Mother and son are equal owners of Toa Payoh HDB valued at $700K. Mother is 90 year old dementia, living with her daughter 71yo retiree; son is 69 yo retired artist, living in the flat while renting out 2 bedrooms for $1,500/month to cover for his living expenses. All was well, until in 2023, her daughter requested High Court for order to sell the flat to take care of mother medical and nursing care expenses, as her mother condition is worsening and she doesn’t have sufficient saving to care for her mother expenses.
The son objected to sale, as it would render him homeless and cause him to lose his rental income that covers his living expenses.
VERDICT: APPROVED! The judge approved the application to sell the flat, noting that it would be the equitable solution in the circumstances. Given the value of $700K, each of them would receive $350K, which would allow the mother to pay for her own medical expenses and the son to find a new suitable home.
Having adequate retirement income is important so that you will not face the risk of having to liquidate your home to cover for your living expenses and/or medical expenses. For HDB owners, you can enjoy the privilege of ‘selling your unit’ back to HDB and yet still being able to live there under HDB Lease Buyback Scheme. Launched in 2009, the scheme allows HDB owners aged 65 and above to supplement their retirement income by retaining lease lengths of between 15-35 years, as long as the remaining lease covers the flat’s youngest owner until age 95. The sale proceeds are used to top up your CPF Retirement Account so you can enjoy monthly payouts for life under CPF Life. Any excess after top up will be paid to you in cash.
All in all, The old adage of Asset Rich and Cash Poor will cause you to strip yourself out of Asset and Cash in your old age. So, plan your retirement.
Cash is king in old age!
https://www.straitstimes.com/business/invest/when-co-owners-refuse-to-sell-their-hdb-flats
