REACH 289 - What do you think of the new Prime Location Public Housing (PLH) model? (SK)

27 Oct 2021 (10am - 7pm)

REACH

[0:48 pm, 27/10/2021] +REACH: Dear contributors,

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[1:00 pm, 27/10/2021] +REACH: 📢 Topic 📢 

The Ministry of National Development (MND) and Housing & Development Board (HDB) have announced details of the Prime Location Public Housing (PLH) model to ensure that new public housing built in prime and central locations like the city centre and the Greater Southern Waterfront will remain affordable, accessible and inclusive for Singaporeans. 

💬 What do you think of the new Prime Location Public Housing (PLH) model? 

Key measures under the new PLH model are: 

📌 Additional subsidies provided at first sale will be recovered upon resale of PLH flats. This is for parity with other BTO flat owners who do not enjoy these additional subsidies 

📌 Reduced priority allocation quota for priority schemes such as the Married Child Priority Scheme. This provides more opportunities for Singaporeans whose family members do not live near prime locations, to also live in these neighbourhoods. 

📌 Additional eligibility conditions for buyers of resale PLH flats. This is to ensure that PLH flats remain inclusive and accessible to a broad group of subsequent flat buyers over time, beyond the initial purchase. 

📌 10-year MOP for PLH flats, and renting out the whole flat will not be allowed even after MOP. Only renting out spare bedrooms will be allowed. This is to strengthen the owner-occupation intent and ensure that the PLH flats are for Singaporeans with genuine housing needs. 

👉 https://www.channelnewsasia.com/singapore/bto-prime-area-10-year-minimum-occupation-period-subsidy-hdb-2271426

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[1:24 pm, 27/10/2021] +Wilson Leong: Good initiative by government

[1:25 pm, 27/10/2021] +Ah Heng: Good ahhh

[1:25 pm, 27/10/2021] +Ah Heng: Kill Those speculation

[1:27 pm, 27/10/2021] +Valli: HDB flats should not be used for making money or speculation.

[1:30 pm, 27/10/2021] +Joseph: All the Govt needs to do to curb speculation in property, is to set a higher minimum mortgage rate, increase the cash down-payment requirement and close any loopholes that can circumvent these 2 rules.

[1:37 pm, 27/10/2021] +Wilson Leong: High downpayment will make first timer not able to afford and settle down with their first flat. Longer waiting period for them

[1:37 pm, 27/10/2021] +RH: Also reduce the sale of land for building more pte condos...  and more pte condos  ... !

My son has bn trying to get a BTO near where I live (further most East region) , but ther is no new project here for past few years & wat little ther is has alredi bn taken up. 

Couples who r newly 'eligible' like my son & his fiancee can't get one becoz much of the empty land ard us has bn sold to pte developers to build even More condos!   And ther are alredi so many of them in this area,  not to mention landed housing. 

So,  gov, pls look into the East area (not Tampines)  but further east (not Punggol either) & 

switch some empty land use back to public housing!!!

[1:37 pm, 27/10/2021] +John Cheong: wow so easy. I'm sure the government didn't think about it.

[1:38 pm, 27/10/2021] +RH: +1

[1:42 pm, 27/10/2021] +RH: The gov has alredi done 2 rounds of pty curbing measures.

Setting a higher mortgage rate wl not stop ppl from buying or speculating,  as this grp of ppl hv the money to invest. 

Rather,  it wl affect those genuine home-owner type of buyers,  esp those buying their 1st pty. 

Same w min cash down-payment. It wl be even harder for 1st time pty buyers to own a home as they may not hv amassed enuff to put down for deposit (as it is, some ppl I know r alreadi complaining abt these measures). 

Tt wud therefore only exacerbate the situation.

[1:44 pm, 27/10/2021] ☸️  Danny 心: 

1. The purpose of this new measures are to open up prime location for public housing to share the fruits of our economic success and to bridge the gap of social inequality.

2. This is to prevent the very rich from forming enclaves in the upmarket prime location.

3. In addition, the government have to make it affordable and fair, so that public users can afford the HDB flat in the prime location.

4. Hence agree with the measures announced by the government to take this initiative forward.

[1:44 pm, 27/10/2021] +Joseph: HIgh downpayment will force the ovr price lower. The only reason why prices go up is because people can borrow to buy what they can't otherwise afford.

Once you take away the cheap funding, the price will have to adjust DOWN to the "new level of affordability"

[1:44 pm, 27/10/2021] ☸️  Danny 心: 

Solution 1 - For HDB owners

1. Pricing the HDB flat in designated prime location

a. HDB flat pricing (whether in prime location or not) - must be based on market value. 

(This is to conform to Free Market Economic Principle). 

b. Economic commodities must be correctly price - so as not to artifically skewed HDB prices - and distort the HDB reselller market.

- ie. if price too low to make the HDB flat affordable, it will have a lottery effect - where people will resell it for huge profit - the moment the restriction to resell is lifted --- and turn it into an investment product rather than a house to be lived in.

- By pricing at market rate, people will according to their affordability bid for such flats at prime location or other places in which they can afford.

2. Characteristics of such HDB flats in designated prime location

- It is important not to attest exceptional conditions to HDB flats build in prime location - and make it extraordinary.

- Hence suggest that most of the HDB characteristics to be kept - as these HDB characterisitcs are designed for their specific purposes such as :-

a. 99 years lease will still be maintained - like all other HDB flats. (So as to ensure HDB owners can live for 2 generations - and not short-changed - simply because this flats fall under prime location).

b. Allocation of flat subject to balloting - just like other HDB flats. (So as to ensure fairness in flat allocation)

c. Car park, landscaping, park, playground for recreation and void deck for social interaction - can be slightly upmarket as compared to normal HDB flats or inherit some characteristics of a condo - to blend in with the ambience of the prime location estates ---- but ensuring the town council fees are not exorbitant.

3. Sharing or Allocating a prized market commodity in the prime location - equitably across the various income and social strata of population

a. A few dimensional matrix can be constructed for this purpose.

b. 1st dimension of the matrix is the income group, that can be divided into :-

- High income

- Middle income

- Lower income

(Note:- a more granular income categories can be considered - based on more informed data from the Government).

c. 2nd dimension of the matrix is based on races, that comprise of :-

- Chinese

- Malay

- Indian

- Others

d. Balloting will be based on these 2 dimensional matrix - for the purpose of fair allocation.

- Allocation should be based on the proportion of population belonging to the different income group and racial group.

4. Ensure buyers of HDB owners can afford the flat in prime location - if based on market value.

a. The categories of income group - is the primary determinant of how to ensure various income strata of the population can afford HDB flats in prime location.

b. Various categories of income group

i. High Income group - no or minimal subsidy or grant should be given to this group. 

ii. Middle income group - Government subsidy or grant higher than normal HDB flats should be granted - that make it comparable to the normal HDB 5-room, 4-room and 3-room flat. 

Eg. the 5 room flat at market price in the prime location can fetch $1 million dollars. The Government grant and subsidy should covered the amount up to the selling price to HDB middle income owners for said - $600,000 and HDB owners will have to pay $400,000 out-of-pocket from CPF or HDB loans for 20 years.

iii. Lower income group - Even higher government subsidy or grant higher than normal HDB flats should be granted - that make it comparable to the normal HDB 5-room, 4-room and 3-room flat.

5. Preventing HDB owners from undertaking speculative activities - by reselling for huge profit once they are allowed to sell after 5 years (like any other HDB flats).

a. Allow reselling only after 10 years as the MOP (Mandatory Occupation Period).

b. HDB owners upon reselling the flats in prime location - must repay the subsidy and grants to the Government (with exception to the High Income group - who pay using its own pocket with no government grant).

Taking the earlier example, HDB owners will have to repay grants or subsidy of $600,000 to the Government.

c. At the end of the lease of 99 years, Government reclaim the land - and there are no lost to the Government as the Government can resell the land again.

6. Beefing up Government financial reserves to finance higher HDB subsidy and grants in designated prime location.

a. By carving up and allocating land spaces to private property developers to build condo, landed properties, malls and other commercial projects - by selling these designated prime location for commercial development at market rates.

b. Government sell to property developers - to build HDB flat at prime location at market price.

Eg. 1 plot of land to build 3 HDB blocks in other location - Government can sell to the property developer at say $500 million.

But at prime location, the Government can sell it at $1 billion to property developers.

Thus with $500 million (extra premium) earn by the Government from selling the land at prime location, $500 million / $600,000 (grant) = 833 household can be used as Government grant or subsidy to household.

Government can thus subsidise (30 floor x 10 household unit = 300 household per block === approximately 3 HDB blocks of household with $600,000 grant).

===============

Solution 2 - By *time-slicing the lease for HDB and price it at an affordable price* (As proposed by my close friend)

This is not workable. It creates a lottery effect that people one to strike it and make money. 

Is it fair to the rest of population that they help to subsidise? And few people make lots of money? 

Schemes like EC, Duxton all have the same problem. Many people subsidizing very small number of people. Only very small number of people happy at the expense of large group of people. Where is the fairness? And equity? Singapore is very tiny, make every estate prime should be the goal but of course it may take another 50 years. In the mean time, make it affordable by slicing up the lease tenure.

Today a new bto flat is 99years the enough to let 2 and 2 half generations stay. Papa buys and stay with grandpa and children. Papa passed down to son and son and live with grandchildren. So thats 2 and 2 half generations.

If we time slice the tenure to 49 years or 30 years for hdb flats in such prime location, then we can make them more affordable without unfairly unsubsidising and creating a lottery effect. And by time slicing, we are also allowing more Singaporeans a chance to live there.

So a young couple may choose to live in prime location, during their prime days. And move out and retire to heartland area later prt of their life. Let new young couple move in. If the lease is shorten to get 30 years, we will allow 3 times more people to enjoy the prime location. We will also limit the lottery effect as the leasehold is short.

---

My comments :-

1. Time slicing of the lease for HDB prime location is particularly useful for Elderly - 60 years and above.

2. As the theme of the discussion - is to embrace "diversity" and "inclusiveness" - by allocating HDB in prime location to Elderly will meet this objective.

3. Elderly at 60 years and above - with time-slicing into 40 years will be useful - as this will means Elderly will have a runway of a roof over their head in prime location up to 100 years of age.

4. Government will not need to provide "hefty" Government grant or subsidy to Elderly household - as the lease is a short lease of 40 years and the price of the HDB flat should be kept affordable to the Elderly.

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[1:45 pm, 27/10/2021] +RH: Rather, stop selling out so much land for pte Devt! 

Take a step back & review yr land sales policy...  

Right now, I see most activity in the North,  West,  and N-E. 

Sadly, the East region near Pasir Ris seems neglected.

Other than some BTO's (now alredi TOP), built a few years ago, I dun see any other new BTO slated for devt in this area.

[1:47 pm, 27/10/2021] +Wilson Leong: This is not the case for direct HDB. It is already considered very affordable when buy first hdb in Queenstown 4 rm flat at $720k

[1:48 pm, 27/10/2021] +Joseph: Not that they didn;t think of that ... but they probably don't have the balls to do it because the 90+% of "homeowners" whose property value is going to plunge, will threaten to vote them out 😂

Go, find a free mortgage calculator app (from DBS bank etc) .. punch in the numbers and see for yourself.

[1:48 pm, 27/10/2021] ☸️  Danny 心: Posted on 3 July 2021.

[1:50 pm, 27/10/2021] +Joseph: Just look at what is happening in with the new cars market ...

Why is it that prices keep going up but everyone seem to still be able to "afford" it?

Low car loan rates + ease of getting a loan + finance companies that can circumvent the loan restrictions which apply to banks only ... allowing borrowers to "afford" the relatively low monthly repayments

[1:51 pm, 27/10/2021] +RH: Agree : pts 4, 5, 6 ... Well stated...  👍🏻

[1:52 pm, 27/10/2021] +KSFoong: Live beyond means. One day when they cannot pay their loans, they will blame the government! Cry victim!

[1:53 pm, 27/10/2021] +BL: Cannot live beyond means due to Singapore tight management of credit. People only get into trouble if they lose jobs or other unknown problems happen.

[1:54 pm, 27/10/2021] +Joseph: Rather than argue with me .. why don't you go find a free Mortgage calculator App (or online website)... punch in a higher down payment eg. 35%, higher mortgage rate eg. 5%   and then see how much down payment you need to come up with, and what the monthly mortgage will be ... then bearing in mind the media household income in Singapore is about 9k+ ... and ask yourself how many people you know will be able to afford those payments 

Next... adjust the PRICE of the property (or loan) down a LOWER level so that keeping the same 35% down payment + 5% mortgage rate it reaches a level that you think you will not struggle to repay

[1:54 pm, 27/10/2021] +BL: Yes, and make it less attractive for landlords to exploit tenants.

[2:00 pm, 27/10/2021] +Rama: Good move

[2:03 pm, 27/10/2021] +Wilson Leong: Car loan is downpayment 40%. I just changed my car. Loan only 60% of the listed price. Even I wanted to loan more. They said no

[2:05 pm, 27/10/2021] +Adrian: Support the latest measures. Agree that measures should aim to encourage home ownership rather than investing in property

[2:06 pm, 27/10/2021] +BL: Also agree. Property speculate abroad. We need the land and homes for people here.

[2:07 pm, 27/10/2021] +BL: Thumbs Up SG! 👍

[2:09 pm, 27/10/2021] +Adrian: Specific to PLH flats, another issue discussed during the consultations was how to ensure a good mix of people living in the area (i.e not just the higher income)

Possible option is to provide additional subsidies/quota to the lower income so they can still be able to stay in such prime locations. This is to avoid having all the richer people in these prime locations, leaving the less well off all living in towns further away

[2:09 pm, 27/10/2021] +BL: Perhaps also introduce a bill that gives tenants protection against abusive landlords and agents. Enforce Deposits into Escrow. Basically clean up the industry to make it better for ethical agents, good landlords and responsible tenants. Right now it's seen as a cash cow by some unscrupulous landlords, of which I've been a victim of myself - twice!

[2:10 pm, 27/10/2021] +BL: Correct - One Singapore!

[2:11 pm, 27/10/2021] +Joseph: it is "affordable" at 720k because you only come up with 5% cash downpyment, 15% CPF and borrow the rest at 1% for 30-35 years

Purchase price: 720k

5% cash = 36k

15% CPF = 108k (combined; couple)

30yr loan @ 1% p.a.

Monthly repayment = 1,853/- (can use CPF)

If we change the parameters:

35% cash downpayment: 252k

👆About 2.5x the amount .. not many young couples would have this on hand

30yr loan @ 5% p.a.

Monthly repayment = 2512/-

👆 about 36% more in monthly repayment

In order to maintain the same downpayment of 36k with a 35% upfront down payment, the property price would have to be much much lower. And, to maintain the same 1,853/mth mortgage at 5% loan rate, the loan amount will need to be much lower/

Which means, if the majority of the people cannot afford to pay the sky high prices anymore dure to the restrictions, then the SALE PRICE has to be adjust DOWN to the level that the majority can afford.

The problem with doing this, is that those who pay a million $ for their resale HDB, will suddenly see the "value" of their property fall by half and the banks will be knocking on their doors demanding a cash top up 😜

[2:11 pm, 27/10/2021] +Wilson Leong: Lower income can not afford. Will need to pay alot for them

[2:12 pm, 27/10/2021] +Joseph: I think a lot of people in this forum were not even born when SG mortgage interest was around 10%

[2:12 pm, 27/10/2021] +Adrian: Not sure whether foreigners have to pay more for private property also? I thought something like an ABSD of sorts for foreigners might be useful, as I personally feel many foreigners are buying up private properties for investment

 Personal experience, i went to see a few condo showrooms, wah the number of foreigners there is a lot. Some are even viewing via zoom (potentially from overseas?). Not to say I'm anti foreigners, but I welcome them to stay here, not to invest in properties here and compete with the locals for limited land

[2:15 pm, 27/10/2021] +BL: Is it a concern if foreigners buy privately and choose to rent or not? There is no subsidy and their dollars are welcome!

[2:17 pm, 27/10/2021] +Adrian: During the consultations, the view was that hdb is public housing. Whether in prime or non prime, it's still public at subsidized rates. 

Hence, the goal was to have a variety of people being able to live in prime locations, and not just higher income. Lower income should be supported by rebates/subsidies. Otherwise, the concern is our prime locations public housing will end up being a rich people "enclave" of sorts, which shld not be the case. I would strongly support if we have some low wage workers being able to apply to stay in prime districts too🙏🏻

[2:18 pm, 27/10/2021] +Adrian: Private properties all no subsidies. But the strong demand from foreigners in the private property market could be driving prices up (my personal view, not supported by data)

[2:19 pm, 27/10/2021] +Adrian: But okay that's another topic for another another day😄

[2:20 pm, 27/10/2021] +Gcml: 👏🏼

I am glad that the moves address a big part of what public housing means.

[2:34 pm, 27/10/2021] +REACH: First BTO project in Rochor under new prime housing model to launch in November

The first project under a new model for public housing in prime locations will be built in Rochor and launched at the Build-to-Order (BTO) exercise next month.

More https://www.straitstimes.com/singapore/housing/first-bto-project-in-rochor-under-new-prime-housing-model-to-launch-in-november

[2:37 pm, 27/10/2021] +RH: U did not say to lower the overall price of flat. 

Therefore, one wud no change in base price.  🤪

[2:37 pm, 27/10/2021] +RH: 👆🏻this is much clearer. 

But like u say,  it wud create a new set of problems  ...

[2:55 pm, 27/10/2021] +Suma pamu: I have Not read The Messages above yet . 

But commenting as A salesperson😉

1. Bold Moves Appreciate all of it

2. But Forgetting about other locations might give wrong idea and prices won't be controlled.

3. Even In punggol now We can see Owners getting huge profits.

And Sale prices even crossed 700K.

4. So it is not just location

It's the Newly MOP craziness is the Main cause of concern.

5. What ever happening now I feel a bubble in some segments (Many may not agree ...😉 Its my opinion)

6. If we have seen the data Only The newly MOP flats are Going for higher and higher prices, where as Old and Low lease flats fonding hard to sell. Especially In older estates with EIP

7. Because of less than 60 lease Left Cpf rules, majority owners Will be in trouble 

Also alredy in trouble in all old estates. 

8. if we say those who Purchased for 750k .reselling at 900k

Is Having more profit 

But forgetting those who purchased for 400k now selling In 700k (plz chk Puggol example)

9. So The moves are good 

But Deffinatly not enough😃

And if HDB is for to stay .. and then no need to have 60 years lease left rules.

Or if HDB is for retirement, precisely this 60 years lease thing should be removed.

[2:55 pm, 27/10/2021] +Joseph: One of the mechanism of price change, is the buyers' ability to pay.

Ability to pay is artificially inflated by (easy) credit.

When a buyer is allowed to borrow against a future promise to repay, for present consumption. Credit is not always a bad thing, but if you want to bring prices DOWN, then the most effective way is to restrict credit availability/reduce leverage.

[3:02 pm, 27/10/2021] +Timothy Low: Singles above 35 years old will not be allowed to buy these PLH flats. This is in contrast to current rules that do not place limitations on singles above the age of 35 buying resale flats.

Source: https://www.straitstimes.com/singapore/housing/subsidy-clawback-10-year-mop-for-new-prime-location-hdb-flats-to-keep-them

Once again singles are being discriminated by the government.

[3:03 pm, 27/10/2021] +Suma pamu: There is already ABSD in place for Prs and Foreigners For Condos.

If need may be having ABSD for PRs for HDB is the option left😉

Or restriction of PRs buying Just MOP flats.

(This might make Huge difference IMO)

[3:04 pm, 27/10/2021] +Suma pamu: +1

[3:05 pm, 27/10/2021] +Joseph: At the end of the day, WHAT IS THE POINT OF EVER RISING PROPERTY PRICES to the majority/average citizen?

If you only ~own ~ "have" 1 property, when prices rise, you sell at a gain. Lets say 100%.

What almost always happens is after repaying the outstanding loans and paying back CPF for the interest for utilising your CPF to repay mortgage, is you will take that $ and use it as down-payment for the biggest/newest/nicest condo that the new Monthly loan repayment allows you to "buy".

The cycle continues until such time, the market corrects crashes and you are forced to adjust your leverage. Hopefully you are not bankrupted in the process and/or are still young enough to have time to rebuild your savings.

In between, other than the nicer/newer/fancier condo that you are living in, the next big difference is that you now have a MUCH MUCH LARGER LOAN TO REPAY.

It is quite a different story for the tycoons who actually own multiple properties and who can actually exit the investment when prices are high, wait for the correction crash to re-enter at more reasonable prices  ....

[3:07 pm, 27/10/2021] +Adrian: Ah noted. Okay sorry I didn't know PR and foreigners have to pay ABSD, I thought they just pay BSD like everyone else. Looks like there's alr additional measures for them to discourage investments.

Thanks for sharing🙏🏻

[3:07 pm, 27/10/2021] +BL: Yea that's a bit wierd. Why does gov create all these exemptions and differentiation in rules? That's why people get confused and obsessed by rules!

[3:07 pm, 27/10/2021] +Joseph: The Government had chose to encourage the formation of family units and higher birth rates so that (hopefully) we do not need to import new citizens to sustain our ageing population.

[3:08 pm, 27/10/2021] +BL: Not sure PR can buy HDB, and if so there is already a ABSD I think

[3:08 pm, 27/10/2021] +Joseph: Some form of "discomfort" is sometimes necessary to nudge people in the right direction

[3:08 pm, 27/10/2021] +BL: Higher property prices is effectively deflation of the SGD.

[3:09 pm, 27/10/2021] +BL: Foreigners pay a higher rate of absd than prs

[3:09 pm, 27/10/2021] +Suma pamu: I mean increasing PR ABSD for HDBs

Or restrict them buying Newly MOP hdbs in all locations.

(The second will deffinatly show the impact)

[3:09 pm, 27/10/2021] +Desmond: Actually I think HEB should cater abit for singles wanting a premium places

[3:13 pm, 27/10/2021] +Suma pamu: Yes Can 

The PR must Be Family nucleus and Must Have completed at least 3 years of PR before buying HDB

they are only allowed to Buy Resale HDB after 3 years of securing PR status.

[3:16 pm, 27/10/2021] +Suma pamu: But One very Important loop hole i share here 

For Many PRs they own Other properties else where in the world. And yet they buy 

(As Per HDB rules A PR   (and Family buying) must not Own Any Property Any where else in the wolrd. If they own Must dispose that With in 6 months after buying HDB flat.

And I know Few PR people who bought hdbs has Houses else where... (I never served them.. as i am very afriad😃)

And they never Declare to HDB

also I have Not seen Any Article about HDB penalised this group of People.

[3:18 pm, 27/10/2021] +Suma pamu: I won't say All PRs are same

But deffinatly some people taking advantage of The Rule.. as they feel HDB won't be able to know if they know property else where. So they don't declare... They just keep quiet..

All these years i am keep waiting to see any News about this.. 

As some times i lost clients when i say they must declare and Dispose their overseas property... it's ok for me.

But felt unfair ....

[3:22 pm, 27/10/2021] +Suma pamu: Currently market already gone Crazy 

I am waiting for Cooling measures

But seems They won't Bring any😉

I am disappointed lol

[3:23 pm, 27/10/2021] +BL: PR should only be able to buy HDB if buying with a Singaporean. Then risk of being caught cheating is much greater.

[3:24 pm, 27/10/2021] +BL: Personally, I sold my overseas property before buying HDB. It's true people did laugh at me for doing it...

[3:25 pm, 27/10/2021] +Suma pamu: Yes agree.

[3:25 pm, 27/10/2021] +Joseph: Yes.., the effect is highly inflationary, which erodes the value of your savings

There was time when asset price inflation (HDB) was necessary. That time was when SG was transitioning from 3rd world to 1st ... and where the majority of the population lowly uneducated and have an even lower understanding of and access to investments.

That was probably one of the main reasons for our Housing policy. Back then

If we look at ALL the drivers that led property prices to where they are today, the only one left is inflation. Given that SG (long term) inflation rates are at a stable low single digit annually ... we are unlikely to see Govt (housing) policy that will lead to the kind of price appreciate that our parents/grandparents "enjoyed".

This latest policy change is another step in that *changed) diredction.

Whereas LKY encouraged us then to study, get married early, apply for HDB, start family... and at retirement age, there will be enough to retire on (by cashing out on the HDB flat), LW has explicitly reminded us that we have to adjust our thinking on what our HDB/Property is for...that things are no longer what it used to be. 

We have been forewarned ,,,,,

[3:26 pm, 27/10/2021] +BL: Yes - how times have changed. The principles of yesterday are proving not to be so valid in today's global climate.

[6:47 pm, 27/10/2021] +REACH: Dear contributors, 

⏰ We will be closing the chat in 15 minutes ⏰ 

Thank you very much for being a part of our WhatsApp chat and participating actively. 

Goodnight!

Megan

[6:47 pm, 27/10/2021] +Adrian: Goodnight Megan!

[6:59 pm, 27/10/2021] +Smiley face: 27 October, 2021 

To: Distinguished Ministers, MIN-MND, and All Honorable Members 

“Whether one believes in a religion or not, and whether one believes in rebirth or not, there isn’t anyone who doesn’t appreciate kindness and compassion.” 

- - Dalai Lama

Exemption & Exception (Craw Back Scheme):

Compassionate Grounds - - 

In the event of death to either or both, this case, a sole owner or joint owners of a HDB flat. The beneficiaries and /or the living & remaining owner can apply for exemption of the CRAW BACK amount. 

This affected dwelling can opt to rent, purchase resale flat in the open market or through HDB list of new/resale flats for sale. If it is a new flat application,  a minimum occupation period (MOP) of 5 years for non-prime location and prime location shall be 10 years. 

In the event of down sizing (or new flat), the transacted price of a resale (or new) purchase flat must be 20%  lower than the sold flat amount regardless of floor area, location and original purchase price of this flat. 

The new purchase cannot be a private developer property, landed or non-landed, new or resale. 

Any circumventing the above rules and or found to have cheated the authorities, this case known as MND, or HDB or MOF shall have the absolute legal power to claim an amount of UP TO 10 times of the discrepancy (understated price) on the purchase price of the new property or the sale price (overstated price) of the existing flat under the CRAW BACK scheme. 

Licensed housing agents will also be liable if proven guilty, licence revoke and co-share the compounded fines of up to 50% of the total court imposed penalty known as summon. 

Afterwords:

The inclusion of either exemption or exception clause is soly based on  comparti.  By allowing the deceased immediate household to be able to exit the present flat through sale (open mkt or sale to HDB) or transit into a smaller flat to mitigate future financial obligation or burden. 

News:

Subsidy clawback, 10-year MOP for new prime location HDB flats

https://www.straitstimes.com/singapore/housing/subsidy-clawback-10-year-mop-for-new-prime-location-hdb-flats-to-keep-them

               - - END - -

[7:00 pm, 27/10/2021] +REACH: Dear contributors,

We will be closing the chat for today. 

Thank you very much for being a part of our Whatsapp chat and participating actively. 

Good night! 

Megan😊

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