Why buy EC if you are eligible? As a hybrid public and private housing scheme, Executive Condominium(EC) is special precious privilege for a few group of eligible Singaporean family to upgrade to condo lifestyle with “discounted” price.
- Privileges for middle-class Singaporean to achieve condominium lifestyle dream at budget-friendly entry price.
- Additional Buyer’s Stamp Duty (ABSD) is NOT applicable. Seller’s Stamp Duty (SSD) is NOT applicable for EC as owners have to fulfill 5 years minimum occupation period (MOP).
- CPF OA balance can be fully used for housing payment even if EC buyer still have existing home loan, given buyer is below 55 year old.
- Deferred payment is available. 20% down payment, 65% upon TOP and final 15% upon legal completion.
- Improved design and features for great lifestyle. EC developers are now offering more to attract buyers wishing to upgrade to a ‘subsidized’ private residential lifestyle living. Future buyer will enjoy the same lifestyle and facilities as other mass-market condominiums.
- CPF Housing Grant applicable for 1st-time family buyers.
- Lower risk: new EC buyers are subject to both 30% of MSR and 60% of TDSR under HDB and MAS regulations. That is to say, you can only use up to 30% of your household income to serve monthly repayment. Your total debt-servicing (including both property and non-property commitment) ratio cannot exceed 60% of your household income too. Such kind of financial framework will protect EC buyers from any potential risk.
- A wise 5 year saving plan to automatically help home owner to earn better returns in the visible future. Your HDB home is more like an ownership, a roof over the head, rather than appreciable asset which was increased so high in the past few years.
- Better potential upside and capital appreciation as compared to mass-market condominiums nearby after 5 year MOP. Price increase to fill the gap between new EC and private condo given its comparable facility and lifestyle. 1) Good potential rental yield as design and facilities are similar to any mass-market private condominiums. 2） Strong demand from bigger pool of potential buyers. Can be sold under private property status after MOP of 5 years to Singapore Citizens and PRs, and to foreigners after 10 years.
According to The Edge Property Report, first-hand ECs has been perceived as a low-cost, high-return investment asset. It offers superior investment returns compared with private condos nearby. This is true for owner-occupiers because ECs are heavily discounted to private condos of comparable age in their vicinity, giving home-buyers a head start in the race of capital appreciation.