parent's houses and since you cant own two property (in which one is a HDB), we going to have a wave of people trying to get rid of the houses as quickly as they can.
Yes. Perhaps this was factored in by the Singapore government but the timing could've been off, partially explaining the run up in property prices.
There is always privatisation! and given Singapore attractiveness as a stable economic hub attracting talent and wealth all over the world, I think a crash is unlikely, provided Singapore economy and employment is manage well perpeatually!
The crash is unlikely, as the both the population numbers and the rules for not allowing to own more than one HDB can be changed. So, all can be controlled, and nothing can be predicted upfront.
No one ask you to own 2 HDBs, just keep the best HDB and you are good to go.
Gov ties some of our hands n legs with many rules that forbids many to able change or apply now homes ...what can we do?
Lovely video, really well-formed opinions and rationalisations. Thanks for making such content and looking forward to more!
Glad you enjoyed it!
Lease renewal is not a good option as the building and interior would have age. A better scheme is for HDB to use rent per month to compensate the owners. For eg 20yrs remaining for a 4room HDB which can command a rental of $1200, the payout would be $288K, owner(s) can use the money and leave with kids to retire or buy a HDB studio flat. HDB then takes back the land and redevelop with another new lease of 99yrs to sell to new couples....
This is quite similar to VERS then, if the area as a whole votes for it. Details on the compensation isn't out though!
LKY said our HDB is an asset an it ends to zero so sad.
Private property owners enblock become rich but HDB owners enblock is very sad. Someone responsible must wake up.
@ongsteve4726
Many not so old HDB flats owners are happy leh. They get a new HDB flat with discount. Correct?
Purpose of living: Work forever to pay leasing rights for place to live.
The only real solution is for the lease to never appreciate, and only depreciate in line with the remaining lease. A BTO price should be it's peak price in a flat's lifetime. That covers literally everyone except speculators.
perhaps will adopt the COE scheme. Pay a sum to top up 10 more years
Perhaps! Thanks for sharing your thoughts!
Not just simply a problem for house after 99years , how about money that we borrowed from CPF for house load?
When you say there are some degree of involvement in private developer; how accurate is this? At 100% rate? What are the sort of the percentage that 99 years old will be converted? And which area?
These are not proven theories. As a fact, it is net $0 dollar for a 99 year hdb.
I wonder why property tax amount don't fall yearly if the property value drops by the year. 🤔
Hey! The tax goes by rental value which doesn't fall as the lease falls. Smart way to charge tax huh 😂
You must include CPF in the HDB lease discussion. Both are part of retirement planning.
I learned about VERS from this video. Didn't know that was possible. Thanks!
Glad we could help! 😁
Good sharing as always!
Thanks for watching 😁
Thank you for your sharing!
It's our pleasure! 😁
leasehold is a scam
Can I consider the Lease Buy Back Scheme, please? Thanks
Future generations, a possibility many will inherit housing and insurance payout from their parents too esp those with just 1 or 2 kids. Will this drive up the property prices with future generations inheritance
Either that or they maybe a capital flight
Interesting point on the possibility of housing your parents when their property lease expires
3 and 4 room flats especially should let them move to new flats with at least help of deposite non cash payments or sure downpayment loan as this will ease owners with stresses of finding cash .. owners still needs lots of money when move in to new homes . I pity those owners that had never been able to move house cos of many restrictions abt moving to new homes or change to smaller ones cos of bank loans for senior ... only 3 to 4 rooms low and average income home owners gov should forcast .. many reall are force to rent their rooms out for survival....not for extra cash for enjoyment
An excellent explanation!
Glad it was helpful!
There is no security living in Singapore.
Can ask will tanjong pagar Plaza get en bloc?
Yes
Many in their 30,40s i talked to believe without evidence the old flats will all get EnBloc , free house to replace old one f.o.c. I asked them, where did you get that info? Where will the billions come from. Then they kept quiet. Education system . Sigh😅
Very valuable info
We're glad you find it valuable! 😊
Hello, how about private condo, can do one video for private condo !
Hey! For private condos, generally there's only 2 routes. En bloc or let the lease run to 0. We'll see how we can churn this into a video!
My HDB lease will expire if I live to >115 ... should I be concerned about lease decay if I don't intend to move? (aka this will be my last home)
Not really actually!
Moore Shirley Hernandez Carol Lopez Angela
what happens at Year 0 of the property lease is simply dependent on POLITICS.
A govt can be dead serious about zero value in 2022 and the same govt can also be dead serious about enbloc in 2042 if the political margin is thin...
its simply about survival. What the govt THINKS is the point where the population will vote it out....
Good pointers! Thanks for sharing!
Define politics
Yes, I think my million $ HDB flat will go to $0, that should happen if I live to 110 years old. I am so looking forward to live until I die in it. 😀I hope never kenna SERS.
There are always option if you don't limit your scope only in Singapore.
Yup! Don't limit yourself!
How do u even begin buying properties in other countries?
In regards to your point on private developers unable to en-bloc HDB flats, could you explain how the flats at Kampong Silat has develop into a condo development, Avenue South Residence.
It’s a 2012 SERS project
All HDB that has turn condo will have to be either be SERS and land resold to condo developer or is actually a HUDC that has been turn private and en-block by condo developer.
The most important is to have good and strong government financially is sound therefore the government can do good jobs for his people,otherwise no money no action.
Well said!
1. I think HDB will demolish flats after 99 yrs and re-built new flats for a much larger profit.
After 99yrs HDB can take back the flats at $0 cost.
2. Re-selling old flats after 99 yrs, the profit is low for HDB and lease needs to be extended.
3. The structural integrity of the building might be at risk, leaking, concrete spalling, etc. after 99 yrs.
4. By 99 yrs I will be re-located to
Haven Development Board (HDB) for sure. 😇
…or Hell Development Board.👹
Yes. Zero value
i don't see why it's a big deal.
don't like it don't buy
Most of us don’t lived so long.
You renew another 99 years tenancy by paying the government a fix fees.
That could be one way, and likely the building needs to be rebuilt or re-inforced too.
HDB buyers don’t have cash. Want full loan with zero or little COV. Compare $/psf of properties in an entire area without taking into consideration the condition of the flat. Honestly, don’t bother renovating because buyers don’t care. HDB transactions website data doesn’t care. Nothing you spend on a HDB flat will be worth it cos buyers don’t give a f***. They want it cheap and if it’s all poor quality and imitation brands, they honestly don’t care. Singaporeans are the best at trying to impress with imitations and fake stuff. They don’t value quality at all. Just “value for money”.
Throw Singaporean
Will u still be around after 99 years ?
Depends if you buy old flats or not. A lot of young people are buying older flats today. Cheaper and bigger. But have to consider the potential capital loss and difficulty in buying another property later.
Hard to say. My hdb in circuit road is very old. When reach 99years, I am 84, chances I may still around. Then I need sleep in garden liao. 🤣
The words 'Lease' and '99 Years' should be self-explanatory.
👍👍👍👍👍13mar2024
No one really owns hdb. You're just renting it.
One of the best video on lease decay that I've ever watch.
Thank you, Anthony! 😊
Great video & thanks for discussing this very important issue. I wish the govt is leading the discussion about solutions etc instead of keeping quiet about it. One of the govt's claims for their successful leadership is their ability to provide home ownership to the majority of the population. When the lease runs out for many blocks / estates built in the 1970s or 1980s, if the govt is going to displace a part of the population without offering alternative solutions, they're going to either have a riot on their hands or the homeless on the streets, so I hope they're thinking hard and working hard on it.
Most people purchase their HDB at 30 years old + 99 Years (HDB) = 129 Years old. The oldest verified person is 122 years old. Few people will outlive their HDB.
@@bldbld3697 Oversimplified and unrealistic. That math doesn't add up when you factor in property flipping every 5 years. If a 30 year old buys a 60 year old flat because it only starts becoming affordable for him at that age, he would absolutely outlive it.
@user-dw3od3jo6m
Then have to another flat. No choice.
No private please , price is too dam high already , every singaporean be unable to afford house will become like hongkong.
Singapore got HDB goes into 99 years?😮
Wake up and smell the roses. It will be 0.
It's not fair. Imaging that family who paid more than one million and then become zero when 99 year is reached.
If the family had money to burn paying so much for a property with a low remaining leasehold, then they shouldn't complain. They should have done their homework first and not have been swayed by sweet sales talk. I doubt they'd have bought the property with their eyes closed.
Why is it not fair? The terms are clear. You enter into the agreement when you purchase it. No one has forced the buyer to pay that price. You’re not forced to buy it, you can walk away and pay for something else. It’s ridiculous to cry that it’s “not fair”. What are you? 5 years old?
❤Hard or Soft question to Investment experts :
1. Must hdb flat be demolished after 99 years ? Is it a Hard problem , that is, an engineering, structural issue or constraint?
2. Is LEASE PERIOD purely Artificial? If so, lease can be extended after 99 years. So, is lease a Soft issue? 😅
A HDB is no longer an investment. It will depreciate. Growing old one cant depend on your flat for retirement
Yup! HDB should never have been seen as one, though it pretty much was!
@Ben, who is forcing you to buy one?
You are too self entitled. Who owes you anything?
Grow up if you are old...maybe too late.
HDB is no longer an investment when you bought one less than 80 years old. look at the BTO being build and how much they sell for second hand? a DBSS at Boon keng is $400k++ when it was brand new, and now it has been sold at $800+k.
Loved this. I didn't wanna ask agent as they will tend to hard sell Selling but this video is so objective and info. Thank you heaps!
Glad it was helpful!
The price will depreate at the end of the least. Anyway btw when the time comes, we are not around. So just enjoy and don't worry so much
I inherited my parent's flat and it has a remaining lease of 43 years. I would be almost 100yrs old by then. Let the living worry while I stretch my pair of legs and enjoy watching how heaven looks like in the ground 🤣
HDB is for affordable housing, not for investment/profit. What is so hard to understand? HDB is already heavily subsidied using taxpayer's money which are meant for the needy who can't afford basic neccessities, not for HDB owners to earn profit.
Want to profit? use your *own* money to *invest* and not *taxpayers' money*. Simple as that.
Thanks for sharing your thoughts!
can you provide Bala's curve in data table format?
Hey hey! Drop us an email at hello@stackedhomes.com and we can provide it to you. Thanks!
Especially for central area even if it’s old one should not worry. Easily able to generate high rental or able to get a new house in the same area if SER. It’s only going to be more expensive to own a hdb in central area.
Vers compensation is very little $😅
Martin Daniel Jones David Thomas Laura
Hall Margaret Moore Mary Johnson Charles
Shoutout to the writer for making this video extremely easy to digest
Lousy explaination, trying to complicate matters. DPM Lawrence Wong already say it will be return to the state as it is part of our reserve. So pls....
Maybe a good middle ground is at the 0 year mark, give a final +20/30 year lease top up scheme where existing owners will pay upfront additional lease but can no longer resell the flat or resell the flat to new owners who also get the additional lease top up but also can no longer resell the flat. Upon passing, balance lease will be returned to the NOK and HDB can use as rental flats. This way there is some price discovery in the cost of the additional lease, an option for the residents and certainty to the people, all while ensuring our land isn't under utilised.
Thanks for sharing your thoughts! Quite an interesting one!
Really love the suggestion, hope you can send it to HDB for consideration.
Why I worth nothing when I die?
Same same.
Hdb flat will convert to freehold..
Then it be a depricating asset not gain
Lease Renewal will not happen because most HDBs were designed to last 100 years. The amount of renovation damage, wear, and tear makes a 100-year-old HDB too risky to stay in.
Great point. There'd be a need to at least ensure the structural integrity of the building.
You get kick out. The land is redevelopped
Most likely!
could this be a possibility - HDB top up its head lease with the relevant authorities, and then the top-up premium is shared equally by all flat owners? This way you get an extension of lease.
what happens if the porperty itself ages that that it need to be reconstructed?
Fair comments.
Great analysis listing the different possibilities! I think whichever way the government decides, it is going to be a politically charged topic.
It will be very politically charged!
Great video with extensive and easy to understand explanations and information on the issue.
Glad it was helpful!
Thank you for the valuable insights!
It's our pleasure!! 😁
Any leasehold property around the world does not go back to zero after 99 years. Spore private 99 leasehold property also go back to zero , what more for public housing. SERs / VERs is akin to private sector Enbloc - the difference being one is initiated by the estate residents viz a vis HDB solely at the discretion of authorities.
Great content! Keep going
Thank you! Will do!
like 100 years lease of cheap water from johor...it is zero...or 50 years one country 2 system..or 999 year lease or 30 year lease.
Flat fully paid ...still need pay property tax? ...logical?
Be realistic u will not around after 99 years lease. The owner will be dead by then.
So r u saying the dead owner will come back n live.
If hdb flat ownership can be considered as long term rental. Is it prudent to use cpf savings to pay for the flat ?
Hope gov watch yr clips n plan something good for average and low income home owners
Everyone will be poor with 0 dollars.
SER will take over by then.
Answer : Abo then? Of course it is fair. Otherwise? Any other result will be against the law on which it was built. Time wasting video.
Hey! Thanks for your feedback. Perhaps this video is not meant for you as we do get these questions asked. Feel free to explore our other videos. Thanks for dropping by!
It’s concerning that people don’t understand the definition of 99 years.
It’s a very very very simple contract.
Good point! Thanks for sharing!
If u are looking purely at black and white without concern for emotion and social economic impact on people life and retirement saving and net worth sure it's simple!
There is some serious mis-information about your video. You make the assumption that depreciation of HDB in the coming yrs will not nose dive.
Wrong. This was true in those decades ago but if you look at the real number of flats built from 1980 to late 1990s, this is where the sheer large number of flats were built back then. To give a estimate which someone did research into the numbers , it was well over 550,000 flats of all types, having lease shorter or less than 60 yrs in 15 yrs from now.
With such numbers ,the gov sure would not be able to offer any viable rescue package for these group of folks but for them to eithier sell it off cheap, if they can or do lease buy back scheme by HDB with is subject to their approval. Eithier way, most of these owners only have that one roof over their heads and it is not that after selling off their old HDB, they can afford to retire and live elsewhere.
As to extending their lease with a top up sum, most of these flats already have serious maintanence issues as in such older flats and doing so might be penny wise pound foolish and have consequences that goes way more than dollars and cents( eg collapse of concrete sturctures which did happen).
For those who have not woken up to these facts and are owners of such units, i guess the right analogy for them would be like a ostrich sticking its head in the sand and what they don't see or hear, would not affect them!!😆😆😆😆😆
Hi! We need to consider that the older folks who are living in these flats will pass on, and these HDBs would be willed to any of their loved ones left behind. Due to how strict HDB ruling is, the HDB may need to be disposed of since the children would likely have their own place. For the folks who start seeing their HDB depreciate in value, it may be the case of not needing to sell and retire elsewhere too, as the HDB already provides a roof over their head and is all they really need. In the end, the HDBs cost over its lifetime would still be cheaper than paying rent elsewhere, up until perhaps the last few years of its life when the monthly cost of the property gets closer to the rental value. Of course when the property price would start to nosedive is a mystery as it hasn't happened yet, but the price depreciation wouldn't "nosedive" in the sense that 10% of the value drops in 1 year. It'll likely depreciate over the years at an accelerating until it reaches 0, with the new buyers of old property going in well aware that prices are moving down in this fashion. So we think the scarier part is that younger folks are buying these really old HDBs - and if they do this hoping for a price increase, then it would be very risky and I would say that's akin to burying one's head in the sand and hoping for things to work out. If they're buying with their eyes open knowing that money should be made elsewhere, not from their HDB, then that's okay. But for the older folks who are already staying there, they'll likely not outlive the remaining lease so they aren't as naive as one would think. After all the minister already said it'll go to $0 when the lease is up 😂 It's just something people have to / or have accepted.
"We intend to keep the value of these homes up, it will never go down. Because it will be renewed, the surroundings will improve, and as Singapore prospers, GDP goes up, the value of homes will go up."
Lee Kuan Yew
2013
🤣🤣🤣.....son u've been scammed
Everyone shld take it that after 99 yrs u need to pay for a new flat, that is if you are still alive. If u want to pass it to your children then work harder get a freehold.
Yes, that's basically what a 99-year leasehold is at the end of the day. You pay for a 99-year leasehold price today,, if it were freehold, it would've costed more!
Can you do one for condo too??
Thanks for the feedback! Will take note 👌
Your 99 year condo will be worthless when it hits 99 years.
Saved stacked homes the wasted effort in making another video on this topic.
Pte condo 99Y most if not all will get enbloc when it lease run down by 40-50 years, for hdb only 5% will undergo SERS. So risk for hdb is higher while pte developers can come in enbloc a 99 pte.
@@nichcheam
If you own it forever, how are future generations going to own homes.
Another solution is the lease buy back where resident got the “enbloc” compensation while still able to stay on.
Thanks for sharing your thoughts!