We look at two Singapore Retirement Income Schemes.
The two Singapore retirement income schemes wchi will shall brielf review are Silver Housing Bonus (SHB) and Lease Buyback scheme (LBS).
The Silver Housing Bonus (SHB) is introduced to help lower-income elderly household supplement their retirement income when they right-size their flat.
If you buy a smaller flat type (up to 3-room flat) or Studio Apartment (SA), you can apply for the SHB and receive up to $20,000 cash bonus per household by using some of your net sale proceeds to top up your CPF Retirement Account (RA) and join CPF LIFE.
How to compute net sale proceeds?
Net sale proceeds = Selling price of existing property less any outstanding loan on existing property, refund to CPF Account, resale levy, deductible of up to $15,000 for ancillary costs, and cash used for purchase of next property.
Lease Buyback Scheme (LBS)
The LBS will continue to be available to interested applicants under existing terms until 31 Jan 2013. Any online application submitted before 1 Feb 2013 will be processed under the current LBS.
The (LBS) is an additional monetisation option launched on 1 March 2009 to help low-income elderly households in 3-room and smaller flats to unlock part of their housing equity while continue living in their homes, and receive a lifelong income stream to supplement their retirement income.
LBS is intended for those who wish to age-in-place. Hence, the 30-year lease term is non-transferable in the open market. The flat owner cannot sell the flat in the open market or sublet the whole flat.
Editor
Investments Singapore
Investments Singapore
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.