ECs are a hybrid of public and private housing. The market for ECs is very buoyant. ECs are affordable and buyers can acquire them for lower prices than private condominiums. Moreover, they can enjoy 30 per cent capital appreciation.
ECs are a hybrid of public and private housing
Executive condominiums are condominiums that are offered at a subsidised price. They may be eligible for CPF housing grants and are also affordable for first-time buyers. They are also considered to have better capital appreciation than private condominiums after 10 years. They are available at many locations in Singapore.
An EC can be financed using a bank loan. The downpayment amount can be as low as 25% of the purchase price. You can use cash or CPF savings to cover the remaining portion. However, you will need at least 30% of your monthly income to make the downpayment.
The cost of buying an EC depends on its size. Larger units tend to fetch a higher price. The average gross profit from 170 ECs that were at least 1,600 square feet was $455,207. On the other hand, units between 1,200 and 1,599 square feet sold for $268,493. ECs are often sold at a lower price than private condos. These projects are usually privatized after 10 years and may allow foreign ownership.
In addition to their affordability, ECs can be a good option for self-employed people. Because of the risk of unforeseen circumstances, these individuals need extra prudence when buying an EC. A TDSR (Total Debt Servicing Ratio) of 60/30 means that borrowers can only afford to borrow 30% of their monthly income in ECs.
Demand for resale ECs is high
There are several factors contributing to high demand for resale ECs in Singapore. Initially, prices of ECs were relatively lower at launch, but prices have now increased significantly. This is mainly due to an imbalance between demand and supply. The recent increase in median income of Singaporeans has also contributed to the demand for executive condominiums.
The supply of new ECs is extremely limited and will likely keep prices high. However, three new EC projects are expected to launch within the next two years. These include CityLife at Tampines, Parc Greenwich, and Yishun Avenue 9. The government may also consider releasing more land for ECs, which could moderate prices.
Re-sale ECs can be bought as a whole or separately. This is especially true of ECs that are at least 5 years old. In addition, owners of ECs can rent out the entire unit or re-sell it to anyone. This can be an attractive option for sellers who want to earn a good profit.
Resale ECs are more cost-effective than brand new ECs. The initial purchase price is lower and the rental income is higher. In addition, there are no restrictions for ECs after the first six to 10 years. As a result, EC prices have come down from their peaks to reach the S$750-S$770 psf range. This is a sign of a tightening supply and demand in the market. As a result, developers have taken measures to make their new units affordable and attractive to potential buyers.
EC buyers don’t have to pay resale levy if they are not taking any grants for resale purchase
If you are a second time buyer and are considering purchasing an HDB or EC flat, you should be aware of the resale levy. This tax is imposed on buyers who resell their original subsidised HDB or EC units to another buyer. This is a measure in place to prevent double subsidisation and to make the allocation of housing subsidies more equitable.
If you plan to resell your EC within two years, you won’t have to pay the resale levy. As long as you don’t take any grants for resale purchase, the resale levy is not charged on subsequent EC buyers. This is another advantage of buying an EC. If you buy an EC from a developer, the resale levity is not applicable. However, if you plan to resell your EC after six months, you may have to pay the levy.
If you are a first-time buyer, you may be eligible for a Family Grant. This grant is available to people with an income of up to $12,000 per month. Furthermore, EC buyers can also avail of the Citizen Top-Up Grant, worth up to $10,000. It is important to note that the grant will only be awarded if the buyer is a Singapore citizen or Singapore Permanent Resident, or has a SC child.
Investing in Otto Place EC at Plantation Close EC would be a wise decision for anyone looking to buy a property in Singapore. With its prime location in the heart of the city and convenient access to amenities, it offers a comfortable and luxurious living experience. What sets Otto Place EC apart from other properties is its thoughtful design, high-quality construction and state-of-the-art facilities. Moreover, being an executive condominium, it offers the perfect balance of exclusivity and affordability. With its attractive pricing and potential for capital appreciation, Otto Place EC is a highly attractive investment opportunity that is not to be missed.
If you are a single filial, you can apply for the proximity housing grant if you are a single filial. The grant will pay for half of the purchase price of the EC, and you don’t have to pay the resale levy unless you intend to resell the property in the future. Singles should note that if they are single, they should apply jointly with their spouse or partner, who is at least 35 years old. If they are married, they do not qualify for the proximity housing grant.