No to selling HDB flats to pay off debts

No help if you are in debt. No help if you sold your flat to pay off debt.

The news report:

It is a growing trend that has got authorities concerned: Home-owners selling HDB flats to pay off debts, only then to ask their MP for help in getting a rental unit.

Prime Minister Lee said this goes against the aim of these homes as assets for life.

"When we help people to own a home, it's really for you for life," Mr Lee said. "When you're not so old, and you've bought the house, and now you see that the pot of gold is down there and you ignore the 'please don't break the glass sign' and you break the glass and take the money out straightaway, then what happens to you? Or more importantly, your children and your dependents? Where do they go?"

Hence, the government wants to strengthen the CPF route in the buying and selling of flats.

"Like what we've been doing with the Additional Housing Grant - that grant we give you into your CPF, you can use it to buy a house," explained the Prime Minister.

"If you sell the house, the money goes back into the CPF. So if you're buying another house, you can use that for another house. If you're not buying another house, the money is there for your old age."

www.channelnewsasia.com 27 March 2010

Category:

News & Politics

Tags:

• Prime
• Minister
• Lee
• Hsien
• Loong
• Homeless
• Debt
• HDB