I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com

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Tuesday 30 June 2020

Am I worry about worthless 4 RM HDB at the end of 99-year lease?

Election fever is on! This HDB 99-year lease worthless topic is back again. LOL!


At the end of your 99-year lease – your CPF & cash utilised for your flat becomes worthless!

So what? What is the problem?

Read? Still Making Good Gross Profits Even For Buying Resale 4 Rm HDB Flat More Than 15 years Ago.

One neighbor said Uncle8888 is lucky to make lots money if he sells his 4 rm HDB flat as he bought it cheaply at $55K. This neighbour bought it at resale price at $365K more than 15 years.

Read? HDB 4 Room Rental Soften???

Uncle8888 asked her about the rental rate. She said that the current rental is $2,000. The previous rental was $2,800. 

Down by 29%!

Let assume average Uncle8888's HDB 4 room rental is about $1K per month from 1987 to 2020 and over 34 years of rental expenses is 34 X 12 x $1K = $408K

He has already saved $408K - $55K = $353K!

Assuming $1K per month for the next 65 years till end of 99-year lease.

Another 65 years to go till end of 99-year. Total rental expenses is $408K + $780K = $1.2M

He will be saving more than $1M in rental expenses over 99 years!!!

Why kpkb on about worthless 4 RM HDB at the end of 99-year lease?

Scratching head!


  1. CW,

    Most too lazy to do the math ;)

    And england vocab not powderful enough...

    Another word for lease is rent.


    1. Sh sh ... Including one opposition financial guru too

  2. The problem might be for those who didn't buy BTO (aka brand new 99-year lease flat from garmen). Higher "rental" to pay plus CPF accrued interest plus cannot sell higher price than previously bought.

    I am currently looking to buy 4-rm resale at 300k+ budget. And still doing the math...

    1. CPF accrued interest is NOT an issue after 55. Time passes very fast. Soon 55 liao!

    2. CPF accrued interest also no issue before 55, as 99% of people either don't sell, or if sell then just roll over into next property.

      It's only issue for those less than 55 thinking of extracting high cash-in-hand profits after selling their property. Hohoho.

    3. After 55 also must pay back the full amount plus accrued int. Only difference is the money goes into RA.


    4. "The amount refunded from the sale of the property will be used to meet your retirement savings up to the Full Retirement Sum (FRS) in your Retirement Account. Thereafter, any balance will be paid to you in cash."

      As long as already got FRS, then no issue LOL.

      Those earning median wage should be able to hit FRS without any top-ups if work 25-30 yrs. Lagi faster for those who do SA top-ups.

  3. Those who buy BTO are paying a relatively cheap pre-paid lumpsum rental, especially those with 1st timer grants.

    It's mainly those who bought resale at high prices then kpkb lol.

    $1k per month is unfinished as based on IRAS property tax estimation haha. Let's say fully furnished is $1.5k, still below real world rates.

    If take long-term inflation as 2% and rental increases by 1% a year, then the PV of 99 years of renting is $1.14M

    If a flat has only 50 years of rental left then the PV is $714k.

    Another way of seeing the value of a property. DDM approach of future rentals.

    1. Aye... I am one of those who bought resale at mid high period in 2011.
      Because I refused to marry and produce more taxpayers!LOL. Ok, no love found so... no BTO for me.
      But I tried mitigated my disadvantages by fetching my folks to live with me and rent out theirs.
      Those extra rentals really helps over the years.

    2. Good movement. One for home and one for additional source of income.

  4. When we can afford it why rent? Renting we have no control. Landlord can ask you to f.. off when contract expired.

  5. For easy "rule of thumb" thinking. Rent versus Buy index:

    Price of property / Annual rent

    1-15: Die die must buy LOL.

    16-20: Meh ... rent or buy sama sama.

    21 & higher: Die die must rent!

    1. Spur,

      Yup, in HK, before the recent protests brought prices down a bit, the sky high home prices over there meant its better to rent than to be a slave to the bank forever and ever...

      When we rent, we are like a manwhore. What? Rent for that similar sized apartment across the street has gone down 5%? OK existing landlord, bye!

      Buy is like marriage - stuck with one fish. Can divorce but the paperwork and time needed can be a pain in the ...

      Your rule of thumb is more "scholarly"; I prefer to use the more "colloquial" rule of 15 ;)

      If price of property is more than 15 times the annual rent, I'll pass.

  6. Wealth loopholes that caused inequality had been patched up?

  7. 19) Will all HDB owners lose their flats when the 99 years lease is up?

    Another ex CEO who can't "count" and his England also bad! That why politics is dirty!


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