A new scheme coming into play for HDB flats, called the Two Room Flexi scheme, will be offering a leasing options covering 15 to 45 years for households that are older. In a recent blog post, Khaw Boon Wan, the National Development Minister, shared that the options will be given in increments of 5 years.
The shorter leases will be an option for apartment applicants who are 55 years or older, with the provision that the lease they choose will allow them and their partner to reside in the apartment until 95 years old or more for Thomson Impressions.
Thomson Impressions Lorong Puntong
This new scheme takes two existing schemes and blends them together; the 2 room and the studio apartment schemes. Presently, studio apartments are generally meant for home owners who are elderly and who are funding their retirement by selling a previous apartment. They are available to those 55 years or older and have a lease of 30 years. The 2 room apartments have a lease of 99 years and are aimed at singles or families. Both of these flat options come in 36 square metres or 45 square metres. However, due to their shorter lease term Thomson Impressions, the studio apartments tend to be the cheaper of the two.
Upper Thomson Condo
Not too long ago Mr. Khaw made mention of bringing these two schemes together due to their similar offers. He compared the merger to a local drink called yuanyang, which blends tea and coffee together. It is something that calls for balance, where those loving coffee can still taste it and tea lovers can still enjoy their tea. Adding to this is the extra and distinctive flavour that both get from the other for Thomson Impressions Nanshan Group.
With this new scheme in place, 1st time singles and 1st and 2nd timer families will be able to continue to purchase from the Housing Development Board that offer a lease of 99 years for a two room apartment.
Mr. Khaw explains that, due to the different options for leasing, the pricing will depend upon the lease tenure and whether a buyer is a 1st or 2nd time purchaser in Thomson Impressions.
Nanshan Group Condo
It stands to reason then that flats with a shorter term lease will be cheaper, and a 2nd time buyer will end up paying more than those who are 1st time buyers given that they will be offered more allowances Upper Thomson Road.
He further says that a combination of grants that are pro-rated for those buying 1st time and resale levies for 2nd time buyers that will be pro-rated, will allow for these 2 room Flexi flats to be priced in a way that makes the 2 room Flexi scheme in Thomson fair to those who have either purchased a two room flat or studio apartment recently, making these flats quite affordable.
In order to get the scheme ironed out properly there have been public consultations being held. The scheme is expected to start next month, when the next launch for BTO flats is planned.
Many experts feel that older flat buyers will find the shorter and more flexible 5 year leases a win/win situation. At the moment, elderly buyers on;y have a 30 year lease option for studio apartments. With this new flexible scheme they will have the option to choose what they want based on their age and financial budget.
Another analyst pointed out that, with a life expectancy that keeps rising, and a population that is getting older, having a lease that will last till a person is at least 95 makes for a good buffer.