lease buyback

[backsight]

anyone who has experience in lease buy back for parents can advice whether it’s worth it ? what are caveats or hidden catch if any?

 

[lifeafter41]

Selling the flat whole and buy those 2 room BTO will be a better option, imho.
Or even 3 room flat, if the old folks wants to monetize their flat.

 

[andyhtc]

anyone who has experience in lease buy back for parents can advice whether it’s worth it ? what are caveats or hidden catch if any?

I always think it is a con-job by HDB. It is useful only if your parents want to stay at the same flat all the way. Financially, there are much better options.

 

[backsight]

I always think it is a con-job by HDB. It is useful only if your parents want to stay at the same flat all the way. Financially, there are much better options.

the purpose is to mainly for retirement and buying CPF life, i guess.

 

[backsight]

Selling the flat whole and buy those 2 room BTO will be a better option, imho.
Or even 3 room flat, if the old folks wants to monetize their flat.

they still want to stay in the flat though.

 

[TiedInsurer]

they still want to stay in the flat though.

Then they may not want the lease buyback. HDB will likely force them to move, if they outlive their lease.

 

[xtwis7]

Was exploring the idea for my parents as a mean to supplement their retirement income.

While they could get back $300+k by selling 40 years of the lease, only $100k can be cashed out with the remaining going into RA to top up either parent’s account till BRS.

In the end my parents just rented out 2 rooms because LBS is the most restrictive. Once you go for it, there’s no return.

anyone who has experience in lease buy back for parents can advice whether it’s worth it ? what are caveats or hidden catch if any?

 

[lifeafter41]

they still want to stay in the flat though.

If they plan on staying there, then it’s going to be tough, as in it’s not good an option as the monies will be going into CPF RA account to meet BRS, after in which then can take out the cash proceed.

And also it will not leave anything for the children, or not that the children needs the inheritance, but some old folks may not like the idea of not leaving anything.....
Just a though there.

 

[itchying]

Is there a case now where occupier outlive the remaining lease after buyback? I think the lease buyback was introduced less than 15yrs ago and min lease is 15yr right?

 

[Mecisteus]

It is just an option to consider.

+ can realize some value and take cash
+ stay at same location
- little cash value

Another option is to sell and apply for flexi scheme
+ can realize more cash value
- needs to relocate. new location may not be ideal
- waiting time

 

[xtwis7]

Impossible now. You need to retain a lease of at least till the home owner is 95 years old now if I remembered correctly.

Is there a case now where occupier outlive the remaining lease after buyback? I think the lease buyback was introduced less than 15yrs ago and min lease is 15yr right?