Upgrade to EC

[Othello]

 

 

 

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.

agree. in fact I was just showing the below article to a friend yesterday and he blamed govt

 

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.

 

[ShepherdPie]

the demand now are ppl that genuinely wants to stay in the place or keep the place for a long long time.

 

there are a lot of things to consider than capital gain. e.g. family conveniences , amenity , school , neighbourhood, transport options.

 

Aniway.. those who stay at places like Loyang valley will have their days again when even if they advertise 30% below value .. also no one come and view. Cos there is simply so much options.

Edited September 20, 2014 by ShepherdPie

[Hamburger]

the demand now are ppl that genuinely wants to stay in the place or keep the place for a long long time.

 

there are a lot of things to consider than capital gain. e.g. family conveniences , amenity , school , neighbourhood, transport options.

 

Aniway.. those who stay at places like Loyang valley will have their days again when even if they advertise 30% below value .. also no one come and view. Cos there is simply so much options.

 

loyang avenue......the tenure is 99 yrs and its probably build more than 30 yrs ago?

 

sell or rent i believe also jialat, unless one really prefer nostalgic setting.

[Othello]

 

loyang avenue......the tenure is 99 yrs and its probably build more than 30 yrs ago?

 

sell or rent i believe also jialat, unless one really prefer nostalgic setting.

 

very chalet feel, I like at 1 point, 2 bedded 300+k nia. cheap cheap

[Hamburger]

 

very chalet feel, I like at 1 point, 2 bedded 300+k nia. cheap cheap

 

really, now thats a bargain.

 

with the red coloured bricks, the estate really look like a chalet. I actually like it.

[Passat57]

 

loyang avenue......the tenure is 99 yrs and its probably build more than 30 yrs ago?

 

sell or rent i believe also jialat, unless one really prefer nostalgic setting.

 

I don't mind buying Loyang Valley for retirement. Lots of greenery.

[Throttle2]

Good luck to the property investors

They'll need lots

[Wyfitms]

 

I don't mind buying Loyang Valley for retirement. Lots of greenery.

 

heard stories that it is haunted?

[Mockngbrd]

Haunted? Can lowball?

[Mustank]

http://business.asiaone.com/news/staggered-downpayment-new-hdb-flats-starting-september-bto-exercise

Staggered downpayment for new HDB flats starting from September BTO exercise

Wednesday, Sep 24, 2014

Janice Heng

The Straits Times

SINGAPORE - Existing Housing Board flat owners who buy a new two- or three-room flat in a non-mature estate can now choose to pay only half the required downpayment upfront, and the rest later. This staggered downpayment takes effect from the September Build-to-Order exercise, which began on Wednesday.

Get the full story from The Straits Times.

Here is the press release from HDB:

Today, HDB launched 4,630 new flats under the September 2014 Build-To-Order (BTO) exercise. These flats are spread across six projects located in the non-mature towns of Bukit Batok, Hougang and Jurong West, and the mature town of Kallang Whampoa.

Staggered Downpayment Scheme for Right-sizing to 2-room or 3-room Flats

Starting from this BTO exercise, existing flat owners who right-size to a new 2- room or 3-room flat in a non-mature town/estate can choose to pay half the downpayment for the new flat when they sign the Agreement for Lease:

a. For those who are not taking up a loan or who are taking up an HDB loan, they need to pay only a 5% downpayment upfront, instead of the current 10%;

b. For those who are taking up a loan with Financial Institutions, they need to pay only a 10% downpayment upfront, instead of the current 20%. They need only pay the other half together with the balance purchase price of the new flat when they collect the keys for the new flat. This staggered downpayment arrangement aims to assist flat owners who wish to right-size to a new flat but have their funds tied up in the existing flat.

September 2014 BTO exercise

A wide range of flats, comprising Studio Apartments (SAs), 2-room to 5-room flats, as well as Three-Generation (3Gen) flats, is offered to meet the diverse housing needs of first-timers, second-timers, multi-generation families, elderly and singles.

First-timers will continue to enjoy priority flat allocation, with at least 85% (for 4- room and 5-room flats) and 70% (for 2-room and 3-room flats) of the BTO public flat supply set aside for them. Eligible first-timer singles have the option of applying for a 2- room flat in Buangkok Square, West Terra @ Bukit Batok, Yung Ho Spring I, or Yung Ho Spring II.

Married/courting couples who wish to live together with their parent(s) can apply for a 3Gen flat at Buangkok Edgeview. Other multi-generation families who wish to live near each other in the same BTO project can apply under the Multi-Generation Priority Scheme (MGPS) for a flat in Buangkok Square, St George's Towers, West Terra @ Bukit Batok, Yung Ho Spring I, or Yung Ho Spring II.

50% of the SAs at St George's Towers in Kallang Whampoa will be set aside under the Studio Apartment Priority Scheme (SAPS) for seniors who apply for an SA in the same town or within 2 km of their current flat/property, or for an SA to live near or with their parents/married child.

Eligible first-timer families can enjoy up to $60,000 of housing grants, comprising the Additional CPF Housing Grant (AHG) (up to $40,000) and the Special CPF Housing Grant (SHG) (up to $20,000). With these grants, 2-room, 3-room, 4-room and 5-room flats can be purchased from $18,000, $115,000, $222,000 and $333,000 respectively.

Applicants are strongly advised to apply for a BTO flat in non-mature towns to enjoy a higher chance of success in securing a flat.

Regular updates on the number of applications submitted for the various flat types/towns will be published on the HDB InfoWEB. Applicants are advised to check for updates before submitting their application.

Application for September 2014 BTO Exercise

Application for new flats launched in the September 2014 BTO exercise can be submitted online on the HDB InfoWEB from today, 24 September 2014 (Wednesday) to 30 September 2014 (Tuesday). Applicants can apply for only one flat type in one town.

For enquiries, the public can:

- Log on to esales.hdb.gov.sg; or - E-mail [email protected]; or
- Visit the HDB Sales Office to speak with our Customer Relations Executives during office hours (Monday to Friday 8 am to 5 pm, Saturday 8 am to 1 pm).

In November 2014, HDB will offer about 4,290 BTO flats in Sembawang, Sengkang, Tampines and Yishun.

An additional 3,000 flats will be offered in a concurrent Sale of Balance Flats (SBF) exercise. More information on the flats to be offered under the November 2014 BTO exercise is available on the HDB InfoWEB.

[Alpha78]

 

Staggered Downpayment Scheme for Right-sizing to 2-room or 3-room Flats

Starting from this BTO exercise, existing flat owners who right-size to a new 2- room or 3-room flat in a non-mature town/estate can choose to pay half the downpayment for the new flat when they sign the Agreement for Lease:

a. For those who are not taking up a loan or who are taking up an HDB loan, they need to pay only a 5% downpayment upfront, instead of the current 10%;

b. For those who are taking up a loan with Financial Institutions, they need to pay only a 10% downpayment upfront, instead of the current 20%. They need only pay the other half together with the balance purchase price of the new flat when they collect the keys for the new flat. This staggered downpayment arrangement aims to assist flat owners who wish to right-size to a new flat but have their funds tied up in the existing flat.

 

 

Downgrade just say downsize lah, what right-size...

[Mustank]

 

Downgrade just say downsize lah, what right-size...

 

they tell you if you move to a small flat in ulu location, you are doing the right thing

 

but honesly, maybe they are targetting older folks who are not working anymore and needed an income, maybe these folks sell off their bukit merah flat, and settle for a 2 room flat in woodlands, see jb nice view, pay lesser, good deal lah

[Wt_know]

wah hopefully $18k 2-room still available when i'm 60 .... RIGHTSIZING ...

 

Edited September 25, 2014 by Wt_know

[WoShiNewbie]

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.

Hi Donut,

 

I'm a real estate saleperson and I must say that some of your pointers may not be totally truthful. Kindly allow me to explain.

 

Right from the beginning, prices between ECs and private condos aren't that far apart to begin with (not considering all the housing grants and different loan schemes). Lets say both are taking bank loans at maximum 80% and not eligible for any grants for comparison sake, I must say ECs are not to be recommended.

 

1stly, land is indeed cheaper as ECs are meant to be a lower source of private housing in the nearby future for upgraders and generally competition is not as tough as between the developers in the private market. Hence, prices will be priced cheaper for ECS and thats for sure since land cost is lower.

 

2ndly, even though EC prices are pegged closely to private and thats bcos the initial selling prices aren't that far apart to begin with but are you aware of the restrictions of sale as compared to private condos? ECs are still heavily restricted by MOP rules which pretty much tie down all prices and buyers. Considering that the EC is building for 3 years plus 5 years MOP, it can only be sold to a Singapore Citizen or PR. You will need to wait for another 5 years (13 years from the day you signed on the dotted line) before it can be fully privatized and sold to generally anyone in the market including foreigners. Whereas private condos are regulated with Seller Stamp Duty nowadays which needs to tax the seller within the 1st 4 years of his ownership if he does decide to dispose his condo but the main difference is the clock starts tickling once you sign on the dotted line. So effectively with 3 years of construction, you only need to stay in and enjoy the brand new facilities for 1 year or rent it out for 1 year, you are free to sell to anyone who can afford the price you are asking with 0% tax and its usually the foreigners who are cash rich. So if you really want to compare Private condos with ECs, I'm afraid to say there's no ground for comparison.

 

In a nut shell, ECs you will have to wait for abt 8 years before you can sell and its only to SCs and PRs whereas if you own a Private Condo you would have buy and sell twice to practically anyone who can afford right after you signed on the dotted line but need to take into consideration the Seller's Stamp Duty (tax free if its after 4 years of ownership). Do think of the opportunity cost that you incurred and lost along these 8 years of ownership. At the end of the day, it all boils down to affordability. If you can afford a private condo, who would wanna consider an EC???

 

Another thing to note, ECs behave very much like HDBs in the way that you can only own 1 at a time so if you are contented with just a roof over your head or perhaps upgrading to an one-to-one exchange at a later time then perhaps EC is the way to go. But if you have plans to have a multi-property portfolio, sooner or later you will still have to venture into private. Generally, private condos will command a higher appreciation in time to come at least for the 1st 10 years of ownership as compared to an EC which has not privatized for the 1st 13 years.

 

Its just my 2 cents worth, hope to share some stuffs that you guys may not be aware... CHEERS!

Edited September 25, 2014 by WoShiNewbie

[L23]

Hi Donut,

 

I'm a real estate saleperson and I must say that some of your pointers may not be totally truthful. Kindly allow me to explain.

 

Right from the beginning, prices between ECs and private condos aren't that far apart to begin with (not considering all the housing grants and different loan schemes). Lets say both are taking bank loans at maximum 80% and not eligible for any grants for comparison sake, I must say ECs are not to be recommended.

 

1stly, land is indeed cheaper as ECs are meant to be a lower source of private housing in the nearby future for upgraders and generally competition is not as tough as between the developers in the private market. Hence, prices will be priced cheaper for ECS and thats for sure since land cost is lower.

 

2ndly, even though EC prices are pegged closely to private and thats bcos the initial selling prices aren't that far apart to begin with but are you aware of the restrictions of sale as compared to private condos? ECs are still heavily restricted by MOP rules which pretty much tie down all prices and buyers. Considering that the EC is building for 3 years plus 5 years MOP, it can only be sold to a Singapore Citizen or PR. You will need to wait for another 5 years (13 years from the day you signed on the dotted line) before it can be fully privatized and sold to generally anyone in the market including foreigners. Whereas private condos are regulated with Seller Stamp Duty nowadays which needs to tax the seller within the 1st 4 years of his ownership if he does decide to dispose his condo but the main difference is the clock starts tickling once you sign on the dotted line. So effectively with 3 years of construction, you only need to stay in and enjoy the brand new facilities for 1 year or rent it out for 1 year, you are free to sell to anyone who can afford the price you are asking with 0% tax and its usually the foreigners who are cash rich. So if you really want to compare Private condos with ECs, I'm afraid to say there's no ground for comparison.

 

In a nut shell, ECs you will have to wait for abt 8 years before you can sell and its only to SCs and PRs whereas if you own a Private Condo you would have buy and sell twice to practically anyone who can afford right after you signed on the dotted line but need to take into consideration the Seller's Stamp Duty (tax free if its after 4 years of ownership). Do think of the opportunity cost that you incurred and lost along these 8 years of ownership. At the end of the day, it all boils down to affordability. If you can afford a private condo, who would wanna consider an EC???

 

Another thing to note, ECs behave very much like HDBs in the way that you can only own 1 at a time so if you are contented with just a roof over your head or perhaps upgrading to an one-to-one exchange at a later time then perhaps EC is the way to go. But if you have plans to have a multi-property portfolio, sooner or later you will still have to venture into private. Generally, private condos will command a higher appreciation in time to come at least for the 1st 10 years of ownership as compared to an EC which has not privatized for the 1st 13 years.

 

Its just my 2 cents worth, hope to share some stuffs that you guys may not be aware... CHEERS!

 

This is very true to some EC owner who don't know about this fact.

Sorry if I have offended anyone here.

[Alpha78]

Sure or not? When you sign on the dotted line for a Private Condo, it's just the option to purchase and progressive payments. You get the "title deed" only after the TOP is issued, and when the full payment for the property is made (by cash or from bank loan). So MOP should still be counted from the date of TOP?

 

For people who are not speculators and can afford to live in the EC for 10 years after TOP, after 5th year MOP is met and the owner can go buy a second property. So he can still make use of all the grants given for the EC, to have a lower purchase price.

 

So ultimately, the key consideration is factoring in the new/resale prices of private condos nearby the EC, and based on the furnishing given by the developer, whether the price is discounted sufficiently as compared to private condo.

[Sabian]

What's that saying again?

 

kiang eh sai liao, mai kay kiang?

 

Just don't bite off more than you can chew.

[L23]

Sure or not? When you sign on the dotted line for a Private Condo, it's just the option to purchase and progressive payments. You get the "title deed" only after the TOP is issued, and when the full payment for the property is made (by cash or from bank loan). So MOP should still be counted from the date of TOP?

 

For people who are not speculators and can afford to live in the EC for 10 years after TOP, after 5th year MOP is met and the owner can go buy a second property. So he can still make use of all the grants given for the EC, to have a lower purchase price.

 

So ultimately, the key consideration is factoring in the new/resale prices of private condos nearby the EC, and based on the furnishing given by the developer, whether the price is discounted sufficiently as compared to private condo.

Do you know that you have to pay levies to govt for the 'grants' you took if you are moving on to get another from the govt ?

Unless you are moving on to buy a PC.