iwant2buyproperty
18-12-13, 09:11
Housing Board flat upgraders are likely to be the hardest hit by changes to the executive condominium (EC) housing scheme.
On Monday, the Government tightened loan rules for those buying EC units, a popular hybrid of public and private housing.
Buyers looking to sell their public flats to buy an EC unit may have to moderate their expectations after monthly mortgage payments were capped at 30 per cent of their monthly pay, experts said.
This makes financing markedly tighter, in addition to July's total debt servicing ratio (TDSR) which capped total monthly debt payments at 60 per cent of gross monthly income across the board.
The introduction of a resale levy applying to some EC buyers will also make EC units less attractive to HDB upgraders.
EC units are sold with Housing Board restrictions. They become fully privatised after 10 years.
The move came after HDB upgraders flocked to EC launches following July's new loan framework. EC applicants were less affected by the TDSR as banks excluded monthly payments for their public flats when computing the loan.
This is because buyers are required to sell their existing flats when the EC development is ready.
Experts noted that EC homes - especially bigger and pricier units - could be less attractive now, given the
However, upgraders can still look for private units, as they will have more leeway to secure a bigger loan compared to ECs.
Mr Li Jun, general manager of Qingjian Realty, said unit prices at two upcoming ECs in Woodlands and Anchorvale will be maintained as building plans were finalised before the changes.
However, he noted that his firm will be more cautious when bidding for EC sites in the future, and that units could be built smaller to keep them affordable.
Source: The Straits Times –14 December 2013
On Monday, the Government tightened loan rules for those buying EC units, a popular hybrid of public and private housing.
Buyers looking to sell their public flats to buy an EC unit may have to moderate their expectations after monthly mortgage payments were capped at 30 per cent of their monthly pay, experts said.
This makes financing markedly tighter, in addition to July's total debt servicing ratio (TDSR) which capped total monthly debt payments at 60 per cent of gross monthly income across the board.
The introduction of a resale levy applying to some EC buyers will also make EC units less attractive to HDB upgraders.
EC units are sold with Housing Board restrictions. They become fully privatised after 10 years.
The move came after HDB upgraders flocked to EC launches following July's new loan framework. EC applicants were less affected by the TDSR as banks excluded monthly payments for their public flats when computing the loan.
This is because buyers are required to sell their existing flats when the EC development is ready.
Experts noted that EC homes - especially bigger and pricier units - could be less attractive now, given the
However, upgraders can still look for private units, as they will have more leeway to secure a bigger loan compared to ECs.
Mr Li Jun, general manager of Qingjian Realty, said unit prices at two upcoming ECs in Woodlands and Anchorvale will be maintained as building plans were finalised before the changes.
However, he noted that his firm will be more cautious when bidding for EC sites in the future, and that units could be built smaller to keep them affordable.
Source: The Straits Times –14 December 2013