Frequent Asked Questions on Executive Condominium

Section C： General FAQs

  1.      How soon will I know whether my application to purchase an EC has been approved by HDB?

The current normal processing time to receive a feedback from HDB is within a month.   

You will be informed by the developer / booking agent if your application has been approved.  You will be notified thru your booking agent if additional supporting documents need to be submitted.   

As each cycle of review and approval takes about a month, it is important to submit the required documentations first time right to avoid anxiety/delay.

      2.    We are eligible for EC, should we buy an EC or a private condominium?

Read my thoughts on whether to buy a BTO, EC or private condo.

Between EC and private condo, EC would be a better choice.  For the same budget, you will be able to afford a bigger EC unit than a private condo.  For 1st timer, t he ‘cherry’ is there for you to pick, make use of the opportunity when you are still eligible to buy an EC.

There has been arguments that private condo is a better choice because there is no MOP requirement and you can get a bigger mortgage loan to buy a condo than an EC.  These are true but IMHO, 5 years is not a long wait and why take on more debt when you can avoid it.  Private condo would be choice if there is no EC in the vicinity that you like to setup your home.

3.    I am a current EC owner. What are my options after the MOP? 

Once your MOP is met, the available options are: 

a)     Continue to live in the EC unit. 

b)    Rent out the whole EC unit. 

c)     Sell off the EC unit.  

d)    Purchase another residential property.  

·         If it’s a HDB resale unit, you have to sell off your current EC unit and wait out 15 months before your purchase. 

·         If it’s a private property, you don’t have to sell off your current EC unit. 

·         If you are still eligible and want to purchase another new HDB BTO/EC unit, you must sell off our current unit first, wait for 30 months to lapse before you can apply for the next unit. In addition, the resale levy of $50,000 needs to be paid. 

  4.     When and where is the next new EC launch? 

     You can find out the next new launch from the ‘EC Under Construction / Planning' tab on the Left Panel.  

To check when is the next EC launch; add 15 months to the site award date to get an estimation of the launch date.  In general, premarketing activities will start about 2-3 months ahead of the estimated launch date.    

The other way simplest way is to pre-register your interest with me.  I will keep you posted again nearer to the launch date. 

   5.    I have done my IPA and there are few EC projects and units that are within my budget. Should I wait for the new launch
          that is coming up or just go ahead and choose from the available units since it will TOP earlier 

You have your answer if you are able to proritise your needs with regards to your preferred location, desired unit size, the unit orientation/facing, layout functionality, the project completion timing and pricing

While new launch may offer you a better choice of units, there are 2 salient points to note:

a) The wait for new launch may be a few months but the TOP difference may be 1 to 2 years. 

b) With the 30% MSR impacting home mortgage and rising land cost, new launch EC unit is likely to be smaller in size and/or cost more.

  6.     In current marlet situation, will the new upcoming launch be more expensive than the existing ones?   

The Market Demand and Supply will determine pricing trend.  Generally even if EC demand stay flat, prices will edge up steadily over time.  Pricing will head south if there is any major shock to the economy (whether internal or external) or when new rules/regulations are introduced to curb demand.

Fundamentally, there is a positive correlation between the land bid price and selling price. With inflation, land bid price is likely to creep up, coupled with increasing construction cost, it is not wrong to assume that the prices of new upcoming launches will be more expensive in a mature market condition.

   7.      I had an existing flat that has not been sold.  I already purchased an EC unit, am now waiting for TOP/key collection.
            It is better to sell now or wait till key collection? 

To sell now or wait till key collection is a personal call.   You have 6 months to sell your existing flat after you collect the key to your new EC unit. If you have enough fund to cover the payment schedule, most homeowners do not want to step out of their comfort zone and will sell their existing flat only after collecting the key to the new unit.  Homeowner who need to sell after their booking (now or before key collection) are mostly in the category who foresee price falling in the period before key collection or have earmarked their flat sale proceeds for a bridging loan from the bank.

In current tight rental market situation (3Q22), alternative accomdation is an important factor that need to be considered if you choose to sell now.  Selling after key collection is a better choice if you sufficient fund to cover the payment schedule.  It's my personal opinion, and I shall not be held for any financial loss as a result of my recommendation, The final call as to when to sell is still yours to made

.

Back: Home                                                               Back     FAQs Finances                     Next : Gallery/News