If you’re thinking of buying a property, then perhaps you should check out EC at Tengah Plantation Loop. These types of condominiums require a deferred payment scheme. They are also not eligible for HDB loans, and they’re not near bus interchanges or MRT stations. Regardless, there are many reasons why ECs are becoming popular with first time buyers.
ECs are more ‘atas’ than private condominiums
Executive condominiums (ECs) are condominiums with additional facilities. They are usually cheaper than private condominiums and have similar finishings. They also qualify for the CPF Housing Grant. If you are a first-time buyer and do not need to have a lot of money for a mortgage, ECs are a good choice.
When it comes to buying a new property, many first-time property buyers find it difficult to decide between executive condos and private condominiums. Both types of condos offer full suite amenities and are built by private developers. However, ECs have an edge over private condominiums, which are generally cheaper because they are built on cheaper land.
As an investment, Executive Condos are also a good option. The prices are slightly lower than private condominiums, and are ideal for first-time property buyers. However, these units are usually located further from city centers and are not convenient for public transport. Many residents opt to use private transportation instead.
ECs require a deferred payment scheme
ECs require a deferred-payment scheme for first-time property buyers who have sufficient down payment amount and 80% eligibility for home loan. This scheme is helpful for buyers who do not have enough cash or do not want to pay the full amount upfront. But, before opting for such a scheme, it is necessary to be sure that the home loan is affordable for you. The DBS MyHome Planner is a useful tool to figure out whether you can afford a property.
ECs are typically located in outskirts of cities. This is because the land here is cheaper. As such, you will not find many amenities such as MRT stations and bus interchanges. You will have to get a loan from the bank to buy an EC. The banks follow the loan-to-value (LTV) ratio to make sure you can afford the property. This means that you will need to pay at least 75% of the property’s valuation.
ECs are HDB properties in the first decade. As such, you will have to adhere to the HDB’s rules and regulations. For example, you have to stay in the home for five years before you can apply for an EC. Moreover, you can’t apply for the scheme if you have already bought two properties. However, you can apply for ECs online.
ECs aren’t near MRT stations or bus interchanges
ECs are increasingly popular among first time property buyers, as they don’t require a lot of maintenance and are relatively cheap. ECs are often built in areas with lower land prices, such as the outskirts of the city. As such, they are not in the most convenient location for commuters, and are therefore not near bus interchanges or MRT stations. ECs are also not eligible for HDB loans and must be purchased with a bank loan. The loan to value ratio is usually around 75%.
ECs are also less expensive than private condos and still come with the typical condo amenities. They include a fully-equipped kitchen and comparable finishings to those of private condos. Furthermore, they can take advantage of the CPF Housing Grant. Additionally, these units can be sold to foreigners from the 11th year onwards.
Bukit Batok Town has two new MRT stations. These will make EC residents’ commutes to and from work more convenient. Additionally, the Jurong Region Line will connect Bukit Batok with Jurong and the Downtown Line. In addition, the new station complex will include 5 exits, making it easier to reach your destination by MRT. This is particularly important for buyers of ECs and new developments.