Whether you’re looking to buy a new or a pre-owned executive condominium (EC) in Singapore, you’re going to need to make sure that you account for the resale levy when you make your purchase. Resale levy is a tax levied on the sale of executive condominiums, but it’s not always waived.
Demand for ECs has increased steadily
Buying an Executive Condominium (EC) in Singapore is not a new concept. The HDB first introduced them in 1996, when private home prices were at their peak. Since then, more and more ECs have been launched to keep up with demand. However, there are differences between buying ECs and HDB flats.
For starters, an EC is a hybrid type of housing. It has the convenience of a condominium, but also features amenities similar to a private home. It is also bounded by selling restrictions and a resale levy. These factors should be considered when buying ECs.
First time home buyers form the bulk of the EC buyer population. They tend to be on a budget and are looking to maximise their CPF grant.
HDB doesn’t fully waive resale levy on executive condominiums
Buying an Executive Condominium in Singapore is not as straightforward as you might think. In fact, resale levy can prove to be a hindrance for second-time buyers. Thankfully, there are ways to minimise the impact of the levy.
The Resale Levy is a mandatory payment when you sell an HDB flat. This levy is payable in cash. However, it is possible to get a partial waiver.
To qualify for a partial waiver, applicants must meet certain criteria. Typically, second-timer households and families with significant financial hardship are granted a partial waiver.
The Resale Levy is calculated as a percentage of the resale price. Normally, it is 10% of the resale price.
EC buyers compete with fewer people when buying a unit
Buying an EC in Singapore requires a bit of due diligence, particularly if you’re a first time buyer. While ECs may appear to be more affordable than private condos, you must understand that you’ll still be paying a resale levy.
ECs are a hybrid form of housing. They are a combination of private condos and HDB flats. They are managed by private developers. They’re typically located in areas that have cheaper land. They’re also located away from MRT stations and bus interchanges. They’re characterized by condo-like amenities such as indoor gyms and pools.
While the price of an EC may be lower than that of a private condo, it’s important to consider that the resale levy will be applied to land sales that are launched after December 9. You’ll be paying an extra 3 percent on top of the resale levy.
ECs are less likely to be fully waived than in Singapore
Purchasing an Executive Condo (EC) is a great way to get into the Singapore housing market. However, the resale levy that you have to pay when you sell the property should be taken into account.
ECs are not like most condominiums, because they are located in non-mature neighborhoods. The average price of an EC rose by about 0.3 percent last year. They are also cheaper than many full-fledged condominium projects.
Purchasing an EC requires that you pay a Resale Levy that can be paid through the developer or the HDB. In some cases, you can waive the Resale Levy. However, it is unlikely.
There are several subsidies that are available for ECs. For example, the CPF Housing Grant can help you buy an EC. There are also Citizen Top-Up Grants, which can be obtained by SPR families with SC children.
ECs offer a chance to purchase a “future private condo” while still benefiting from government subsidies
Buying an Executive Condominium (EC) in Singapore requires careful consideration of finances and other relevant factors. In particular, HDB Resale Levy is a financial burden that should be factored into your plans. This levy was introduced by the Housing and Development Board (HDB) to ensure that the allocation of public housing subsidies is fair to all.
While the Resale Levy is a good idea, it is not the only reason why you should consider buying an EC. Other factors such as the price of the property and your financial status are also important. Also, keep in mind that ECs are semi-private properties, so there are higher maintenance fees than HDB flats.
ECs are subject to resale levy
ECs are hybrid housing that offer the convenience of private and public housing. They are also cheaper than full-fledged condominium projects. They are generally located in outskirts or off-center locations. They feature amenities like clubhouses and swimming pools. ECs are regulated by the HDB.
To qualify for an EC, applicants must be Singaporean citizens or Permanent Residents. They must have a family nucleus of at least two Singaporeans. They must be at least 35 years old. They must also have a family income of no more than $16,000 a month. They must also be a Singapore citizen or Permanent Resident at the time of buying the property.