14 Oct 2020
Hi, I am considering between a BTO flat vs resale HDB with 300k price differential. The resale flat has good rental potential and right beside MRT in a central location and relatively new (7 years). But the BTO is a lot cheaper although location is less convenient (not walking distance to MRT). How to choose?
Location is a very critical point for me (as a HDB dweller to be for my own house in near future), so the additional cost can be balanced out with the time savings on a daily basis.
BTO is a lot cheaper but you have to factor in 3 to 4 years' time for basic infrastructure to be built upon, and that returns in around $100,000 to $150,000 compared to resale flats in certain estates.
Take the walking distance from BTO to the MRT as daily workout routine if time permits. That will make the lower cost of BTO more attractive in this way.
Alternatively, can consider putting a small budget monthly for "premium" transportation means via Grab / GoJek / Ryde, or self-drive means via BlueSG / Shariot (new entrant) / other 3rd party car sharing companies.
Hey there anon,
Congratulations, firstly, since you're about to embark on homeownership, which also means you're moving on to your next phase in life.
Secondly, fret not, I think this is a common dilemma faced by many couples here. Personally, I would and have placed these 2 considerations in mind - waiting time and affordability.
Due to the nature of BTO, they will usually take a longer time to be prepared so depending on your needs (and your family's or SO's), if you need a house urgently, then I suggest go for the resale. If you have ample time to wait around or don't mind moving in with your SO's family (or his/her to yours) first prior to getting your keys then I think waiting for the BTO may be better since the difference is so huge!
Depending on your family/your/your SO and your income, it really changes the game. Seedly has a good article stating the gauge, but then again it's just a gauge and there were assumptions that were made as well. I suggest you discuss with your family/SO/(whoever you're getting the future house with) and talk about your long-term goals i.e. will you be cash tight when you want to purchase a car in the future, have kids, one of the financers of the house wants to take a break from work to further study/upskill, (touch wood but I think it shouldn't be such a taboo since its a possibility) one of you guys met with an accident and are unable to finance the loans etc
I think these are big questions that have to be discussed prior to buying a house as after all, big ticket items comes with big responsibilities.
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