What happens to our CPF money used to buy a HDB flat when the lease ends?
Reader:
can I assume that whatever has been used to pay for the flat will be forfeited and we still need to pay back the accrued interest? I have friends who are paranoid over the lease issue cuz they keep on reading the anti hdb and anti CPF articles. End up frightening themselves.
AK:
Tell your friends it is the same anywhere in the world. Leasehold means there is a limited life. Once it is gone, it is gone. Money from CPF used in the purchase of such flats at the end of the lease is gone. Logically, if the money is gone, how to pay back?
Reader:
My friend just bought a 940k EA resale 30++y flat recently.
Simplistically, if there is 65 years left to the lease, the reader's friend is paying about $15K a year to lease the flat......
