Asked 4w ago
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?
Hello, that's a rather huge price difference! Definitely with the central location and a relative new flat, plus being near the MRT will make one resale unit more expensive than the other which is less convenient.
I would think that the first thing to consider would be how comfortable you are financially for both flats. If you are going above your means for the more expensive unit, it might be worth taking a step back to reconsider. Further, by going for the cheaper unit, a good point would be that you might be able to have more monies on hand, of which you can have it for other use or merely saving!
In term of convenience, definitely the central flat wins. But if you are going for the BTO, the 300k price diff can be put into making your life more convenient in other ways, such as buying a car or on renovation of hse! So it's abit of a give-and-take here, if not, to try to make up for the lack of conveniences.
Next would be whether you will be staying in the unit for long term or do you have plans to upgrade to a better unit next time - say to EC or Condo? If you have plans for future upgrade, then it might perhaps be worth to go for a cheaper bto and save the monies for your future upgrade? No doubt the attractiveness of the bto as a resale unit would have to be considered.
Lastly, i would think is how quickly you need the flat. Bto would take time but resale is relatively faster!
Just sharing my two cents worth of thoughts!
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.