Author Archives: Evelyn Gilbert

Review on Executive Condominiums

Executive Condominiums are expertly crafted to appeal to those looking to get just a little more out of their home. There are a variety of criteria purchasers must meet, however firstly, executive Condominium candidates would have to be a minimum of Singapore Residents or Singapore Citizen + Singapore Permanent Resident combo. Executive condominiums are made to suffice the need of many sandwich class citizens who can afford more than HDB flats but not sufficient to buy a personal rental. Singapore citizens who type a family unit can purchase model new executive Condominiums. However, the market has adapted to it. Banks have pushed a switch to board rates, wherein mortgages usually are not pegged to the rising Singapore Interbank Provided Rate (SIBOR). Disregarding the rules and stripped of its public characteristics, the Executive Condominium is in its physical type not just similar however absolutely identical to a condominium.

Evidently, despite competition from mass market condominiums and public housing, ECs are nonetheless proving to be a practical and fashionable alternative amongst consumers. Let’s see what happens in 5 years’ time primarily based on the 2 situations: (1) Buy Resale Personal Condo and Hire-out HDB and (2) Buy executive Condo. D) Developers of future EC sale websites from the Government Land Gross sales programme will solely be allowed to launch items on the market 15 months from the date of award of the sites or after the bodily completion of foundation works, whichever is earlier.

The legal payment for BTO if handled by HDB legal office is $177 to $322 while the legal charge for executive condominium is approximate $2,500. Based mostly on our projection, the executive Rental trumps BTO (HDB Mortgage) and BTO (Bank Mortgage) in terms of the % return on money / CPF used over the 5 years. Whereas it has differed significantly over time, Government Condominiums might be as a lot as 25%-30% cheaper. His views and opinions on the Singapore property market are frequently sought after by the native media. The Vales, the new executive Condominium positioned at Anchorvale Crescent within the Sengkang. An EC is often sold at about 20 p.c discount than the similar private condominiums.

This paper achieve” is the difference between the price of non-public apartment (resale) (SGD 1,000,000) and executive Condominium (SGD 920,000). Resale levy is payable by 2nd timers candidates when shopping for a second subsided HDB flat or some executive Condominiums. To qualify for a new Executive Condominiums, your average gross month-to-month household income can not exceed $14,000.

As well as, ECs are subsidized by the government thus not everybody can simply stroll in and buy executive condominiums. Examine to other kinds of personal properties, condominiums are more affordable making them popular to prudent Singaporeans. Only 2 (or 3) New Government Condominiums shall be launched in 2017, down from the 5 launches in 2016. The option to purchase (OTP) and sale & purchase agreement (SPA) for the purchase of EC models are regulated and are prescribed by the executive Condominium Housing Scheme Act (ECHS Act).

Apart from sitting on a cushty gain, by purchasing an Executive Condominium, after fulfilling her MOP period, you would be able to unlock the worth of your executive Condominium by an equity time period loan at a desired time to purchase her second non-public property.

BTO (HDB Loan) and BTO (Bank Loan) has a a lot lower month-to-month obligation of round $660 and $1,029 whereas the month-to-month commitment for executive Apartment is $2,727. The model new requirement on 2nd timer purchaser to pay resale levy for buying executive condominium is imposed on EC property land gross sales launched on or after December 9, 2013 including the ones which have closed their tenders but. The CPF Housing Grant is a housing subsidy offered by the federal government to eligible buyers of Executive Condominiums.

Together with her HDB flat paid off, she is deciding if she can purchase a private condominium, move into it and lease out her HDB flat, or if she ought to simply purchase an Executive Condominium. Government Condominiums are totally different from personal condominiums in that only applicants who meet the essential eligibility circumstances are entitled to purchase an executive Condominium unit (EC unit). If the applicants are a Singapore citizen and a PR, they’re eligible to receive $20,000. In case you are making use of for both the Orphan, the Fiance or the Public scheme, then at the least one co-applicant needs to be either a Singapore Citizen or a Singapore Permanent Resident.

3 main reasons why you should invest in an executive condominium unit

Executive condominiums (ECs) are among the best selling projects in 2017. As a hybrid residential property between public housing and private housing, ECs are popular among the middle class where the buyer’s combined income does not exceed $14,000 a month. There are other requirements such as eligibility conditions on Singaporean household and a family nucleus. ECs are made affordable by the lower land prices paid by the real estate developers. The following are the 3 main reasons why you should invest in an EC unit:

EC

EC

Subsidised condominiums
Due to the restrictions and requirements imposed by HDB on the buyers, ECs have remained affordable over the years. Developers of ECs have paid significantly lesser for the land sold by HDB. Thus, an indirect subsidy is created for the buyers as the EC prices are lower than the price of a condominium in the same vicinity. Grants of up to $30,000 are also available for 1st time eligible buyers.

Full condominium facilities
While ECs are cheaper than condominiums, the facilities provided in ECs are similar and of the same quality in terms of finishings. ECs which are recently launched have come up with innovative ways to differentiate themselves where smart home technology are incorporated into their offerings.

Privatised condominium after 10 years, profits ensued
An EC development will be partially privatised after the 5 years minimum occupancy period imposed by HDB. Single Singaporean/PR buyers are eligible to purchase such EC unit. Upon the 10th year milestone, Foreigners can then own a unit at the EC turned private condominium. By offloading the EC unit following partial/full privatisation, the owners are able to earn a decent profit (indirect subsidy).

History has shown that investing in an executive condominium is very profitable. We would highly recommend eligible homeowners to take advantage of this opportunity. For more information on ECs, please contact us at info@rednano.sg