Upgrade to EC

[Yaloryalor]

the question is

 

1. if you sell and buy an equal property means you pay more based on your logic land, labour and material cost goes up

 

2. if you sell and upgrade ... you need to pay more unless you have planned to upgrade anyway

 

3. if you sell and move to a smaller and ulu place ... you actually downgrade unless you have planned to downgrade

 

unless you have multiple properties ... flipping the property you are living is not straightforward

 

 

Correct. This apply to 2nd property n above.

 

If only one property for own stay then when old liao sell away n buy a resale hdb. Fully paid off still got pocket money for old age. Many ppl doing that.

[Donut]

I still remember in the 2007, my collegue who as staying in EC was telling me that his house is worth less than what he paid for. And advising me against getting a EC because of the poor location.

 

Fast forward to today, he made quite abit from the sales of his EC and moved to a bigger place at a more convenient location.

 

Some forumers have claimed that they made quite abit off their EC , even though they struggled with the payment in the first few years.

 

At the end of the day, the BIG question you need to ask yourself. How long you can tong if mkt/situation move against your favour? What is your backup plan. Be it that you have mama and papa to go back to or saving to pay off the mthly mortagage. If you could pull off for at least 3 yrs. It's probably worth the risk...

 

If you are >40+, no saving , no parent's home to run back to..Bro, It's not worth the risk.

 

If you are young and just married, do consider the primary school nearby if you are having children......... ha ha ha :P Your children will be the next bigger factor for you to forgo profit.

EC confirmed make money one.........

 

land is cheaper than private, price is cheaper than private, no need to pay so much cash upfront, only 5%.

Those qualified for housing grant, will get the this additional benefit

 

and EC prices is pegged with private nearby, not HDB.

 

how to not make money from EC?

 

Today, if you look at all resale EC for sale in the open market, after they are 5 yrs or 10 yrs old.... which one is selling at a loss? NONE

 

Their open market prices are pegged v closely to private.

[Vegas]

EC tied to 30% MSR....

at cap of 12k, can only use max of 4k to service loan every month. if lower salary, then can only loan less.

 

ec prices are now at most 20% disc to private in same location. so easily 1M & above for 3 bedder

[Wt_know]

PC speculated to $1,250 psf for $1.25M for 1001sqft and EC 20% disc = close to $1M looks like a steal but it is NOT

the 20% disc comes with many limitations and poorer quality compare to PC

EC is actually selling at a premium as high as PC or even higher after take in the considerations of 10 years to acquire PC status

 

EC tied to 30% MSR....

at cap of 12k, can only use max of 4k to service loan every month. if lower salary, then can only loan less.

 

ec prices are now at most 20% disc to private in same location. so easily 1M & above for 3 bedder

 

Edited September 19, 2014 by Wt_know

[SuPerBoRed]

EC confirmed make money one.........

 

land is cheaper than private, price is cheaper than private, no need to pay so much cash upfront, only 5%.

Those qualified for housing grant, will get the this additional benefit

 

and EC prices is pegged with private nearby, not HDB.

 

how to not make money from EC?

 

Today, if you look at all resale EC for sale in the open market, after they are 5 yrs or 10 yrs old.... which one is selling at a loss? NONE

 

Their open market prices are pegged v closely to private.

 

its about timing.... u buy EC at peak and sell at trough... how to make $$?

 

Even if you sell at par... ur loan interests will wipe out your grants at the start...

 

5years is a loooong time to be locked in... especially at this juncture..

[Spring]

 

EC confirmed make money one.........

 

land is cheaper than private, price is cheaper than private, no need to pay so much cash upfront, only 5%.

Those qualified for housing grant, will get the this additional benefit

 

and EC prices is pegged with private nearby, not HDB.

 

how to not make money from EC?

 

Today, if you look at all resale EC for sale in the open market, after they are 5 yrs or 10 yrs old.... which one is selling at a loss? NONE

 

Their open market prices are pegged v closely to private.

U both have a point! I agree with Donut is confirmed make money but I also agree with Wt know that EC comes with cheaper quality finishings and more importantly the 10yr PC status discounts the profit in that sense.

 

My conclusion is that yes it's confirmed make money but over a long term and for risk adverse guys this is a good investment IMO but of course if you the gung ho want to make money fast type then maybe private is the way to go but beware of the risk hor and like most people say timing is very impt esp for private.

 

PC speculated to $1,250 psf for $1.25M for 1001sqft and EC 20% disc = close to $1M looks like a steal but it is NOT

the 20% disc comes with many limitations and poorer quality compare to PC

EC is actually selling at a premium as high as PC or even higher after take in the considerations of 10 years to acquire PC status

Edited September 19, 2014 by Spring

[Donut]

PC speculated to $1,250 psf for $1.25M for 1001sqft and EC 20% disc = close to $1M looks like a steal but it is NOT

the 20% disc comes with many limitations and poorer quality compare to PC

EC is actually selling at a premium as high as PC or even higher after take in the considerations of 10 years to acquire PC status

 

 

its actually more than 20% discount. if u look at price per feet.

 

Today's new ECs are selling at $730-800 per sq ft, from 3 bedder to 5 bedder.

 

there is not much limitations on EC, the only thing is the MOP, which is quite reasonable. How many of us actually move house before 5 years? what's the %?

[Wt_know]

are you comparing a EC $730psf 3-4 bus stops away from MRT vs a PC walking < 10mins to MRT?

anyway, everyone has their own benchmark and appetite ... so to each his own

just take the latest EC LakeLife @ Yuan Ching road ... sounds sibei good ... but location location location compare to all the PC surrounding Lakeside MRT (caspian, lakefront, lakeshore, lakeview, etc) ... of course Lakelife is cheaper .... but ... is it?

 

its actually more than 20% discount. if u look at price per feet.

 

Today's new ECs are selling at $730-800 per sq ft, from 3 bedder to 5 bedder.

 

there is not much limitations on EC, the only thing is the MOP, which is quite reasonable. How many of us actually move house before 5 years? what's the %?

 

Edited September 19, 2014 by Wt_know

[SuPerBoRed]

there is not much limitations on EC, the only thing is the MOP, which is quite reasonable. How many of us actually move house before 5 years? what's the %?

 

say... general economy collapse.. EC owner lose job.. cannot upkeep EC mthly payments during MOP... any bro here knows wat will happen?

[Donut]

are you comparing a EC $730psf 3-4 bus stops away from MRT vs a PC walking < 10mins to MRT?

anyway, everyone has their own benchmark and appetite ... so to each his own

just take the latest EC LakeLife @ Yuan Ching road ... sounds sibei good ... but the location location location compar eto all the PC surrounding Lakeside MRT ... of course Lakelife is cheaper .... but ... is it?

 

 

Oh, that Lakelife at jurong... ok, i admit that one is stupid.......

[Kangadrool]

die smelly lor.

 

say... general economy collapse.. EC owner lose job.. cannot upkeep EC mthly payments during MOP... any bro here knows wat will happen?

 

[Donut]

 

say... general economy collapse.. EC owner lose job.. cannot upkeep EC mthly payments during MOP... any bro here knows wat will happen?

sell backside lor.......

 

need a property expert to say something here

[Enye]

EC is meant to be a home not an investment

 

never put them on the same level. not worth it.

 

[Wt_know]

rent out all the rooms and sleep in maid room (if any) or living room with foldup bed ...

 

 

say... general economy collapse.. EC owner lose job.. cannot upkeep EC mthly payments during MOP... any bro here knows wat will happen?

 

Edited September 19, 2014 by Wt_know

[Kangadrool]

I can guarantee you will not get any answers to this sort of question, even from ministars. Instead, you will get all the mothermood statements like must be prudent in your property purchase, cannot over extend yourself, must be resposible for own decisions, blah blah blah.....

 

sell backside lor.......

 

need a property expert to say something here

 

general economy collpase is jin jialat. Maybe even no rental market to speak of.

 

rent out all the rooms and sleep in maid room (if any) or living room with foldup bed ...

 

 

 

Edited September 19, 2014 by Kangadrool

[Wt_know]

no mater how bad ... sure got some tenant ... just have to let out "cheaper" ... but location is upmost critical liao

if like the LakeLife EC ... what FT want to live there?

anyway, during SARS and Lehman period ... i think HDB got give chance in terms of defer payment or extension something like that

if take private bank loan ... all banks are blood suckers ... ho say liao

 

general economy collpase is jin jialat. Maybe even no rental market to speak of.

 

Edited September 19, 2014 by Wt_know

[ShepherdPie]

EC confirmed make money one.........

 

land is cheaper than private, price is cheaper than private, no need to pay so much cash upfront, only 5%.

Those qualified for housing grant, will get the this additional benefit

 

and EC prices is pegged with private nearby, not HDB.

 

how to not make money from EC?

 

Today, if you look at all resale EC for sale in the open market, after they are 5 yrs or 10 yrs old.... which one is selling at a loss? NONE

 

Their open market prices are pegged v closely to private.

 

There are factors to consider lah..

1) location

2) overall demand - population growth vs vacancy

 

There is no sure bet in 5-10 yrs. In a flat mkt, your gain will probably be just inline with inflation.

[Kusje]

its actually more than 20% discount. if u look at price per feet.

 

Today's new ECs are selling at $730-800 per sq ft, from 3 bedder to 5 bedder.

 

there is not much limitations on EC, the only thing is the MOP, which is quite reasonable. How many of us actually move house before 5 years? what's the %?

 

You may have a 20%-30% discount based on prices of PC nearby but even at the end of 10 years, there will be some difference in the prices (even accounting for location and quality differences).

 

Lastly, it is not "sure make money" if housing prices fall more than 20-30%.

 

FYI, I bought a Woodlands EC last year and I'm still concerned about housing prices.

 

say... general economy collapse.. EC owner lose job.. cannot upkeep EC mthly payments during MOP... any bro here knows wat will happen?

 

Not sure but I think it should be the same as a PC?

 

Anyway, one should always make sure they have strong finances and watch out for cash flow. You can be making 20k a month but how much are you spending? And how much of that spending can be cut easily if you do lose your job?

 

Lastly, you should always have some savings of liquid cash to tide over in cash of job loss. With interest rates this low, please do not put all your cash to pay off your loan. It is better to take as much loan as you can even if your return on the money is *slightly* less than what the bank is charging you for borrowing it.

I can guarantee you will not get any answers to this sort of question, even from ministars. Instead, you will get all the mothermood statements like must be prudent in your property purchase, cannot over extend yourself, must be resposible for own decisions, blah blah blah.....

 

 

general economy collpase is jin jialat. Maybe even no rental market to speak of.

 

 

 

Why should anyone promise you that your job and house will always be safe? If you make poor decisions, you should suffer for it.

 

I can't stand people who blame government for all their problems when it is their poor performance and decision that is to blame. I support a small government doesn't stick their nose in my life but it seems the majority of Singaporeans are for big government as they want the government to plan everything for them.

 

There are factors to consider lah..

1) location

2) overall demand - population growth vs vacancy

 

There is no sure bet in 5-10 yrs. In a flat mkt, your gain will probably be just inline with inflation.

 

1. Honestly speaking, location for ECs are all shit. You want good location with this price, you need to buy a HDB

2. Everyone is expecting a housing glut in the next year of so but I think the magnitude of the fall will still depend on the general economy.