According to media reports, a woman made $198,000 from the sale of her four-room flat but later suffered for it, revealed Minister of State for National Development Mohamad Maliki Osman, who shared the real-life story as a cautionary tale of families who sell their flats for short-term gain.
In 2010, Madam A and her family sold their flat as they could no longer pay their mortgage bills.
The mother of four used $198,000 in cash proceeds from the sale to buy a weekend car and rent a private apartment.
However, things took a nasty turn when Madam A invested a huge sum in a business venture which turned out to be a scam. Most of the flat proceeds were also spent on the medical bills for her husband, who suffered a serious medical condition.
The family had spent all the proceeds in less than two years from the time they sold the flat.
Thereafter, Madam A, along with her husband and eldest son, resorted to sleeping on the beach or void decks because they could no longer afford to rent or buy another flat on the open market. The younger children lived separately with different relatives.
Subsequently, the family appealed to the housing board for a public rental flat.
Madam A and her family moved into a two-room rental flat in 2013 after the HDB accepted their application on compassionate grounds.
“We have seen many cases like Madam A. With better outreach and community engagement, we hope homeowners will make informed choices and not be easily taken in by the promise of short-term gains without realising the serious long-term implications,” noted Dr Maliki.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
