I single Singapore out for only one reason the - 99 year
lease.
Lets do some maths.
Lets say your parents own freehold worth $10.
My parents own HDB worth $10.
Our parents are enjoying themselves in heaven and in their will
have left their properties to us.
Lets say they decided to enjoy themselves up there at age
70.
You have freehold of still $10 (lets not take into account of
appreciation.)
But I have got (99-70)/99 x $10 = $2.93 .... I have lost $7 bcos
my parents bought a godam lease.
Then buy freehold lor...... but can the avg Joe afford
freehold?
So in other words .... 99 year lease holders.... you know what i
mean lar.
fair point, but the reality we are in is, has the government
let any of the hdb lease lapse? property price swing aside;
typically, at the 25-30 years level, the government will exercise
its redevelopment program in these estates. look at toa payoh,
queenstown, AMK or one of the older estates. I have not seen or
read that the `owners' of these flats gotten back a fraction of
what they paid for or left homeless because of the lease expiring.
The government always acquire these flats back for redevelopment,
apparently at market price. if your flats are 25-30 years old,
chances are you will still make a tidy sum of the flats because if
you purchase the flat new 30 years ago, it will probably cost a
fraction of what you paid for.
there is also a political motive to this. PAP's will not let
this be a political issue. when it made its commitment of home
ownership to the majority of singaporeans in its early days. they
will need to keep to this promise, by hook or by crook. this is a
huge factor that could capitulate the PAP if they overlook the home
ownership matter.
your illustration is a theoratical exercise. it makes sense
in isolation but the reality is there are socio-political
factors that comes into play that will alter the entire
premise of what you said.
