Saturday, April 08, 2006

400 more HDB studio flats for elderly - 250 in Queenstown and Jurong West, 150 units in Bishan

Bishan over the next four years or so.
This will add to the stock of more than 1,000 of these flats, which were introduced from 1998 to meet the retirement needs of the rapidly ageing population. Almost all the apartments offered so far have been bought.
The studio apartments, which come with elderly-friendly features like grab poles, are sold in a ready-to-move-in condition and tend to be located near special activity areas run by voluntary welfare organisations.
The latest batch consists of 250 studio apartments that will be part of two redevelopment projects in Queenstown and Jurong West, and 150 units in Bishan that will go on sale under a build-to-order project this year.
 
National Development Minister Mah Bow Tan said the flats - which come with 30-year leases and sell for about $60,000 to $75,000 each - allow flat owners to unlock the value in their existing properties.
Elderly flat owners looking to save money for retirement by moving to smaller flats can opt for these studio apartments, he said after visiting a studio apartment in Eunos yesterday.
The Government made it easier for the elderly to buy studio apartments last year, by letting them use their Central Provident Fund savings to pay for them and waiving the need to top up their Medisave accounts.
Mr Mah, noting complaints from HDB flat owners that they are 'asset-rich but cash-poor', also laid out the other options for retirees seeking to generate cash from their existing flats: They could also let out their homes or take out a reverse mortgage.
Under the reverse mortgage scheme, elderly owners usually pledge their property for a sum which buys an annuity that provides a regular monthly income.
NTUC Income is the only lender to offer reverse mortgages. It was reported earlier this month to have signed up just three customers. Some who are interested in the scheme have complained that the rules are too strict and the amount of money available too little.
Meanwhile, more than 10,000 HDB flat owners have rented out their properties so far, after the HDB eased sub-letting rules last year.
The changes allowed owners to sublet flats they had occupied for at least 10 years - down from 15 previously - even if there was an outstanding HDB home loan. For those with no outstanding loan, the minimum occupation period was cut from 10

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// posted by Shajahan @ 12:03 PM


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