Let’s talk about VERS

[Clazav]

This is a tough nut to crack. In the first place people kb why no en bloc for all hdb. Now gov says got Vers, but it still wouldn't satisfy. Basically all people are just greedy, because the status of Vers can't match up with sers. The 99 years leasehold is kinda like quicksand, everyone just gradually, but surely sinking deeply. Got to sell and buy to ensure if stay at the top.

 

[Mergui219067]

Is 99 a new idea only in Singapore ?
Many others sure to lease-ended but renewed hundreds old houses.

And 99 not = 99 meh ?

 

[SuperZ]

The purpose of HDB is to house you and your family. So if you bought a 4-rm BTO at (say in non-mature estate) about $400K, with a 99-year lease, it works out be about $4K year. That means you are paying an implied rent of about $330 a month for the lease, which is perfectly reasonable considering high cost of living in SG. For sure the 99 lease will last longer than you. In terms of retirement, you have CPF. If you didn't save enough, you got to deal with it. No one owes you a living.

It is all those idiots who bought over-priced resales (hoping to sell at $1M) or 50-year flat (hoping for en bloc) are the ones that are making noise.

 

[Clazav]

The purpose of HDB is to house you and your family. So if you bought a 4-rm BTO at (say in non-mature estate) about $400K, with a 99-year lease, it works out be about $4K year. That means you are paying an implied rent of about $330 a month for the lease, which is perfectly reasonable considering high cost of living in SG. For sure the 99 lease will last longer than you. In terms of retirement, you have CPF. If you didn't save enough, you got to deal with it. No one owes you a living.

It is all those idiots who bought over-priced resales (hoping to sell at $1M) or 50-year flat (hoping for en bloc) are the ones that are making noise.

Yup. These people always think location location location, and they think they are uniquely different from others. Others can live in places with poor amenities but they can't. Is kinda like you buy LV bag, don't expect to have value anymore many years later after you have used it.

 

[Clazav]

If Ah Gong is really generous but don't want to spend money.... I will totally suggest that they TOP UP the lease for the HDB 2 rooms / 3rooms / 4 rooms by 10-20 years.... as usual T&Cs apply, SG citizen FOC and PR pay some cost....

Topping up of the HDB lease won't incur a cent for them....

just my 2 cents view...

People red eyes one. If the gov top up lease foc, they better make sure to top up for every single household.

Anyway if top up lease it means the gov is not gaining.

 

[Clazav]

I feel that more people will only want to buy new BTOs. If buy resale (5 years older flat after first owner), maybe the price might also go downwards, as the price will depreciate. So after 5 years, people will only willing to pay less, unlike last time.

Not sure enough BTOs for everybody who want to update their lease.

So those with lease almost ending, can afford buy a 2 room flexi or rent house? Do 2nd Hip got what value? Will people pay more for not much lease left flat? How much do residents need to fork out for 2nd HIP? Rather save for new house, be it renting or buy 2 room flexi.

Whether 5 - 10 years old resale price will go down or not, that depends on whether are there enough bto to satisfy the need. I would think these newer resale hdb price will go up even more in general. We will reach a point where the number of bto launched per year will drop, as gov hopes more people to buy old resale hdb (30 years old kind)

 

[Mergui219067]

My parents in law bought the new 5-room Jurong West for $90k years ago ........

I doubt the noise is only from the kumgongs who bought aged resale for almost $1 million.

The purpose of HDB is to house you and your family. So if you bought a 4-rm BTO at (say in non-mature estate) about $400K, with a 99-year lease, it works out be about $4K year. That means you are paying an implied rent of about $330 a month for the lease, which is perfectly reasonable considering high cost of living in SG. For sure the 99 lease will last longer than you. In terms of retirement, you have CPF. If you didn't save enough, you got to deal with it. No one owes you a living.

It is all those idiots who bought over-priced resales (hoping to sell at $1M) or 50-year flat (hoping for en bloc) are the ones that are making noise.

 

[Sinkie]

My parents in law bought the new 5-room Jurong West for $90k years ago ........

I doubt the noise is only from the kumgongs who bought aged resale for almost $1 million.

Nah, most noise from those here who do not own any form of housing la. Lol

 

[SuperZ]

Topping up of the HDB lease won't incur a cent for them....

Not true. There is a concept called "opportunity cost" in financial economics. Do you know what will be the opportunity cost for extending lease 10/20 years for 1 million HDB units (so as to be fair to all)? The future generation will have to bear it. You can calculate it. That will be your homework.

 

[SuperZ]

My parents in law bought the new 5-room Jurong West for $90k years ago ........

Perfect example. So they are paying implied rent of less than $1K a year for staying in spacious 5 rm. There are many such cases. For others, what's there to complain?

 

[pcmdan]

ermm... I'm not sure if my understanding is right or yours is right.... for VERS, they buy back your flat at a "pro-rated" price... but that's it.... they DO NOT compensate you with a NEW flat.... it is u take the money, n u go stay elsewhere...

N for pro-rated, who sets the rate? HDB? so if they say my flat worth peanuts (not 500K kind), who can dispute?

If based on your calculation, they are giving me 60K for the remaining 30 years lease.... if I do simple math, that is $2,000 for each year of lease... come on la.... only DUMBO will sell.... I can rent it out for $2k monthly!!! I really so gian their $2k per year buyback of my lease??

We have no details on whether u look for it or not. But PM Lee said in his speech, govt will make sure u have 1.

Next, i believe to be equitable it will be based on a 99y leasehold hdb around the vincinity and pro rate. Otherwise based on 500k which is like 90yrs ago price and pay u 60k...how on Earth are u going to buy another house when the house price by then would be like 1.5mil.

Anyway if at that age u still able to rent out ur house, of course by all means do not take it. But I am quite certain govt won't pay u 60k. One thing I am not sure is, even if ur house is selected for Vers, what is stopping u from renting while waiting for the new house? Assuming govt compensate u 60k...u wait for the new house to be ready and stuff and rent ur current while waiting u earn 2k per month for 2years.. net net u would have earned 108k. When u got ur new house just cont to rent? U still would be getting the 2k right?

End of 30 years u get back 30y rent + 60k
Whereas if u are not under vers it would be 30y rent + 0



Yes I agree if the govt say so u can't dispute. Based on current hdb pricing valuation model, govt will based on valuator price. Of course for people who have no faith in the govt, whatever they do also won't believe. That one bo Bian

 

[Mergui219067]

And GST15% to resuscitate the huge number of tumbling HDB flats as they demand them free.
And these flat owners are not happy with even 1% GST rise .

Not true. There is a concept called "opportunity cost" in financial economics. Do you know what will be the opportunity cost for extending lease 10/20 years for 1 million HDB units (so as to be fair to all)? The future generation will have to bear it. You can calculate it. That will be your homework.

 

[Sinkie]

And GST15% to resuscitate the huge number of tumbling HDB flats as they demand them free.
And these flat owners are not happy with even 1% GST rise .

SSI is want free upgrade of their parent hdb to freehold lah, funded by the rich

And also freehold hdb bto to start at historical price like 30-40 years ago, ie $150,000 freehold 5 room hdb at queenstown area

 

[Mergui219067]

Private 99 owners pay easily $1-3 million and know they have bought a 99 and that’s it.
Every aging expense needs to be from the management funds aka their pockets.
And most probably worth zero if no enbloc later.

Should they kpkb like many HDB kia later ?

 

[Sinkie]

Private 99 owners pay easily $1-3 million and know they have bought a 99 and that’s it.
Every aging expense needs to be from the management funds aka their pockets.
And most probably worth zero if no enbloc later.

Should they kpkb like many HDB kia later ?

Please, bbfa is can afford condo also, but they are not buying because they are doing their part to not push the price further up

Why you all don’t understand they are kpkb now for the poorer sinkies who can’t afford condo and also for their nephews lah

 

[Clazav]

My parents in law bought the new 5-room Jurong West for $90k years ago ........

I doubt the noise is only from the kumgongs who bought aged resale for almost $1 million.

Whoa 90k I also want

 

[patrickgoh]

VERS will not work because it will be very complex unlike lease buy back.

Firstly, precincts need to vote and there are many types of people of different ages.

If you are old, did not meet the minimum sum and used CPF to pay for your HDB. Which many cannot meet the minimum sum.

https://www.theonlinecitizen.com/20...eet-minimum-sum-can-only-withdraw-up-to-5000/

You have to top up the minimum sum, return accrued interest and how much are you left with to retire and don't even talk about buying a new HDB.

If you are younger and bought an old resale flat at a high price. No minimum sum but HDB price will depreciate will age. Imagine the losses you incur plus return accrued interest.

Young or old, you lose in every way.

Buying HDB now is like self-pawn, better off to rent.

 

[williamgohsg]

We have no details on whether u look for it or not. But PM Lee said in his speech, govt will make sure u have 1.

Next, i believe to be equitable it will be based on a 99y leasehold hdb around the vincinity and pro rate. Otherwise based on 500k which is like 90yrs ago price and pay u 60k...how on Earth are u going to buy another house when the house price by then would be like 1.5mil.

Anyway if at that age u still able to rent out ur house, of course by all means do not take it. But I am quite certain govt won't pay u 60k. One thing I am not sure is, even if ur house is selected for Vers, what is stopping u from renting while waiting for the new house? Assuming govt compensate u 60k...u wait for the new house to be ready and stuff and rent ur current while waiting u earn 2k per month for 2years.. net net u would have earned 108k. When u got ur new house just cont to rent? U still would be getting the 2k right?

End of 30 years u get back 30y rent + 60k
Whereas if u are not under vers it would be 30y rent + 0



Yes I agree if the govt say so u can't dispute. Based on current hdb pricing valuation model, govt will based on valuator price. Of course for people who have no faith in the govt, whatever they do also won't believe. That one bo Bian

Thank you for tis info. My best friend is on this situation now.

 

[TheAlphaLion]

VERS will not work because it will be very complex unlike lease buy back.

Firstly, precincts need to vote and there are many types of people of different ages.

If you are old, did not meet the minimum sum and used CPF to pay for your HDB. Which many cannot meet the minimum sum.

https://www.theonlinecitizen.com/20...eet-minimum-sum-can-only-withdraw-up-to-5000/

You have to top up the minimum sum, return accrued interest and how much are you left with to retire and don't even talk about buying a new HDB.

If you are younger and bought an old resale flat at a high price. No minimum sum but HDB price will depreciate will age. Imagine the losses you incur plus return accrued interest.

Young or old, you lose in every way.

Buying HDB now is like self-pawn, better off to rent.

sure, no problem, you should rent -- for $2000 rent after only 20 years you will have paid $480,000 in rent and you will be left with nothing.

 

[Hyruga]

Why is this thread dying?

Govt says will implement vers in 20 years time so this is the future!