atans1

TOC’s “Correspondent” shows that PAP govt really cares for S’poreans

In Political governance, Property, Public Administration on 16/01/2019 at 11:04 am

In a story headlined

HDB extends LBS to 5-room and larger units as resale value of old flats continues to slide

TOC’s “Correspondent” inadvertently (He very anti-PAP and his mental health shows it: More evidence that being anti-PAP is bad for yr mental health) shows that PAP cares for those flat owners who have 5-roomers who don’t want to move if they need to downsize by extending the buy-back to five room flats.

In the media report, it quoted part-time security guard Tang Lum Sui, 68, a widower who lives alone in his Jalan Bahagia 5-room flat is all for the extended LBS.

“I don’t want to move out of Toa Payoh because I have lived here all my life, and I like that my son’s family (living in Qatar) can stay with me whenever they come back to Singapore,” he said. Mr Tang, whose flat has 67 years left on the lease, added, “As long as the terms are favourable, I will go for it.”

TOC’s writer (He is not one of the two Indian subversives propagating fake news: Why TOC’s Danisha Hakeem is a menace to the credibility of alt media) then goes further, implying that the leaseback could help if prices fall.

However, Mr Tang should be aware that the value of his 5-room flat is no longer as high as before.

But if he can use the buy-back scheme, why should he worry about falling prices? And even if prices fall so what? All depends on his entry price. As he’s 68, his entry price will be pretty low, assuming he BToed it.

Vote wisely.

 

 

 

 

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  1. Not including the 5 roomers is discrimination anyway. However the jawboning by Larry the MND about lease value, essentially has reduced the equity extraction out of LBS (due to declining value when HDB owners woke up from la-la land). Lousy for those who wanted to do LBS. Good for the govie – HDB fork out less.

  2. “But if he can use the buy-back scheme, why should he worry about falling prices?”

    Err LBS payout depends a lot on prevailing valuation. Plus the discounting factor used to derive present value of the lease tail-end is rather conservative to HDB. So a double whammy for potential LBS’ers.

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