HDB En Bloc Nightmares!

last SG · 2008-08-23T08:54:21+00:00

i have just type a very frustrating text. but it didnt show up here! Why? i didnt cleck "save reply"?

Rock^Star SG

Funny thing is, i agree with you too. But law is law, applicable to all and across the board.

However, the law is not without mercy, and adverse situations will and had always been taken into considerations throughout the years since independence. There are channels and avenues to seek redress.

It's never easy accepting hard choices. But for the sake of rule of law, we must accept for the sake of others in our society. We, humans within a society, do not live alone or have the luxury of determining our own ways, for our way must conform with the needs of the society as a whole. Nothing theoratical in this, but a fact of life. Harsh, but true, and only in truth will it set us free - free from the bondage of illusionary 'individualism' propounded by self centred and selfish humans.

But back on topic, I would advise the Threadstarter to seek out a professional property agent for consultation and financial assesments/options. It is free and no obligation. Better to call up a reputable agency, than to find one from friends nowadays - friends get recommendation fees and their advise is often compromised, sorry and sad to say.

He is sitting on a 'goldmine' and don't even realized it, typical of many old folks and those not knowledgeable with housing investments. Even if he takes up the unit, but with a 'mercy debt relief' type options, in 5 years time, he can always resell it at a higher price for his unit is in a prime unit. Only prime units gets Sers.

Dun preach dude. There's a difference between appreciated advice and unsolicited hot air.

Yours? The latter and a little bit of the former. Show some sympathy, if not, empathy.

4sg SG

From 4sg:

"Advice of the day...I would say. Can't PPP qualify for studio apts?"

In PPP situation, there are 3 ways out

1) returns the flat to HDB and purchases a 3 rm or a studio apts direct from HDB (can be new or old). Whether new or old flat, if he purchases direct from HDB, ie at a subsidised price, he has to do it at a certain timeframe. (I would not know about this timeframe, he has to find out from HDB).

In this option, after everything is said and done, he is treated as consuming 2 HDB subsidies.

The restriction - he can only return his current flat to HDB and cannot sell it himself . However, HDB 3 rm or studio flats are limited. If it is in Sengkang, off you go.

2) returns the flat to HDB and purchases a 3 rm or a studio apts on the open market. In this option, after everything is said and done, he is treated as consuming 1 subsidy.

The danger - he has to be careful of the areas he selects. Make sure it will not an area that can undergoes Enblock. But if this open market unit is Emblock and he decides to go along, no worry. He has only consume 1 subsidy thus far.

Plus point - his freedom of choice in location.

3) sells his current flat on the open market and moves to a open market 3 rm or a studio apt. At the point upon he selling his current flat on the open market, he can never purchase direct from HDB anymore. Why? HDB treats him as consuming the 2 subsidies.

Remember, if he goes down this pathway, he can never purchase direct from HDB again. When he source for his 3 rm or studio apt, it cannot be a direct purchase but a open market purchase.

Many dangers - he better make sure the open market flat is an upgraded one. This way the chance of Enblock is lesser. To this point, he has comsumed 2 subsidies. If he faces another Emblock again - no replacement flat for him.

The plus point - possibility of extra cash in his wallet.

At this point, I have to warn PPP to do his sum.

When I tried to sell my unit on the open market (2 1/2 yrs back), the highest offer price I got was even lower than HDB compensation package.

Also on selling on the open market, if you sell on the open market can you sell at a price that is
a) higher or comparable than paying the levy? or
b) higher or comparable than taking up the HDB compensation package?

PPP also has to know that there are two ways of paying the levy.
a) One is on his previous, direct purchased flat
b) another is by his upcoming replacement flat.
My advice, do your sum on the levy. At the time, when I did mine for my family, the diff was up to 20k diff.

PPP, I will not go on in this thread anymore. If you need my help, you can PM me.

Tigosing SG

pls next Election U know who to vote

reyes SG

hi uncle,

i pity your plight!

you should go to the speaker corners, write to our state media press to push thru your case.

but i doubt it will work coz our state manupulated press just arent interested in your cases which dont serve the despot ruling party any interest at all.

JerryYan SG

u can avoid paying those levy by buying house direct from open market

browniebaobao SG

hdb flats are becoming more and more unaffordable these days..

the rich can go buy private property but the poor cannot even afford to buy a 3 room flat with all the restrictions.

those who earns beyond the average income but cannot afford to buy a flat due to other commitments, also not allowed to rent a flat..want them to sleep in the streets izit?

4sg SG

hi uncle,

i pity your plight!

you should go to the speaker corners, write to our state media press to push thru your case.

but i doubt it will work coz our state manupulated press just arent interested in your cases which dont serve the despot ruling party any interest at all.

No use.....

In Sg, one person - no political power, can't do much .....

Go Speaker Corner - only waste energy and bus fare......

Stay at home, swap fly and stomp ants to let off steam more therapeutic....

jojobeach SG

A lot of Singaporeans think their HDB is an asset.

It's a misconception.

The early portion of the lease is "like" an asset.. because people are able to sell the lease for a higher price. That why people thinks that since it appreciate in value.. therefore it must be an asset.

But.. are the buyers buying the property. or are they really just buying the "remainder" of your lease ?

Will a buyer buy the lease of a flat with 20 years left for the same amount as another flat with 70 years on it ?

4sg SG

A lot of Singaporeans think their HDB is an asset.

It's a misconception.

But.. are the buyers buying the property. or are they really just buying the "remainder" of your lease ?

Will a buyer buy the lease of a flat with 20 years left for the same amount as another flat with 70 years on it ?

You speak well. Look at the site in Queenstown. The least is about 50 years left. One porton, the govt enbloc. The other portion, the govt upgraded.

Fast forward to 50 years from now, the enbloc site will has remaining of 50 years lease (enbloc site starts with new 99 years lease) but the upgraded site will has 0 year lease left.

Using the term ceteris paribus (other thing assumes being equal), what going to happen to the site with 0 lease left?

I shudder to think the possibility of political involvement. What happen 50 years down the road, the upgraded site is in the hand of the opposition? What the residents get or not get? Think about it.

The govt from the onset never shy away from saying that it can and will use HDB flat as a leverage.

4sg SG

"u can avoid paying those levy by buying house on the open market."

Yes but there are some catches.

a) sell current flat on the open market.
b) return current flat to HDB and take up the compensation package.

a) Selling on open market may not nec fetch a good price.

Why? because the buyer has to stay in his old 3 rm flat while the replacement flat is being built. Can be up to 3-4 years waiting period, you know? While the attraction of staying in a prime area is good, who wants to move into a old 3 rm flat, stay 3-4 years than move again to the replacement flat?

I tried to sell mine - only got one offer and mine was a clean 4 rm flat, next to the MRT.

b) return current flat to HDB and take up the compensation package (ie the total lump of compensation).

Do you know that HDB compensation package is always on the conservative side, ie lower than the resale or the open market price?

So he would be returning low price to HDB and buying high price on the open market. Yeah, this way no need to pay the levy. But he is already in financial diff, can he do a sell low, buy high stuff?

That was why I said I undertand what PPP is going thru. Turn left - problem, turn right -problem.

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