You're right, there are some factors to consider when buying an HDB flat with 60 years remaining lease. Here's a breakdown:
Lease Decay:
Impact: It's true that as the lease on an HDB flat gets shorter, its market value generally decreases. This is because buyers might be concerned about the remaining lifespan of the flat and potential limitations on financing options with shorter leases.
HIP 2 (Home Improvement Programme II):
SERS (Selective En Bloc Redevelopment Scheme): Undergoing HIP 2 doesn't necessarily eliminate the possibility of your flat being selected for SERS. HDB considers various factors when choosing SERS candidates, not just the HIP completion. Factors like location, age of the estate, and development plans all play a role.
Here's a more balanced perspective:
Benefits of Flat with 60 Years Lease:
Affordability: Flats with shorter leases can be more affordable than those with longer leases, especially in mature estates.
Own-stay Option: If you intend to live in the flat for the long term and the lease duration covers your needs, it can be a viable option.
Alternatives to Consider:
Newer HDB Flats (BTO): Consider applying for a Build-To-Order (BTO) flat if you can wait for the construction period. BTO flats come with a fresh 99-year lease.
Resale Flats with Longer Leases: Explore resale flats with longer remaining leases if your budget allows.
Ultimately, the decision depends on your individual circumstances:
Financial Situation: Consider your budget and how long you plan to stay in the flat.
Future Needs: Think about your future housing needs and whether the remaining lease will be sufficient.
Risk Tolerance: Evaluate your comfort level with the potential decrease in value due to lease decay.
Here's what you can do:
Research Market Rates: Research prices of similar flats with different remaining lease lengths to understand the potential impact on value.
Talk to an HDB Officer: Discuss your concerns with an HDB officer. They can provide insights specific to the flat you're considering.
Consult a Property Agent: A property agent can offer guidance on market trends and help you navigate the buying process.
By carefully considering the pros and cons, your individual needs, and conducting thorough research, you can make an informed decision about buying an HDB flat with a 60-year lease.
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