HDB “Asset Enhancement” is a lie, it is just 2% yearly inflation for your homes

http://www.tremeritus.net/2018/08/26/when-minister-lawrence-wong-resorts-to-lying-pap%e2%80%99s-end-may-be-near/

Comments by Oogle

When you buy a HDB flat, you are actually buying a 99 year lease from HDB. There is no strata title to your HDB flat unlike private and the land that your HDB flat sits on belong to the government, unlike private which has a redevelopment potential if a developer buys over your private flat and you will get a windfall. Everything about your HDB flat is controlled by HDB, getting a tenant for rental for your whole flat need to be approved by HDB, even renting your rooms out the occupier needs to be approved by HDB. There is a minimum occupation of 5 years before you can sell your BTO flat and what you derived is actually the market demand of property 5 years later while offsetting a yearly 2% inflation, so it seems like “Asset Enhancement” on the windfall you get. No, what market price you get is based on the property market and the dynamics of demand and supply. But after that the balance of lease sets in and your HDB flat will depreciate in value based on the balance of years of lease left.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s