When Your CPF Is Hollowed Out With A 99 Year Depreciating Lease

Let say you get marry at 25 years old.

When u buy a 99 years lease resale HDB for 400K using CPF.

When you are retired , how is one able to top up the CPF using the lease buyback scheme which pays for remaining lease value rather than time appreciated asset.

So you owe your own CPF account Money + accrued interest ?

At 60 years old, you are jobless. You got no money to pay back to your CPF account and you wont get any profit from selling a depreciating HDB lease too.

What will happen?

 

Wake Up

 

 

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24 Responses to “When Your CPF Is Hollowed Out With A 99 Year Depreciating Lease”

  • HarderTruths:

    Well said.

    In its most basic form – what is CPF or HDB?

    It is the way the government gets your life’s savings for NOTHING in return.

    You are forced to GIVE the government that money and owe them what you cannot pay immediately – this is for a place to stay (serfdom)and some small amount to live on that does not cover your basic needs or medical bills.

    This is why you see 70-year-olds cleaning tables in hawker centres for FT and pretending to be happy or they get replaced.

    Karma is a b*t*h – no?

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  • Sad Situation:

    Many will be in this sad situation…
    Broken dream.

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  • rukidding:

    Answer :….YOU GOT CHEATED !!

    There goes your “Swiss Standard” …a “Promised that was never delivered”

    You got “POORER n poorer” today….whilst that F..king WOODY and his gang of Pimps and prostitutes (P.a.p. ) got Fatter and FATTER .

    WAKEUP !!!!

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  • NotMyProblem:

    @Wake Up, not only everyone should wake up but also be smart, don’t believe WTF this HIP2 and VERS shits.

    Anyone who believe it is just one big idiot.

    When you cannot pay your HDB flat, it will be taken away and you still owe CPF money, your money!!!

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  • PC Ong, everyone waiting for u:

    PC Ong, everyone is waiting to hear from you. Or are you going to show us that the PAP is nothing but a worthless bunch and have no answers for the problems they created?

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  • Dr. Chan:

    HDB is using one’s life saving for pre-paid rent. It is fair if the rent did not include money to BUY the land you don’t own, don’t pay tax/fees/miscellaneous charges because you don’t technically own the property.
    And you don’t spend own money to fix/repair the property because it is the landlord’s responsibility. You don’t own anything except the lease. The landlord has has to make sure everything is working well for the renter. That only make total sense.

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  • Dr. Chan:

    Typo. I meant ‘Tenant’ not Renter. At the end of lease, you just check out and return the keys to the landlord.

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  • Corrupt Greedy Evil:

    Many dafts had already been screwed by voting for PAP.
    Dafts should read between the lines and scrutinize everything that is said in shitty times. The PAP cronies are famous for fineprints and double negative statements to Lee con you.

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  • Where's Our Swiss Std?:

    Old man and Woody told dafts HDB is an assessment enhancement.
    Many poor naive sinkies bought into those lies.
    Silent Woody is still around, sinkies should ask him for explanation before he kick the pail.
    When PAP is voted out, sinkies could send them to court for explanation.

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  • Lye Khuen Way:

    Dr Chan, great comment! Your typo noted.

    When Land Cost was added to the sale prices of HDB Flats, it was to me a most dishonest and ingenious act to enslave the bulk of the population.

    They also legalized COV, liberated the Resale Market.

    Resale prices soared.

    So did new HDB prices in tendem with nearby Private Condos.

    And so the spiral goes on.

    Then many young couples and even young families panicked.

    But hey! They throw a ‘lifeline’. The CPF.

    Around that time, subsidies disappeared. Real subsidies that is.
    In their place, new subsidies appeared. But they were not enough to buffer the huge increase in prices.

    Minister after Minister kept proclaiming that HDB Flats are Affordable.

    Really? Not to the World Bank nor IMF if we used their 3 years Annual Earnings as a guide for Affordability .

    But as the CPF was such a convenient source of funds, most happily went on to buy bigger units.

    Of course, the coverment also put in a Law that requires all HDB tenants to pay Property Tax. A very special law, mind you.

    So the Ah Sohs and Ah Hias were confident that they indeed, do owned their flats. Property Tax, mah!

    Well, you cannot keep kicking the cans down the road for too long. No?

    Dr. Chan:
    HDB is using one’s life saving for pre-paid rent. It is fair if the rent did not include money to BUY the land you don’t own, don’t pay tax/fees/miscellaneous charges because you don’t technically own the property.
    And you don’t spend own money to fix/repair the property because it is the landlord’s responsibility. You don’t own anything except the lease. The landlord has has to make sure everything is working well for the renter. That only make total sense.

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  • Perhaps a Chart will help...:

    Assuming one draws a pay if $2k, $3k and $4k buying a $350k flat.

    How can one afford paying off his HDB flat using CPF after 20 or 25 years?

    Would he have accumulated enough $ for his RA?

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  • Bapoktua And 94 jesters:

    the 70% daft and brainwashed is living in swiss standard living..arent they?

    this is what they get as swiss standards.

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  • problem of a pliant parleement:


    At 60 years old, you are jobless. You got no money to pay back to your CPF account and you wont get any profit from selling a depreciating HDB lease too.

    What will happen?

    jobless at 60? no. in today’s cheap cheaper cheaperest clown pap regime, jobless is 45.

    profit from selling HDB rental unit? 1st, where to stay after selling? 2nd, when everyone knows HDB rental units zero value at end of lease, where got profit?

    what will happen? either die quickly if continue to vote clown pap or grab the chance for a better future by voting for a PSP coalition New Government.

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  • Bernard Tan:

    Dear SINGAPOREAN,

    Only way to see a true outcome, accountability and the protection of your life savings is to VTO (the incumbents).

    Let the new Government review and detailed the legal aspect of HDB’s Rules, Clauses and Regulations in tandam to CPF usage. In addition, to standard market understanding, practices and implementation of Home ownership, Leesees etc..

    Let the Rule of Law prevail and not with a million dollars Parliment making the rules like changing underwears daily.

    Note: How many of them live in HDB? Citizens must stand to get all info bents to declare their assets before and after their tour of duty. A must do for transparency and accountability – no compromises and amicable settlement for wrong doers.

    The TRUST of a Neutral and Fair Juridicial System must be maintain.

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  • Clandestine and insidious:

    How much of the HDB flat price is paying for the land on which the block sits? 30%,40%, or 50% of selling price? Why is this not explicitly stated in the lease agreement up front? How can Singaporeans accept it as a legally implicit cost of building the flat, when land price is a negotiated economic entity – grey areas that are manipulatable? And then if it is made explicit then legally each and every HDB lessee technically and properly owns a percentage of the land area by virtue of his house payment, in which case at the end of 99 years, the HDB or SLA must reimburse him or her for that land in respect of the market price of that said land at such time.

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  • Bapak:

    Some may be presurized to sell the flat to down grade, and pay the balance outstanding money to the bank or even HDB the main culprit. Whether you can afford the next flat is your problem. No mercy, you cant pay they repocess. This is the type of ‘caring’ sucking government you have. Keep voting them to suck you dry, go ahead, enjoy to be sucked dry.

    Some, cant even think of any solution will simply go jump down from the highest building.

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  • 5 yr old even knows:

    Clandestine and insidious:
    How much of the HDB flat price is paying for the land on which the block sits? 30%,40%, or 50% of selling price? Why is this not explicitly stated in the lease agreement up front? How can Singaporeans accept it as a legally implicit cost of building the flat, when land price is a negotiated economic entity – grey areas that are manipulatable? And then if it is made explicit then legally each and every HDB lessee technically and properly owns a percentage of the land area by virtue of his house payment, in which case at the end of 99 years, the HDB or SLA must reimburse him or her for that land in respect of the market price of that said land at such time.

    the lease buyback scheme to take into account the land price… not the lease only…because the HDB owner paid for the land as well…

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  • Big, big mistake:

    It is now clear that using CPF (retirement) money to pay for 99-year HDB flat is a big mistake because with the lease the flat is basically a depreciating asset. This depreciation was offset by a property bubble. But the “bubble” is not sustainable and eventually, the steady depreciation of the flat (due to the limited lease) will push the value of the flat down so its value is zero at the end of the 99-year lease. It is also clear who is responsible and accountable for the big mistake – PAP. VTO.

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  • oxygen:

    @ Big, big mistake

    VERY WELL EXPLAINED THERE MATE, and PAPpynomics is still at it stoking the property bubble by adding fuel to fire. How can they continues with the asset enhancement politics route of stimulating a disintegrating economy propped by population recycling economics via foreign influx. They should have NOT granted permit for en bloc redevelopment. Xi Jin Ping is correct when he said housing is for living, not for speculation.

    Big, big mistake: It is now clear that using CPF (retirement) money to pay for 99-year HDB flat is a big mistake because with the lease the flat is basically a depreciating asset. This depreciation was offset by a property bubble. But the “bubble” is not sustainable and eventually, the steady depreciation of the flat (due to the limited lease) will push the value of the flat down so its value is zero at the end of the 99-year lease. It is also clear who is responsible and accountable for the big mistake – PAP. VTO.

    Why? There are 50 million vacant residential homes in China, and adding fast when property coming on-streams finding no buyers when speculation dies off as it must sooner or later.

    https://www.businesstimes.com.sg/real-estate/50m-apartments-a-fifth-of-chinas-homes-are-empty

    That is ONE-IN-FIVE residential home is vacant for years. The banks are funding it by loans to developers – all bad debts. Of the balance of 80% occupied, some 60% or 48% of total national inventory of housing is LESS THAN 10 YEARS OLD i.e. post GFC. Much of the rest is less than 20 years and in very good condition. IS CHINA GOING TO KNOCK ALL THESE APARTMENT DOWN and rebuild them to stimulate their economy in this downturn?

    NO DEFINITELY. If you noticed carefully, the Chinese choose OBOR – the railway and infrastructure abroad inviting foreign participation and piling them with debt to China and its state-owned enterprises!!

    The real estate route – China must know by now – IS FAKE WEALTH CREATION of fantasy illusion BUILD SOLELY ON A MOUNTAIN OF DEBT – just exactly like the sub-prime that hit USA and EU before the GFC.

    Hong Kong property market also has burst. Giant developer, Sun Hung Kai Properties, sold all 155 units by offering UP TO 50% discount -compared to what was transacted 6 months ago in same locality – for small devt. of merely 155 units recently.

    https://www.scmp.com/business/article/2182847/discounts-are-order-day-hong-kongs-property-developers-clear-their-stock

    US property market is cracking too.

    https://www.barrons.com/articles/housing-market-stocks-51548350301

    to be continue

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  • oxygen:

    @ Big, big mistake

    HSK WARNED IN DAVOS that if trade war erupts between China and US, the damage implication is ‘VERY NEGATIVE” according to state media.

    WHY IS PAPpy still living in the fantasy world of fake economy and wealth creation via the real estate stimulus route? They know the dangers, and still playing with fire?

    If global economy turns sour this year, A LOT OF THE SINKIELAND EN BLOC RE-DEVELOPMENT will turn up 50% or more unoccupied because massive retrenchment means no income to service mortgage. Even HDB BTOs will have to be abandoned.

    Housing gambling and real estate bet is NOT WEALTH, it is GAMBLING building on fictional dream ON A MOUNTAIN OF DEBT.

    Bloomberg news has this interesting article read – Singapore property market is seeing an unprecedented mortgage slow-down.

    https://www.bloomberg.com/news/articles/2019-01-24/singapore-property-market-seeing-unprecedented-mortgage-slowdown

    Home loan growth was 22% in 2010, when interest rate was much higher, and now home loan growth per annum is UNDER 2% when interest rate is near 30 years low!!!

    Property-mad Sinkies are THE LAST RAGING BULL blind and stupid of risks and/or thinking a MOUNTAIN OF DEBT (mortgage) is WEALTH (the bigger, the better???) when financial conditions are never so tight of budgetary stretching (bankers tell borrowing 2% interest is easily affordable, ha ha ha) completely ignoring that a slight shift up the structure of interest rate is DEATH HANGING BY THE ROPE OF MORTGAGE DEBT unaffordable any more.

    Ernest Hemingway is perfectly correct – bankruptcy comes in two steps – gradually first, then suddenly.

    A LOT OF STUPID SINKIES IS STARING AT BANKRUPTCY, and LEE-jiapore is heading the China’s route stuck with massive overhang of UNOCCUPIED housing units and loads of bankrupt developer IF ANOTHER GFC ERUPTS (in the lingo of HSK of “very negative” if US-China trade wars erupts).

    Like in all bubble and bull-run speculation, the last raging bull is strong, wild reckless and suddenly collapse from over-exhaustion.

    I AM WAITING TO SEE that ..SO THAT STUPID SINKIES will finally wakes up that real estate bubble is not wealth but jobs, jobs, and jobs and real economy is the only route to wealth creation that is sustainable.

    AND PAPpy will also bury the asset enhancement politics scam CORPSE forever.

    REAL ESTATE IS ENTRAPMENT OF NO PRODUCTIVE OUTCOME, but mere gambling of finding out who dares dies stupid cawked standing in utter futility.

    Housing is for accommodation and nothing else. Don’t bury your CPF retirement with this gambling corpse – only stupid people and political governance do this.

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  • oxygen:

    GREAT POSTS FROM Dr. Chan & rejoinder from @ Lye Khuen Way. The use of CPF as PAPpys insidious tool of capital/savings extraction from peasants is worst of impact than the YOLO (you-only-live-once) spendthrift idiocy among some in the strawberry generation.

    It is LIVING on BORROWED RETIREMENT TIME now. CPF money is meant for retirement use in old age when senior (read SILLY) citizens have no economic source of income for survival existence.

    Peasants using their CPF saving to buy accommodation now is LIVING THEIR FINITE FUTURE NOW – so stupid!! Compounding that jeopardy and stupidity is this “grey rhino” of known risks but ignored now of consequences – that is CPF IS NEVER GOING TO BE ENOUGH of retirement adequacy given its EXPLOITATIVE AND EXTRACTIVE CONSTRUCT of backdoor tax throughout – CPF returns is BELOW the long-term and inflation. Just take a look at the 30-yr bond yield and look back at history of CPF returns, PAPpys knows or must be taken to know it is going to be a massive shortfall of financial adequacy for all PEASANTS RETIREES.

    https://www.macrotrends.net/2521/30-year-treasury-bond-rate-yield-chart

    It range from 14.81% on 19 October 1981 – all the way broadly in a downtrend to current 3.4%.

    How much does peasants get an average over the last 30 years period on their CPF returns for retirement adequacy IF NO MONEY IS “STOLEN OF USE TO FUND PROPERTY PURCHASE” encouraged of naive peasants?

    You know the answer! It is never going to be enough for retirement adequacy.

    For the ARISTOCRATIC PAPpys, they have no worries even if their CPF returns is near zero! Theirs, of course, is adequately taken care of with their multi-million dollar ownself-cheque-ownself pay structure they designed exclusively for themselves. And they cleverly and most timely removed inheritance tax to cover for the needs of their future generations!

    The long-term 30 year bond rate is HIGHLY CORRELATES to the underlying inflation rate over the same period. It is like, in analogy, the arms and legs in a human body. If it is malfunction through ageing, accident or disease affliction, you are going to live a paraplegic existence till mortality.

    TAKING OUT CPF retirement money (already depleted of returns from CPF construct) is CUTTING OFF your retirement arms and legs.

    The onus is on PAPpys to

    - return the difference between what the actual CPF-invested capital invested to peasants and what shortfall paid to them since commencement including compounded interests

    - REVERSE THE POLICY DECISION and bar the use of CPF for housing

    or both.

    THE ECONOMY IS HAMSTRUNG BY THIS PARALYSIS of CPF-funded property speculation.

    WHAT IS PAPpy going to do?

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  • oxygen:

    BOTH OBSERVATIONS BELOW tell me the irrefutable decrepit state of our economy hanged by an overloaded of consumer debt in housing sector. HOUSING IS NEVER THE ECONOMY of productive efforts anywhere in the world – the economic productive sectors could be agriculture, mining, manufacturing, tourism, services etc etc etc. Housing can only be a temporary drip-fed stimulus relief of an economy in ICU hospitalisation fight for survival, never for long.

    No amount of politically-correct denial can convince a rational mind and objective economic realities prevailing OTHERWISE.

    IF THE CONTRARY IS TRUE, HOW COME OR ANYONE CAN EXPLAIN THIS ANOMALOUS CONTRADICTORY HAPPENINGS – loan growth on mortgage debt is definitely ONE-WAY DOWN from 22% in 2010 (just after the last GFC) to under 2% now so close to the global interest rate bottom of July/August 2016?

    Cheaper financing means we can afford to borrow even less???

    There is a LOT of financial pain of distress in the economy. PAPpypolitics and PAPpynomics must know of this fact and reality.

    Why isn’t a policy reversal of use of CPF money for housing and still allow the insanity of en-bloc redevelopment in furtherance of this real estate bubble?

    I surmise that without the CPF cushion, the housing bubble would have long busted to realities that it is unsustainable before the last GFC.

    Must we wait for disaster irrecoverable of a torrid queues of middle-class bankruptcies in failed mortgages before PAPpynomics wakes up to reality that the real estate bubble fiction route to false prosperity is fraud with dangers and escalating risks of self-destruction?

    Come on, we can’t reverse the population ageing demographic.

    The CPF/housing nexus of FAKE ECONOMICS and asset enhancement politics is a time-bomb and the fuse, arguably, already lit.

    ARE WE NOT GOING TO STOP THIS NOW OF INSANITY economics?

    oxygen: Bloomberg news has this interesting article read – Singapore property market is seeing an unprecedented mortgage slow-down.

    https://www.bloomberg.com/news/articles/2019-01-24/singapore-property-market-seeing-unprecedented-mortgage-slowdown

    Home loan growth was 22% in 2010, when interest rate was much higher, and now home loan growth per annum is UNDER 2% when interest rate is near 30 years low!!!

    oxygen: Housing gambling and real estate bet is NOT WEALTH, it is GAMBLING building on fictional dream ON A MOUNTAIN OF DEBT.

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  • rukidding:

    Don’t forget that in those “earlier days”,…$$$ to buy HDB flat was “financed” by HDB itself.

    Now,…HDB or those PIGs have GONE Smarter…they are not interested in being caught with bad debts and thus …phused the problem to Pte Banks.

    $$$$ they want,….Compassion( when tenant encounter payment)..they are ever ready to “wash hands” !!

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  • apek:

    Pap must make us rich or cease to exist.

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