Guide to Buying an Executive Condo Singapore
An Executive Condo (EC) Singapore is an excellent choice for someone who wants to own property. EC is a type of real estate are ideal for those whose household incomes does not exceed $14,000 per year who cannot quite afford private property, but who also don’t have a low enough income to qualify for HDB BTO housing.
Demand for these hybrid condos have risen in 2016 with the additions of some new buildings on the market, so now is an excellent time to investigate owning an executive condo in Singapore.
Here’s what you must know about executive condos.
What Are Executive Condos?
Executive condos blend public and private housing. In the housing market right now, they are $200 to $300 per square foot lower in price compared to a condo in the same area.
In 10 years time, the value of an executive condo likely to match that of a private condo, which makes buying an executive condo an attractive option right now since you can buy an executive condo at a subsidised rate. Executive Condos in Singapore have better amenities than HDB housing, but not quite as good as full condos.
These properties cater to the sandwich class, or middle class, in Singapore.
What Qualifications Must You Have?
There are several qualifications you must have to have to buy an executive condo in Singapore. You must be 21 and older for a single person, or 35 and older to apply under the joint single scheme. Your income must be under $14,000 per year.
You cannot own any other private property, nor can you have owned any private property over the past 30 months before your application.
There are four schemes which you can apply to for an executive condo in Singapore. Under the public housing scheme, you apply for an executive condo with your spouse, children, parents or siblings to form a family nucleus. The names on the application cannot be altered for this scheme after submitted your application.
The fiance scheme means you move into the executive condo with someone you intend to marry before raising a family with young children. The orphan’s scheme indicates you and your siblings are orphans and unmarried. The joint singles scheme allows up to four single occupants, all age 35 or older, to purchase an executive condo in Singapore.
On top of that the above, at least one applicant must be a Singapore Citizen and one Permanent Resident as a minimum.
Aside from these regulations, you also have to take into consideration some financial matters. On top of the TDSR of 60 percent, your loan for an executive condo in Singapore cannot be greater than 30% of your monthly income.
The financial term is called the Mortgage Service Ratio (MSR). For example, if your monthly income is $10,000, your loan payment for your property can top out at $3,000. You also must consider the resale levy if are upgrading from a subsidised flat and sell your HDB unit to buy EC. The resale levy is especially true if you plan to buy a newer property built after 2013.
Each situation is unique regarding income qualifications, family status, openings in each building and loan availability. The rules and regulations of executive condo ownership can be confusing, which is where the expertise of a real estate salesperson comes into play.
Why Should You Ask for Assistance?
A real estate salesperson helps you understand how you can qualify for an executive condo in Singapore. You need to know what kind of documentation to bring to your meetings and consultations.
You have to show your family status, previous property ownership, income levels and citizenship status. If you fail to produce the proper documentation, you might not qualify for an executive condo simply because you do not have the right paperwork.
A real estate salesperson can suggest which executive condos are right for your living circumstances. Do you want an EC near a good school? Do you want easy access to public transport? What amenities do you enjoy the most? A real estate professional knows what properties align with your goals.
This person also has connections to give you the inside track as to what executive condos are hot right now, which ones have many vacancies and which ones may have lower prices. A real estate salesperson makes it easier to get into an executive condo simply because knowing the market is his job.
Let Dylan Tan, your preferred real estate salesperson, to work with you. He knows the best ways to advise you on eligibility, grants financial planning, planned sales of current units and resale levy regulations. Dylan can show you the timeline for purchasing an executive condo in Singapore, and he also has knowledge of the opportunities and changes in the market.