HDB Executive Condos (ECs) is similar to that of HDB flats, yet different in various aspects. ECs are built by private developers, but are considered to be public housing in its first 10 years. Not only that, ECs come with facilities which are not available in the HDB flats. Though the price is steeper compared to HDB flats, it is still much more affordable than private condominiums. With that, let us share with you in detail about the advantages of getting an EC.
Benefit #1: Privatisation
What started off as a public housing under HDB will eventually become a private property after 10 years. After the 10th year mark, you will be able to sell off your private property without any restrictions (i.e. to foreigners). This opens up a bigger market for you and you will be able to sell off your property much quicker than HDB properties.
If you did not know, HDB flats can only be sold to another Singaporean or two Singapore Permanent Residents (PRs) after the 5 years Minimum Occupation Period (MOP). Similarly, after the 5th year mark, ECs can also be sold to another Singaporean or two PRs.
Benefit #2: Housing Grants $ Affordable Prices for New EC
As ECs are under HDB initially, CPF housing grants can be taken up to help with the finances. This makes ECs more attractive than private condominiums as you are eligible for the housing grants while paying a lower price with the full range of facilities available.
To be eligible for the CPF Housing grants, the average gross monthly household income must fall below $12,000. In addition to grants, ECs are 20% - 30% cheaper than private condominiums.
For those whose household income exceeds HDB flats’ income ceiling of $14,000, getting an EC is the best option. The income ceiling for ECs is $16,000. You will be able to apply for the housing grants and purchase your own place to stay in at around 20% cheaper than private condominiums.
Benefit #3: Purchase Priority
First-timer privileges apply to all properties under HDB, inclusive of ECs. HDB aims to provide a home for new Singaporean families, thus, at least 70% of the new units have to be set aside for first-timers. This makes the buying process easier for locals as the ECs’ market will not be as competitive as a private condominiums’ market.
Despite the benefits of getting an EC, there is one thing to note – you will not be able to take on a HDB loan for ECs. Simply put, should you need a loan, you can only approach a bank to get one. This would mean that you will have to have sufficient funds to afford a higher downpayment.