ECs are an affordable solution for people who desire more space than an HDB flat but cannot afford private condos, offering great resale value once fully privatised after 10 years.
Purchase of an electric car (EC) can be an intricate decision; here’s everything you should know before taking the plunge.
This article covers everything you need to know about purchasing an EC, from eligibility requirements and CPF housing grants, through to financial considerations.
1. Lower Upfront Costs
An Executive Condominium (EC) in Singapore provides buyers with an affordable option to owning their dream home and an investment opportunity as its value can appreciate over time.
ECs are built by private developers but governed by government rules and regulations, including an income threshold of $16,000 which is higher than HDB BTO flats (Build-To-Order flats).
This restriction limits potential buyers to Singaporeans and permanent residents; however, this has little bearing on ECs’ investment potential as they will become fully privatised after 10 years and their initial purchase prices tend to be much lower than traditional condominiums.
2. Amenities
QHS Development’s EC project at 77 Lorong H Telok Kurau houses 31 luxury units designed by Eva Armisen. Amenities offered at this development include tennis court and 50m lap pool – its proximity to Kembangan MRT Station and Cross Island Line further enhance its attractiveness.
Bukit Batok West Avenue 8’s new launch EC promises to attract both first-time buyers and HDB upgraders, providing 375 units at just a 10-minute walk from Bukit Gombak MRT, plus proximity to parks and future high-rise residential developments.
Singapore Executive Condos (ECs) are extremely popular due to the priority privileges they offer first-time homebuyers. This means you will have a higher chance of securing an apartment by investing in an EC than purchasing private condos.
3. Potential for Appreciation
ECs of Singapore’s property market offer significant appreciation potential. A combination of public and private housing units, they cater to “sandwich class” individuals whose income exceeds that of HDB but cannot afford private houses.
At first, ECs are treated as public housing and must comply with HDB’s selling and renting rules; after 10 years however they become fully privatised and can be sold to any buyer including foreigners.
One reason ECs have become such an attractive option for upgraders is due to the inherent capital appreciation potential and grants available through both types of homes. When making any decisions it is essential that one understands all of their differences, including capital appreciation potential and grants available.
4. Priority Privileges
Executive condos (ECs) have quickly become one of Singapore’s preferred housing solutions, providing similar amenities as private condos at more competitive prices. When considering purchasing an EC, it is essential that one determines their affordability before proceeding – these units have a Minimum Occupancy Period of five years after which they may be sold or rented out and can only be sold to Singaporeans and Permanent Residents.
ECs are hybrid residential properties that fall somewhere in between HDB BTO flats and private condominiums, constructed and sold by developers on land parcels sold by the government. Homebuyers must meet specific criteria, such as having household income below $14,000 to be eligible, while they also benefit from government grants through CPF housing grants.
5. Shorter Lease Period
Given their short lease periods and non-matured estate settings where amenities take time to develop, ECs will not fetch as much in value when sold as private condos.
ECs are part-public housing properties and you must abide by certain rules, such as an income ceiling ($16,000), before buying one. They’re only available for couples or single buyers purchasing under the Singles Scheme.
Purchase of an executive condominium can bring many advantages, yet it’s essential to weigh the risks before making a final decision. When calculating affordability and factoring in expenses such as maintenance fees and mortgage payments. Furthermore, don’t overlook other factors such as minimum occupancy period restrictions, resale restrictions and property taxes when making this important choice.