Part 7: Why should you invest in EC if you are eligible for it!
Points worth considering when you intend to buy Executive Condos:
If you do not own any properties at the point of reading, you will be wondering what is the big woo-ha when comes to purchasing Executive Condos. Some reading material to assist you should Executive Condos Be your 1st property.
First of all, purchasing ECs comes with several criterion and requirements, not anyone could purchase it even if they wish to. In short summary, those whose combined gross income has exceed $12,000, non Singaporeans, Singaporeans who own private properties are ineligible. Check your eligibility if you have not done so! Purchasing an Executive Condo is a privilege specially reserved for Singaporeans, I repeat specially for Singaporeans!! Be it 1st timer or 2nd timer, you should be aware that every Singaporean is entitled to 2 purchasing rights when comes to buying from HDB. If you have purchase a private condo as your 1st property and keen to buy Executive Condos, basically you have to dispose it and wait for 30 months before you can apply for an Executive Condo.
Secondly, Executive Condo are still regulated under HDB for the 1st 5 years,( it is the mandatory requirement be it if you are purchasing EC s or HDB) , it is considered semi-privatized after 5 years of MOP(Minimum Occupation Period) and the best point is it will be FULLY PRIVATIZED at the 10th year, which anyone can then buy and sell from and to the open market.
Thirdly, purchasing technically a condo at 20% lesser than those who purchase private condos, who will be reaping more capital appreciation? Those who bought ECs and sell at similar nearby condo prices or those who bought condos around $1,000psf from the start? Who will be having the competitive advantage in the long run?
The price that you bought for your EC, say $200psf lesser than your friend who bought a condo at $1000psf. Do the mathematics! Even at the end of the day, you and your friend sold it at the same price, relatively similar size, the one who bought the EC will definitely have higher chances to reap more capital appreciation!
Fourthly, Executive Condos are attractive for people who wish to have a condo lifestyle and they are over qualified for BTOs. Considering Executive Condos as one of your options on top of resale flats. There are still CPF grants for 1st timers up to $30,000! Of course there are no more additional grants as compared to purchasing BTO and resale, but hey, the lifestyle will be different!
Lastly, due to the recent cooling measures and the curbs on financial loans, the response for Executive Condo is lukewarm, albeit moving in this current market condition. The latest introduction of resale levy will definitely affect the hdb upgrader(2nd timers)!
If you do not know of the recent hdb resale levy, simply look at the table below:
Key point, hdb upgraders should grab those Executive Condos launches that are not subjected to resale levy!!
Executive Condos New launches SG NOT subjected to resale levy includes:
- SEA HORIZON @ PASIR RIS
- WATERWOODS @ PUNGGOL
- AMORE @ PUNGGOL
- THE TERRACE @ PUNGGOL
- ECOPOLITIAN @ PUNGGOL
- BELLEWATER @ PUNGGOL
- SKYPARK RESIDENCES@ SEMBAWANG
- TWIN FOUNTAINS@WOODLANDS
- BELLEWOODS@ WOODLANDS
- FORESTVILLE@ WOODLANDS
Upcoming Executive Condos will be subjected to resale levy, which will only affect 2nd timers, mainly the upgraders! So take all these points into consideration before you purchase your ideal homes!
Hope this little article assist you in your decision making! Should you need advice on whether you should purchase a resale flat, or condo, or EC, do contact me anytime, no obligations! 🙂