The Housing and Development Board ( HDB)’s ( HDB) Lease Buyback Scheme is still applicable despite the booming resale market, where flat prices have increased steadily, according to analysts.
Specifically, it offers the option of “flexibility” to those who wish to time in their own houses but need extra money for their retirement nest egg, they added.
The program, which was introduced in 2009, allows people over 65 to market a portion of their apartment’s contract back to HDB.
Those who qualify have the option of choosing to keep their leases, which run from 15 to 35 years, depending on their age and wants, as long as the youngest user of the apartment is still under 95 years old.  ,
The proceeds from the sale will be used to fund the purchase of a CPF Life plan with monthly payments for life and to top up their Central Provident Fund ( CPF ) retirement account. Any surplus left over from the retirement account top-up may be given back in income to the home owners.
As of Jun 30, 12, 656 households have sold part of their flat’s remaining lease back to HDB, with nine in 10 receiving between , S$ 100, 000 ( US$ 75, 500 ) and S$ 300, 000.
Online users questioned whether it makes sense for elders to do this, especially with rising home prices. If seniors downsize and sell their apartments in favor of smaller homes instead of cashing in?
According to CNA spokespeople, the plan was created to address the needs of a particular class of apartment entrepreneurs, who want to live in place.
This affects how well one interprets an HDB level: is it an investment or a home I hope to live in until they pass away? said Christopher Gee, IPS assistant director.
” If we think about it as more the latter, the issue of whether I should sell because it’s now valued more does n’t apply. You will no longer be able to reside there because of it’s sale.
More importantly, it offers home users the ability to “decide how many cash” they want to increase with the commodity they own.
It does give more pension funds, but it goes one stage further, creating one that can be tailored to each person while also allowing them to live in their chosen property, according to Mr. Gee.