SINGAPORE: Property industry players said a new initiative to help older Singaporeans monetise their flats is expected to be popular because it is a viable alternative to the reverse mortgage scheme. The new initiative, announced by Prime Minister Lee Hsien Loong during his National Day Rally speech, is targeted at those aged 62 and above, living in two or three-room flats, and who have only made use of the government's housing subsidy once.
The Housing and Development Board (HDB) will shorten the lease of their flat to 30 years and pay them the value of the lease foregone in cash, through an upfront lump sum and monthly payments for the rest of their lives.
They can also stay in their own flats for the remaining 30 years.
Property industry players said this move would help many older flat owners derive income from their most valuable assets – their homes.
Mohamed Ismail, CEO of PropNex, said: "This scheme really helps people to unlock and monetise their assets. A lot of Singaporeans are asset rich and some of them may have challenges as far as their cash situation is concerned. And currently, there are not many solutions available."
Under current schemes, these home owners are allowed to sublet their units, but this would entail a loss of privacy.
A reverse mortgage scheme for HDB flats – introduced in March last year – also drew little interest, with just ten people signing up so far.
Assistant Vice President of ERA Realty, Eugene Lim, said: "Previously, the government was trying to implement reverse mortgage, but this was not very well-received especially by the senior citizens.
"Number one, they found it difficult to understand, and number two, they didn't have a very good feeling about mortgaging their house which is already paid for."
Property watchers said the new scheme could potentially boost demand for three-room flats, which are comparatively scarce in the HDB resale market.
"Three-room flats provide a very basic, essential need. And with these things in place, I do think – depending on the outcome of the package – three-rooms will be in better demand," said Mr Mohamed Ismail.
The government is also studying other arrangements should a flat owner outlive the 30-year lease period. - CNA/so
.jpg)
No comments:
Post a Comment