Family spent $198k from flat sale in less than 2 years.

Family spent $198k from flat sale in less than 2 years.

SHE sold her four-room flat and collected nearly $200,000 in cash proceeds. But after a series of bad decisions and ill fortune, Madam A and her family spent all the cash and had to seek help in getting a rental flat.

Minister of State for National Development Mohamad Maliki Osman yesterday cited the real-life example as a cautionary tale of families selling their flats for a short-term profit.

He said he had seen many cases such as that of Madam A, who sold their homes for short-term gains but later suffered for it.

In Madam A's case, her family had sold her four-room flat in 2010 after they could not keep up with the mortgage payments.

The sale yielded $198,000 in cash proceeds, which Madam A used to buy a weekend car and to rent a private apartment.

But things took a nasty turn.

The mother of three invested a large sum in a business venture that turned out to be a scam. Her husband also developed a serious medical condition, and much of the flat proceeds went towards his medical bills.

Less than two years after selling their flat, they had spent all the proceeds.

Unable to afford to buy or rent another flat on the open market, Madam A, her husband and their oldest son resorted to sleeping at void decks or the beach. Their three younger children, meanwhile, stayed separately with different relatives.

After they appealed for a public rental flat, the Housing Board accepted their application on compassionate grounds.

In 2013, the family of six moved into a two-room rental flat, where they still live.

"We have seen many cases like Madam A. With better outreach and community engagement, we hope home owners will make informed choices and not be easily taken in by the promise of short-term gains without realising the serious long-term implications," said Dr Maliki.

The Straits Times / Top of The News                Published on 12 March, 2015

By YEO SAM JO