Under the LBS they may not rent out the whole flat
A worked RES examination question on flat monetisation, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
Marcus compares the three downsizing and monetisation routes, including the rental possibilities of each. Consider the following statements.
- (i) Right-sizing to a smaller flat can qualify the Tans for the Silver Housing Bonus, which turns on a CPF Retirement Account commitment.
- (ii) A two-room Flexi flat can be bought by seniors on a short lease matched to their remaining years.
- (iii) After the minimum occupation period, a smaller Standard flat generally allows whole-flat rental, unlike a Prime flat.
- (iv) Under the Lease Buyback Scheme, the Tans could rent out the whole flat to boost their income.
The answer, and why
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.
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