What is an Executive Condo (EC)? ECs are a hybrid of public and private housing and have grown popular in recent years. The scheme was introduced in 1996 when private home 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, as their incomes have exceeded the previous $8,000 income ceiling. Like any other condos, ECs are designed and built by private developers - but come with restrictions. EC buyers have to form a family nucleus comprising at least 2 Singapore Citizens (SC), or 1 SC and 1 permanent resident (PR). A Minimum Occupation Period (MOP) of 5 years is applicable before it can be sold in the open market. ECs can only be sold to foreigners after 10 years when the EC has been privatized. youtube/watch?v=U88XsBn9VL8 Why are ECs cheaper than other Mass Market Private Condos? (1) Income ceiling set at $12,000 and MSR of 40% set by the government. As such, EC developers are mindful of the affordability of the buyers who are eligible to purchase an EC; (2) Lower land costs compared to mass market land sites; and (3) EC lands are mostly bidded by construction firms who are also developers. As such, there is no double layer profit between a developer and a construction firm; and Why are ECs Popular? (1) Additional Buyers Stamp Duty (ABSD) is not applicable; (2) Sellers Stamp Duty (SSD) is not applicable for EC as owners have to fulfill 5 years Minimum Occupation period (MOP); (3) Deferred payment scheme is available; (4) There is no restriction to invest in commercial/industrial property as long as there is no residential accommodation component in the commercial unit; (5) Improved design and features. EC developers are now offering more to attract buyers wishing to upgrade to a subsidised private residential lifestyle living; (6) Enjoy the same lifestyle and facilities as private condos; (7) Possible CPF Grant for first timer up to $30,000; (8) Budget-friendly entry price (lower quantum compared to mass market private condos); (9) Comparable, or better potential future capital appreciation to condos; (10) Larger pool of potential buyers - can be sold under private property status after 5 years MOP to SCs and PRs, and to foreigners after 10 years; and (11) Good potential rental yield as design and facilities are similar to any private condos.
Posted on: Wed, 10 Sep 2014 09:28:57 +0000
Trending Topics
Recently Viewed Topics
© 2015