Lifestyle . Loans . Personal Finance . Property

Why Should You Choose A Condo Over An Executive Condominium (EC)?

July 7, 2022

Due to COVID-19, many BTO projects have been delayed. Instead of the usual waiting time of 5 years, it has been extended to 6-7 years.

Young couples who had wanted to get a BTO might have changed their minds. In order to get a home quickly, couples could consider resale flats, condos or executive condominiums (ECs). These three options have a significantly shorter waiting time, and most are already ready to move in.

Let’s say that you prefer a condo or an executive condominium. Perhaps it could be due to the property’s location or the house’s area.

Unsure if a condo is the right investment for you?

This article tackles the issue of a condo vs executive condo. For starters, condos are typically older buildings that have been renovated, while ECs are brand new developments. Condos also offer more privacy and freedom than ECs – you can decorate and use your space however you like without worrying about your neighbours’ opinions. And finally, condos have fewer rules than executive condos.

Private condominiums also have their drawbacks.

That’s why so many people prefer purchasing ECs. Keep reading below to find out more about this alternative. We’ll discuss prices, downpayment, location, and other essential variables.

TL;DR:

Condo vs Executive CondoPriceDownpaymentLocationInvestmentRulesEligibility criteriaAmenities
CondoHighHighConvenientVery goodLess strictNoneVery good
Executive condoSlightly lowerSlightly lowerFar from CBDGoodStrict for the first five yearsMultipleGood
Resale executive condoModerate to highModerate to highFar from CBDLess goodLess strictFewerGood enough

What Are the Benefits of a Regular Condo?

While both a private condo and an EC offer the perks of private property ownership without the hassle of maintaining a house, there are several key reasons to opt for a condo over an EC.

1. Condos tend to be more luxurious, with higher-end finishes and amenities like swimming pools and concierge service.

2. Condos are often located in more central and convenient locations, making them ideal for busy professionals. By comparison, executive condos are located on the outskirts of Singapore and far away from MRT stations, where the land is cheaper.

3. Condos tend to appreciate in value at a faster rate than ECs, making them a wise investment for the future.

4. Condos are private properties from the get-go, whereas executive condos are under HDB rules for the first ten years of ownership. That means you’ll have to respect strict HDB rules when choosing an executive condo. For example, you might have a harder time renovating or renting the apartment, at least for the first five years.

5. Homeowners are also subjected to the Minimum Occupation Period (MOP) of five years. During this five years, homeowners cannot rent out or sell the entire EC unit.

6. You can sell your private condo without restrictions from the fourth year onwards, except for the steep stamp duty. However, you’ll face stricter MOP restrictions with your executive condo during the first five years. So, if you’re going through a financial emergency and need to downgrade your living situation, it’s best to have a private condo.

7. You can purchase private condos without undergoing stringent conditions. By comparison, when you buy an executive condo, eligibility requirements are stricter.

  • You can only apply for an executive condo if you’re a citizen and at least 21 years old.
  • Your spouse must also be a Singaporean citizen or PR.
  • You can only apply for an EC through one of these four schemes.
  • Your household income must be below $16,000/month.
  • You must not have owned any residence in the past 30 months.

What Are the Benefits of an Executive Condo?

Firstly, what is an executive condo? An executive condo is a type of housing unit that is developed and sold by a private developer but which comes with certain restrictions.

ECs are typically more spacious and luxurious than HDB flats, offering amenities such as swimming pools and gyms. However, ECs are only available to Singaporeans who meet specific criteria and come with a 10-year minimum occupancy period.

Despite these restrictions:

  • ECs are popular among young professionals and families looking for a more upmarket housing option.
  • ECs offer a great investment opportunity, as they can be sold on the open market after the minimum occupancy period has lapsed.
  • Executive condos are more affordable than private condos but have similar amenities.

So if you’re looking for a stylish and spacious home with good potential for capital appreciation, an executive condo might be the right choice for you.

How Much Is the Downpayment for a Condo?

Much of the issue of condo vs executive condo boils down to money. And a significant part of that is the downpayment.

If you’re looking to purchase a condo, you’ll need to be prepared to put down a minimum of 25% of the purchase price. This can be paid using a combination of cash and your CPF account. At least 5% must be paid in cash, while the remaining 20% can be disbursed using your CPF funds.

Keep in mind that the condo downpayment is just the beginning; you’ll also need to factor in the cost of monthly mortgage payments, insurance, and property taxes. And, of course, there’s the considerable stamp duty.

How Much Is the Downpayment for an Executive Condo?

EC vs condo, what are the differences? An executive condo is an excellent option if you want to get all the benefits of owning a condo without breaking the bank.

So, how much is the executive condo downpayment?

The down payment is at least 25%, 5% in cash and 20% using your CPF account. For example, if you’re looking at a unit that costs $1 million, your downpayment would be $250,000. Of that, $50,000 would be in cash, and $200,000 would come from your CPF account.

Where Can I Apply for a Housing Loan?

Applying for a housing loan in Singapore can be a confusing and time-consuming process. There are several different banks and financial institutions to choose from, each with its eligibility requirements, interest rates, and terms and conditions. It is also almost impossible to purchase a property in Singapore without a home loan.

Here are the costs of buying a home in Singapore. Read our guide to buying a home in Singapore here.

You can also opt for an HDB loan if you’re not buying a condo or executive condo after all.

That’s why it’s essential to do your research before you apply for a loan.

  • Start by comparing the options available and then decide which lender best suits your needs.
  • Once you’ve found a few potential lenders, it’s time to start the application process. You can usually do this online or by visiting a branch in person.
  • The most important thing is to ensure that you provide accurate information on your application form. Being upfront about your income and expenses ensures you get the best possible deal on your loan.

Applying for a housing loan in Singapore doesn’t have to be complicated. With some research, you can find the perfect loan for your needs. Let GS Credit, one of the most established lenders in Singapore help you make the right finanical decision!

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