The
99 year lease, be it for private properties or HDB flats, would morph into a
snow man when the time comes. When the lease expires or about to expire,
someone who owns a 2 rm or 3rm flat with a balance of 50 year or 70 year lease
would be richer than one owning a 5 rm flat or executive flat or even a private
property with a 5 year lease or lesser. For at the end of the lease, the value
of the no life lease property technically becomes 0. The land plus the property
would go back to the owner of the land.
What
this means is that 99 year leasehold owners are sitting on a time bomb, a
vanishing asset. SG100 will see many properties go up in smokes and the rich
owners, if their sole asset is the 99 year leasehold property that is slipping
from their grips, be it $3m or $1m, will go pooh pooh.
Maybe
this is a good thing, when wealth of one generation will not be passed down to
the third generation to continue to be wealthy without having to work, just
living on the value of a piece of appreciating property. The diminishing lease
and value of 99 year leasehold properties will be like a reset every 2 or 3
generation. And that will be a time when 2 or 3 roomers still with a
substantial lease remaining, will become richer than those whose lease expired.
They would be looking at the new poor neighbours whose private properties or
big HDB flats just become no more, homeless.
SG100
will be a time of reckoning, when the poor becomes rich and rich becomes poor.
Things will turn upside down.
Good
system for the average Singaporeans. Only those with freehold properties and
not subject to estate duties will be rich forever and live happily ever after. The rich have it all thought out, the system will protect them and their wealth for generations to come.
23 comments:
That's well those with foresight brought Malaysian properties for their retirement.
Sell your overvalued rundown HDB flat brought to you. I for a penny and sell to the daft sinkies for a fortune.
With hefty CPF balances plus 1000% profit made from the sale retired blissfully into Malaysia enjoying the open space and sunset.
For a third of your Sin dollars get a bungalow, condo or apartment as to your needs.
No hassle to travel freely within country going from plsces to places to enjoy the different cultures and not staying put at Chinatown complex or Changi Airport with mouths opened dripping with saliva waiting for death.
Lie low and localised. No threats to them as you do not snatch their rice bowls.
Instead they welcomed you to uplift their consumer enconmy.
Why live in a Nation of selfish, heartless sinkies who only cares for their own welfare.
He who laughs last laughed best.
Twenty five years ago, my relatives laughed when I broached this idea to them.
Now they are wondering whether their savings can last them that long or when they coming for their grandchildren.
Aiya, why worry?
Whether you are Bill Gates, LKY or whoever, ultimately all will end up the same, tio bo?
You come with nothing and you go with nothing.
For pte leasehold pty, usually will be enbloc before 50 yrs, during one of the pty boom cycles. Owners will reap bonanza profits compared to if they were to sell their unit on its own. They can do that becoz they own the deed to the land.
HDB buyers --- too fucking bad. You don't own the land, only the lease to a pigeon-hole. So either you wait for SERS (which will not happen for majority of HDB) or you make sure you sell before your HDB becomes 30 yrs old.
It is very very hard to sell pty that is >=40 yrs old, becoz the banks are reluctant to give mortgages for such old leasehold pty. That means your buyers must have the cash to pay in full.
And if you speak to those who have gone thru SERS, you will find that most of them are not that great --- many don't earn anything. That's becoz HDB will only compensate you the official valuation of your HDB flat (which is very conservative). Any little profit you will need to use to renovate your next flat.
Remember though ...... majority easily 80+% of HDB estates will not have SERS. So most of the people staying in HDB will eventually be stuck in worthless old flats that banks don't want to give mortgage for, and buyers will demand at least 50% discount for them to pay in cash.
"So most of the people staying in HDB will eventually be stuck in worthless old flats that banks don't want to give mortgage for, and buyers will demand at least 50% discount for them to pay in cash."
Anon 11:03 am
For PAP, it's Ok lah, because eventually the opposition will still not be ready to be govt and majority will have no choice but to continue to vote for PAP.
Ah, the issues of Eminent Domain/ leasehold land.
Don't sweat it lah. In Hong Kong, most of the land is LEASEHOLD and the system works fine.
Don't like? No problem. Property prices are down and going down further in Malaysia. You can get very cheap FREEHOLD land over there. Hint: Watch Iskhandar COLLAPSE like a punctured lung....pffffftttt!
In my kampung, Graveyard-On-Sea aka "Perth", property sales volume is down over 30%---and prices are falling like your grandmama's teteks.---which is an added "bonus" to Singapore buyers who also benefit from a battered and still over-valued Aussie dollar, struggling to keep on par with the SGD (1 AUD = 0.98 SGD). Wait while, and property prices will fall some more, as well as the Aussie dollar which has a "true value" of around USD 0.65, or around 90¢ in Singapore dollar terms.
No need to panic lah.
PAP knew what is coming. All these old asset are being redeveloped like those in red hill and price keep going up.
The problem of our long term property prognosis is not 99 years but lack of quality jobs and aging.
Ah..time to brain scratch...what is the use of 5% of property being in the stellar range with astronomical prices, while the other 95% of the population live in cheap, 99 years, million dollar housing. Is there marketability? Who are you going to cash out to..you'll have an asset that will cost more n more to upkeep...it's no fairytale..look at the abandoned freehold properties in Ponggol ..Moulmein,..even Lau Lee's property in Killiney ( they are lucky...Singapore will eventually buy it over at a good price )..it's called asset entrapment ..hehe..
"The problem of our long term property prognosis is not 99 years but lack of quality jobs and aging."
Veritas 12:04 pm
Lack of quality jobs? Not really. There are but not many Sinkies are having it and some Sinkies are even displaced from it by foreigners.
Aging? PAP solution is to get more foreigners. Not that I like it but there is no other better choice, really.
And have more new citizens out of foreigners. And this is one aspect which is crucial for PAP to win elections in future. And to some extent this effect had already happened in GE 2015.
Is there marketability?
jjgg 12:34 pm
Not an issue for those who can afford the 5% of property in the stellar range with astronomical prices.
If they can afford to buy in the first place, they can also afford to hold, surely. And hold till the time to sell at higher prices.
That's why the rich can become richer more easily than others. And even if they lose, they will only lose what they can afford to lose.
The rich have ensured that their high value assets can be passed from generation to generation. They have nothing to fear of becoming poor again.
Anon 1.00, anon 3.08, if kingdoms and dynasties can fall..what's there to suggest that 5% of the population can perpetuate their lifestyles forever..the rich of yesteryears, how have they succeeded to perpetuate their wealth...aw boon haw? Tan lark sye? Strikes Bros ? These are fabulously wealthy people in their time but what happened ah...marketability is everything in our age..what you can't sell ain't worth the effort to retain.
some months ago when I commented that......
儿孙自有儿孙福.........
he/she corrected me and said that it should be..........
儿孙自有儿孙愁........
hahaha.............
I am sure Redbean owns one , if not more than one freehold properties. Redbean is sitting pretty.
"Fukushima Class Disaster" - L.A. Gas Leak Spewing Lethal Levels Of Breathable Nuclear Material
http://www.zerohedge.com/news/2016-02-05/fukushima-class-disaster-la-gas-leak-spewing-lethal-levels-breathable-nuclear-materi
----------------------------------------
Is the PAP government a pro nuclear power government?
If the USA government and engineers cannot prevent and control this radioactive leak in Los Angeles;
Do you think PAP's standard of engineering (like MRT trains) can maintain a nuclear power plant in Singapore safely?
"Fukushima Class Disaster" - L.A. Gas Leak Spewing Lethal Levels Of Breathable Nuclear Material
http://www.zerohedge.com/news/2016-02-05/fukushima-class-disaster-la-gas-leak-spewing-lethal-levels-breathable-nuclear-materi
----------------------------------------
Is the PAP government a pro nuclear power government?
If the USA government and engineers cannot prevent and control this radioactive leak in Los Angeles;
Do you think PAP's standard of engineering (like MRT trains) can maintain a nuclear power plant in Singapore safely?
Volcano Erupts "Spectacularly" 50km From Japanese Nuclear Plant
http://www.zerohedge.com/news/2016-02-05/volcano-erupts-spectacularly-50km-japanese-nuclear-plant
---------------------------------
"Because as we documented last year, Sendai's operators and local authorities have no comprehensive plan to evacuate residents in the event of a meltdown.
We close with a quote from Yoshitaka Mukohara, a representative of a group who opposed the Sendai restart:
“There are schools and hospitals near the plant, but no one has told us how children and the elderly would be evacuated. Naturally there will be gridlock caused by the sheer number of vehicles, landslides, and damaged roads and bridges.” "
...................................................
So if the PAP government ever proposes to build a nuclear power plant in Singapore;
Please remember to ask about their evacuation plans.
Singapore is so small, we will all likely have to be evacuated out into another country.
So please ask:
Will PAP Ministers be evacuated on SIA 1st class?
Will Singaporeans be evacuated on SIA 1st class?
Aiyo Lauchek ah...
Not no foresight lah.
You got money so talk like that mah.i kena squeeze dry dry by the You Know Who till today where got money buy property in Matland.
So easy to sell flat meh.My uncle was ask to pay his income tax with hdb as collecting agent on his first appointment before he can sell his flat.Becos no money then downgrade mah.
Who produces these selfish and heartless sinkies like you mentioned?
It's PG sinkies like you all who never teach your children well.
Breed a generation of high handed,cold blooded and bokarsee yiaosiewkia.Blame who?
@ agongkia
That is why we must teach our children to vote Opposition no matter who it is.
Anybody but PAP.
65,000% Spike In Reported Radioactivity After Tritium Leaks At (New York, USA) Indian Point Nuclear Power Plant
http://www.zerohedge.com/news/2016-02-06/65000-spike-reported-radioactivity-after-tritium-leaks-indian-point-nuclear-power-pl
.........................................
Two years after being fined for falsifying safety records,
- nine months after a transformer exploded at the Indian Point Nuclear Reactor just 37 miles from midtown Manhattan,
- and two months after Entergy - the plant's operator - shut down the Unit 2 reactor after a major power outage cut power to several control rods (when the company assured that no radioactivity was released into the environment),
- this afternoon NY Governor Andrew Cuomo said he learned that "radioactive tritium-contaminated water" had leaked into the groundwater at the nuclear facility in Westchester County.
................................
Do you think the PAP government is planning to build a nuclear power plant in Singapore?
...................................
Reconsidering nuclear energy for Singapore
Oct 26, 2015 at 10:21 am | Hits: 2281
http://www.ipscommons.sg/reconsidering-nuclear-energy-for-singapore/
.....................................
Nuclear Energy for Singapore?
http://singaporepolicyjournal.com/2015/10/18/nuclear-energy-for-singapore/
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Singapore starts nuclear safety and science research programme
http://www.straitstimes.com/singapore/singapore-starts-nuclear-safety-and-science-research-programme
...............................................
The PAP government seems to find MRT trains to be an engineering challenge.
Do you think the PAP government will find nuclear engineering to be easier?
If Japan's nuclear engineering can fail at Fukushima.
What makes you think PAP's nuclear engineering can succeed in Singapore?
Do you think the PAP government should focus their engineering efforts at mosquito control instead?
With the rising incidence of dengue, are you sure that PAP government is winning the mosquito engineering challenge?
....................................................
Dengue cases spike, with a further rise likely: NEA
http://www.channelnewsasia.com/news/singapore/dengue-cases-spike-with-a/2418014.html
That's how(one of many ways) the govs rob and kill(bloody economy) without blinking
Can the word churning applies in the way sinkies are being manipukated and exploited ?
SG100 will be year of reset for many Singaporeans.
Bt Ho Swee is 55 years old. Still no SERS. MND and HDB waiting for the elderly folk there to mati one by one.
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