Retirement Home? Or End of Retirement?

The Hilford Condominium was touted and marketed as Singapore’s first retirement village. All 281 apartments with a leasehold Tenure of 60 years was sold out on its first day of sale.
The project, marketed as a “retirement resort” has an implied purpose that was meant for active seniors with elderly-friendly facilities and commercial space set aside for health care and elder care.
However, we have seen buyers – both young and old, jumping into this latest concept of “shorter leases” with a “specific theme” which was supposedly meant for a specific group of people (the elderly), for the very wrong of reasons but at the expense of those who genuinely believe that they can live their remaining years with ease and stress free.
These are my thoughts:
1. Retirement homes, or at least the meaning of it, implies that it has to be first of all affortable. Would you consider the price reasonable being having only a 60 year tenure on it? The premium may be cheap mainly because the units are small. But does it on the psf basis?
2. Is there a resale market? Once the property is completed, the property would be left with about 55 years. Assumming these elderly stays for 4 years (to avoid ABSD) and sells the unit on the fifth, who then can afford to buy these units without being able to utilise their CPF (unless CPF changes it’s rules). How about the financing issue?
3. Property prices are always subject to demand and supply. If demand drops and supply increases (more retirement villages), then where exactly is the resale prices heading towards?
4. If there is a pressing need for cash due to unforeseen circumstances and the elderly have to sell their retirement homes, would they then be forced to sell cheap and/or even at a loss?
5. Who is there to ensure that retail trades which are meant for elderly care be realized? Will there be a control on trade mix?
6. Who controls the rental? If rental increases, this will inevitably translate into higher cost to consumers – the elderly.
7. How about the maintenance? Have the elderly been advised on the maintenance fees which will inevitably be increased over time. What happens if there is a major repair/ upgrades and the residents are required to “top-up” for any shortfalls?
Thus, why are there no safety measures in placed to clarify on these potential pit falls? Any developer terming any developement which carries certain implied purpose, should exercise greater care and considerations, especially those that can affect the well being of specific groups who may be more vulnerable.
The above is purely base on personal opinion and carries no malicious intention or kind.
http://www.channelnewsasia.com/news/singapore/buyers-snap-up-retirement/957928.html

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