When a reader congratulated me 3 weeks ago on my lucky timing for SERS - compared to the Ang Mo Kio SERS debacle - I was initially in a bit of shock and surprise:
No way SERS residents have to top-up for their replacement flats one lah!
Even "experts" and academics were assuming, as recent as May 2022, those affected by SERS would get a new replacement with full 99 year lease without any top-ups... (not going to give the links to save embarrassment to the 2 academics)
I waited 3 weeks to make this post.
I need to do my Trust and Verify first. And let the dust settles.
Have to.
There's a lot of half-truths, assumptions, opinions, and down right misinformation floating around in the media.
My SERS was announced 8 years ago.
Remember when I said those who got married and bought their HDB BTOs at 25 would do much better financially than their peers who focused on career first and bought their first HDB BTO at 35?
Well, what world of difference that 8 year make! Talk about Market Timing!!!
Especially when you consider the below factors:
1. My Tanglin Halt flat lease starts from1971, Ang Mo Kio ones start from 1979.
2. Our average Tanglin 3 room flat size is 55 sqm; the replacement 3 room flats are 65 sqm.
3. Of the 5 replacement sites, 4 are HDB Premium flats, 1 is normal HDB flats. Choose HDB Premium flats no need cash top-up! Let that sink in for a moment.
Of course we have to top-up cash if we want to upgrade from 3 room to 4 room - those of us with 3 room corner units have that option since our flats are 64 sqm, bigger than the 55 sqm ones on the common corridors.
Same if your existing Tanglin Halt flat is on the ground floor and you want the top floor for your replacement flat. I mean that's not apples to apples right?
Safe to say, majority of us got extra cash in our pockets together with a fresh 99 year lease.
How I know?
Well, my SERS compensation is enough to pay for one of the most expensive 3 room replacement flats (top floor) without any cash top-ups.
You can see the trend.
Put the Prime Location Public Housing (PLH) and this recent Ang Mo Kio SERS exercise together, it would be much harder to squeeze blood out from the HDB cherries going forward...
Those who are trying to position themselves for the next SERS, you may want to temper your expectations a bit.
If your CPF is bountiful from regular CPF top-ups, its not an obstacle. SERS is still financially profitable, never mind the cash top-ups.
But if you are low in cash, CPF, and can't qualify for a bank loan, its a different story...
Timing is Everything!
There's a lesson here for those of us on the Earn More path.
Women know this intuitively.
Meet the right man?
Idiot! He's married...
Some bitch has her claws and fangs in him already!!!
Smol,
ReplyDeleteWhen there's an expiry date on the the asset, whether human or flat, then timing is important lol.
This AMK thing wasn't the first time.
Back in the early 90s, some blocks along Old Airport Rd were SERS'ed which led to the newer blocks built in the late-90s. HDB stopped further SERS in that area when they realised the original inhabitants couldn't afford the nearby replacement flats with their compensation. Many had to relocate to suburban estates like Woodlands or Tampines.
I'm sure there are other cases.
Those days no social media to poke govt to offer remedies like 50 yr leases lol.
Netscape and Mozilla were barely a thing then.
Spur,
DeleteIts a case of too early may not be ideal; too late miss the boat...
I know what it meant first hand.
My old family flat at Stirling Road is one example. We got big daddy's upgrading asset enhancement early.
But the offer then was just a 1 metre extention of our kitchen. So majority of the Stirling Road flats voted to turn down that "kind" offer. We just got our toilets upgraded from squatting to sitting.
HDB learnt from "crash got sound". A few years later, they offered the opposite Mei Ling street flats a more practical small room extension from the kitchen. Big enough to play mahjong in that extension ;)
I heard some even manage to rent out that small space!?
Of course we in Stirling Road feel a bit "cheated".... We were the guinea pig :(
Big daddy has already experimented with private properties on 60 year leases.
We in Singapore have it good with our 99 year leases. In China, its 70 year leases; while in HK its 50 year leases.
When the day comes big daddy is embarrassed to offer BTO flats with million dollar price tags (make a guess why they reluctant to build new 5 room flats in mature estates today), it would not be surprising we copy paste what's practiced in China or HK...
What do fast food providers do when they don't want to break the $5 Value Meal pricing due to rising costs?
Shrink the burger and reduce the cup sizes!
Same as retrenchment benefits it golden handshake. Those earlier folks got one month per one year of service and no cap e.g 40 yrs of service got 40 months. Soon companies got smarter; they introduced cap to 24 months and then 12 months. For those near retirement age, count backward from retirement age to current age.
ReplyDeleteTiming is everything is always true!
CW,
DeleteI wish I were earning my peak income when CPF was 20/20 or 25/25!
When cut CPF the slice very fast!
But restore to 20/20 I guess everyone forgotten or given up already!?
I tell you, its great to be landowners in Singapore ;)
Employees would rather voluntarily contribute on their own than negotiate with employers for that long overdue 3% back!