Mr Khaw Boon Wan announced yesterday that HDB will raise the income ceilings for Build-To-Order (BTO) flats and Executive Condominiums(ECs) to allow every Singaporean couple a chance to live in an HDB flat.
The current income ceilings for BTO and ECs are $10,000.00 and $12,000.00 respectively.
The ceiling will be raised to $12,000.00 for BTO and $15,000.00 for ECs.
This is good news for young couple with above average income as they can choose between buying a HDB or private residential unit. The price for BTO and ECs are heavily subsidized by government and only citizen get to enjoy this benefit. Therefore, we can expect more couples turning to BTO or ECs in mature estates or promising new estates. However, this is definitely a bad news for the already challenging market for private residential unit.
From a long term investment perspective, it is better for young couple to own a HDB before they venture into private condo. And since property is a long term investment entity, it is unlikely the couple will buy a second property during the minimum occupation period (MOP) of five years and hence this locking period is not important at all.
As for ECs, it has maintained a good track record of making good capital gain for home owners when it turns to full private status after 10 years. For those with higher income ceiling, it is definitely worth considering buying EC as their first property. The ECs can be both a house and also an investment vehicle after 5 to 10 years.
If you are Singapore citizens and you are excluded from HDB because of income ceiling limit, you should start researching what is available in the market and start going to showflat of ECs to book your dream home when the change is officially announced as policy.
Good luck my fellow Singaporeans.
The current income ceilings for BTO and ECs are $10,000.00 and $12,000.00 respectively.
The ceiling will be raised to $12,000.00 for BTO and $15,000.00 for ECs.
This is good news for young couple with above average income as they can choose between buying a HDB or private residential unit. The price for BTO and ECs are heavily subsidized by government and only citizen get to enjoy this benefit. Therefore, we can expect more couples turning to BTO or ECs in mature estates or promising new estates. However, this is definitely a bad news for the already challenging market for private residential unit.
From a long term investment perspective, it is better for young couple to own a HDB before they venture into private condo. And since property is a long term investment entity, it is unlikely the couple will buy a second property during the minimum occupation period (MOP) of five years and hence this locking period is not important at all.
As for ECs, it has maintained a good track record of making good capital gain for home owners when it turns to full private status after 10 years. For those with higher income ceiling, it is definitely worth considering buying EC as their first property. The ECs can be both a house and also an investment vehicle after 5 to 10 years.
If you are Singapore citizens and you are excluded from HDB because of income ceiling limit, you should start researching what is available in the market and start going to showflat of ECs to book your dream home when the change is officially announced as policy.
Good luck my fellow Singaporeans.
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