Executive Condo (EC) bubble?

[birmingham123]

Anyway thanks for the comments and feedback everyone. For Sumang, I believe at $11xx, they are more targeted at HDB upgraders now. Time shall see whether they are fully sold out.

Furthermore, for EC, monthly installments are capped at 30% of the applicants’ gross monthly income, similar to BTOs.

However, for PC, you can loan up to 60% of your monthly income.

This is a huge factor for why people still can afford PC, but not EC... Loan buay sai (cannot) pass.

If a couple earn 6k each means monthly installment each is 1.8k, means can loan around 900k over 30 years ?

 

[WQtRiggEr]

If a couple earn 6k each means monthly installment each is 1.8k, means can loan around 900k over 30 years ?

For MSR calculation by HDB using bank loan, it will be calculated using a 3.5% interest rate. So max loan for a 3.6k instalment (12k combined income) is about $800k. At 12k you will not qualify for any EC grant also. (EC grants are $30k for <$10k income, $20k for <$11k and $10k for <$12k)

Take note that loans are also subject to 75% LTV, so a full $800k loan will only be granted to property price of $1.06m. ($260k downpayment of which at least $52k cash)

For a say $900k EC, at 75% LTV max loan will only be $675k meaning there is a requirement for $225k upfront of which at least $45k must be cash.

 

[darknite84]

For MSR calculation by HDB using bank loan, it will be calculated using a 3.5% interest rate. So max loan for a 3.6k instalment (12k combined income) is about $800k. At 12k you will not qualify for any EC grant also. (EC grants are $30k for <$10k income, $20k for <$11k and $10k for <$12k)

Take note that loans are also subject to 75% LTV, so a full $800k loan will only be granted to property price of $1.06m. ($260k downpayment of which at least $52k cash)

For a say $900k EC, at 75% LTV max loan will only be $675k meaning there is a requirement for $225k upfront of which at least $45k must be cash.

Ec income ceiling is $14k, also couples can increase the loan amount by showing cash, which is not used towards the purchase of the house.

 

[WQtRiggEr]

Ec income ceiling is $14k, also couples can increase the loan amount by showing cash, which is not used towards the purchase of the house.

Yes I know, was just replying to previous poster for max loan based on 12k income..

For 14k, max loan under 30% MSR would be $935k, which means theoretically speaking maximum property price would be $1.25m which at $1100psf would roughly equate to 1130 sq ft (105sqm).

This means you need at least $300k in cpf/cash. Of course if you have more cash/cpf then you’d likely be able to afford even pricier units.

 

[tayez80]

EC is still good buys compared to condos if one is selling HDB.

From investment point of view, it is better to keep the HDB and buy a PC.

But the problem is buying a PC required you to pay the absd..

 

[Clazav]

Well you can sell your hdb to avoid absd

But the problem is buying a PC required you to pay the absd..

 

[kiatme]

But the problem is buying a PC required you to pay the absd..

If you're moving from matrimonial home to new matrimonial home you can apply ABSD remission - go google ABSD remission.

EC is not that simple to buy with an existing flat as well, your CPF has to meet half the BRS sum (do double check and confirm) and you have to pay resale levy. If you add the resale levy to your house it's another 5% increment, which equates to an increase of 30 psf or so, which means the surrounding resales might actually be cheaper than a new launch EC.

You can sell your flat, and buy a resale PC, or just go straight into a new launch PC, projects like tapestry/treasure/riverfront etc might actually be around the same price due to smaller SQFT

 

[Merg91]

Up means 'bubble'.
And expecting no inflation (material & human cost).

 

[momoeagle]

Yes I know, was just replying to previous poster for max loan based on 12k income..

For 14k, max loan under 30% MSR would be $935k, which means theoretically speaking maximum property price would be $1.25m which at $1100psf would roughly equate to 1130 sq ft (105sqm).

This means you need at least $300k in cpf/cash. Of course if you have more cash/cpf then you’d likely be able to afford even pricier units.

Makes sense. Which probably explains why CDL priced Sumang units on average around $1.2mil. The 4 bedrooms are the "stretched goals" to make buyers go dig out even more cash.

It feels like they are thinking, you want to buy, then we 吃定你.

 

[iphone1s]

I am buying keppel HDB BTO and EC because i high SES.

No bubble.

 

[Merg91]

High SES are in those GCBs.
Aim higher.

 

[Maccabi]

If say for eg, I have ready cash to pay all for the ec. Am I still eligible?

 

[momoeagle]

If say for eg, I have ready cash to pay all for the ec. Am I still eligible?

Thought eligibility is not based on your amount of cash, but other factors like income and property that you currently own.

 

[PingJun]

If say for eg, I have ready cash to pay all for the ec. Am I still eligible?

Well, your household income salary cannot exceed $16,000 per month.

If exceed, subject for HDB for approval.

Also, if you have HDB flat, must meet min MOP of 5 years. Again, if less than that, subject for HDB for approval.

 

[civicguy]

And if HDB is BTO, don’t forget the horrible resale levy

Well, your household income salary cannot exceed $16,000 per month.

If exceed, subject for HDB for approval.

Also, if you have HDB flat, must meet min MOP of 5 years. Again, if less than that, subject for HDB for approval.

 

[PingJun]

And if HDB is BTO, don’t forget the horrible resale levy

If didn't get the grant, still need to pay for resale levy?

 

[PingJun]

If say for eg, I have ready cash to pay all for the ec. Am I still eligible?

Forgot to mention.

IIRC, 85% reserves for 1st timers whereas 15% for 2nd timers.

 

[momoeagle]

If didn't get the grant, still need to pay for resale levy?

As long as BTO, yes.

Bought resale without grant, I think no.

 

[Polar Bear King]

sorry to dig old thread
what do you think of EC's future? will it be scrapped by HDB soon? within next 5 yrs?

 

[endlssorrow]

Scrapped? How come ? Hahaha