Mr Koh Chiong Eng, a petrol pump attendent, 72, and his wife Madam Lim Poh Choon, a housewife, 69, in their three-room flat at Tampines, which is their main asset. Mr Koh was one of the first to sign up for the Lease Buyback Scheme yesterday. He is not expecting to lose his job, but decided to unlock the value of his flat as an extra monthly payout will come in handy. -- ST PHOTO: JOYCE FANG
MR KOH Chiong Eng's three-room HDB flat at Tampines is his biggest asset. The 72-year-old petrol station attendant and his 69-year-old wife, Madam Lim Poh Choon, have lived there for 23 years.
Mr Koh, who takes home $800 a month, does not think he will lose his job any time soon. He has about $55,000 in savings and CPF.
THE SCHEME
T IS meant for Singaporeans owning three-room or smaller flats where the outstanding mortgage loan is $5,000 or less. They must also:
But with the economy in such an uncertain state, he took what he called the logical step: he 'unlocked' the cash from his flat.
He is one of five elderly people who became the first to sign up for the Government's Lease Buyback Scheme launched yesterday.
Basically, he is selling 30 years of the 76 years left of his lease to the Government - in return for $5,000 cash and a monthly annuity payout of about $500 from CPF Life.
'We're both getting old and the monthly payout will be very helpful,' said Mr Koh in Mandarin.
'I've a 42-year-old daughter who sells electronics, but she doesn't give us a monthly sum as she doesn't earn very much and has two children to support.'
Mr Koh is not worried that his daughter would be left high and dry should anything happen to him and his wife any time soon.
She can still get a refund of the remaining flat lease as well as a full refund of the unused premium from the annuity plan.
The buyback scheme, first announced by Prime Minister Lee Hsien Loong at the National Day Rally two years ago, is the latest in recent years to help retirees use their home to fund their living expenses.
Read the full story in today's edition of The Straits Times.
