Jump to content
  • Donation Box

    Please donate to support the community.
    We appreciate all donations!
layman

PM Lee Hsien Loong refutes notion that 99-year HDB lease is extended rental, not a sale

Recommended Posts

https://www.straitstimes.com/politics/pm-lee-hsien-loong-rebuts-notion-that-99-year-hdb-lease-is-extended-rental-not-a-sale?utm_campaign=Echobox&utm_medium=Social&utm_source=Facebook&xtor=CS1-10#Echobox=1535106298

PM Lee Hsien Loong refutes notion that 99-year HDB lease is extended rental, not a sale

 
 

SINGAPORE - Prime Minister Lee Hsien Loong set out on Friday (Aug 24) why home ownership is a key national policy, saying it gives every Singaporean a stake in the country and has improved lives significantly for all.

On the issue of 99-year Housing Board (HDB) leases, Mr Lee refuted the notion that the lease is "merely an extended rental" and not a sale.

He said he found the argument by some commentators "frankly amazing", as many private properties are also held on 99-year leases but no one argues they are merely being rented.

"HDB lessees have all the rights over their flats that owners of such leasehold private properties have. You can live in it, you can transact it, you can bequeath it to your children - it is yours," said Mr Lee, at a book launch held at the National University of Singapore.

In fact, HDB owners enjoy extra privileges, because their flats get upgraded from time to time with generous government funding, he added.

While Mr Lee did not name the commentators he was referring to, The Straits Times had published a commentary on Aug 14 by International Property Advisor chief executive Ku Swee Yong, who recommended "that we be honest with ourselves and recognise that we are merely lessees who rent the HDB flats for their terms".

 
 

Public housing was one of the hot-button issues Mr Lee addressed at the National Day Rally on Sunday, when he announced several long-term housing initiatives in response to concerns over expiring HDB leases.

Returning to the issue today, he said home ownership enables every Singaporean to share in the country's economic growth, because as the economy grows, so will the value of their home.

Nearly every household - even low-income ones - has a substantial asset to their name.

"As a result, we have improved lives significantly for all and avoided the extremes of privation and poverty often seen even in affluent societies," he said.

The prime minister noted the Government could have adopted other policies to house the population, such as providing rental flats at subsidised rates, having controlled rents like in San Francisco, or leaving housing largely to the private market like in Hong Kong.

"But none of these alternatives would have achieved the same economic and social results as home ownership, because the experience of other cities show the private market will not provide adequately for poor or even middle-income families," Mr Lee said.

He added that rental housing creates a very different mindset from owning a home, as a tenant lives from month to month and has no interest in the property's long-term value as he cannot sell the property or leave it to his children. "It is not yours."

In comparison, a homeowner takes responsibility for his property, thinks long term and does his best to protect its value, he said.

This is done directly through good maintenance and upkeep, and also indirectly by upholding the society and system on which the value of his home depends, he added.

"That is why HDB sells flats to Singaporeans at highly subsidised rates," he said.

It is also why HDB prefers to sell very heavily-subsidised flats to low-income households rather than offer them a subsidised rental unit at cheap rents, he added.

Mr Lee spoke at the launch of the book "Critical Issues in Asset Building in Singapore's Development," co-edited by former MP Dr S Vasoo and Associate Professor Bilver Singh from NUS. The book published by World Scientific looks at how policies such as accessible housing and national conscription have contributed to Singapore's growth and development.

The event was attended by four generations of People's Action Party MPs, including the sole surviving first generation leader Ong Pang Boon.

In his speech, Mr Lee also held up the compulsory Central Provident Fund (CPF) saving scheme as another way the Government helps Singaporeans build up their assets.

The Government could have addressed this need through a state pension scheme funded through taxes as many countries do, he noted.

"Instead, we built a unique system to help people save up for themselves, and build a nest egg for retirement," he said, adding that the Government helps grow CPF savings by paying "fair and even generous interest rates".

This system provides Singaporeans with a disciplined way to save for the future and take care of the major financial commitments in life," Mr Lee said.

Singapore's approach of asset enhancement has worked well, "though we are not dogmatic about it," he said, citing that grants and subsidies are given to people where needed through schemes like Workfare for low-income workers.

He said the Government's asset-building approach emphasises individual work ethic and personal responsibility, supported by government policies and resources - an approach Singaporeans support.

This support is one of the country's intangible assets, he said, adding that there are other shared values such as a commitment to multiculturalism, an intolerance for corruption, the acceptance of national service as a necessary sacrifice and an appreciation of the vital importance of water.

"These intangibles hold us together as one people," he said. "They enable our society to solve problems and make progress in ways which are very difficult for others to emulate."

 

 

Share this post


Link to post
Share on other sites
5 minutes ago, kandidate said:

i think he lied too many times until people can no longer trust him...

someone in pap shld carry out a leadership coup in the party room.

Share this post


Link to post
Share on other sites
5 minutes ago, socrates469bc said:

someone in pap shld carry out a leadership coup in the party room.

Quite difficult cos he holds the party whip, thus all sb70 voted for were nothing but pretty much 'dogs on a leash'.

  • Haha 2

Share this post


Link to post
Share on other sites

Miw is defending vigorously cos they cant afford to lose hundred of millions of 'property tax' which they collect from sillyporeans. 

Kinda sad that sb70 is in this situation... they have to suck it all up n swallow it cos the idiots they voted for cant do anything to help them.

 

  • Sad 1

Share this post


Link to post
Share on other sites

Also return my cpf and dont need to pretend to save for me by holding it

Share this post


Link to post
Share on other sites

USELESSleeTHESHIT hsien loong, WAAAHHHAAAAAAAAAAAAzzzzzzzzzzzz STRUGGLING TO CONVINCE it FUGTARD self THE GREAT HDB VALUE IN ONE SINGLE DIGIT - ZEEEEEEEEERO AT THE END OF 99 YEARS.

SIMPLlee leepeat like your dieded papa greedy corrupt evil wicked traitorous bastard ww2 han jian san lee kuan yew - your hdb flats are worth a lot of money, DON'T SELL IT HOWEVER ?! WAHAAAAAAAHAAAAAA

SO WAT FUCKING REAL VALUE IF YOU DUN SELL IT ? KEEP IT TIL ZERO VALUE AT END OF 99 YEARS ?! IS WORTH A LOT OF MONEY APPRECIATING IN VALUE ASSSSets ?!

BIGGER QUESTION IS HOW MANY CAN AFFORD ANOTHER PUBLIC HOUSING AFTER SELLING YOUR EXISTING HDB FLAT WITHOUT INCURRING ANOTHER OR BIGGER AMOUNT OF DEBT UNDER THE PUBLIClee GREEDY CORRUPT JIAK SAI peeApee GABRAHMENT HOUSING POleeSHITS ?

FUCK THE JIBAI GREEDY CORRUPT JIAK SAI COMPULSIVE LIAR USELESSleeTHESHIT hsien loong AND THE GREEDY CORRUPT JIAK SAI peeApee POleeTICKlee leeTHESHITS 

  • Like 1

Share this post


Link to post
Share on other sites
12 hours ago, socrates469bc said:

pengsan loong must really think that everyone failed their finance 101.

a lease by definition is a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment.

thus, it is long term rental in layman's definition.

the difference for private property is that the lessee is give the first rite to extend the lease, which is absent in hdb public housing.

if pengsan loong tells me and make into a rule that hdb flats can be extended beyong 99 yrs, then i will say it is the same as private properties.

He twisting his words lah.

Or he failed english... Period.

Its like u know u failed a arguement and insists u are right... Like a 10 year old...

This is our leader...

And most of.his supporters are like him... I guess u met many in nk edmw who keep attacking u in the past also...

  • Like 1

Share this post


Link to post
Share on other sites

Didnt miw talk about hdb home ownership for the last 20 years?

So Sb70 kena con and make to believe they are home owners when they are merely leasees... haha...

sb70???

Share this post


Link to post
Share on other sites
Posted (edited)

hk mpf is only 5% and not usable for housing, cpf should follow the same but temasek and GIC are leeching off the generous 35% cut 

Edited by dysentry

Share this post


Link to post
Share on other sites
2 hours ago, LupCheong said:

So can now mortgage HDB flats based on his motherhood statement?

Wait long long

Share this post


Link to post
Share on other sites

Should learn from Hong Kong, rent out 50 years only to the highest bidder. 

Share this post


Link to post
Share on other sites
2 hours ago, Worcer said:

He twisting his words lah.

Or he failed english... Period.

Its like u know u failed a arguement and insists u are right... Like a 10 year old...

This is our leader...

And most of.his supporters are like him... I guess u met many in nk edmw who keep attacking u in the past also...

qOBSFlI.gif

8JK7Wa6.gif

 

Share this post


Link to post
Share on other sites
6 hours ago, Worcer said:

He twisting his words lah.

Or he failed english... Period.

Its like u know u failed a arguement and insists u are right... Like a 10 year old...

This is our leader...

And most of.his supporters are like him... I guess u met many in nk edmw who keep attacking u in the past also...

LKY did a good job in brainwashing most of the country.

that is his biggest legacy to sgp democracy.

Share this post


Link to post
Share on other sites

if you really own a HDB flat, why the banks don't accept your HDB flat fully-paid for as collateral for credit facilities?

Share this post


Link to post
Share on other sites
Posted (edited)

http://redwiretimes.com/singapore-in-brief/lee-hsien-loong-draws-misleading-comparison-between-hdb-flats-and-private-property/

Lee Hsien Loong Draws Misleading Comparison Between HDB Flats and Private Property

redwire-singapore-lee-hsien-loong-hdb-x6

Said Prime Minister Lee Hsien Loong in a speech during a book launch on Friday (24 Aug):

“Many private properties are held on 99-year leases too, yet nobody argues that they are merely being rented.”

We’re assuming that PM Lee is referring to condominiums – most condominiums have a 99-year lease, just like HDB flats.

But there’s very stark differences between the two.

Let’s take a look at how HDB flats work for their “owners”:

-HDB flat-dwellers do not own their flat unit
-they essentially buy the lease on the flat unit that allows them to stay for 99 years
-the flat unit is owned by the HDB, and the land is owned by the SLA
-the flat-dweller does not own the unit, or any part of the common areas
-when the flat-dweller sells his unit, he is really selling the lease on the unit
-at the end of 99 years, the government reclaims that land and the flats (since it owns both)
-flat-dwellers should receive ZERO dollars in compensation since they no longer own the lease
-if the government wants, it can buy out the remaining lease through SERS (so far 4% of HDB flats qualify for SERS)

And that’s the situation for HDB “flat-owners”.

Now, what it’s like for condominium-dwellers:

-condo-owners own their condo unit
-they have a share of ownership of the land that the condo is built on, and the common spaces
-that’s why condo owners have a strata title, and they can mortgage their homes (you can’t mortgage HDB flats)
-when the lease on the land is running down, condo owners can collectively apply to the SLA to top the lease back up to 99 years and pay for the lease top-up
-if SLA approves (after making them pay a hefty premium), they can continue living there
-if SLA does not approve, then it’s just too bad and out they go after 99 years with zero compensation
-or, they can vote to collectively sell their units and their share of the land to a private developer (en-bloc sale), who then tops-up the lease, does what it wants with the condo and land

See the difference?

The key differences lie in ownership, freedom of choice and potential compensation.

The government should not continue to hoodwink HDB-dwellers into believing that their “home-ownership” status is on par with that of private property owners.

Edited by layman

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×