buying ec singapore

[rit]

currently we r renting HDB...well not much known about EC...but hope to know more through ur experience if any one of you having ....one more thing need to confirm.. will the property price goes down around this year...as the talk of the town is

[x9200]

I lived in such a condo and I would never buy anything there (at least for a regular price). The quality, I mean materials including walls and fixtures, was very inferior to anything else I lived in before and after.
Typically ECs are cheaper and not that well regarded by the locals as the regular condos.

Really? That's interesting as plenty of locals and PRs tell me to look for EC condos to buy, as they're built to "HDB Standards" which means they'll last longer than the current crop of new condos popping up every day.

Holes could be easily made in the wall without a hammer drill.
Huge gaps in the doors leading to the terraces (it was a penthouse, we had it even flooded one day).

For a 6y old condo at that time:
All windows intensively yellowed
All AC units yellowed.
Some ACs without inverter
All toilet parts yellowed
All kitchen cabinets with peeling of veneer
No hot water in the kitchen
Low light, high energy bulbs (weird, obsolete, incandescent type difficult to find) in the kitchen cabinets
Extremely hot (top floor flat), I am living on a top-floor now too in a condo just 800m away from that EC and it is just fine.
Extremely cracked walls
...things like that.

The condo we live right now is almost the same age (10yo vs 11y for EC) and the quality is not comparable (not comparable with any we lived before). All looks much better in this current 10yo than in that EC when we moved there in when it was just 6yo.

[Wd40]

currently we r renting HDB...well not much known about EC...but hope to know more through ur experience if any one of you having ....one more thing need to confirm.. will the property price goes down around this year...as the talk of the town is

Condo prices may not fall, but they may stagnate for the next few years. You need to take into account the transaction costs like ABSD and the interest costs.

If you are currently staying in HDB then you maintain same std of living by buying a HDB and you take lower risk and lower costs while saving rent. Rental yields on HDB are much higher than condo. So it makes more sense to rent a condo and buy a HDB rather than the other way around.

[therat]

rit , may I know when you get your PR?

HDB rules release at 27 Aug 2013, all new PR need to wait for 3 yr before they can buy resale HDB.
On top of this, you need to meet EIP quotas and SPR quotas
https://www.ecitizen.gov.sg/Topics/Page ... o-buy.aspx

WD40, HDB not longer allow SPR HDB owner to rent out their whole unit.
http://www.hdb.gov.sg/fi10/fi10323p.nsf ... enDocument
Flat owners who wish to sublet their flat must be a Singapore Citizen (SC). Singapore Permanent Resident (SPR) flat owners are not allowed to sublet their flat.

[Wd40]

Hi Therat, yeah I know about the rule changes for HDB related to PRs. I am not suggesting to rent out HDB flat. Due to these various restrictions HDB prices have fallen a lot and it makes much more sense to buy them and save rent instead of buying an expensive condo. OP has already finished 2 yrs on PR, he needs to wait 1 more year. By then prices should also have bottomed out.

[rit]

Yes I know all rules & regulations regarding HDB and its always keep changing (mostly anti PR)
you are right buying HDB is low risk but still not convinced wid the changing rule. and yes true about EC as many of my friends regretting after buying EC...so for me condo final

we were not renting Condo so that can save few more bucks to be able to buy condo...n apart from std of living in condo I can have my full ownership on my house irrespective of changing rules...as it it is private

[rit]

currently we r renting HDB...well not much known about EC...but hope to know more through ur experience if any one of you having ....one more thing need to confirm.. will the property price goes down around this year...as the talk of the town is

Condo prices may not fall, but they may stagnate for the next few years. You need to take into account the transaction costs like ABSD and the interest costs.

If you are currently staying in HDB then you maintain same std of living by buying a HDB and you take lower risk and lower costs while saving rent. Rental yields on HDB are much higher than condo. So it makes more sense to rent a condo and buy a HDB rather than the other way around.

Sorry I didnt understand ur point of "rental yields on HDB......as far my knowledge rent always low for HDB compared to Condo..plz clear

[Wd40]

By rental yield I mean, rent as a ratio of the whole property price. In case of HDB for 2 bedder 350k flat rental is 2k. condo 2 bedder price is 700k, but rent is only 2.5k. So condo price is double but rent is only 25% more.




So you can buy a HDB and you will have lower EMI each month and the remaining money can be used more productively especially if condo is expected to stagnate or fall.

[rit]

hmm true ...understand ur point..thank you

[rit]

Hello again,

Started searching condo already Now the many things come in mind
So start with the home loan..which will be more economical sobor(1/3/12M)/SOR..anyone has personal experience of same ..and please mention the bank as well

All valuable suggestions are welcome

[JR8]

This is when a mortgage broker helps.
But usually the shorter term rate = the cheaper. I.e. for the longer term you're paying for the security of 'knowing'.
But it really comes down to you. Are you buying a home, with a view to owning it say 10/+ years? are you in stable jobs?
IMHO (just my 1.5c) I don't see the SGn economy going anywhere soon. So why pay top-$ to fix a loan against the risk of it becoming super-successful and rates rising?

[rit]

thnak you for your opinion...We are buying for own stay as we are planning to stay here for long time and yes our job is quite stable. i think instead of spending money on rent its a wise to buy home n spend same.

[Wd40]

One of my colleagues did this mistake of going for a fixed rate loan in 2010 assuming rates will go up. But rates are still same and he unnecessarily paid higher rates 2.5% instead of of 1.5% for 3 years or 5 years, can't remember.

[JR8]

One of my colleagues did this mistake of going for a fixed rate loan in 2010 assuming rates will go up. But rates are still same and he unnecessarily paid higher rates 2.5% instead of of 1.5% for 3 years or 5 years, can't remember.

That's the problem with a fixed rate. You could liken it to taking a wager against the collective opinion of the money markets, then with some added lender margin on top. The likelihood (IME) of the bank rate rising above your fixed rate, i.e. it 'saving you money', is slim.
Since they are based upon derivative trades they are seen as an added-value product, vs a floating rate, the initial and redemption fees tend be higher too.
I had a fixed rate on my first big investment, it's eye-watering to think of it now, 8.99% for five years. I re-mortgaged it after about 3 years onto bank bank rate (BBR) + 0.5%, then about 2%, and a year or so later the BBR hit zero.
I think fixed rates are useful if you are pushing your finances and are willing to pay for that element of added certainty, sleeping soundly, but it usually comes at quite a price!

[Wd40]

http://sbr.com.sg/residential-property/ ... tal-yields

Melville park in Simei has been listed as one of the highest rental yields.
I knew its priced low, because there are too many Indians there, but didn't know it will make it to the cheapest condos list.