Cheong Loo Lim
29-09-14, 13:04
Executive Condominium (EC) was introduced in 1996 when private homes prices were at their peak to cater to the needs of the “sandwiched class”. This group of buyers cannot afford private properties, and also do not qualify for BTO flats, at their incomes have exceeded the previous $8,000 income ceiling.
ECs are comparable in design and facilities to private condominiums as they are designed, developed and sold by the private developers. But, buyers of ECs must meet the HDB eligible conditions (http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyingNewFlatEC?OpenDocument) such as EC buyers have to form a family nucleus comprising at least 2 Singapore Citizens (SC), or 1 Singapore Citizen and 1 Singapore permanent resident(SPR). A Minimum Occupation Period (MOP) of 5 years is applicable before it can be sold in open market. ECs can only be sold to foreigners after 10 years.
Recently, due to voracious demand for ECs, HDB has introduced 3 new measures on 9th December 2013. They are:-
1) 30% Mortgage Servicing Ratio (MSR) Cap
A buyer can only use a maximum of 30% of his/her monthly gross income to service the EC loan
2) Resale Levy for Second-Timer Applicants
All Second-Timer applicants who buy an EC directly from a developer will have to pay a resale levy depending on the type of flat previously owned (Note: This is only applicable to EC projects whereby the land sites were purchased on or after 9th December 2013)
3) Reduced EC Cancellation Fees
Cancellation fees for ECs have been reduced from 20% to 5% of the purchase price
This could well be the last opportunity for you to upgrade without having to pay a resale levy if you buy and existing EC – this can save you up to $50,000.
Click here to see some of the existing ECs not affected by resale levy
(http://newpropertieslaunching.com/category/executive-condominium/)
ECs are comparable in design and facilities to private condominiums as they are designed, developed and sold by the private developers. But, buyers of ECs must meet the HDB eligible conditions (http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyingNewFlatEC?OpenDocument) such as EC buyers have to form a family nucleus comprising at least 2 Singapore Citizens (SC), or 1 Singapore Citizen and 1 Singapore permanent resident(SPR). A Minimum Occupation Period (MOP) of 5 years is applicable before it can be sold in open market. ECs can only be sold to foreigners after 10 years.
Recently, due to voracious demand for ECs, HDB has introduced 3 new measures on 9th December 2013. They are:-
1) 30% Mortgage Servicing Ratio (MSR) Cap
A buyer can only use a maximum of 30% of his/her monthly gross income to service the EC loan
2) Resale Levy for Second-Timer Applicants
All Second-Timer applicants who buy an EC directly from a developer will have to pay a resale levy depending on the type of flat previously owned (Note: This is only applicable to EC projects whereby the land sites were purchased on or after 9th December 2013)
3) Reduced EC Cancellation Fees
Cancellation fees for ECs have been reduced from 20% to 5% of the purchase price
This could well be the last opportunity for you to upgrade without having to pay a resale levy if you buy and existing EC – this can save you up to $50,000.
Click here to see some of the existing ECs not affected by resale levy
(http://newpropertieslaunching.com/category/executive-condominium/)