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Monday, 30 July 2018

What Is The Issue Behind Your 99 Leasehold Residential Home???

How many of us have included the market value of our current 99 Leasehold residential home as part of our net worth and to fund our retirement?

For those didn't; any major concern or issue with the market value of your LH residential home?


  1. Only got issue for those who buy expensive HDB and still expect to earn money when sell. :)

    If treat as depreciating asset to be used & enjoyed while it last, like car, then no issue lorr...

    1. Our home is for living and not for speculation. :-)

  2. Agree and disagree.

    If we pay rent monthly only, wouldn't it be cheaper?

    The excess money can be deployed somewhere more useful-maybe in the stock market or as emergency money.

    As 99-year leasehold, it can be as an asset of when one is at the end of the road.

    In China, the lease is for 60 years or lesser, IIRC.

    Then it is renewable when the time comes.

    i think China has a better leasing terms for the people.

  3. Property is cyclical. There are times when buying is cheaper than renting, and vice versa.

    With long-term rental, the main problem is lack of control over rental inflation, which is headache when there is no more income that can rise together with inflation. The traditional solution is to move to cheaper small towns or small cities when retire --- but not really workable in S'pore.

    If you can manage to buy when prices are cheap, it is like locking in a long-term cheap rental :)

    Singapore is also unique in the sense that if you get BTO, it is usually cheaper than renting. I'm talking about open-market renting & not the subsidized HDB rental.

    With HDB BTO --- just take it as long-term rental for yourself, and maybe a small temporary gift to your kids; they still need to solve their own long-term housing needs.

    With private LH --- for those with plenty of spare cash or good earning power -- any enbloc in future just take it as big bonus. Otherwise also a moderate-large temporary gift for kids.

    As studies around the world have concluded --- own residential property CAGR over many decades is just similar to local inflation rate. Can only "earn big bucks" if downgrade or move to cheaper area. Relatively few outliers are those lucky enough for their property to enbloc and sell higher for redevelopment into higher value usage.

    And this is for freehold. For LH, will need to add in depreciation after the 1st couple of decades.

    1. Ai yeah! Took too long with my long comment.

      We sama same.


  4. The issue is not leasehold or freehold.

    Whether one treats our homes for speculation or not (not everyone is a panda or koala bear).

    The crux is have we OVERPAID or not?

    If someone wants to sell HDB 3 room with 10 years lease remaining for $50,000, anyone who can count with primary school math would grab immediately!

    Where to find rent in Singapore for HDB 3 room at below $500 per month!? Some more can lock in the rent for the next 10 year! There goes one inflation concern if one is always fretting about rising prices ;)

    Rent and invest the rest? LOL!

    Similarly, if one OVERPAID for a investment/rental freehold property - like those Japanese during their housing boom - we may have to pass the "under water" property to our children (maybe our grandchildren even!) to collect enough rent to breakeven one day... Rent as panadols?

    I remember someone smart did say IMAGINATION is more imporrant than knowledge. I wonder if this is true on this topic ;)

    P.S. temperament, I agree with you. Singaporeans have been "conditioned" to parrot buy is better than rent for our homes. And our collective experience has proven it (so far).

    Can anyone show me who bought a HDB flat DIRECTLY from big daddy who lost money? Its like trying to find a unicorn ;)

    Now show me someone who lost money buying HDB flat and I'll show you a "bei kambing" who overpaid buying from the HDB resale market. These "bei kambings" who can't count are the target audience for big daddy when they reminded everyone what's the meaning of 99 leasehold. Wink.

    But in Hong Kong, at current property prices and rentals we can get, I would prefer to rent. Buying has become speculation; even its for our own stay.

    On the China part, I'll have to respectfully disagree with you. I 100% believe you when you said you "think"... LOL!

    Our mainland cousins are sweating more bullets than us!

    Renew for lease extention that cost only $1 is one thing. Renew and pay up to 1/3 of current property valuation is another thing totally!

    Most of the China residential leases are for 70 years. We are better off with our 99 year leases.

    99.9999% of us will not live long enough to face this problem. Its something for our children or who ever is lucky to get this hand-me-down for singles like me ;)


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