EC or resale flat?

[Koalamummy]

Hi, I am a second timer. I have tried applying for BTOs but failed. So I am now considering a resale flat or EC. I am not sure which to choose, which is a better investment?

Resale flat - no waiting time but need to fork out cash for reno
EC - require balloting for 2nd timers, so may not get desired unit ( am I right? I am not v sure abt EC regulations)

And if I am to purchase a flat from the open market as my second home, for my 3rd hse, will I still be able to buy an EC as a second timer?

 

[derong07]

Hi, I am a second timer. I have tried applying for BTOs but failed. So I am now considering a resale flat or EC. I am not sure which to choose, which is a better investment?

Resale flat - no waiting time but need to fork out cash for reno
EC - require balloting for 2nd timers, so may not get desired unit ( am I right? I am not v sure abt EC regulations)

And if I am to purchase a flat from the open market as my second home, for my 3rd hse, will I still be able to buy an EC as a second timer?

Hi, if currently u already have a place to stay, I will suggest getting an EC instead of a resale HDB flat. Unless u really need a place to move in fast, then EC is a better option in my opinion.

The ppl who usually earn the most are the 1st owners (be it for EC units or BTO flats). For both options, u have a 5-yr MOP to fulfill. same same. If u buy a resale flat now, do u think 5 yrs down the road, u (being the 2nd or 3rd owner of the flat) will be able to reap a bigger profit than selling a 5-yr old EC?

The govt has already increased the 2nd timer quota for ECs for the balloting. Now 2nd-timers are entitled to 30% of the total units on sale during the 1st month of sale. Assuming there's 500 units, 150 units will be for 2nd-timers. However, after 1 month of launch, all units can be sold to 1st or 2nd-timers already.

If u purchase a resale flat without any CPF Housing Grant, u will still be considered as a 2nd-timer in future.

 

[Koalamummy]

Hi, if currently u already have a place to stay, I will suggest getting an EC instead of a resale HDB flat. Unless u really need a place to move in fast, then EC is a better option in my opinion.

The ppl who usually earn the most are the 1st owners (be it for EC units or BTO flats). For both options, u have a 5-yr MOP to fulfill. same same. If u buy a resale flat now, do u think 5 yrs down the road, u (being the 2nd or 3rd owner of the flat) will be able to reap a bigger profit than selling a 5-yr old EC?

The govt has already increased the 2nd timer quota for ECs for the balloting. Now 2nd-timers are entitled to 30% of the total units on sale during the 1st month of sale. Assuming there's 500 units, 150 units will be for 2nd-timers. However, after 1 month of launch, all units can be sold to 1st or 2nd-timers already.

If u purchase a resale flat without any CPF Housing Grant, u will still be considered as a 2nd-timer in future.

Thanks for the advice!

I thought the CPF Housing Grant is given to first timers only?

May I know how long it takes for an EC to launch? I am interested in the anchorvale one which HDB has just released for developers bidddings.

 

[bBOi1989]

Thanks for the advice!

I thought the CPF Housing Grant is given to first timers only?

May I know how long it takes for an EC to launch? I am interested in the anchorvale one which HDB has just released for developers bidddings.

CPF Grant is given to first timer and 2nd timers. However 2nd timers only get to enjoy half grant. So if you were in the range of a 30k grant, u will instead receive only 15k!

As for Anchorvale may be a at least half a year with the new cooling measure where either they wait half a year upon successful bid or manage to build the foundations 1st.

 

[henrylbh]

CPF Grant is given to first timer and 2nd timers. However 2nd timers only get to enjoy half grant. So if you were in the range of a 30k grant, u will instead receive only 15k!

From what I understand, a second timer can only get half the grant when buying a resale flat, IF the spouse is a first timer.

 

[prognosis]

please correct me if im wrong. the grant is only applicable to couples. family nucleus is not entitled

 

[henrylbh]

please correct me if im wrong. the grant is only applicable to couples. family nucleus is not entitled

What grant? CPF housing grant for first timer who is eligible to buy resale flats.

 

[derong07]

Thanks for the advice!

I thought the CPF Housing Grant is given to first timers only?

May I know how long it takes for an EC to launch? I am interested in the anchorvale one which HDB has just released for developers bidddings.

yep u are right, CPF Housing Grant is given to 1st-timers only. U can get a CPF Housing Grant of up to $30k when you buy a resale flat or a brand new EC. However, if u buy a BTO flat, u are considered to have taken the grant already as the brand new flat is consider "subsidized" already by HDB.

You can check out the HDB website for more details. There are other grants such as AHG for your reference:
HDB InfoWEB: CPF Housing Grant : Buying a Resale Flat


As for ur qn on future EC launches, due to the Jan'13 cooling measures, u may have to wait about 15 months before the developer launches the EC for sale. Refer to below from IRAS:


Extracted from IRAS website:
"c) Developers of future EC sale sites from the Government Land Sales programme will only be allowed to launch units for sale 15 months from the date of award of the sites or after the physical completion of foundation works, whichever is earlier."
Additional Measures to Ensure a Stable and Sustainable Property Market

 

[Koalamummy]

Hi all, thanks for the information.

I am now staying in a HDB new flat. Am I right in saying for my 2nd home, I can only buy a resale HDB flat and not another BTO (since its subsidized), so that I won't lose my chance of upgrading to an EC in the future?

 

[derong07]

Hi all, thanks for the information.

I am now staying in a HDB new flat. Am I right in saying for my 2nd home, I can only buy a resale HDB flat and not another BTO (since its subsidized), so that I won't lose my chance of upgrading to an EC in the future?

Yes, you are right. So u will have to buy a resale flat without taking any grant.


Another extract from HDB s13 :
"Singapore citizen households enjoy a housing subsidy when they buy a new flat from HDB or a resale flat in the open market applied with CPF Housing Grant. Each eligible family can purchase up to a maximum of 2 subsidised flats, in other words, enjoy 2 housing subsidies."

 

[focus1974]

As usual.. 2/3 bedroom EC units are actually priced quite competitively like the condos next to it. So if the premium is very small, you don't go for the EC unit.

Howver, I have found the penthouses(even if it contains roof or balcony) are usually the bargain at $500-600 psf range.

 

[Zze121]

Hi, I am a second timer. I have tried applying for BTOs but failed. So I am now considering a resale flat or EC. I am not sure which to choose, which is a better investment?

Resale flat - no waiting time but need to fork out cash for reno
EC - require balloting for 2nd timers, so may not get desired unit ( am I right? I am not v sure abt EC regulations)

And if I am to purchase a flat from the open market as my second home, for my 3rd hse, will I still be able to buy an EC as a second timer?

2nd timer buying BTO with 2nd HDB loan require to pay levy and certain % of sales proceed on 1st granted flat sold, if rule still remain unchange.
It can be alot as they r all paid in cash just like resale HDB COV.
Is HDB resale still have MOP? 3 years?
EC need 5% cash as booking fee + 15%cash or CPF.
So if we look back all the purchases, all of them need cash.

 

[Avg_Joe]

2nd timer buying BTO with 2nd HDB loan require to pay levy and certain % of sales proceed on 1st granted flat sold, if rule still remain unchange.
It can be alot as they r all paid in cash just like resale HDB COV.
Is HDB resale still have MOP? 3 years?
EC need 5% cash as booking fee + 15%cash or CPF.
So if we look back all the purchases, all of them need cash.

Yes, the rules still applies. Thus, those 2nd timers wanting to buy a new BTO from HDB will not have it easy too e.g. resale levy, plus what HDB term as 'Right-sizing the quantum for the second concessionary HDB loan'.

HDB InfoWEB: What To Note : Financing your flat

Btw, for EC, the grant of $30k is only for 1st timer. However, if one spouse is 2nd timer, and one is 1st timer, then $15k grant is given. So if both spouse (buyers) are 2nd timers, then no grant is given at all.

 

[henrylbh]

Hi, I am a second timer. I have tried applying for BTOs but failed. So I am now considering a resale flat or EC. I am not sure which to choose, which is a better investment?

Resale flat - no waiting time but need to fork out cash for reno
EC - require balloting for 2nd timers, so may not get desired unit ( am I right? I am not v sure abt EC regulations)

And if I am to purchase a flat from the open market as my second home, for my 3rd hse, will I still be able to buy an EC as a second timer?

As 2nd timer you need to pay levy if you apply for BTO and your chances of getting is longer. From the time you apply and apply and after successful selection and taking construction period and MOP into account, it may be 10 years.

If you go for resale flat, you can get anywhere you want within a short time and there is no levy and your MOP starts they day you get your flat.

If you go for EC (also no levy), your MOP starts from TOP and including construction period, it will be 7 to 8 years. Besides, no hdb loan. EC will be open to all eligible person after about 2 months' balloting exercise. In other words, you get leftovers with no need to ballot or apply. I understand Austville still got available unit for walk in buyers. But I don't like that EC.

I got mine that way after getting impatient waiting for BTO as second timer. I got leftovers - no more 3 bedders, only 2 bedders. Managed to get 11th floor and satisfied with orientation, though size is a little small at 77sm compared to my present 3rm flat at 82sm.

While waiting for my EC at 2011 prices, my current flat also appreciate

Resale or EC faster way to private compared to BTO.

 

[therat]

2nd timer buying BTO with 2nd HDB loan require to pay levy and certain % of sales proceed on 1st granted flat sold, if rule still remain unchange.

rule still stand

It can be alot as they r all paid in cash just like resale HDB COV.

correct. Levy paid cash

Is HDB resale still have MOP? 3 years?

latest is 5 yrs across all board with or without grant

EC need 5% cash as booking fee + 15%cash or CPF.

+15% cash or CPF--> provided you had meet the min sum component then u can use CPF

 

[Zze121]

rule still stand


correct. Levy paid cash


latest is 5 yrs across all board with or without grant


+15% cash or CPF--> provided you had meet the min sum component then u can use CPF

Thanks for the info n btw is sale proceed 22% on 1st grant flat sold?

 

[OverEasy]

if you not in a hurry, then try for EC la. since govt give you a chance to enjoy private housing, why not? but if you have outstanding loan, then you may have to pay extra 2% more, cos you most likely need to take the deferred payment. developer market practice.

 

[bluecoral]

hmm how many times can u buy/sell ur flats ?
bto i know is 2 times...
but resale leh ?

 

[therat]

hmm how many times can u buy/sell ur flats ?
bto i know is 2 times...
but resale leh ?

as many time as you like except no HDB loan, no CPF grant

 

[aptget]

hi all, quick question

can one apply for EC (say TOP around 2016)
while you still have 2.5 years MOP to clear ?

can we still apply, wait till it top/get keys and
sell off current hdb unit ?

appreciate some input.

From HDB website :-

This is on condition that a 5-year period (excluding any period of subletting of the whole flat) has lapsed from the *date of taking possession of the flat to the date of application for a flat.