HDB's Lease Buy Back scheme - A cynical view

to be ready soon?

While having lunch in a coffee shop in an old neighbourhood about 2 weeks' ago, I heard this man telling his friend about the Lease Buy Back scheme.

What is Lease Buy Back (LBS) Scheme?
For a 3-room flat with a remaining lease of 65 years, the lessee can sell the tail end of the lease back to HDB ie. 35 years for:-
a) you still get to stay in your current flat for the next 30 years;
b) $5,000 lump sum payable upfront to you
c) the rest of the payout goes towards an annuity which will pay out a fixed sum of money every month.

Depending on the age and expected mortality rate of lessee, the payout could range up to $800 per month.

I thought this is great as it allows asset-rich-cash-poor people to encash part of their assets.

Guess what the man said about the monthly payout. "In 10 years' time, we may not even get a single cent of the money as the monthly payout will first go towards paying the utilities' bill !!!"

Amazing alternative view :) I must admit I didn't see that coming at that moment.

Good night.

Another cynical story for u

As I was thinking about the Anonymous reader's comment that my made-up hypothesis of Jerry Ee's decision to turn himself was being cynical.

I wish to try to up the ante with this view that I heard from a friend.

On Sunday's Straits Times, the story also mentioned about another old man, who had stayed in a village in Thailand for many years, too decided to turn himself in.

Why? I wonder after all these years.

He is said to be sickly. Thus a logical hypothesis would be for him to come home to Singapore and let the world best health care system take care of him at taxpayers' expense.

Jerry Ee surrenders? How come?

Can you imagine what could happen to someone walking around in Thailand with $8-9 millions worth of watches in his suitcases? The Thai underground network could be abuzz with news of someone trying to sell very expensive and unique watches.

He couldn't sell them off fast enough nor at the right price. He is not sure whether he could leave Thailand.

So probably the best idea would be for him to turn himself in at the Singapore embassy with those watches that are more difficult to sell. Then go to prison for a couple of years. In due time, he could re-unite with those watches that he has kept (estimated cost $3.3mio) or the cash from watches sold (maybe a $1m after discount given).

Jerry, is this your plan?

Background
Jerry Ee, a former Cortina Holdings employee, went missing with $8m worth of luxury watches in December last year. Recently he turned himself at the Singapore embassy in Bangkok.

SCB and OCBC are now on 2

SCB have betted heavily and successfully on the two legs on 50,000 individuals (I think) recently and over the years to run in marathons organised by them.

The light blue Adidas tops seen on many Shenton Wayites during their daily jogs are now worn with pride as a testimony that that the individual wearing that top has earned it through his/her participation in a marathon.

The light blue top now signifies a fitness level sufficient for a marathan (albeit half marathon for some). It is like getting a proficiency badge for a scout or girl guide.

The above demonstrated the use of a sporting event by a corporate entity to promote brand awareness and other objectives very successfully.

In recent time, another bank in the form of OCBC has followed with launch of their sponsorship to promote cycling on 2 wheels, of course. Thousands too turned up.

2-leg vs 2-wheel? Well at this moment, 2-leg is way ahead of the game.