Cooling measures on Executive Condominium (EC)

[Cheong Loo Lim]

Take-up Rates for Executive Condominiums (ECs) Healty
Executive Condominiums (ECs) are for the privileged few and in recent times, most ECs are oversubscribed at the initial launches.

With private property prices going beyond $1,000psf mark, ECs have a stronger appeal and with the income ceiling revised at $12,000, many upgraders could qualify to buy the attractive ECs instead of the mass market condominiums.

Cooling measures on Executive Condominium (EC)
Due to voracious demand for ECs, HDB has introduced 3 new measures on last year 9 Dec 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 monthly mortgage 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 9 Dec 2013)

3. Reduced EC Cancellation Fees
Cancellation fees for ECs has been reduced from 20% to 5% of the purchase price

Now could be the last opportunity for you to upgrade without having to pay a resale levy if you buy an existing EC (http://newpropertieslaunching.com/category/executive-condominium/)(click)or upcoming EC (http://newpropertieslaunching.com/category/launching-soon/)(click) – this can save you up to $50,000.

[Arcachon]

What is EC ?

Why buy EC ?

When do you buy EC ?

If you know the above question than you should be looking at PC instead of EC now.

[rymccondo77]

Depends on one's objectives and financial situations.

And some of the newer ECs have nice designs and facilities - the external look of some of the ECs look more like a condo then some PCs.

[Arcachon]

Don't buy because everyone is buying, buy when lot of people are not buying.

[Cheong Loo Lim]

What is an Executive Condominium (EC) ?

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 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.

[Arcachon]

In 2006, after taken 2 cherry cannot buy EC and there is no EC also.

So buy PC at SGD 535,000, God bless they don't build EC.

Buy what you can afford, not buy what others think you should buy.