To usual property buyer, who are not experienced in buying or selling, they will not be able differentiate between the Executive Condominiums and Condos. But as a property seeker, it is important to know about the 3 main differences between them:
- housing grant for executive condo
- the restrictions on ownership
- and price level
For example, the EC owner is not able to sell his/her property for the first five years. Only five years later, the owners are allowed to sell their EC in the open market, but only to Singapore Citizens or Singapore Permanent Residents. And only 10 years later, the owners can sell the EC to the foreigners. Because of these ownership restrictions, generally, condos are priced much higher (20-25%) than executive condos. For example, when it comes to investing there is a gap between the returns of the investment.
If one has decided to buy an Executive condo, he/she should meet the following criteria:
- The buyer must be a Singaporean Citizen
- The buyer’s income must not be above $14000
- If the buyer has not owned another property during the last 30 months
- If the buyer has not owned more than one Executive condor HDB flat
It is well-known that executive condos are relatively new inventions, while condos have been a part of Singaporean real estate for already 40 years. However, there is not so many differences between EC and condos, as both have almost the same amenities, such as tennis courts, private parks, swimming pools, 24/7 security, etc. But, there are also some crucial differences, which should be considered. For example, the Executive Condominiums were created to be used as homes rather than investing assets, because of the restrictions on ownership described above. There are some very impressive advantages of buying an Executive Condo, as it is restricted to residents’ usage and has a higher capital appreciation.
When comparing these two types – EC and condos, it is much advisable to get the EC, if you do not have plans to sell within a decade of buying it. Also, you should take into consideration the fact that the EC buyers can have CPF Housing grants if they are eligible.
If any of you does not know, the CPF Housing Grant is a housing grant, given by the Government to help the legit buyers, buying an Executive Condominium, almost from $10,000 to $30,000. Usually, the grant is presented to young professional couples, who are buying the Executive Condominium for the first time. So, it is really appropriate to buy an Executive condominium, if you have decided to live there. It is the perfect option for you.
Not taking into consideration the restrictions on ownership and the price gap between the EC and condos, you should definitely choose Executive Condominium, as a place to live. You can have all the innovative amenities, mentioned above. Of course, it is up to you to decide all, but it is really advisable to purchase the Executive Condominium, as an asset and a family property.