The elderly population in Singapore are adjusting their housing needs as they enter their retirement age.
Since 2011, 5,600 elderly households have booked studio apartments while 70 received their Silver Housing Bonus (SHB) of up to $20,000 in cash. Another 390 took up the Enhanced Lease Buyback Scheme (LBS).
The SHB scheme applies to those from this group who move from a bigger flat to a three-room or smaller flat, while the LBS allows those living in a three-room or smaller flat to sell part of their lease back to the HDB.
According to the Ministry of National Development (MND), 220,000 HDB flats owned by Singaporeans aged 55 and above are fully paid up.
Meanwhile, another option for senior citizens to convert part of their housing asset into cash and supplement their retirement income is to rent out vacant rooms.
MND is also looking into the reverse mortgage scheme as a new monetisation option for the elderly. Under a reverse mortgage, the owner retains the full lease of the flat, but takes a loan against his flat as collateral, and will have to repay the loan with accumulated interest upon termination of the loan, or death.
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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