GOOD TIME TO BUY EC?

[Triszavi]

Lately has been seriously thinking of upgrading from an HDB flat to a EC. I am currently staying in an EA but would like to upgrade to a 3 bedroom EC of around 97-98m2. Price ranging from 800k to 850k. I have a few concerns that have caused me some hesitant in my move.

Firstly, with the lower demand of bigger flat in the market and the impending surge in numbers of flat owners disposing off their HDB flats due to the completion of either BTO flats or EC specially in Sengkang and Punggol, selling off my EA ( I am staying in Punggol) in the near future will be a challenge, although the EA only cost me 380k back then. I still has about 150k o/a loan to clear.

Although I am able to afford the 20% downpayment and is able to obtain the remaining 80% loan quantum, the thought of the HDB price volotility and the number of flat owners needing to sell off their flat in 2014-2015 (although the project I am eyeing the TOP is in 4qtr 2016) puts me in a fix.

My thought is that Hdb price has already peaked and would not go up higher. There is no reason to hold on and wish that it will go further up. Since I am eligible for an EC ( and god knows when the GOV is going to introduce any more CM targeting EC buyer), I should bite on the bullet and go ahead with the purchase. But coming back to reality, their will also be a huge no of EC projects in the market which in turn will so suppress the potential capital upside of EC.

What is your takes on this. Please advise.

[onglai]

Lately has been seriously thinking of upgrading from an HDB flat to a EC. I am currently staying in an EA but would like to upgrade to a 3 bedroom EC of around 97-98m2. Price ranging from 800k to 850k. I have a few concerns that have caused me some hesitant in my move.

Firstly, with the lower demand of bigger flat in the market and the impending surge in numbers of flat owners disposing off their HDB flats due to the completion of either BTO flats or EC specially in Sengkang and Punggol, selling off my EA ( I am staying in Punggol) in the near future will be a challenge, although the EA only cost me 380k back then. I still has about 150k o/a loan to clear.

Although I am able to afford the 20% downpayment and is able to obtain the remaining 80% loan quantum, the thought of the HDB price volotility and the number of flat owners needing to sell off their flat in 2014-2015 (although the project I am eyeing the TOP is in 4qtr 2016) puts me in a fix.

My thought is that Hdb price has already peaked and would not go up higher. There is no reason to hold on and wish that it will go further up. Since I am eligible for an EC ( and god knows when the GOV is going to introduce any more CM targeting EC buyer), I should bite on the bullet and go ahead with the purchase. But coming back to reality, their will also be a huge no of EC projects in the market which in turn will so suppress the potential capital upside of EC.

What is your takes on this. Please advise.

my situation is very similar to yours and i share the same concern. In the end, i decided not to buy an ec because it's a downgrade for me, poorer location & smaller unit. i am happy with my hdb now.

[Reisor]

My take in terms of ROI:

1. Buy PTE which you can stay, rent HDB EA ~2.5k-3k+ per month to cover mortgage. 5 years rental equal your outstanding loan and HDB ea still yours at the end. Only Painful now is must pay ABSD, it would be ideal if ABSD CM were not there. Need to do TDSR ABSD sum.

2. If buy EC, must sell HDB. An upgrade not really investment. Cannot own hdb anymore. Good thing is can wait till EC Complete before selling.

Lately has been seriously thinking of upgrading from an HDB flat to a EC. I am currently staying in an EA but would like to upgrade to a 3 bedroom EC of around 97-98m2. Price ranging from 800k to 850k. I have a few concerns that have caused me some hesitant in my move.

Firstly, with the lower demand of bigger flat in the market and the impending surge in numbers of flat owners disposing off their HDB flats due to the completion of either BTO flats or EC specially in Sengkang and Punggol, selling off my EA ( I am staying in Punggol) in the near future will be a challenge, although the EA only cost me 380k back then. I still has about 150k o/a loan to clear.

Although I am able to afford the 20% downpayment and is able to obtain the remaining 80% loan quantum, the thought of the HDB price volotility and the number of flat owners needing to sell off their flat in 2014-2015 (although the project I am eyeing the TOP is in 4qtr 2016) puts me in a fix.

My thought is that Hdb price has already peaked and would not go up higher. There is no reason to hold on and wish that it will go further up. Since I am eligible for an EC ( and god knows when the GOV is going to introduce any more CM targeting EC buyer), I should bite on the bullet and go ahead with the purchase. But coming back to reality, their will also be a huge no of EC projects in the market which in turn will so suppress the potential capital upside of EC.

What is your takes on this. Please advise.

[Allthepies]

my take is this:

EC is a private housing that is heavily subsidised by the Singapore government... better investment than HDB in terms of price appreciation...

if you enjoy gated living with facilities, EC is very affordable compared to private condo...

[thomastansb]

Price appreciation depends on EC prices. BTO usually close to 100% gain. EC, I am not sure if still can get even 70% nowadays.

But EC is always a good buy.

my take is this:

EC is a private housing that is heavily subsidised by the Singapore government... better investment than HDB in terms of price appreciation...

if you enjoy gated living with facilities, EC is very affordable compared to private condo...

[mermaid]

TS, u mentioned abt the challenge to sell bigger hdb in the near future. Wif tdsr, do u tink it will be any easier in the longer future when mkt "recovers"?

Actually, I dun feel tat EC is any cheaper than PC nowadays.

Currently EC avg prices is ard $8xx n mostly located at either lousy loc or far fm mrt. Juz compare the recent dnest near pasir ris mrt wif the ECs there. The avg psf for bigger units for dnest is abt $9xx at most nia. Hence to me, EC simply means one is actually paying a slightly lower $ for a PC in compensation for a lousier loc.

I assume yr current EA is purchased via BTO $. So if I were u, I would choose to:

Buy a PC at better loc.
If I can afford the PC without selling the hdb, I would choose to retain my HDB & rent the HDB until 1 day I managed to sell it away at a gd $.
Hopes tat helps

[Wynyard]

Hi mermaid, sorry to kaypoh, just curious lah, how come you dont buy a hdb first but instead went ahead to buy a PC.

[star]

BTO hdb to EC to private condo near mrt to landed. Each phrase of profit will get u closer to your dream. Always start small.
MM condo to 2 bedder condo to 3 bedder condo.

[Allthepies]

Price appreciation depends on EC prices. BTO usually close to 100% gain. EC, I am not sure if still can get even 70% nowadays.

But EC is always a good buy.

Yup percentage gain wise HDB should give highest returns but in terms of quantum, EC should win hands down...

Because at any one time u can only hold either an EC or HDB and have to wait 3 years for building and 5 years of MOP, I would think EC gives higher profit quantum wise...

[GForce]

To the TS, do u know only the privileged can buy EC?
Also EC capital appreciation is much higher than HDB.
lastly EC is so much cheaper than Pte condo leh!
If I were u I will buy an EC (maybe a penthouse hard to get next time) it's a no brainier n b4 the govt introduces new rules again.
watch out for this space Govt sure intro new rules wan!

[Triszavi]

Thanks guys for the replies. With the ABSD and the TDSR in placed currently coupled with the loan tenure fixed to 65 years old, for a decent size 3 bedroom at current price of 1mil and above, a person has to fork out at least 300k to 400k as downpayment. I guess not many people have the privilege to invest in a PC whilst still retain the HDB flat.

[Eh]

my situation is very similar to yours and i share the same concern. In the end, i decided not to buy an ec because it's a downgrade for me, poorer location & smaller unit. i am happy with my hdb now.

Is the correct answer.

To reply TS, each of us have different circumstances. The best answer will most likely come from your family because only they know your situation.

[star]

Thanks guys for the replies. With the ABSD and the TDSR in placed currently coupled with the loan tenure fixed to 65 years old, for a decent size 3 bedroom at current price of 1mil and above, a person has to fork out at least 300k to 400k as downpayment. I guess not many people have the privilege to invest in a PC whilst still retain the HDB flat.

If I were u i will buy 4bedder EC. I will eat the biggest cherry. What do u think?

4 bedder Condo do seem to command a premium in resale market.

[GForce]

If I were u i will buy 4bedder EC. I will eat the biggest cherry. What do u think?

4 bedder Condo do seem to command a premium in resale market.

Smart one! Buy the biggest coz very rare commodity next time!

[Allthepies]

Yup buy the biggest size possible, it's a gift from government...

[mermaid]

Hi mermaid, sorry to kaypoh, just curious lah, how come you dont buy a hdb first but instead went ahead to buy a PC.

y u so kaypoh
actually all along I intend to buy resale hdb followed by pc 5 yrs later. Past few yrs got see see look look but cov damn high. Den last yr juz when I almost wanna commit, kbw announced singles MAY be allowed to buy bto. Den I stop all hse hunting wait for the BTO. Who noes tis yr mar say oni can buy 2 rm bto nia. So Im very bought a pc in the same mth lor

but if 时光倒流, will I buy hdb mah?
Nope, I will buy condo when Im in my 20s.

[Learner]

Yup buy the biggest size possible, it's a gift from government...

Agree. If can afford buy as big as you can, especially if for own stay and with growing children. With all the sizes of new development shrinking, I feel that in time, those bigger units will fetch better prices.

[henryhk]

Lately has been seriously thinking of upgrading from an HDB flat to a EC. I am currently staying in an EA but would like to upgrade to a 3 bedroom EC of around 97-98m2. Price ranging from 800k to 850k. I have a few concerns that have caused me some hesitant in my move.

Firstly, with the lower demand of bigger flat in the market and the impending surge in numbers of flat owners disposing off their HDB flats due to the completion of either BTO flats or EC specially in Sengkang and Punggol, selling off my EA ( I am staying in Punggol) in the near future will be a challenge, although the EA only cost me 380k back then. I still has about 150k o/a loan to clear.

Although I am able to afford the 20% downpayment and is able to obtain the remaining 80% loan quantum, the thought of the HDB price volotility and the number of flat owners needing to sell off their flat in 2014-2015 (although the project I am eyeing the TOP is in 4qtr 2016) puts me in a fix.

My thought is that Hdb price has already peaked and would not go up higher. There is no reason to hold on and wish that it will go further up. Since I am eligible for an EC ( and god knows when the GOV is going to introduce any more CM targeting EC buyer), I should bite on the bullet and go ahead with the purchase. But coming back to reality, their will also be a huge no of EC projects in the market which in turn will so suppress the potential capital upside of EC.

What is your takes on this. Please advise.

observe the hdb resale price at pungol, if the hdb resale price is dropping after few quarters, I will sell hdb and buy EC....then stay for a few years, then wen the right time, I will rent out the EC and buy a pte condo to stay..... I believe EC price will be given chance to go up, because garment protect the first timer dream to own a condo...but resale hdb price will come down to a level to satisfy majority of the hdb dwellers....as for pte condo, is for the middle class people to play the game...my 2cts worth of advice, hahaha

[MGM]

EC is like a hybrid. Buyers get to enjoy high standard living with fully equipped facilities comparable to a private condo, even better than some! Yet, more affordable! However, there are criteria to be met in order to be eligible to own one. Check out the latest Singapore EC or the EC eligibility at http://singaporeec.com

[ek2727]

Lately has been seriously thinking of upgrading from an HDB flat to a EC. I am currently staying in an EA but would like to upgrade to a 3 bedroom EC of around 97-98m2. Price ranging from 800k to 850k. I have a few concerns that have caused me some hesitant in my move.

Firstly, with the lower demand of bigger flat in the market and the impending surge in numbers of flat owners disposing off their HDB flats due to the completion of either BTO flats or EC specially in Sengkang and Punggol, selling off my EA ( I am staying in Punggol) in the near future will be a challenge, although the EA only cost me 380k back then. I still has about 150k o/a loan to clear.

Although I am able to afford the 20% downpayment and is able to obtain the remaining 80% loan quantum, the thought of the HDB price volotility and the number of flat owners needing to sell off their flat in 2014-2015 (although the project I am eyeing the TOP is in 4qtr 2016) puts me in a fix.

My thought is that Hdb price has already peaked and would not go up higher. There is no reason to hold on and wish that it will go further up. Since I am eligible for an EC ( and god knows when the GOV is going to introduce any more CM targeting EC buyer), I should bite on the bullet and go ahead with the purchase. But coming back to reality, their will also be a huge no of EC projects in the market which in turn will so suppress the potential capital upside of EC.

What is your takes on this. Please advise.

Hi TS,

I was in the same situation as you for the last 2 years, but we have finally bitten the bullet!

However, after booking the EC, I am now worried everyday about the potential drop in HDB resale prices when I need to sell 2-3 years down the road in mid 2016.

Similar to you, I am also worried of the number of people who would need to dispose of the HDB around 2015-2016 due to many BTO's (2nd Timers) & EC's being TOP around that time.

Coupled with a potential weakening economy, QE tapering causing interest rates to rise, I really hope this is not a receipe for disaster for HDB resale prices??!!!

I am also living in Punggol, but in a 4 room BTO premium flat, which is approximately 600m (or 7-8mins walk) to the future Waterway Point Shopping Centre/MRT, so I hope this may lend some support to my valuation in a price drop.

In the end, I guess a 10%-15% drop may be acceptable to me, but if it drops anything like 20%-30%, I may not be able to digest that!

What do all you guys think? Could you kindly advise me? As I am considering whether to sell now (& maybe rent or ask me sis if I can stay at her place), or hold out till my EC TOP in 2016 & hope for the best?

I sincerely appreciate all your valuable inputs.

Cheers,
Ben

[Cupcakes]

i feel that EC is always better PROVIDED IF you do not own a HDB.

[GIG]

I knew 5 people that I met and know of that have bought either condo or
Bto and now staying in HDB flat waiting for TOP. Three in Punggol, One in Sengkang and the other in Tampines.
If including more people that I do not know, the oversupply of resale flats can put Punggol and Sengkang prices on downward pressure.

[sandpapa]

I also booked a EC, TOP Q2 2016. I will need to sell my current HDB in queenstown. I am worried that price will drop too, but I cannot sell my house now as I am staying with my mum and my wife is expecting. Anyway, just don't think too much. I bought my HDB back in 2005, net net I don't think I will lost money on my HDB.

[ek2727]

I also booked a EC, TOP Q2 2016. I will need to sell my current HDB in queenstown. I am worried that price will drop too, but I cannot sell my house now as I am staying with my mum and my wife is expecting. Anyway, just don't think too much. I bought my HDB back in 2005, net net I don't think I will lost money on my HDB.

The chances of nett nett losing money is unlikely, as like yourself, I collected my punggol bto in 2006 buying at below $200k.....but like everyone we hope to maximise our capital gain to keep for rainy day (esp raising int rates).

Logically, with so many people NEEDING (instead of wanting) to sell during that period, prices should drop quite abit!

However I'm hoping all logic is defied & prices stay stable (at most drop 10%)....haha. My dad in law is of the old school of thought that Sg is land scare, + with all the developments in punggol prices even if drop won't be a lot, he even dare say maybe will go up abit! Lol

Really in a dilemma now. If sell first now I could need to spend $70-80k on rental for next 3yrs......friends say price haven drop I oredi lugi so much!

[Triszavi]

I am already seeing seller asking for $40k below valuation for Punggol flat in PropertyGuru.

Unlike one year ago where you could even hear remarks that goes " No $60k COV, don't bring the buyer to the flat. LOL

[ek2727]

I am already seeing seller asking for $40k below valuation for Punggol flat in PropertyGuru.

Unlike one year ago where you could even hear remarks that goes " No $60k COV, don't bring the buyer to the flat. LOL

What???!!!! Seriously??? What flat type & which part of punggol?

Like this die Liao lah! Cannot imagine 2-3yrs down the road!

[GIG]

The chances of nett nett losing money is unlikely, as like yourself, I collected my punggol bto in 2006 buying at below $200k.....but like everyone we hope to maximise our capital gain to keep for rainy day (esp raising int rates).

Logically, with so many people NEEDING (instead of wanting) to sell during that period, prices should drop quite abit!

However I'm hoping all logic is defied & prices stay stable (at most drop 10%)....haha. My dad in law is of the old school of thought that Sg is land scare, + with all the developments in punggol prices even if drop won't be a lot, he even dare say maybe will go up abit! Lol

Really in a dilemma now. If sell first now I could need to spend $70-80k on rental for next 3yrs......friends say price haven drop I oredi lugi so much!

Yup net loss is quite unlikely. Many resale flats are sitting at large profit.
And that is also the reason i believe the govt willing to let price to depreciate.
Drop Up to what level is only the govt knows. If resale prices have gone up more than 100%, i think the price to drop can be quite significant also.
So the cooling measures for HDB will stay for sometime at least just before the next election in 2016.

[chrischocolates]

How about getting a PC at EC prices ?
Grab the opportunities now !
Last few 3bedrooms ground floor and duplex !
More information HERE!