REAL ESTATE DATA TREND
Two-Room Flexi Scheme (Aug 2015)
More options for elderly under new 2-bedroom flexi scheme
The latest 2-bedroom flexi scheme will provide more options for seniors to opt for shorter leases of between 15 and 45 years, in five-year increments, as long as it covers them and their spouse until they are at least 95 years old. The greatest benefit of the scheme is that it allows seniors another option at the entry level, to commit to a purchase of a 2-bedroom flat and unlock more cash from the sale of their existing flat.
“However, a critical decision has to be made by the interested buyer as the flexi scheme does not give the option of selling the flat in the open market – which effectively means that the buyer will not be able to enjoy the possible capital appreciation in future. Nonetheless, this scheme will cater to seniors with a lower budget who just wants to have a roof over their heads in their twilight years,” commented Mr Ismail Gafoor, CEO of PropNex Realty.
However, when comparing the prices of the varying leases under the 2-bedroom flexi scheme – effectively, the lower the lease, the higher the price per lease year. This is mainly due to the construction cost, which is constant regardless of the length of lease.
Source: HDB, PropNex research
For media enquiries, please contact: