A portion of Singaporeans got a jolt these few weeks when National Development Minister Lawrence Wong said that not all the old HDB flats are eligible for Selective En bloc Redevelopment Scheme (Sers).

Under SERS, the HDB acquires ageing blocks for redevelopment, compensates residents at market rates for their old flats and lets them buy new units nearby at subsidized rates.

What shocked many Singaporeans is that they never grasp this concept of leasehold versus freehold. Leasehold assets are essentially assets lease to you for x years and when that time comes the value of your assets is $0.  Freehold in comparison gives you ownership of the land or things on it.

They always have an idea that when they put money down on a property, they own that property.

Not just that, the property can be handed to the next generation as a bequest. The advantage in Singapore versus other …