Executive Condominiums (ECs) are a class of housing launched by the Government in 1994 to fulfill the social aspirations of Singaporeans to dwell in non-public properties. ECs occur equip with most of the amenities of their private counterparts – from swimming swimming pools to stability guards – but are comparatively much more cost-effective.
So when Treasure Tampines floor plan -public housing rates dropped considerably in the initial half of the 2000s, the Government stopped churning ECs out.
Only in the fourth quarter of 2010 ended up they constructed as soon as once again.
Just what are the attractions and drawbacks of getting an EC?
Commonly regarded as a hybrid kind of housing as it is certain by specified ownership rules governing HDB flats in its first ten years. But on the other side of the coin, customers acquiring ECs from the developer, equivalent to the acquire of HDB flats, are eligible for a kind of CPF housing grant. Go to HDB, “CPF Housing Grant for Family members EC”, for the information of the grant quantum which is based on house earnings and citizenship standing.
As opposed to their HDB cousins, even so, ECs can not be financed with a HDB bank loan. This implies that a part (five% of the purchase cost) of the down-payment has to be financed in money. But given that ECs from developers are usually priced at twenty-thirty% below non-public condominiums, this can make it less complicated for purchasers to preserve for it.
All ECs are on ninety nine-12 months lease, differing from non-public condominiums which appear in lease ranging from ninety nine-yr to freehold.
And only Singapore citizens are qualified to get new ECs.
Comparable to HDB flats, ECs have a Bare minimum Occupation Period of 5 several years, in the course of which there is to be no sale of the house, no subletting of the entire residence, and no buy of a private house.
After the 5-calendar year interval has lapsed, a remaining rule dictates that ECs can only be marketed to Singapore citizens and Long term Citizens.
ECs that have crossed the 10-year mark are elevated to entire-fledged private housing status and can then be sold to foreigners. These ECs show a smaller value differential with non-public housing (Sq. Foot Study, “Executive Condominium”).
As a result, soon after factoring in the CPF housing grants and reasonably decrease price tag, the capital gains to be made from ECs can be considerable if you can keep on past the 10-12 months time period.
By selecting a suited Singapore residence financial loan to finance your ECs that will support maximise your returns too. Flip to professional house loan consultants for some totally free advice to help you in your financial loan hunt!