I refer to my previous article: "A ‘DIFFICULT’ QUESTION FOR HDB TO ANSWER and "WE SHOULD BE ALLOWED TO USE OUR HDB FLATS FOR PERSONAL LOANS"
Well now they seriously considering it under the reverse mortgage.
A reverse mortgage is a home loan that provides cash payments based on home equity. Homeowners normally "defer payment of the loan until they die, sell, or move out of the home." Specific rules for reverse mortgage transactions vary depending on the laws of the jurisdiction.
In a conventional mortgage, the homeowner makes a monthly payment to the lender. After each payment, the homeowner's equity increases by the amount of the principal included in the payment. In a reverse mortgage, a homeowner is not required to make monthly payments. If payments are not made, interest is added to the loan's balance. Although the "rising loan balance can eventually grow to exceed the value of the home,""the borrower (or the borrower’s estate) is generally not required to repay any additional loan balance in excess of the value of the home."
Basically HDB flat owners can use their property to take personal loan from Banks;
I had been a property agent for 20 years but now retired. Owners unnecessarily sold their flats due to unforeseen circumstances Some need to sell their property to send their children for further studies, hospitalizations, business planning or other urgent needs. Some manage to buy another property but most just left without a property.
Why prevent someone from en-cashing their lock assets? It does not cost the government but it really help a lot of individuals. I know there is issue of cpf's refund. If the property worth say $300k. After deducting the loans and cpf's refund, there is a profit of say $100k, let them allow to use say 70%, that work out to $70,000.
This perhaps another revenue for HDB if they want to take responsibilities of helping those really need the money. 80% lives on HDB estate, you must follow with times and the free markets.
It is just pure ridiculous for one to sell their property and buy another one to unlock the cash. This is unhealthy and stupid. It is about time the government followed with times and be more mature, get rid of all the “ “dumbass” rules that are restricting innovations.”
Imagine it would be a huge relief, if HDB allows one to take personal loans from their HDB flats, big boost to the banks, relief to those how owners who really need to use money and does not need to sell their property. I hope HDB would consider my proposal as I am emailing one copy to PMO.
Aziz Kassim
TRS Contributor