Buying Guide - Buying An Executive Condominium

Basic Factors to Consider
Some of the things you need to consider before purchasing an EXECUTIVE CONDOMINIUM home are:
  • Budget
  • Commuting plans
  • Type of property you are looking to purchase
  • Amenities and Facilities

The most important question to consider is: What is your budget for purchasing a home? This will help you in determining the type of EC that you are aiming for.

However, if you do not have a specific budget constraint, then you might want to decide what type of residential property is suitable for you and your family. This can be determined by other factors such as commuting plans and additional facilities, which may include neighbourhood schools, if you have children, and the proximity of certain amenities such as shopping malls and sports complexes.


Why is an Executive Condominium a good investment?

At a lower entry price (15-20% cheaper than the private condo), almost all 1st hand owner of the fully privatised Executive Condominiums are sitting on a comfortable capital gain. Historical transaction data has shown that the resale value of Executive Condominium is close to that of a Private Condominium. The price gap for Executive Condominiums and a comparable Private Condominium is reduced to 9% after 5 years and 5% after 10 years. So, with an initial low entry price, coupled with a good resale value, the return on investment for an Executive Condominiums is highly rewarding. This unfair advantage of lower entry price makes Executive Condominium a good investment.


Financing Your Home
It is advisable to finance the purchasing of a home using a bank loan, especially if you have limited excess funds. For this, it is recommended that you decide first on the type of residential property you are looking for, and ensure that it is within your budget. If you have engaged a real estate agent or a solicitor to act on your behalf, check with them on all fees payable so as to prepare a more accurate estimate of your overall budget.

 

Banks will also charge an administrative fee for processing a mortgage, as well as an additional fee for valuing a property. When applying for a mortgage, the amount you will ultimately be allowed to borrow will depend on your own individual financial circumstances and the bank's valuation of the property or the actual transaction price, whichever is lower. The bank will also take into consideration your ability to make the monthly instalments to repay the loan, as well as your credit history.

 

CPF Housing Grants for ECs

These are the CPF Housing Grants available for Executive Condominium (EC) purchases from developers:

  • Family Grant
  • Half-Housing Grant

You and any co-applicants must be eligible for the grant at the point of booking the EC.


Average gross monthly household income of all persons in application, i.e. applicants and occupiers

Family Grant

Half-Housing Grant

If you are a first-timer (FT) SC and your co-applicant is a second-timer (ST) who has previously taken 1 housing subsidy, i.e. FT/ ST couple

Singapore Citizen (SC/  SC) Household

SC/ Singapore Permanent Resident (SC/ SPR) Household

$10,000 or lower

$30,000

$20,000

$15,000

$10,001 to $11,000

$20,000

$10,000

$10,000

$11,001 to $12,000

$10,000

Nil

$5,000

$12,001 to $14,000

Nil

Nil

Nil

 

Check if you are a first-timer applicant

You will be considered a first-timer applicant if you have not received any housing subsidy from HDB, which means that you must not:

  • Be the owner of a flat bought from HDB
  • Have sold a flat bought from HDB
  • Have taken the CPF Housing Grant to buy an EC, Design, Build and Sell Scheme (DBSS) flat or an HDB resale flat, or taken over ownership of such a flat or EC
  • Have transferred the ownership of a flat bought directly from HDB, or an HDB resale flat bought with a CPF Housing Grant
  • Have ever taken other forms of housing subsidy, such as Selective En bloc Redevelopment Scheme benefits or privatisation of HUDC estate

Disbursement

CPF Housing Grants are fully credited into the CPF Ordinary Accounts of eligible Singapore Citizen (SC) applicants. No cash is disbursed.

Type of Applicants

Distribution of Grant

Sole SC applicant

Full grant                         

Joint SC applicants (husband and wife)

Half of the full grant each

FT/ST couple

Full grant given to the SC FT, who must be a co-applicant

Multi-nuclei SC applicants, such as:

  • Married siblings with their respective spouses
  • Parents and married child

Grant given only to a maximum of 2 applicants who are husband and wife

Usage Of Grants

The CPF Housing Grants can be used to:

  • Offset the balance downpayment for the EC and subsequent payments towards the purchase price
  • Reduce the mortgage loan for the EC

The grant cannot be used for the minimum cash downpayment (if any) and monthly mortgage instalment payments.

The grant will also be included in the computation of the CPF withdrawal limit.

Any further additonal information you may send me a request for a free addtional info on any available Executive Condominium Units 

** All CPF housing grants are subject upon approval and the the prevailing Government and Housing policy, terms and condition upon application.

CALL  / SMS / Whatsapp @ 90250136 or 
E-Mail saz.propnex@gmail.com to set an appointment for a no obligation discussion on any property related matters or to view any of our property.
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Sazali Sarwan
Associate District Director
PROPNEX REALTY PTE LTD
saz.propnex@gmail.com
CEA Licence No.:
L3008022J / R010457H
+(65) 9025 0136