Simple, clever timing – self-funded social security. Elderly Singaporean owners in all government Housing Board flats – including those in larger five-room units or executive maisonettes – will soon be able to sell a part of their lease to the Government and use that income to fund their retirement years.
Previously, the Lease Buyback Scheme was restricted to those living in four-room or smaller flats.
Under the Scheme, a home owner can use their Central Provident Fund (CPF) money (which is used to fund their retirement) if their age plus the number of years left on the remaining lease of the property is at least 80 years, but subject to restrictions. The CPF money can’t be used if the remaining lease is less than 30 years.
The Ministry of National Development is also looking into ways to let buyers of shorter-lease flats use more of their CPF funds for their purchase without compromising their retirement savings.
It’s not unheard of here. Bendigo Bank’s Homesafe Solutions, which is provided through a joint venture company, allows homeowners 70-plus to sell a percentage of the future sale proceeds of their home (up to 50%) in return for an immediate lump sum cash payment. They can then stay in the home until they die or sell when the balance is repaid.
