{"id":23304,"date":"2019-02-28T11:50:15","date_gmt":"2019-02-28T03:50:15","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=23304"},"modified":"2022-06-13T17:06:16","modified_gmt":"2022-06-13T09:06:16","slug":"5-reasons-why-short-lease-flexi-flats-are-bound-to-get-more-popular","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/5-reasons-why-short-lease-flexi-flats-are-bound-to-get-more-popular\/","title":{"rendered":"5 Reasons Why Short-Lease Flexi Flats are Bound to Get More Popular"},"content":{"rendered":"
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Around 90 per cent of older flexi flat buyers are opting for a shorter lease<\/a>. The trend isn’t surprising, and is likely to continue. Here’s why:<\/p>\n

What is a short-lease flexi flat?<\/h3>\n

Starting in 2015, HDB began offering two-room flexi flats on variable leases. The standard flexi-flat has a 99-year lease; but if you’re 55 or older, you can opt for a short lease of between 15 to 45 years (the minimum lease you can take must cover you and your spouse till you are at least 95 years old).<\/p>\n

A flexi flat on a 40-year lease costs just over $60,000, whilst those on 15-year leases can cost as little as $30,000. It’s an attractive proposition, as it means someone who buys on a 40-year lease is effectively paying around $125 per month for their housing.<\/p>\n

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For some Singaporeans, a stress-free retirement is worth a smaller flat<\/figcaption><\/figure>\n

By comparison, a flexi flat on a full 99-year lease would cost about $110,000. First and second-timer families, as well as first-timer singles, can buy flexi flats on a 99-year lease.<\/p>\n

There are some drawbacks of course. There are, for example, no HDB loans for flexi flats on a short lease; and there’s likely no property for you to leave to any children. Nonetheless, we foresee that they’re going to become more popular over the years, for a number of reasons:<\/p>\n