By Chuin Ting Weber, CFP, CFA, CAIA 
CEO & Chief Investment Officer, MoneyOwl

In recent years, the Singapore Government has taken steps to reduce the “lottery effect” in public housing.

Mothballing the Selective Enbloc Redevelopment (SERS) scheme in favour of a Voluntary VERS isn’t mainly about this — it’s about managing 99-year leases running down more sustainably.

But the takeaway for the everyday family’s wealth building remains:

⚠️We might not want to pin all our hopes for outsized wealth on our home, especially public housing.

💡Possible responses:

1️⃣Buy private property ‐ but this isn’t possible for everyone and carries risks of overstretching finances. It’s making a concentrated, long-term bet that the next 60 years will be like the last 60 years.

2️⃣Invest in low-cost, globally diversified equities — something everyday people can do today with small amounts of capital, building long-term wealth through the wonder of compounding. 📈

Capital markets, especially equities, democratise wealth building — if used wisely.

So, there’s no need to despair.

Owning a home is still a good idea, and it can be a fallback to monetise if needed. In all likelihood, if Singapore does things right, we can still expect homes to preserve value.

But let’s release the expectation that our property must serve every role — shelter, status symbol, retirement plan, and legacy. If it happens, it’s a bonus.

Otherwise, let it be what it was meant to be: a home. ❤️

Full article here: CNA: Singapore to develop VERS framework in current term of government; no plans for more SERS