THE TEMASEK TIMES

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Archive for September 7th, 2018

Can I use my CPF or secure a bank loan to buy a 70 year old HDB flat

Posted by temasektimes on September 7, 2018

Minister for Transport Khaw Boon Wan said recently at a dialogue session with young people that Singaporeans who buy a 50-year-old Housing Board (HDB) flat today can expect prices to continue to appreciate over the next 10 years.

“If you buy a 70-year-old flat, there is still appreciation potential especially because this Government is prepared to continue to invest in it through Home Improvement Programme (HIP) II and the Voluntary Early Redevelopment Scheme (Vers),” Mr Khaw said.

While it is difficult to ascertain if his statement is true as no HDB flats have reached the 70 year mark yet, we can examine if it is possible to secure a bank loan and to use CPF to purchase the flat.

For the purpose of illustration, let’s use a recent transaction at Ang Mo Kio:

Source: HDB

 

A Singaporean couple paid $470,000 for a 3 room flat with a balance lease of 93 years. The prices of resale HDB flats have declined by 1.5% in 2017. Assuming Singapore’s economy continue to grow at the present rate of 2.0 to 3.0% annually and the prices of resale HDB flats grow at a conservative rate of between 0.5 to 1.0% annually, the market value of the flat should reach $680,000 based on a growth rate of 0.51% after 73 years.

The couple may probably pass on by then and sell the flat to another owner or pass down to their children. Now the new owner want to sell the flat with a lease of 20 years left at $680,000, will any prospective buyer be able to buy?

Read rest of article here.

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Li Shengwu: My uncle’s “dogs” are watching my posts on Facebook

Posted by temasektimes on September 7, 2018

Li Shengwu, a grandson of former PAP Supreme Leader Lee Kuan Yew, has raised eyebrows recently with a Facebook post that his uncle’s “dogs” are watching his Facebook posts:

 

Source: Li Shengwu’s Facebook 

 

He also appeared to have taken a jibe at the Singapore government, adding that unlike the Singapore government, he is happy to have friends who disagree with him.

His uncle is of course Mr Lee Hsien Loong, the current Prime Minister in Singapore.

Shengwu was embroiled in a legal tussle with the Singapore government for more than a year after he was accused of committing “contempt of court” in a private posting on his Facebook made in July 2017.

He is currently employed as an Assistant Professor in Economics at the prestigious Harvard University and has no plans of returning to Singapore soon.

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Tan Kin Lian sneers at Khaw Boon Wan: My wanton noodles will appreciate too with time

Posted by temasektimes on September 7, 2018

Former presidential candidate and CEO of NTUC INCOME Mr Tan Kin Lian has sneered at Minister of Transport Khaw Boon Wan’s assertion that old HDB flats can “appreciate” in price.

In a posting on his Facebook page, Mr Tan wrote:

Source: Tan Kin Lian’s Facebook page

 

Mr Khaw had earlier told the state media that HDB flats are an “asset” as even old flats which are more than 50 years old have good “appreciation potential.”

His comments sparked widespread ridicule among netizens who questioned if there is any buyer in the right mind willing to fork out an astronomical sum to pay for a decaying and decrepit old HDB flat.

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Letter to Lawrence Wong: Why can’t my fully paid up HDB flat be used as a collateral by the banks?

Posted by temasektimes on September 7, 2018

Dear Mr Wong,

 

All users of leasehold properties, whether public or private, enjoy ownership rights over their properties during the period of the lease. But would you care to explain the following for the benefit of many who still harbour doubts over the definition of what exactly ownership entails:

1. If I buy a resale HDB flat on the open market (with no subsidy) why do I have to wait 5 years and need HDB’s permission to rent my entire flat to interested parties, even if my unit is fully paid up? No such ruling applies if I buy a private apartment.

2. Why do I need permission from HDB to rent out any of my rooms if my unit is fully paid up? No such ruling applies if I buy a private apartment.

3. Why do I need to wait at least 5 years before I can sell my unit even though it was bought on the open market with no subsidies? No such ruling applies if I buy a private apartment.

4. If I am a single owner of a resale HDB unit and want to marry my partner, why does my partner have to sell her private property if I have not lived in my flat for at least 5 years? No such ruling applies if I buy a private apartment.

5. If I truly enjoy ownership rights to my HDB flat, why will banks not accept my fully paid-up property as collateral for a loan? No such ruling applies if I buy a private apartment.

6. If I not abide by any of the above points as stipulated by the HDB I could have my unit confiscated. No such ruling applies if I buy a private apartment.

Well Mr Wong you seem to give the impression that there is no difference between the owner of an HDB leasehold property and a private property, as does our PM. But based on the above points there seems to be a substantial difference. Would you or someone at the HDB care to clarify?”

GERARD ONG

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HSR postponement: win for Malaysia, but loss for Singapore

Posted by temasektimes on September 7, 2018

While Azmin Ali, the economic affairs minister from Malaysia may have characterized the postponement of the planned High Spped Rail (HSR) between Kuala Lumpur and Singapore as a “win-win,” it cannot be denied that Singapore has already sustained some short-term losses because of the delay in the project.

On the plus side, the agreement from both Malaysia and Singapore to defer the HSR is definitely a win for relations between the two countries. A transport analyst from the Singapore Management University, Dr. Terence Fan, said that Singapore would have been “cold-hearted” not to have helped Malaysia, which then may have tried “to walk away and try to give Singapore the (full compensation) which could amount to RM500 million (S$168 million).”

Others echoed his sentiments that Singapore’s concession to Malaysia’s fiscal concerns was important for strengthening bilateral ties.

The deferment would furthermore give both countries more time to make needed adjustments in order for the project to proceed. Experts have said that the two year deferment is “manageable.”

Read rest of article here.

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