99-year land cost of a $400,000 HDB flat = $2.76 million

HDB prices flats to include construction and land costs.

Although land cost is estimated to be 60% of the price, flat buyers – lessees, in fact – do not own the land.

Over a period of 99 years, land cost can amount to million$ when ‘accrued interest’ is included.

Assuming interest rate to be 2.5%, a CPF member who pays in full for a $400,000 flat (60% land cost = $240,000) will end up paying a total of $2.76 million in land cost over the 99-year lease.

Even with land cost at 50% or 40%, HDB lessees have been screwed.  Big time.

Land sales contribute to government revenue and in essence is a form of taxation.

Over the duration of a HDB lease, lessees lose an average of more than $1 million to PAP.  No wonder the PAP fears to disclose land cost component!

And isn’t it a scam to include land cost when lessees do not own the land?

 

Phillip Ang

* The author blogs at LikeDatOsoCanMeh.

 

 

Sponsored Content

24 Responses to “99-year land cost of a $400,000 HDB flat = $2.76 million”

  • N.Jungne:

    Return our money

    GD Star Rating
    loading...
  • waste of time zzz:

    current and future lessee (not owners by the way) of hdb flats have been duped into paying for land when they dont even own the land.

    cpf could have been used for its intended purpose which is retirement. however, much of it will go into the hdb flat which is overpriced and will become 0 after 99 years.

    thus please try to sell the hdb flat and move to private property if you can afford it. at least you have a strata title which is real ownership.

    GD Star Rating
    loading...
  • Asd:

    Tax u deep deep… then enough to fill deep pocket ma… why you kpkb ? You voted for it ma

    GD Star Rating
    loading...
  • oxygen:

    WHEN HDB BUYERS DON’T OWN THE LAND (aka asset), by default PAPpys scam, they own the LEASE (aka liability) in substitution.

    Just like Indian transmogrify overnight into Malay presidency. MAGIC! Miracles work in PAPpy’s LEE-jiapore.

    PEASANTS PAID MILLIONS over 99 yrs in exchange for a liability of ‘SUBSIDIZED” public housing.

    Question is – WHO IS THE SUPPLIER OF THIS “SUBSIDY”? Nearly 70% daft didn’t ask!

    GD Star Rating
    loading...
  • Knnbccb:

    ArseEnlargementSteam to $0 @99

    GD Star Rating
    loading...
  • Bobo:

    Who ever challenged the cost of building a HDB flat?
    Ans: Mr Chiam See Tong
    Which MND minister was charged for corruption?
    Ans: Mr Teh Chean Wan
    Which MND minister defended the NParks Brompton bike saga?
    Ans:KBW
    Many more…..to be exposed.

    GD Star Rating
    loading...
  • Bapak:

    Thw whole PAP team are ponzi scheme operators.

    GD Star Rating
    loading...
  • Malaysia boleh Singapore bodoh:

    Another compelling reason for REGIME CHANGE.

    GD Star Rating
    loading...
  • nihon:

    pls read ‘a nation cheated.’ by the v contriversial dr chee.

    not too late.

    GD Star Rating
    loading...
  • PAP.GUARANTEE.WIN.GE2019: 38%::

    They promised to make public housing affordable to put a roof over our heads, but instead reap and paid themselves with million and millions. This is despicable, just like the GP consultation fees markup then discount bluff and insincerity to own People.

    I told you it should be around $100K for a 5 rooms flat to be reasonable because it’s only 99 years and the land will be recycled over and over.

    Never forget, we are the citizens and everything belongs to the citizens. We merely elected someone to manage but definitely not to reap us.

    You want decent respect and sincerity from them? Then vote for change and make them respect you and not call you mediocre, at least.

    Do the Maths:
    Do the Maths;

    600K HDB flat for 99 years = $600,000 / 99 years = $6060 per year.

    1.2M Free Hold say 999 years = $1,200,000.00/999 years = $1,201.201 per year.
    [Serangoon Garden Best time]

    OR;

    2.4M Free Hold say 999 years = $2,400,000.00/999 years = $2403 per year.

    How come your Gartament treat you like that?

    So, you continue to Mandate so that they play maths and market and deplete your CPF????

    GD Star Rating
    loading...
  • clown pap a clan of disgrace:

    Bobo:
    Who ever challenged the cost of building a HDB flat?
    Ans: Mr Chiam See Tong
    Which MND minister was charged for corruption?
    Ans: Mr Teh Chean Wan
    Which MND minister defended the NParks Brompton bike saga?
    Ans:KBW
    Many more…..to be exposed.

    the S$2 pap AIM company.

    the INDIAN is malay bullshit now also milo.

    the tony tan son 12 years NSF deferment.

    the khaw boon hwan never did a single day of NSF or NSR.

    the grace fool who tried to bully Ms Sylvia Lim about 9% GST trial balloon.

    the pap clown hypocrisy about importance of family when his own brother Mr Lee Hsien Yang and own sister Dr Lee Wei Ling publicly exposed him.

    the fatty pap paper general who sank NOL now second bite of S$m cherry SPH.

    the dismal quek pap paper general who during reign in smrt caused deaths and langgar and major disruptions.

    the botak pap paper general in AStar wasting S$billions of citizens’ CPF money for zero benefit to even a single sheep.

    the list is so ffffing long it shall take years to even completely expose all the clown pap wrongdoings.

    GD Star Rating
    loading...
  • Angry:

    Furthermore same piece of land built multiples floors and multiples units…. hell lots of profits.

    PAP.GUARANTEE.WIN.GE2019: 38%::
    They promised to make public housing affordable to put a roof over our heads, but instead reap and paid themselves with million and millions. This is despicable, just like the GP consultation fees markup then discount bluff and insincerity to own People.

    I told you it should be around $100K for a 5 rooms flat to be reasonable because it’s only 99 years and the land will be recycled over and over.

    Never forget, we are the citizens and everything belongs to the citizens. We merely elected someone to manage but definitely not to reap us.

    You want decent respect and sincerity from them? Then vote for change and make them respect you and not call you mediocre, at least.

    GD Star Rating
    loading...
  • HarderTruths:

    Hahahahahaha 70%

    Ownself f**k onself

    GD Star Rating
    loading...
  • LIONS:

    the $ource of the PROBLEM$ countless sg families are facing stems from PEANUT GOH’S POLICY OF INCORPORATING SG into $IN CITY with backing of LKY.

    As govt minister n top civil servants received more and more pay,common sgs face more and more financial turbulence!

    GOVT is govt,it is PUBLIC SERVICE.
    to MIX UP PUBLIC SERVICE with PRIVATE SECTOR PROFIT-MAKING ACTIVITIES IS SIMPLY WRONG N IMMORAL!

    scholars who want to ENRICH themselves shud just be honest and have the integrity to join the PRIVATE SECTOR,they can make their billions for all we care!

    compete with the LIKES OF TAN MIN LIANG OR PETER LIM,who cares?
    if you are that good as you self-proclaimed,SHOW IT TO US!

    ELSE,JUST BE CONTENT TO WORK HARD AS PUBLIC SERVANTS AND SERVE THE NATION WELL.

    IN THE EVENT IF YOU ARE UNWILLING AND UNHAPPY ABOUT YOUR PAYCHECK COMAPRE TO THAT OF TAN MIN LIANG OR PETER LIM, PLS RESIGN GRACEFULLY,OK?

    DONT MAKE OUR LIVES MORE MISERABLE BY THE DAY,YOU HAVE ALREADY CAUSE SO MANY FAMILIES TO BREAK UP,DO YOU UNDERSTAND.

    PLS KINDLY SPARE US YOUR GLORIFIED SELVES,WILL YOU?!

    GD Star Rating
    loading...
  • Asshole Appreciation Ream:

    Singaporeans should be ashamed of themselves if they accept the proprietary definition of LESSEE as “OWNER” where this “Owner” is not the OWNER the rest of the world knows.

    Dun blame the shit. Blame yourselves. You are all scared and timid and always use the ESCAPIST excuse that all this is BOH Bian when in fact, only the citizens can stop them from insulting us over and over again.

    Singaporeans ESCAPE their responsibility as democrats.

    This Cowardice is what will eventually bring us all down and unable to retire. We will die miserably thanks to ourselves.

    Lets not be Cowards no more.

    If we do, we can not defend singapore.

    GD Star Rating
    loading...
  • Lee Mock Cracy:

    Finally, Singaporeans beginning to see how fundamentally flawed the entire system is. A MIRAGE. A MAKE-BELIEVE.

    This also proves that being highly educated does not mean Singaporeans are wise.

    53 years of being naive and foolish and IGNORANT.

    A SCHOLAR SYSTEM GUARANTEES NOT HAVING THE BEST TALENTS.

    THE BEST TALENTS IN THE WORLD ARE ALWAYS NOT SCHOLARS.

    GD Star Rating
    loading...
  • Uniquely singapore:

    You fools should realise by now :

    1. If these issues happen elsewhere, regime would have changed.
    Only in Singapore that the regime can last so long. Thanks to brainwashing and ignorance.

    Timid by intimidation. Easily intimidated, who can defend the country?

    2. Cpf system. Not one country adopt the exact model. There’s a good reason.

    3. COE system. Not one country adopted the same system exactly.

    4. Public housing. Lessee means owner but not the real owner. Land cost charged to Lessee. Bar none. Super idiots.

    5. ERP solves traffic congestion. A lie. Idiots will believe only.

    I am surrounded by fools.

    GD Star Rating
    loading...
  • Malaysia boleh Singapore bodoh:

    Straits Times: Before next financial crisis strikes, fix property market’s weak spots – Vikram Khanna

    The MAIN weak spot in the property market is the over-priced HDB resale market. Most HDB owners still refuse to believe that their flat will be worth zero at the end of the 99-year as stated by Lawrence Wong (and not denied by PM LHL). They are still trying to sell their old flat at about the same price as a new flat from HDB. They should realise that the property bubble is over. HDB prices cannot continue to go up sharply (doubling in price over the last decade) because wages have been stagnant and the limit of affordability has been reached (not more than 5x household income).

    The HDB Lease Buyback Scheme (LBS) proves that HDB flats depreciate daily as the unused lease gets less and less. This is also confirmed by HDB CEO when she said that buyers of resale flats must also take into account the age of the old HDB flat they are buying.

    HDB owners must be convinced that their flat depreciates so they can promptly get as much cash out of it asap that can be put back into their CPF account that earn interest (instead of depreciating daily with the value of their flat). They should make use of LBS (which buys unused lease at market prices) so they still have a place to stay. When the crash of the resale HDB market happens they will get less for the lease returned to HDB.

    The government must act decisively NOW to force HDB owners to ACCEPT REALITY. It should remind HDB owners that when LKY said that the price of HDB flats will never go down he was referring to the NEW flat sold by HDB (with full 99-year lease), not to the older, depreciated ones already owned by Singaporeans.

    GD Star Rating
    loading...
  • Bobo:

    To: Clown pap a clan of disgrace.
    Of course it is going to be extremely long, but we have to file all the records and question them one by one. Even if we need 52 man year to do it, someone has to complete them.

    GD Star Rating
    loading...
  • Sdf:

    Do NS fight for the land….. End up pay to rent the land you fight for… Idiots…

    GD Star Rating
    loading...
  • clown pap a clan of S$m liars:

    Sdf:
    Do NS fight for the land….. End up pay to rent the land you fight for… Idiots…

    we don’t believe when there is a real war 70% sheep will fight for someone’s bungalow or mercedes. because 70% sheep, although stupid, ain’t that stupid.

    when only renting an over priced pigeon hole called HDB, want to fight to defend pap clown clan bungalows mercedes? 70% sheep won’t.

    history has shown the resentment is so deep actually when the need to fight happens, 70% sheep clap clap pretend to fight but actually egg on outsiders to please come in and take over. at least with new masters there is a chance for start all over again, a chance to make it good whereas with existing clown pap clan of S$m liars in power, zero kosong nil chance for anything other than the over priced HDB rental.

    GD Star Rating
    loading...
  • Pappy's Proverbial 2.5%:

    Come on Philip, no one makes a fixed deposit for 99 years … just like no government makes public citizens flats on “commercial market priced” land – as if no gomen to suppress profiteering.

    GD Star Rating
    loading...
  • 夏蓝:

    English allows oral masturbation and roti prata .

    It’s an art and not a science. Art is such that black can be said as white and vice versa. A english word can be spoken in many ways to mean many things. This flexibility allows lawyers to play with words.

    Those backed by the powers that be naturally wins court cases because white can be called black by virtue of English art.

    A piece of shit can be called art.

    English can be spoken in many ways to mean different things :
    1. Metaphorically : I phuc you can mean I like you.

    2. In tongue. Self explained.

    3. Figuratively.

    4. Literally.

    5. Imaginatively.

    6. Intellectually dishonestly.
    The way of the politicians.

    7. Reverse meaningly.

    8. Tongue-in-cheek.

    So, language is a piece of shit. You can flip it any way you like.

    It looks like shit.
    It tastes like shit.
    It smells like shit.
    It feels like shit.
    It must be SHIT.

    Let’s all not be fooled by the Art of English.

    It’s a con tool.

    GD Star Rating
    loading...
  • oxygen:

    @ Pappy’s Proverbial 2.5%

    BUT PAPpys MAKES A FAIRY-TALE PROMISE of recycling land for the future generations after 99-yr lease expiry.

    When climate change and rising level is likely to reduce total land space to what Past Tense had said of what is Bukit Timah today -PAST TENSE in his last confession – One Man’s View of the World.

    Philip Ang is probably illustrating the alternative opportunity costs of PAPpys lunatic economics and fantasy logic – one of them is that CPF’s 2.5% rate of return is better than bank deposit.

    PAPpys anus – by this warped logic is telling the world – is smarter than their desiccated coconuts. If the world is only 2.5% return per annum from now to imagined infinity of achievement returns, I would congratulate you that your anus is smarter than PAPpys desiccated coconut too!

    Major US indices climbed by 400% in the last 10 years or 40% per annum. Those aiming for 2.5% return on CPF better-than-bank-interest should not MOLEST PEASANTS’ CPF MONEY but return all to them now.

    Pappy's Proverbial 2.5%: Come on Philip, no one makes a fixed deposit for 99 years … just like no government makes public citizens flats on “commercial market priced” land – as if no gomen to suppress profiteering.

    GD Star Rating
    loading...
Member Services
Members LoginSelf-ClassifiedsSelf-Support
Sponsored Advertisement

Search On TR Emeritus
Sponsored Advertisement


Most Recent Comments
  • Fooly Insured: Never once thought highly – or even at all – of this laggard ex-honcho (of an even more...
  • LKY assented: “it is much safer to be feared than loved because …love is preserved by the link of...
  • opposition dude: “PAP seems to realize that this is an extremely stupid move as it will attract extremely bad...
  • Bapak: There was this story about a Sinkies diver by strong under water current was drifted to Malaysia. He was found...
  • Anon: @Forming legal insights: The predicament is a result of believing in the first instance that ‘facts’ are...
  • GE is payback time: PAP got 70% in 2015 because many voters wanted to thank LKY passed away in 2015. PAP was actually...
  • Announce New PM after GE!: Residents of Tanjong Pagar GRC will be voting at last! Ah Chan and Indra are ‘not...
  • GE is payback time: AHTC Residents Are&# 032;Angry!: Why make Residents pay for lawyers’ fees on...
  • No end to their $faces: Next they’ll make all hawkers go for certification… No cert no licence?
  • Currying favour with Dr M: Theyre wining and dining Dr M all the way. Hosting a breakfast and luncheon banquet in his...
  • HarderTruths: ST Lim You got it right first time – congratulations. Yes – the 70% shitheads will surely...
Announcements
Advertisement
Visitors Statistic
Latest Statistic
Advertisements