EC Condominium - Seedly

EC Condominium

Executive Condominium

ASK A QUESTION
  • Recent Activity
  • Unanswered
  • Trending

Property

EC Condominium

Savings

A $900K property will require at least $180K downpayment. If the purchase will wipe out both your CPF and savings, it is definitely not prudent. It is likely that as you are self employed, a 30% haircut for the purposes of your loan might be imposed by the bank if they consider your income variable. Let's do some simple maths for the worst case scenario. Your income would be considered $10.15K, and applying the mortgage servicing ratio of 30% means your repayments are capped at $3045 per month. A loan of $720K over 30 years with an interest of 2.2% leads to a $2734 monthly payment. There's only a small buffer and not forgetting the other costs that come with a new flat purchase which you must consider, such as legal fees, etc. Also you must remember that you will mortgage insurance on your property and there are probably other fees to be considered as well. In short, it's not a wise idea. You will be left with no emergency savings, which is an extremely dangerous move. Even if you could secure money from his dad, both of you will have sleepless nights over this. Your emergency savings must also grow to include a buffer for a year's worth of repayments should you go ahead to purchase. (As you are both self employed without much CPF, so presumbly you will be paying cash. Hence the emergency fund needs to be bigger) If business conditions affect your income, you need to ask yourself what is the backup plan to repay the loan.

Property

EC Condominium

General

EC seems to be a better choice for upsides if you can apply for it. It is offered at a lower price than private but after MOP it is worth as much as a condo. Good locations are definitely in the central area. And needs to be near MRT, 5 mins preferable. Good amenities nearby such as shopping malls, hawker centres.

Property

Family

HDB BTO

EC Condominium

BTO! it is cheaper and the capital appreciation potential (in absolute terms) is about the same at 5 years mark! If you manage to get a BTO near MRT, that would be a bonus!

99.co Event

EC Condominium

Condominium

Property

Douglas Chow
Douglas Chow, Chief Enlightenment Officer at Empower Advisory
Level 3. Wonderkid
Answered on 26 May 2019
Hi there. Douglas here 2nd keynote speaker. Go for an EC if you qualify since it's usually priced 15 to 25% cheaper than comparable new launched mass market condos. You can always connect with me via https://www.facebook.com/douglas.chow.908 or simply whatsapp/sms my company 24/7 hotline @83324283 Remember, plan your finances properly, don’t overstretch, do your homework and enjoy your property investment journey. Regards Douglas Chow

Resale HDB

HDB BTO

EC Condominium

Property

Hi, Short Answer I would recommend you to stick to BTO and upgrade later! Long Answer EA Affordability (I assume you're referring to resale EA) from $4xxK at Jurong West/Pasir Ris Executive flats cost an average of $6xxK in Singapore ! Assuming you are both earning about $3500 and age 25-30 with no outstanding loan, HDB Loan: Max loan of $419,000 (90% of property price) which translates to a property price of $465,000 if you are taking 90% loan and 10% CPF/Cash. Bank Loan: Max loan of $419,000 (75% of property price) which translates to a property price of $558,000 if you are taking 75% loan, 20% CPF and 5% Cash. I assume you would use the CPF Housing Grant to offset/partially pay the CPF portion in the payment. (ie. $40,000 CPF Housing Grant for both Singapore Citizens for 5 room and bigger HDB resale) From this calculation, EA is a viable option if you are comfortable with the locations which are further away from the city. However, you would need to prepare more cash savings or CPF OA if you intend to purchase an average EA that cost more than $600K. EC Affordability There is no outstanding new ECs in the market and the next launch would be next year in Sumang (Punggol). For the past 2 launches, there are no 2 Bedrooms so the most affordable option is a 3 Bedroom unit. The lowest price unit from the last launch (Rivercove Residences in Sengkang) was $830,000. Rivercove land bid price was $355psf while the next EC launch's (Sumang Walk/Punggol) land bid price was $583psf. We would expect this EC price of a 3 Bedroom to be at least $9xxK. (You can only apply for bank loan for EC) Bank Loan: $467,000 (75% of property price) which translates to a property price of $622,000 if you're taking 75% loan, 20% CPF OA & 5% Cash. You would be eligible for $30,000 CPF housing grant if both you and your partner are both Singapore Citizens and I assume you would use it to partially pay the 20% CPF portion. From the above calculation, I would not advise you to go for an EC as you would need a combined cash/CPF OA savings of more than $400K (ie. $9xxK - $467,000 - $30,000). As a rule of thumb, usually we advise couples with more than combined monthly income of $8000 to consider for EC unless you have cash savings or financial support from your parents. Conclusion Hence, I would suggest going for BTO first before upgrading! Hope I provided a clear explanation! :)
Answer image preview

Condominium

EC Condominium

Investments

Property

Usually condos with maintenance fees of $1000 and more comes with a private lift in the unit and quite a fair bit goes into maintenance of the lift as well! Luxury condos are definitely worth it in the long run. Quite a huge percentage are owned by foreigners (if they need to pay 20% ABSD, they would rather own a more prestigious one) as they diversify their portfolio and they want to own prime locations in Singapore. As long as you time your exit, there is a huge resale value for D9 luxury properties in Singapore.

EC Condominium

HDB BTO

Resale HDB

Property

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/

EC Condominium

Investments

Property

Teo See Hwa
Teo See Hwa, MArketing Associate at Propnex
Level 3. Wonderkid
Answered on 21 Oct 2018
Need more info. Currently owns 4rm HDB valued at ~400K. Need to know CPF and accured interested and CPF life. Husband, wife if use to pay HDB. Opportunity presents itself to rent an EC @ ~$2.5K/mth for 5yrs to help friend fulfil MOP (he is Overseas). Possibility of buying over in 5 yrs. Note: Holding a depreciating asset and buying a appreciateing asset. Few options available: 1. Go ahead, sell current flat, buy private to rent out, may buy over unit in 5 years. Good 2. Go ahead, rent out current flat, either sell HDB unit at end of 5 years (to buy EC or new BTO) or go back to live. Bad. Wondering what's the best way to benefit from this situation?
#PoweredBySeedly