There's more than one way to make money from a HDB flat or private residential property, according to Minister for National Development Lawrence Wong.

Speaking in Parliament on Sept. 10, he said that elderly residents could consider other options to unlock the value of their properties, instead of just selling them.

Varied options for flat-owners

They could consider:

• Renting out a spare bedroom.
• Renting out the entire property.
• Selling back part of their lease to HDB under the Lease Buyback Scheme.

MND recently announced the expansion of the Lease Buyback Scheme on Aug. 20, making it available to those living in five-room flats or executive maisonettes.

Previously, it was restricted to those in four-room flats, or in smaller properties.

No new details on using CPF

Minister Wong confirmed that MND was still working with the CPF Board on new ways for people to use their CPF money to buy flats with shorter leases.

Currently you can use CPF money to purchase flats under the Public Housing Scheme, but there are certain restrictions in place depending on the remaining lease of the flat, and other factors.

Minister Wong added that safeguarding retirement adequacy was still a priority for the use of CPF.

Ownership vs rental debate

Minister Wong's reply underscores his previous remarks that buying a HDB flat is ownership, not a rental.

Previously on Aug. 14, Ku Swee Yong, a real estate agent and Straits Times contributor, argued that Singaporeans are tenants, not owners, of their HDB flats.

He contended that things like mortgages and conducting extensive renovations do not necessarily mean ownership. Said Ku:

"I would recommend that we be honest with ourselves and recognise that we are merely lessees who rent the HDB flats for their terms.

We should change the words we use to describe HDB flats - from "buy", "sell" and "owner", to "lease", "transfer lease" and "tenant".

However, on Aug. 21, Minister Wong said that the 99-year lease is an ownership, not a tenancy. He said:

"When you buy a car, how long can you use a car for? Is it a rental car, or your car? A 99-year lease is far longer than 10 years. It is yours. It is an asset. It is owned by the homeowner."

And on Sept. 4, he said the claim that people who buy HDB flats are renters is "factually and legally wrong".

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Top image from Gov.sg's YouTube channel.