HDB studio gone as not enough money?

November 15, 2014

Not enough money to pay to collect the keys for HDB studio apartment?

I refer to the article “Senior to lose deposit on studio apartment as HDB loan not eligible“.

Similar case was offered cheaper flat?

I wrote about a similar case encountered in my volunteer work doing financial counselling in September, whereby the HDB flat buyer was short of of $11,000 cash to pay for the flat to collect the keys.

After it was highlighted in social media, the HDB offered an alternative flat at a different location in a non-mature estate, which was about $11,000 cheaper, so that the buyer could utilise her CPF which was sufficient for the lower priced flat.

Why was this option not explored? 

Why wasn’t such an option explored for the subject case?

$170,000 for a HDB studio apartment?

After all, his HDB studio apartment at a price of $170,000 must be in a mature estate.

Enough CPF to pay for cheaper HDB studio in non-mature estate?

As the CPF Board has only approved this buyer to utilize $79,763, out of his SA account balance of $120,000 – this sum could pay for the entire cost of a HDB studio apartment in Woodlands ($72,000) or Yishun ($78,000) – sale of balance flats.

Why was he not offered such an alternative?

Poor advice or process in flat purchase procedure?

Also, why was the buyer not given financial planning advice when he successfully applied for the studio apartment in the first place, to ensure that he had sufficient funds to pay for the flat, given that no HDB loans are allowed for studio apartments?

Leong Sze Hian
 
P.S. Come with your family and friends to the 5th Return Our CPF protest on 29 November 4 pm at Speakers’ Cornerhttps://www.facebook.com/events/796694730417598/
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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.