Singaporeans are so blessed with a very clever govt that could devise such a miraculous scheme call asset enhancement. The scheme revolves around the buying of 99 year lease public flats built by the govt at relatively low price and the owner could eventually sell it at a hugely inflated price, to receive an expected windfall along the way. It is a sure win formula and many Singaporeans are now very wealthy landlord in a way, sitting on a public flat that is worth at least $300k for the smallest unit in the open market and some worth more than a million for the bigger units. As in all sure win schemes, there is a caveat of course.
Here is how the price sure go up scheme works.
Year 1 - Buy a public flat from the govt, say at $250k.
Year 5 - Eligible to sell in the open market at asking price of $350k.
Year 10 - Open market price could be $450k.
Year 20 - Open market price could be $550k
Year 30 - Open market price goes higher to $650k.
Year 40 - $750k!
Year 60 - $800k!
Year 80 - $850k!
Year 90 - $850!
Year 100 - $0!
Every flat owner could look at this guide to see the price of his flat could go up and up all the years. Notice the caveat, make sure they are not holding on to the flat at year 100.
The scheme is very favourable to those who sell the flats at a profit in the first 50 to 60 years. Singaporeans could go for a second bite of the cherry to buy another public flat from the govt to restart the cycle. Foreigners could only buy from the open market so the margin of profit cannot be as high as the Singaporeans buying direct from the govt. But they are still guaranteed of a reasonable profit.
For those new citizens who bought and sold and bought again and sold to return to their original country, this scheme is highly favourable to them as they would not hold on to the flat till year 100. I might say a bit sorry for those who have to hold on to their flats till the very end, its miraculous price would miraculously become 0, no value, just like Cinderella when the clock struck midnight and everything turned into smokes..
This is quite like the magician turning a piece of paper into money only for the money to be turned into worthless paper at the end of the game. Be clever to cash out when you can or your store of value will vanish into thin air.