5 Situations Where An Executive Condo Is Better Than A BTO
Homeownership requires extensive planning and research. Which property would suit you best? What would be the most rewarding option? Executive Condominiums (ECs) and Build-To-Order (BTO) flats are the more viable options for home buyers now, but when would you know which to choose? Here are five situations where an executive condo might be better than a BTO for you.
1. You earn beyond the income ceiling on BTOs
BTOs are among the more affordable housing options in Singapore. This lower price is targeted more towards Singaporeans who may find it difficult to find independent housing, making the income ceiling on these subsidised flats lower for those who need it.
BTO income ceiling rates vary, with two-to-three-room flats generally capping at $7,000. This number increases to $14,000 for 4-room flats or bigger. If your solo or combined monthly gross income with those you are moving with exceeds these numbers, then acquiring a BTO flat can be tricky.
Executive condominiums enter here, an option for those who earn higher than the BTO income ceiling. These give the aesthetic appeal of private homes and top-notch facilities and amenities at your disposal without the steep prices of private condos. This subsidised pricing is likened to BTOs while providing excellent investment potential due to rising capital appreciations.
2. You would utilise EC facilities
When buying executive condominiums, the facilities and amenities offered are plenty. With properties having state-of-the-art gyms and pools, ECs provide exclusive access to their facilities that are often more all-encompassing than what standard BTOs can offer.
Executive condominiums offer these benefits, but not without a pricing increase. Average monthly maintenance fees can come to $250 or more, with the charges for HDBs only coming to about $100.
However, if you plan on regularly going to the gym, the pool, or even the playground (for your young ones), then executive condominiums might be the way to go. Monthly gym memberships can come to about $200 in Singapore, and the travel fees to get there can rack up. Thinking long-term, ECs provide cost-effective benefits in the long run and reduce travel time. This, coupled with the vast array of facilities offered, gives buyers a well-rounded and convenient quality of living when acquiring ECs.
3. You’d like to settle in quickly
After moving into your new home, you would likely want to settle in and comfortably enjoy your space. With BTOs, furnishings such as air-conditioning and kitchen cabinets for storage are not provided. The homeowners themselves must implement those.
The renovation works for this BTO upgrade might take a while, making the wait time on moving into your flat longer, with substantial planning needing to be done for proper furnishings.
With executive condominiums, the renovation needed will be minimal as most of the furnishings will be done for you in advance. With whole-unit flooring, air conditioning, and kitchen furnishings already prepared, moving in will be a breeze for those who would like the process to be speedy. Moreover, there will be no worry about shoddy renovation work done in ECs, with trusted developments made to ensure high-quality finishes within home units.
4. ECs are less affected by ABSD
Looking for an “HDB upgrade to EC”? Home upgraders may find the Additional Buyers Stamp Duty (ABSD) increase a bit worrisome. For those looking to move before selling their own flat, a 17% additional fee must be paid for their second property. A reimbursement or remission of the cost can be sought later, but the stamp duty must be paid first.
Thus, many buyers opt to sell their homes first, find temporary accommodations, and then buy their new property to be exempt from this additional fee. This stamp duty applies to BTOs, but executive condominiums do not require an upfront payment of ABSD. While EC buyers must sell their existing flats six months before owning their new condo property, they will receive an automatic ABSD remission, allowing for a smooth financial transition when securing their new units.
5. You’re a first-time buyer
For executive condominiums, 70% of their units are reserved for first-time buyers during their first launch month. For BTOs, this number drops to 50%. First-time buyers have a higher chance of locking down units at ECs, especially within a very competitive market of buyers.
For those looking to secure a unit quickly, executive condominiums might be the way to go. First-time buyers are also eligible for CPF housing grants, with family and half-housing grants available. These buyers can enjoy greater accessibility to acquire EC housing and financial subsidies to smoothen the process due to the available government aid.
Conclusion:
Within the housing market, an executive condominium in Singapore is an attractive choice. Buyers can expect convenience and comfort when choosing an executive condo lifestyle with improved facilities and financial subsidies.
As such, if you want to purchase an EC or sell your existing home, turning to Singapore housing agents is essential for a smooth transition. We at NeezaNizam aim to guide you through this process seamlessly. We offer guidance on home ownership, securing loans, wealth planning, and more! To book an appointment, feel free to reach out to us here.
