Recent changes to the HDB Lease Buyback Scheme (LBS) which kicked in on 1 April 2015 have been well-received by elderly Singaporeans, revealed National Development Minister Khaw Boon Wan.
In a blog post last Friday, Mr Khaw said 450 households applied for the enhanced LBS. “If all are successful, this will be a 50 percent increase over the 965 households currently participating under LBS,” he stated.
About 214 or half of the new applicants are 4-room flat owners while the other half (236) own 3-room or smaller flats. Around 32 have a monthly income exceeding $3,000, and households with two or more owners make up 50 percent of applicants compared to 33 percent of existing LBS households. This means they will enjoy extra upfront cash due to the lower CPF top-up requirement.
The latest revisions include extending the scheme to 4-room flats, raising the income ceiling from $3,000 to $10,000, offering varying leases, and allowing households with two or more owners to get more upfront cash, noted Mr Khaw.
Launched in 2009, the LBS allows elderly HDB residents to use the tail-end of their flat leases to fund their retirement plan, without leaving their flats.
In addition, the government is reviewing the studio apartment and 2-room flat schemes to address public feedback on the differences between them.
“Both flat types are identical in physical size but offer different terms to suit different clientele. We will see if the schemes can be restructured while continuing to serve our residents’ needs,” explained Mr Khaw.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email email@example.com