Wednesday, February 22, 2017

The million-dollar question — Executive Condo or HDB




With today's fast population increase, the hurry to get hold of a location to live is great. It’s been an aged old argument on which housing type is best suited for Singaporean. Executive condos or HDB?

HDB

Public housing in Singapore is handled by the Housing and Development Board, and thus the name HDB. Most of the residential housing in Singapore are publicly owned and constructed. HDB flats are relatively inexpensive, and financial assistance through the Central Provident Fund is available. They are found in proximity to many necessities that most homeowners seek.

Benefits and Eligibility

There is an added flexibility when it comes to the HDB Eligibility plan for singles 35 years of age and above. If you satisfy these standards, you are qualified to purchase the resale flat on your own as a single based on the Single Singapore Citizen Scheme. On the other hand, you may also buy the resale property with another single, for up to 4 applicants, based on the Joint Singles Scheme.
Singapore people can buy HDB flat if they are 21 years old and above. They should have the capability to develop family nucleus, and each must have another family member who is either one of the family nucleus or a permanent resident of the country. Finally, one should be able to satisfy the standards when it comes to household status, income ceiling, and the elapsed time before the date of submission.

How to Buy

After reviewing your qualifications, find a Singapore HDB flat that's for sale via the HDB official website. Then, establish your loan qualifications for buying an HDB flat and submit your buying application online or by completing a form at any HDB Branch. Has your flat booked after being shortlisted for buying? Finally, sign the lease agreement and obtain your keys from the agent.

Singapore is one amongst most visited tourist spots in the world. Perhaps due to its natural beauty, its ethnicity, cultural heritage, or the Indo, China and Malaysian mix culture.

Since decades, Singapore has offered lucrative business opportunities to people all over the world. It could be better regarded as a hub of finance, electronics, and communication, thereby strengthening residential and commercial real estate investment in Singapore.

It is because of these factors that the real estate market and scenario in Singapore both in the residential as well as the commercial segment is very lucrative, to say the least.

Most of the Singaporeans live in apartments, which are developed by the housing development board of Singapore (HDB).  The average cost of these flats hovers around the 550,000 Singapore dollars.

Real estate investment promises to find better homes at competitive prices.
Depending upon the general requirement the HBD brings up two, three or four bedroom flats in the motion of the HBD laws and act.

To make an investment in the real estates of Singapore, aid, and assistance of real estate firms is sought. The firm needs to be capable enough to pacify all customer needs and requirements. These firms can be looked up in magazines, journals, etc. 

The quite spacious and often luxurious apartments that are located in some good neighborhood are termed as condo units. The prices of these units are very high, and this is because of the demand. The average price of these unit’s hovers around the $3000 for ft2.

Executive condominiums

An executive condo can be of many types. You could look at condos with one, two, three or more bedrooms. You could also consider studio apartments if you plan to stay alone. The same thing applies to a cluster house. You could look at different sized houses in various parts of the city so that you find just the right house for you. It will take time and effort but believe me when you are planning to own a property the time spent is worth value to you.

How will you find your choice executive condo or a cluster house in Singapore? One way is to contact real estate agents and have them show you around. This will not be very tough because Singapore is not the largest country in the world. But this process has its disadvantages.

The biggest disadvantage is that you still end up spending a lot of time going through the listed properties. Since you don't have the filter option available you need to see what the real estate agent shows you. For buying a single executive condo or a cluster house you probably need to go through hundreds of listed properties. And in the heat of Singapore, this is not the something you will desire.

A much better option is to go the online route. This means that you visit a real estate website and see the listings online. The biggest advantage you have in this mode of property searching is that you can filter and see exactly the properties you have in mind. This will take care of the size of the property you want to buy; this will take care of the area you are looking to buy your property in, and most importantly, this will take care of your budget. Buying a property is a good investment, and this filter option is extremely helpful.

After you have shortlisted a few of the listed properties, you can then go for a visit. This will ensure that you can finalize a shorter list thus saving you time and effort. Once you finalize your property, you negotiate, pay and complete the paperwork, and your property now belongs to you.

It is great to have an executive condo or a cluster house in Singapore. Put in the right effort and you will have your dream home. Use the web to select a few properties so that you don't stray away from your plan. It is the best way to own your property in Singapore.

HDB or Condominium

One of the very first decisions that a young Singaporean Investor has to make is the choice between buying an HDB or buying a condominium as his or her first property. This decision is one with far-reaching effects on their future property investment portfolio. This article aims to aid such investors in choosing the most viable option based on their objectives.

Let us first examine the scenario of owning an HDB flat as a first property. There are two avenues that a buyer can obtain an HDB flat, one through HDB directly in the form of Build-to-Order (BTO), and the other through a seller in the resale market. BTO units are typically heavily subsidized by HDB and are a popular choice among young couples with the intention of getting married. However, it is sold through balloting, which can require a great amount of luck for the couple to be able to get a good queue number especially in highly desired locations where the BTO is likely to be oversubscribed.

On the other hand, while HDB flats bought in the resale market are not subject to balloting, buyers are at the mercy of sellers who control the Cash-over-valuation (COV) of the unit. COV has no maximum cap and is determined by market forces, with recent transactions reaching levels in the range of $250,000 COV for an HDB flat in Queenstown. On a brighter note, buyers in the resale market will have access to the CPF Housing Grant (capped at $40,000) and Additional CPF Housing Grant (capped at $40,000).

Buying an HDB flat comes with a strict and rigid set of regulations which prevent the investor from buying any other form of residential property or from renting out the whole unit during the 5-year Minimum Occupation Period (MOP). For BTO buyers, this restriction starts from the date they collect the keys to the unit. Typically, a BTO takes about three years to complete, which means that for the next eight years, the investor will not be allowed to own another residential property under his name.

Now, let us examine the scenario where an investor buys a condominium as his first property instead. The main differences between buying an HDB flat and buying a private property is that the investor does not need to be married if he chooses the latter option. He is also not restricted regarding renting out his unit to tenants immediately after the purchase, which could give him a good passive income per month if he chooses his investment prudently. The only two restrictions are that selling his private property within four years would incur a Seller Stamp Duty and as long as he owns a private property under his name, he is not eligible to purchase an HDB flat.


The prudent investor would do well to have his objectives clearly in his mind. "Is owning an HDB flat very important?". "Are you willing to wait 5-8 years before you are allowed to own an investment unit?". These are the questions that the investor has to assess and decide for himself individually.

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