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Paper 2 · Lesson 6 — Sale of HDB Flats — Schemes, Eligibility, Monetisation and Estate Renewal

Flat monetisation

Monetising the flat in retirement: the Lease Buyback Scheme, the Silver Housing Bonus, right-sizing, and renting rooms for income.

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Question 1

Marcus compares the three downsizing and monetisation routes, including the rental possibilities of each. Consider the following statements.

  1. (i) Right-sizing to a smaller flat can qualify the Tans for the Silver Housing Bonus, which turns on a CPF Retirement Account commitment.
  2. (ii) A two-room Flexi flat can be bought by seniors on a short lease matched to their remaining years.
  3. (iii) After the minimum occupation period, a smaller Standard flat generally allows whole-flat rental, unlike a Prime flat.
  4. (iv) Under the Lease Buyback Scheme, the Tans could rent out the whole flat to boost their income.
  1. A. (i), (ii), (iii) and (iv)
  2. B. (i) and (iii) only
  3. C. (i) and (ii) only
  4. D. (i), (ii) and (iii) only
Show the answer and full explanation

Answer: D

The rule. Right-sizing can qualify the Tans for the Silver Housing Bonus (a CPF Retirement Account commitment); a two-room Flexi flat can be bought on a short lease; and after the MOP a Standard flat generally allows whole-flat rental, unlike a Prime flat. Under the LBS they may not rent out the whole flat.

Why D is correct. (i), (ii) and (iii) are right; (iv) is false.

The other options.

  • B drops (ii), the two-room Flexi short lease.
  • C drops (iii), the Standard-flat rental point.
  • A adds the false (iv), whole-flat rental under the LBS.

Exam note. Silver Housing Bonus and a short-lease Flexi are live options; the LBS bars whole-flat rental.

Under the LBS they may not rent out the whole flat →

Practise it under exam conditions

Single questions test whether you know a rule. The paper tests whether you can find it in a scenario, at speed, with three plausible alternatives in the way. Start with the free 20-question half-paper.

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