Benefits of Living in an Executive Condominium in Singapore
Executive condominiums are popular in Singapore as a style of public housing that was introduced back in the early 90s. Executive condominiums (or ECs) are considered to be a combination of public and private housing, and can be found throughout Singapore. ECs are highly appealing to prospective buyers, as they contain amenities similar to private condominiums such as swimming pools, playgrounds, landscaped gardens, tennis courts, function rooms, BBQ pits, gyms and in-house security staff.
There are plenty of benefits of living in an executive condominium in Singapore, and one of them is the economic advantage. ECs can ask for a lower purchasing price – roughly 20-30 percent lower than private condominiums – from the buyer because these prices are subsidized by the government. This unique mix of affordable pricing and luxury living makes them hugely appealing to first home buyers or for those looking for a quality investment property. Housing grants can also be used to finance the purchase of the property, and given that this amounts to up to $30,000, that can make it even more financially feasible for many citizens.
The difference between ECs and actual condominiums are slight, with ECs consisting of the same features and additions as private condominiums, but with government-mandated regulations and rules that must be followed by tenants. These regulations come into play during the application process, whereby each applicant must be declared eligible for this type of housing, as there are the various criterion that you must meet in order to be thought of as eligible. These include:
– Being a Singaporean citizen
– The household income being lower than $14,000
– Not having owned any property, locally or globally, in the past 30 months prior to your application, or owning any property currently
– The applicant hasn’t previously owned more than one EC housing property, as you can only buy subsidized
There are also various schemes you must apply under, such as Public, Single, Fiancé, and Orphan, as well as a minimum occupancy period (MOP) of five years. This means any owners must reside in the EC for that timeframe until they can rent their unit to others, or sell it. So while there are plenty of hoops applicants are required to jump through, the end result of owning your own EC is worth it.
ECs are the perfect way to get into real estate, especially for those that fall into what’s known throughout Singapore as the ‘sandwich class.’ That is, those who live comfortably within their means yet earn too much income to qualify for any of the previous housing grants available, and aren’t able to afford the high cost of private condominiums. And not only are ECs able to provide security and stability, but they’re also in beautiful, prime locations such as Pasir Ris, Jurong East, Tampines, Choa Chu Kang and Bukit Panjang, just to name a few.
While purchasing an EC can also make for a suitable investment, the MOP makes it difficult to forecast future investing. This is because the Singaporean government has created the plan with homeownership in mind, in order to easily house those citizens who might have been struggling by giving them a better, more affordable option. Overall, buying an executive condominium is a great move for any Singaporean citizen.