Senior citizens that are residents of huge Housing and Development Board (HDB) apartments can expect monetizing their flat through the sale of some of their remaining lease to the government.
It means that the Lease Buyback Scheme (LBS) is going to be available for every government residential apartment, which includes five-room and larger apartments. This will allow many citizens to gain from the change, which was included in the announcement that National Development Minister Lawrence Wong in a blog article on the 20th of August.
In addition, he shared that the Lease Buyback Scheme is a great implementation. However, it will only apply to the residents that own a four-room or compact government residential flats. The initial thought flow would be for those who owns larger flats to appropriate size.
ERA Realty key executive officer Eugene Lim stated that the government acknowledged and considered the comments from the industry sector and the public to every kind of flat.
He added on that public housing is for the public, and the selections made for all to monetise one’s apartment should and fittingly made accessible for everyone.
Lim perceives that the modified scheme will enable owners of larger apartments who are tight on hand, to contribute to the funds that are needed for pressing demands without having to sell their flats.
Aligning to the perspective of Prime Minister Lee Hsien Loong National Day Rally announcement regarding the upgrade of the system, and renewing former government residential homes, Wong disclosed that his department will be implementing various moves in the upcoming years such that it aids seniors unlock the monetary worth of their residential government flats for retirement.
He mentioned that they are discovering and working out different approaches to increase the liquidity of the resale market for former apartments.
“Presently, CPF is meant to be utiltised for citizens to buy former HDB flats but bounded by some limitations. These laws and regulations are implemented so that citizens can buy a house that will serve them for a lifetime, without their retirement reserves decreasing.”
His department is cooperating with Central Provident Fund Board to analyze, evaluate and reform the guidelines to give buyers of shorter-lease apartments more flaccidity without compromising on their retirement savings.
On top of this, Lim added on that this is an approach that is aimed to solve the increasing issue among the HDB flat residents about their exhausting leases and the struggle of selling these apartments because of the restrictions placed by CPF on potential buyers for the utilisation of CPF funds.
Associated with Home Improvement Programme 1, Home Improvement Programme II and Voluntary Early Redevelopment Scheme, that are publicized by Prime Minister Lee, it is potentially going to enable an optimistic prompt to the unresponsive HDB resale market which was not long ago, that was not progressing because of unaddressed issues.