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is BTO worth the wait?

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Old 13-06-2018, 01:35 PM   #1
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Unhappy is BTO worth the wait?

Iím planning to apply BTO with my partner this coming nov and we're getting married next july. Planning to get a 4 room flat. The BTO will be ready at the end of 2020 and with renovations and stuff, we will probably only be able to move in early 2021. This means we have to wait about 3 years after getting married before we are able to move in to our new flat.
This is the main concern: the waiting time. I suggested staying staying one week at his parentsí house and one week my parentsí house. Imagine doing that for 3 years. His parentsí house is really quite dirty for me and not airy at all as they donít open their windows. His parents collects stuff and thereís too much things in his house but we will have a room to ourselves. For my parentsí house, itís a 2 room flat and thereís 4 people staying in there. This means we donít have a room and my mum is quite naggy and pinpoints peopleís fault when things donít go her way. I do not mind taking up this option if this is the best solution so that I wonít suffer much in future, though the I would rather avoid staying both parentís house. Both parents donít want us to get a rental outside as its too expensive and would rather we pay them that amount.

On the other hand, if we were to buy a resale flat, it will cost so much more so Iím planning to just get a 3 room flat. I HAVE to renovate the whole house due to some reasons and the renovation cost will probably be much higher since thereís more work to do compared to a bto. Even a 3 room flat costs too much and I worry if Iím able to pay for it. Thereís also the lease thing which I donít think will be much of a problem as long as it has at least 60 year or more left as Iím planning to move out when Iím old.

My partner and I are already saving up for the wedding and both our income is about $4500 without CPF deductions. We are saving $800 each month per person and Iím sure this amount will only be able to cover for the wedding only as both our parents donít sponsor much. Our wedding will cost about $25k. Iím already struggling as my pay is not even that high and Iím being frugal enough. Iím not sure if Iím able to save enough regardless if we get a BTO or resale, but especially if we were to get a resale flat.

PLEASE help and suggest if we should get a BTO and suck it up for 3 years or a more expensive resale flat.
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Old 13-06-2018, 01:55 PM   #2
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Get SBF or ROF flats instead of BTO.

Brand new but shorter waiting time.

Have to make do with less popular units though
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Old 13-06-2018, 02:04 PM   #3
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Have you considered Sale of Balance Flats? Its faster as some projects are completed and keys ready for collection, otherwise there are some soon-to-complete projects waiting time probably 1-2 years. But that means, you and your partner need to plan your finance carefully, since renovation & furnishing cost will impact even faster.

If you and your partner is ok to be moving around for 3 years, then BTO should be alright so you can have enough time to save up for renovations/furnishing.

Resale would not be ideal, as renovation cost is hefty for resale compared to BTO, unless luck is on you that you do not need heavy makeover.
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Old 13-06-2018, 02:26 PM   #4
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Agree with the other 2 posters, ROF and SOBF (especially ROF) are the way to go if you are concerned about time.

For BTO, please please please don't forget about the BALLOT TIME. Don't just look at the building time. BTO launch every 3 months and the mature estates are easily oversubscribed 5x. Even non-mature estates at good location near MRT (e.g. CCK recently) can oversubscribe 10x. That means unless your luck very good, you might have to ballot 5 times before you get to select a flat. Easily 2 years gone while waiting to get a queue number.

Unless you choose the undersubscribed poor-location BTO for higher chance of getting a queue. But if that's the case, might as well go for ROF or SOBF in non-mature estate. Much faster and price is still cheaper than resale!

Last point is, if you get resale you might see the price is higher, but the location might be very very good (near MRT or amenities). Nowadays BTO many are very far away from MRT/amenities.
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Old 13-06-2018, 02:27 PM   #5
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I was in the same issue as you . For me we just suck it up and endure for a few years at least have a room . Thatís all you need. Your job is not to go there conduct area cleaning or stand by area . Everyday just reach home go into the room and sleep soon you will get used to it .

End of the day donít put yourself in a situation of being in debt or getting a house that you donít like or cannot afford .

Thereís a saying , short term pain long term gain
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Old 13-06-2018, 02:31 PM   #6
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Old 13-06-2018, 02:32 PM   #7
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Sales of balance flat I agreed with the rest.
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Old 13-06-2018, 02:34 PM   #8
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If you and your spouse were to opt for a resale the amount of grants you can get from HDB is up to $80,000. $50,000 from 1st timer grant, $10,000 from Additional housing grant(based on combined income of $4500) and proximity grant of $20,000 if you live within 4km of either parents.

If you are not picky about the location, a 3 room flat in a non-mature estate should cost around $290,000-$350,000 . With the Grants you are looking at $210,000 to $270,000. Most of these resale flats have some sort of renovation done already and if you are not too particular about the design, it is fine to move in straight away.

lets say you buy a $320,000 resale , and you take a HDB loan for 90% , that means you will have to pay the 10%, $32,000 + stamp duty $4600 in cash and CPF =$36,600.

If we include in the grant amount of $80,000 , your borrowed amount will be $208000 over 25 years @2.6%, the monthly mortgage will be roughly $950 per month or $475 per person.

If you want to reduce your monthly mortgage even further you can rent out the master bedroom and you and your spouse stay in the common room. If you rent to a couple, you should be able to get a rental of at least $600 , which will bring down your total mortgage to $350 or $175 per person. This way you get to have your own home, at a lower amount.

So actually with careful planning, housing can be affordable.
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Old 13-06-2018, 02:39 PM   #9
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For your case I agree with the others.. You should consider SBF or ROF because of the quicker time you can get the units. And to also consider getting a place in non-mature areas. There's a higher likelihood that you will be able to get a queue number and to choose a good unit. Also, you should look into getting a unit that is within your budget, in that your cpf will be able to cover all, or most, of the mortgage.

But for now, try your best to tahan to stay with your parents/in-laws. You will be able to save on the rental, which can go into your wedding or future house. That would help alot. But if you were to stay at both places, I would suggest maybe moving once fortnightly or monthly. Once every week seems like too much trouble.
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Old 13-06-2018, 03:07 PM   #10
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Which BTO ready in 2.5 year end of 2020?!

Your info sure accurate?

better double check man
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Old 13-06-2018, 03:32 PM   #11
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Which BTO ready in 2.5 year end of 2020?!

Your info sure accurate?

better double check man
Think he referring to those launching eoy that have alr start building
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Old 13-06-2018, 09:30 PM   #12
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Govt propaganda say BTO not worth the wait wor

In fact, we believe that homebuyers with the intention of buying a home for their own stay should never think like an investor who has capital appreciation in mind. There are different and often conflicting priorities and considerations for each approach. Our belief is that, if youíre going to live in it, just buy the best home in the most optimal environment that you can afford for you and your family.

And, with a roof over their heads, only 25, and aware that a HDB flat is a home (and NOT a store of value), Sarah and John pool their finances and begin to save for long-term goals such as retirement. They couldíve balloted and waited for a BTO or Sale of Balance flat, but they know anything can happen tomorrow.
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Old 13-06-2018, 10:47 PM   #13
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Die die need to have wedding dinner+album etc etc etc??

You can have alot of spare cash if both side dont mind not having this.

My wife and i never did all this, just rom at for canning then dinner one table for parents, siblings and close friend at night.

We rom in Feb 2012, she got her PR in Mar 2013 and we applied for bto in May 2013. Receive our keys in May 2016. And all this time she was renting a room at the same blk i live in, cant live with me becos my parents place is a 3rm and i share the room with my bro.

Meanwhile we did tot about me going to rent her room together with her. Makes no sense eventually cos it's just 4 level below my parents + spending that extra sum just for this.

Since both of you can have a room all to yourself at her place, bite the bullet and think of the longer term.
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Old 13-06-2018, 10:50 PM   #14
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You will still need to reno even if its a new flat...
and i dont know where you get the info BTO will be ready by 2020, the last batch earliest is also 2021.. the fastest i feel would be 3 years minimally.. so if we buffer a bit, you will probably collect your flat in 2022 if you BTO now.

imo, new BTOs aren't exactly much cheaper already, plus demand should be rather high so you might not necessary even get a queue number... and you will still need reno anways, which adds on to your cost, even if you choose HDB tiles, i think a simple reno will cost you at least 15-30k?

You should sit down and discuss with your partner and see whats more important :
1: Cost
2: Timeline
3: Size of unit
4: Location
5: Level of unit

The worst come to worse, just get married first then ownself stay at own house. Weekends or what then spend time together at partner's house.

Next batch of HDB BTO comes in August, most likely together with ROF, you can check the time line and see if anything matches what you really want.

In the mean time you can/should go and find out how much difference is the cost of reno for a resale vs new BTO, and perhaps just discuss if you guys were to take up resale, which area will you want, then just go view the units with an open heart and see if you can take it.

The grants for resale is pretty huge as well, so why not pay a bit more for a location and unit of your choice, rather then putting your fate into luck and ballot for a house.
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Old 14-06-2018, 12:05 AM   #15
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BTO no guarantee will be successful @ first attempt. Even if you are lucky enough to be balloted, it’s takes at least 40 months on average before you can collect keys. If I’m in your situation, I would go for resale with grants. You get to stay in a nest of your own (no matter how small) Privacy is priceless! No conflicts with in-laws & parents. As what @Cesium-137 mentioned, do your sums, it is possible if you are not too fussy with location , condition of unit, floor level etc .

Last edited by Dream catcher; 14-06-2018 at 12:08 AM..
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