Many Singaporeans think that by buying a flat from HDB they actually own it but it is really so?
When you purchase your new flat from HDB, HDB does not issue you a title deed but instead a lease agreement of 99 years. So what does that mean? It mean that once 99 years is up, HDB will take back the flats on the land it was built on and return the land to the state for other development and the occupants of the flats would be... homeless...
Yup homeless and that is the hard fact. However the authorities did thought of something which somehow balance out this 99 years lease issue and that is the Selective En bloc Redevelopment Scheme (SERS). In fact SERS is so successful that most Singaporean do not even know that they are sitting on a 99 years time bomb since as of today there is no 99 years lease property that was claimed back by HDB (even Singapore as a nation is not even 99 years yet).
But remember there is no guarantee that your flat will be part of the SERS program. Just because of the fact that we have not seen such a case of HDB taking back a flat when its 99 years lease is up, it does not mean it will not happen. So it is always better to have some spare cash than to invest fully into properties.
So what are your views on this?
When you purchase your new flat from HDB, HDB does not issue you a title deed but instead a lease agreement of 99 years. So what does that mean? It mean that once 99 years is up, HDB will take back the flats on the land it was built on and return the land to the state for other development and the occupants of the flats would be... homeless...
Yup homeless and that is the hard fact. However the authorities did thought of something which somehow balance out this 99 years lease issue and that is the Selective En bloc Redevelopment Scheme (SERS). In fact SERS is so successful that most Singaporean do not even know that they are sitting on a 99 years time bomb since as of today there is no 99 years lease property that was claimed back by HDB (even Singapore as a nation is not even 99 years yet).
But remember there is no guarantee that your flat will be part of the SERS program. Just because of the fact that we have not seen such a case of HDB taking back a flat when its 99 years lease is up, it does not mean it will not happen. So it is always better to have some spare cash than to invest fully into properties.
So what are your views on this?
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