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Senior to lose deposit on studio apartment as HDB loan not eligible

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Studio apartment 170k
By Terry Xu
A Singaporean senior citizen, not aware that studio apartment is not eligible for loan from the Housing Development Board (HDB) lands himself in a situation where he is to lose his deposit and his would-be home for his new family.
In December 2011, Ben, in his fifties, applied for a Studio Apartment (SA) for $170,000 from the Housing Development Board. He subsequently paid a deposit of $8,500 for the SA to secure the application.
He have been renting a room at $800 for the past five years to stay in for the longest of time but as he wants to settle down in Singapore with his foreign fiancee and two children, he went to apply for a SA so to provide for a home for the two.
As HDB only recently introduced the sale of Built to Order flats to singles in 2013, when Ben decided to settle down with a family, he had no other options to choose from other than buying a studio apartment or to buy a flat from open market as a single.
After close to 4 years of wait for his would-be-family nest, Ben’s Studio Apartment was to be ready for collection on 13 November, but he does not have the cash out-lay balance of about $93,000.
Ben had paid $10,323 for the deposit along with the other fees on the application with the assumption that Studio Apartment are also eligible for HDB Loan with the wrong notion that a HDB Loan is possible. In reality, HDB loan for SA is not possible. Ben is also unable to secure a bank loan as he had been made a bankrupt twice though he has already been discharged.
CPF rejects appeal for loan from retirement account.

appeal for loan

Appeal for loan from Ben’s Retirement account.

The CPF Board has only approved Ben to utilize $79,763, out of his SA account balance of $120,000. As a result of that, Ben needs to pay a cash out-lay of about $93,000, which he does not have.
As he had not showed HDB any documents that he is able to pay the balance, HDB has cancelled his appointment to collect the keys but is allowing him to appeal till 13 November.
Ben had since sought the help of his MP of Radin Mas SMC, Mr Sam Tan and had concurrently written to Former Prime Minister, Goh Chok Tong and Prime Minister Lee Hsien Loong in Oct 2014 to appeal on his behalf to HDB for a HDB Loan, payable over a 10 years duration.
Despite having a pay of $1,800 (before CPF contribution) and writing to all possible individuals including the President of Singapore, all appeals were still rejected with HDB’s standard response,

“The appeal was turned down and we reiterated that the HDB does not offer housing loan to SA buyers so that the elderly are not indebted in their old age.”

Technicality of HDB loan does allow loan for Studio Apartments
HDB loan criteria
Ben is particularly puzzled about why HDB is unable to extend the loan to him as HDB’s loan criteria for resale flats states that it is “allowed, if remaining lease can cover the buyer up to the age of at least 80” and he could essentially take up the 3rd option of paying the loan within ten years.
What struck Ben most was the statement he received from the HDB service staff when he dropped down to HDB personally to seek assistance.
He recalled the HDB officer saying, “You can write to the PM, so what? What can he do? He is not in charge of HDB, we are.”
“If you reject my appeal, it is understandable but if you reject PM’s appeal in this manner. This is going too far.”
Ben currently rents a room at $1,000 a month and he worries that room rental in Singapore will soon reach $2,000 a month due to growing inflation.
He asked if such “debts” incurred via rental is considered as “indebtedness for the senior citizens of Singapore”.
Ben, in his desperation, said:

“I would like to find a life partner for my old age, but without a basic roof over our head, how could we have a warm family?
So if I have more than $120,000 in my CPF SA account, and cannot afford a Basic Studio Apartment, how many more Senior Citizens will be in the same dilemma situations?
Do the Honourable PM and his team of Ministers have any Compassion and empathy to find a viable solutions for this pathetic senior citizen of Singapore?
Although I know the chances is slim, but do I have any other options?
Do we need to throw more ‘Protest Vote’ before PAP will listen to our plead?”

Ben’s siblings and relative who are single face the same problem as him with a couple also having foreign spouses waiting to get a home of their own.
He said it would take a miracle for someone to give him a loan or to help secure a loan for him.
Why is a studio apartment with a 30 year lease so expensive?
What Ben is paying for his studio apartment is likely to be seen as exorbitant and this is not the first time someone has raised the issue of the pricing of Studio Apartments.
In August 2013, Mr Henry Lim wrote in the forum letters asking why SAs are priced so high.

“I AM a 60-year-old single Singaporean. I bought a 47 sq m studio apartment in March, which cost me $168,000 on a 30-year lease (“Why do studio units for seniors cost so much more than BTO flats for singles?” by Mr Henry Lim; Sunday).
The apartment cannot be resold on the open market or sub-let, and payment by instalment is not allowed.
Now, the HDB is offering new two-room flats to singles aged 35 and older, and has priced them much cheaper than the studio apartments for seniors. These new flats come with 99-year leases and can be resold after the minimum occupation period. Buyers are also eligible for generous grants and can pay by instalments.
Is this fair to the senior citizens who bought studio apartments?
After paying in full for my apartment, I have little left for health care and emergency needs.
Can the HDB explain its latest policy on two-room flats?”

HDB wrote a response to Mr Henry Lim saying:

“Build-To-Order (BTO) flats cater mainly to first-time home buyers.
To meet the diverse housing needs of home buyers, new HDB flats are available in a range of sizes, located in various towns and come with different designs and attributes. In addition, very significant housing grants and price discounts are offered to help lower-income families afford their first flats.
Studio apartments are built specifically to offer a monetisation option for some senior citizens who find their existing homes bigger than they need.
Studio apartments allow them, including those who have bought subsidised flats before or are living in private properties, to sell and hence, convert some of the value of their existing properties into cash for retirement needs.
They can achieve the same by buying two- or three-room flats in the resale market. Many may, however, find the pricing of studio apartments more attractive and do not mind the restrictions imposed on such units.
While studio apartments have a lease of 30 years, the price is not directly proportional to the length of the lease, as professional valuation principles take into account the time-value of money and other factors.
It is thus not appropriate to directly compare the prices of studio apartments with those of two-room BTO flats, especially if they are located in different towns with very different attributes. For example, earlier this year, Mr Soh had chosen to book a 45 sq m studio apartment, which is in a mature estate and on a high floor.
Home buyers should consider their options carefully and select a flat that best suits their budget and requirements.”

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Fire at train depot causes second Circle Line disruption in two days

Circle Line services in Singapore were disrupted for the second time in two days after a fire broke out at Kim Chuan Depot on 18 September. The fire, which caused a power trip, was extinguished quickly, with normal services resuming shortly after.

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SINGAPORE: A fire at the Kim Chuan Depot on Wednesday (18 September) caused a brief disruption to Circle Line services, marking the second consecutive day of interruptions on the line.

The fire, which broke out around 8pm in one of the power system cubicles, resulted in a power trip that halted train services for approximately 15 minutes.

A netizen posted in the Facebook group Complaint Singapore, reporting the latest disruption.

According to SMRT, the transport operator, the incident caused several trains to stall, and lighting within the affected trains was briefly impacted.

Engineers at the depot quickly extinguished the fire, and the Singapore Civil Defence Force was activated to assist.

Power was restored by 8.10pm, and normal train services resumed five minutes later at around 8.15pm.

“We appreciate all commuters’ patience and apologise for the longer commutes over the past two evenings,” SMRT said in a statement posted on Facebook, explaining the swift restoration of services after the fire was contained.

In response to the incident on SMRT’s Facebook page, some commuters expressed frustration, noting that the disruptions were happening just before a planned fare increase.

Others raised concerns about the reliability and safety of train services.

Several also criticised SMRT for poor communication during the disruptions, highlighting issues with announcements and equipment at certain stations.

They urged the operator to make improvements before the fare hike takes effect.

The incident followed a major disruption the previous day, when a power fault at 5.50pm on 17 September halted Circle Line services for nearly two hours during the evening peak period.

Eleven trains were stalled inside tunnels for 15 minutes, leaving passengers without air-conditioning.

However, onboard batteries provided partial lighting and ventilation during the outage.

SMRT gradually resumed services, with normal operations restored by 7.40pm.

In a statement on Wednesday morning, SMRT said that staff worked through the night to diagnose the cause of Tuesday’s fault and ensure that all systems were fully operational.

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Fire in Bukit Merah HDB unit: Community comes together for family

Last week, a fire in a Bukit Merah HDB flat left a family of five homeless. On 14 September, a TikToker launched a fundraising campaign that raised over S$4,000 in just four days. The TikToker personally delivered the donations to Mr Liu, the head of the family. The ongoing appeal, running until Friday, has been praised by the online community as a true reflection of Singapore’s “Kampung spirit” and compassion.

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SINGAPORE: Last Tuesday (10 September), a fire broke out in a one-bedroom HDB flat located on the ninth floor of Block 104, Bukit Merah.

The blaze was reportedly started by a three-year-old boy who had been left unattended.

The fire, which originated from a mattress ignited with a lighter, caused significant damage to the unit and affected surrounding areas.

In response to the incident, TikTok user @something4rsomeone launched a fundraising appeal on September 14 to support the affected family.

Within just four days, the appeal successfully raised over S$4,000.

An accompanying video captured the TikToker delivering the funds in cash to Mr Liu, the head of the affected family.

Mr Liu, who lives with his wife and three children, expressed his gratitude for the public’s support.

He shared that the family has relocated to temporary accommodation and has received sufficient donations to manage their immediate needs.

However, he noted that they are still expecting more items to be delivered and took the opportunity to thank everyone for their “concern, love, and donations.”

The fundraising effort will continue until 20 September, at 11:59 pm.

Donations can be made via the PayLah/PayNow QR code available on @something4rsomeone’s TikTok page.

Any proceeds received after the deadline will be used for future charitable activities under the same account.

@something4rsomeone

UNCLE LIU (Part 3) UPDATE ❤️ How are you and family? We are doing alright easing into our new home. We have received much help. How is your new home and are there any other items you need? We have enough for now. Many people have donated and there are still more items on delivery. Are you going back to your old place once it is refurbished? No. We will not be going back. We will stay in our new home from now on. Mr Liu would like to thank everyone for their concern, love and donations. It will help them a lot to recooperate after the incident. We also told Mr Liu to let us know if he ever needs any sort of help or other extra items, the community are ready to assist. Just give us a text/call. As many if you would like to donate items, we are trying to organise a donation drive for the low income communities in the area. You can make a difference. We will keep you updated. More than $4000 was raise during the first batch of fundraising. The final batch of fundraising for Mr Liu is still ongoing. Although Mr Liu has paynow, he has difficulty using it, hence he has allowed us to collect on his behalf. All proceeds will go to him directly during this period and everything will be accounted for. (Link in bio) We will end our final collection on *Friday 20th September 2024 (23:59)*. Everything after the cut-off time will be used as donations under this page. Thank you Singapore, for doing something for someone.

♬ Jaithep Raroengjai_Grandma Home – Ganee

‘True Kampung spirit’

In the comments section of the TikToker’s post, many praised the gesture, calling it a true representation of Singapore’s “Kampung spirit.”

Others commended how this act highlights Singapore’s spirit of compassion and the country’s ability to come together and support one another during challenging times, reflecting its harmony in a multi-racial society.

According to earlier report from Shin Min Daily News, Mr Liu and his wife were at work when the fire started, leaving their two sons, aged three and nine, at home.

A friend was supposed to supervise the children but left them unattended for unknown reasons.

The older son, who was playing mobile games, did not notice the fire initially but acted quickly to get his younger brother to safety and alert the Singapore Civil Defence Force (SCDF).

SCDF firefighters promptly extinguished the fire, which had spread from the bedroom, and evacuated about 35 residents from the building.

Smoke from the fire caused visibility issues in the corridor, prompting police and SCDF personnel to assist elderly and disabled residents to safety. Six individuals were hospitalized for smoke inhalation.

The fire caused extensive damage to Mr Liu’s flat, including the destruction of personal belongings and electronics.

Concerns raised over Mr Liu’s S$2,000 household income

The family faces the challenge of replacing these items while managing their daily expenses.

Mr Liu, a cleaner, and his wife, a food stall assistant, have a combined monthly income of just over S$2,000.

Their 11-year-old daughter, who returned home later in the day, was devastated to find her belongings destroyed.

Despite the overwhelming losses, Mr Liu emphasized that the safety of his children remains his top priority.

Notably, some Singaporeans have raised concerns about Mr Liu’s family’s income, which is just over S$2,000, questioning whether it is sufficient for them to cope with the rising cost of living in the city-state.

Daniel Yap, former publisher of the socio-political news site The Middle Ground, pointed out that Singapore has yet to establish a minimum wage or define a poverty line.

PAP MP rejects Jamus Lim’s proposal for official poverty line

In a Parliamentary speech in April last year, Workers’ Party MP for Sengkang GRC, Associate Professor Jamus Lim, renewed his call for Singapore to establish an official poverty line, arguing that it should address more than just basic needs like housing, food, and clothing.

Assoc Prof Lim pointed out that as a country becomes wealthier, what is considered a basic need evolves. He highlighted the distinction between the “absolute minimum” and what is necessary to fully participate in society.

For example, while some may view smartphones and tuition as “unnecessary perks,” Assoc Prof Lim emphasized that many Singaporeans struggle to access essential government services or succeed in school without them.

In addition to proposing a poverty line, Assoc Prof Lim suggested refining existing assistance schemes, such as ComCare and the Workfare Income Supplement (WIS), arguing that they do not adequately support lower-income individuals.

However, National Trades Union Congress (NTUC) Assistant Secretary-General Desmond Choo, also a People’s Action Party MP, dismissed Dr Lim’s proposal, citing the “inherent problems” of a single poverty line.

He warned that it could create an “unintended cliff effect,” excluding those who are financially needy but have incomes slightly above the threshold.

Choo further noted that a poverty line could overlook other challenges faced by needy families, such as difficult family circumstances, poor health, and job readiness.

Responding to Dr Lim’s criticism of the complex processes for accessing government assistance, Choo acknowledged the need for assessments to ensure responsible use of public resources and to properly allocate aid. However, he agreed that efforts could be made to simplify these processes while maintaining the focus on the effectiveness of the schemes.

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