Should I Buy an Executive Condo in Loyang Singapore?

When considering purchasing property in Singapore, many different aspects come into play – one being whether to opt for an Executive Condo (EC) or regular condo.

ECs offer attractively priced condo alternatives compared to private mass market units, and can qualify for CPF housing grants. However, in order to purchase one you must meet specific criteria.

1. It is a good investment

Privatized ECs present an ideal investment opportunity, providing investors with an attractive property that has significant capital gain potential. Investors should keep the rise in ABSD in mind; its effects could reduce purchasing power of wealthy buyers and make them less inclined to purchase an EC.

In addition, when purchasing a resale executive condominium, the Mortgage Servicing Ratio (MSR) rule will apply; this less stringent regulation allows more loans and expands your pool of prospective buyers.

An important consideration when purchasing an EC is its lease duration. While condos typically feature 99-year leases, ECs tend to offer shorter tenures of 60-59 years – meaning you may have to renew it sooner and possibly incur costs; yet still more economical than private condominiums in terms of total cost.

2. It is a good place to stay

Executive condominiums (EC) are an innovative blend of public and private housing designed for those in the “sandwich class”, who earn too much to qualify for BTO flats but cannot afford non-landed private property. Constructed by private developers and sold at subsidised prices by HDB, ECs feature all of the benefits associated with condo living while adhering to some rules similar to HDB flats like having a five year Minimum Occupancy Period as well as restrictions on who may own them.

However, Executive Condos (ECs) have become increasingly popular over time due to their lower price and convenience of location. Most often located within easy access of town centres and shopping malls in the suburbs, ECs often feature more space than HDB flats built by reputable developers such as Sim Lian Group; therefore making for a smart long-term investment, particularly with projects boasting proven success histories such as Sim Lian Group’s.

3. It is a good place to raise a family

Executive condos (ECs) are hybrid public/private housing developed by the Housing and Development Board of Singapore to cater to middle-income Singaporeans such as young graduates and professionals who can afford HDB flats but find private properties out of reach. Offering comparable design features as mass market suburban private condominiums but at more competitive rates.

ECs tend to be located in the suburbs in order to keep costs affordable and comply with mortgage financing rules, yet many are within driving distance of town centres and amenities such as supermarkets and wet markets – for instance North Gaia is only three bus stops away from both the Yishun integrated transport hub and Northpoint shopping mall!

As opposed to regular condominiums, Executive Condominiums (ECs) do not become available for sale on the open market until their 5-year MOP and 10-year wait to become fully privatised are complete, to protect buyers against over-stretching their finances and avoid financial strain. Therefore, only those eligible to receive CPF housing grants can purchase an EC.

4. It is a good place to live in

Executive condominiums (EC) provide Singaporeans who wish to live a luxurious lifestyle at an affordable cost the perfect solution. Offering similar facilities like gyms and swimming pools as private condos at much more reasonable costs. In addition, ECs tend to be more self-contained than regular condos while remaining close to public transport hubs so residents can easily navigate their way around city life.

ECs are similar to HDB flats in many ways, yet differ by having additional amenities and being built by private developers. Their primary target market are Singaporeans who make more than the minimum eligibility ceiling but lack the finances required for purchasing private condominiums; eligible candidates include both citizens, permanent residents and foreigners.

EC owners cannot sell or rent out their units during the initial five-year Minimum Occupation Period (MOP), although they can sell or rent out individual rooms after MOP ends. Once an EC is fully privatised after 10 years, however, it may be sold to anyone–even foreigners–without restriction.