With its scarcity of physical land and limited available parcel, getting an affordable house in the Asian country of Singapore is definitely a huge challenge. Popular with professionals, young couples and new graduates beginning their own family, the sales of Rivercove residences Executive Condominium in the Asian country of Singapore has rapidly gone up.
How to Purchase an EC in Singapore?
Getting an EC in Singapore is fairly simple and the same procedure applies as to getting new private condos. Basically, the Contractual Part happens to be a two-step procedure that you have to fulfill to be able to buy the property.
Option to Purchase
Once you have made the decision on the EC, down payment options, unit type, and price, you should pen an agreement for “Option to Purchase”. This provides you with a 14-day exclusivity time to reach the decision on whether to go ahead with the condo or not. At this stage, the condo owner is not permitted to offer the property to other interested parties and normally, 1% of the buying price is given as a good faith deposit.
Offer to Purchase
If you have completely decided to buy the EC and wish to bypass the Option to Purchase level, you can skip it by specifically going with the “Offer to Purchase”. A 5% to 10% deposit is usually required to secure the condominium.
Here are some tips for buying an executive condo like rivercove residences:
When buying an EC unit a big issue is the type of loan you’ll take out. The main options are HDB concessionary loans and bank loans. ECs are technically semi-private properties. AS a result you can finance the EC units via a bank loan.
However, you’ll be under the Mortgage Servicing Ratio (MSR) like HDB owners. The main difference between both types is the interest rates and amount of loan. When you take out a bank loan it’s important to use caution. There’s over 120 bank loan packages throughout Singapore. So it’s important to know exactly what you want prior to making a commitment. In addition, you should consider getting professional help so you can find the best financing option.
This is one of the most important issues to take up since it can affect whether or not a unit is within your budget. In fact, one of the plusses of an EC unit is it can be nearly one-third cheaper than private condos. When you factor in the housing grants available for first-time buyers it makes it an excellent option when you’re moving up from public housing.
The prices can range quite widely. However, a 2-bedroom unit will cost about $650K and a 3-bedder will cost. The prices are somewhere between public housing units and private condo units. So if you want to move up from public housing but can’t really afford private property yet, this is an excellent option to consider.
- Maintenance Fees
Most condos including ECs involve shared maintenance costs via the management committee. They’re typically higher than the costs for HDB flats. The mount is usually about $200. Still, ECs that have fewer tenants have maintenance fees that can be $400 or higher each month.
Is it worth the cost? Some residents might think the prices aren’t worthwhile if they don’t use the facilities. That said, it’s important to remember that luxury has a higher price tag. If you don’t want to use the facilities it’s up to you but remember that everything is shared in the case of condos. That includes ECs.
The main advantage of buying an EC is although the unit begins as an HDB unit it will become a private property within time. Then the owner won’t be limited by HDB rules and can sell the property to Singapore citizens and permanent residents. After a full decade foreigners can invest in the properties as well. However, keep in mind that after the property becomes privatized potential buyers won’t have access to CPF Housing Grants anymore.
These factors are live when you decide to sell the flat. So it’s important to be aware of them so you’ll know what to expect.
- Payment Schemes
There are now 2 payment schemes.
Deferred Payment Scheme (DPS)
This type ofscheme allows owners to begin paying loans after the EC is ready to be occupied. Still, buyers must pay a higher price for their property so that’s something to keep in mind.
Normal Payment Scheme (NPS)
Here’s the other payment scheme you can use when purchasing an EC. Make sure to get the details so you’ll know what’s involved if you pick this scheme.