First-time buyers here - does it make economic sense to skip HDBs and go for an EC or Condo if we can afford it? - Seedly

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Asked by Anonymous

Updated on 18 Apr 2019

First-time buyers here - does it make economic sense to skip HDBs and go for an EC or Condo if we can afford it?

Does it make economic sense to jump directly to an EC or Condo if we can afford it? Instead of getting a BTO/resale and upgrading in the future. We are first-time buyers and have been looking at resale flats but everything is grossly overpriced. No viable BTOs are available, so we're considering going straight to an EC/Condo. Also taking into consideration the plunging values of HDB flats. Thank you and we're looking forward to hearing your expert advice and opinions! https://bit.ly/2N0sciG

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HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 8. Wizard
Answered on 24 Sep 2018

Yes. Which is why EC was setup for similar situations like yours that can afford better and wants more.

Skipping multiple route of 5 years MOP each for BTO then Resale then EC makes sense since every stop before next upgrade needs to stay for at least 5 years MOP, not to mentioned all the stamp fees, legal fees, agent fees, any SSD, renovations & fixture and furnishings etc.

So it's like investing in the right locations EC gets you higher growth one shot rather than having to take the risks of buy BTO, sell BTO, but resell and sell resell with in between risks of not making enough $ for next upgrade plus all the cost above etc.

Your considerations should be on either EC or Private Condo. With EC also having 5 years MOP before you can rent out or sell to locals and 10 years later to sell to open market like private condo.

Read here for more info:

https://www.executivecondos.com.sg/faq/

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Yes, go for EC if you can afford it because you would make more capital appreciation with EC than resale HDBs since the latter has been stagnant or slightly decreasing in price for the last few years. I would advise EC to condo so you don't miss out on the grants (although EC would still make more economic sense without the grants).

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Nicholas Chan
Nicholas Chan,
Level 5. Genius
Answered on 24 Sep 2018

Yes, u should go for EC. The $ gain is more once the EC becomes private. Moreover if u go for bto now, u might not be able to qualify for EC later in life.

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Kai Xin
Kai Xin,
Level 3. Wonderkid
Answered on 27 Oct 2018

If you sltill can get hold of any in Singapore, EC is a good choice!

BMW for the choice of a Toyota and more chances for first timer to apply. If your budget and timeline could afford it, go for the EC

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Good Day Every Day
Good Day Every Day,
Level 6. Master
Answered on 21 Oct 2018

Yes, definitely since you could afford it. EC would become private but not hdb.

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