When deciding between BTOs and EC, you should consider the investment potential of each. While ECs are more expensive, BTOs are cheaper and heavily subsidised. As a result, a BTO is likely to produce a profit after five years. After this, you may want to consider upgrading your property and buying a second one.
Buying a resale flat
If you’re looking to purchase a resale flat in Singapore, it’s important to understand the differences between BTOs and ECs. In general, the former will have a higher appreciation and higher entry price than ECs. But there are also differences between them when it comes to the investment potential.
A BTO is better for first-time buyers, since first-time buyers are eligible for housing grants worth $160,000 or more. In addition, resale flats can have shorter waiting periods. Depending on the BTO project, it could take between three to five years to complete.
Choosing between BTOs and ECs depends on your financial situation and design preferences. While BTOs are generally cheaper than ECs, the latter tend to require more renovations. Nonetheless, if you can afford to pay for a resale flat in its initial stages, you may be able to benefit from it.
Buying a BTO flat
HDB BTO flats require a minimum five-year occupation period. This period begins when the buyer collects the keys. It is important to note that this period does not include any time when the flat has been rented out. During this time, you are not allowed to sell your unit or purchase another residential property.
Unlike resale flats, BTO flats allow you to enjoy a higher budget for repairs, renovations, and furnishing. As such, you will be able to enjoy a higher profit margin over the long term. In addition, you may qualify for government housing grants. Buying a BTO flat, however, has its risks.
The downside to BTO flats is their long waiting period. However, the upside is that you can always resell it after five years, if you so desire. As long as you can find a buyer willing to pay the Additional Buyer’s Stamp Duty, you will be able to resell it at a higher price than you paid for it initially.
Buying an EC unit
Buying an EC unit can be a very good option for first-time property buyers. These units are relatively cheaper than private condos and often feature modern facilities like air conditioning and kitchen tiles. Moreover, entry-level units come with smart home systems and built-in wardrobes. You can also save a lot of money by not having to do any renovations before moving in. In addition, you can visit a developer’s exclusive showflat and choose from a range of payment schemes that suit your budget.
Before registering your interest in an EC unit, you should be aware of the requirements for eligibility. Ideally, you should have no other property. If you have bought two housing units before, you will not be eligible for a second EC unit. Also, developers will reserve up to 70% of their supply for first-time buyers.
Retaining your HDB flat for rental yield
When you’re reselling your HDB flat, consider the rental yield. It is very important to get a good rental yield. It is also important to remember that property prices can sometimes get blown out of proportion. The higher your rental yield, the more money you can keep for your next property.
If you’re thinking of selling your HDB flat, you need to consider the Minimum Occupation Period (MOP) rule. After you’ve obtained your keys, you must live in the flat for five years before you can rent it out. This is to prevent speculative buying and keeps the HDB flats affordable for genuine housing needs.
You can also buy another HDB flat and rent it out to tenants. However, you have to keep in mind that you’ll have to pay additional ABSD if you purchase a private property. You’ll also need to consider the effect of ABSD on your CPF usage.
Buying a Parc Centros flat
The location of the Parc Central Residences executive condo is highly convenient, and the area is well served by public transportation. The Tampines MRT station and bus interchange are both located within a 2-kilometer radius of the development. These stations are interchanges for two major lines of the MRT network, and they are convenient for commuting to the nearby town center and shopping malls. Alternatively, the Tampines East MRT station is slightly further from the town center, but it is also within walking distance of the condo.
The Parc Central Residences will consist of eleven 16-storey blocks with a total of 700 units. All units are north-south facing, and range in size from three to five bedrooms. The design of each unit emphasizes a family-friendly environment. The homes will include a yard for laundry, natural ventilation, and spacious master bedrooms.