Should You Choose A Resale Flat Or BTO Flat As Your Love Nest?

Organising a wedding for 100 guests or more can be tricky. Budgeting is core to preparing a successful celebration. On average, weddings in Singapore cost about $40,000 to $60,000 and can go up to $100,000. The cost of a wedding largely depends on the type of wedding you envision and its scale, and the number of guests you are planning to invite.

But the bulk of the cost goes to the property. Here we have a breakdown of the costing and procedures of getting a property after a wedding.

Congratulations on getting them to say yes! The “fun” is just starting. If you thought you found the best time, place, and method to propose, visualise the stress, you’ll both go through as you plan your wedding ceremony and decide on a location for your wedding banquet. But the most significant decision is yet to come when you choose where you will live. This discussion simply could put an end to your marriage before it even begins, especially if he’s wishing to save money by living near his parents.

Singapore today, couples find themselves in an exciting situation. With the measures taken to cool down the property market over the past five years bearing fruit, there’s really no better time to buy an HDB flat. And why? Because both resale flats and new Build-To-Order flats are almost reasonably affordable. We describe why you should opt for a resale flat as a newlywed and calculate how straightforward it would be to get one now.

Why Choose A Resale Flat Compared To A Build-To-Order (BTO) Flat?

In the past, this topic made little sense. The bloated Cash-Over-Valuation or COV that arose with a resale condo clouded any advantages a resale condo had over a Build-To-Order or BTO condo. COV could improve the price of a resale condo by $200,000 or more. The most unfavourable part for buyers? They could barely pay that amount in cash.

In 2016, it was reported that mediocre COVs had dropped to zero for the first time in six years. This meant that resale homes were once again comparable in cost to flats.

Here are five reasons why a resale flat is better:

1. You Get The Keys To The Condo Immediately Without Waiting Years

Of course, when we say “immediately”, we’re talking about a process of 6 to 8 weeks. However, contrasted to the 3 to 4 years you have to wait for a BTO flat, it’s like getting this immediately. Even booking a place for your wedding banquet demands more preparation time than getting your resale flat. It also indicates you won’t be compelled to make big decisions like buying an apartment too early in your relationship.

2. The Unit May Have Previously Been Renovated

Since you’re technically purchasing a second-hand HDB flat, the agent may have already done repairs that you like, and you won’t have to make too many modifications before you move in. This is especially true if the previous owners did extensive work on the kitchen. Considering how much Singaporeans waste on improvements these days, that’s a lot of savings!

3. Amenities In The Community Are Already Up And Running

Think of the communities where most BTO flats are found, like Punggol or Tampines. For example, the map of Punggol is full of “future streets”, “proposed places of worship”, buildings with a “(U/C)” sign for “under construction”, and LRT stations that have not yet opened. You’ll have to use your creativity when deciding if this is the typw of neighbourhood you want to live in if you start your wedded life.

With a flat, on the other hand, the community is already established. You know exactly what the transportation situation is like, what schools are nearby, and if the nearby places of worship are suitable to your needs.

Why is this significant? Because these amenities affect your property’s value, it’s easier to gauge how prices will grow in a BTO development. Yes, prices in Jurong East are expected to skyrocket due to its recent exponential growth into a lively hub of activity, but on the other hand, Punggol has struggled for years to convert a self-sufficient city.

4. Extra Support If You Buy A Property Near Your Parents’ Home

Did you know that you can get up to an extra $20,000 if you live near your parents? If your parents live in an HDB flat, buying an home within the same town or within four kilometres of them qualifies you for the newly enhanced Proximity Housing Grant (as of Budget 2018).

If your parents live in a private home, then you can approach the HDB to check if your resold flat is in this four-kilometre radius and thus qualify for the extra $20,000. And if you are prepared to live with your parents, you can now get $30,000 in grants gratitude to the announcement in Budget 2018.

5. You Are Still Eligible For An Hdb Loan Or A Bank Loan

Whether you are buying a BTO or a resale flat, you should be qualified for an HDB loan or a bank mortgage if required. The decision between an HDB loan and a bank loan depends on your situation. If you are the kind for whom buying a Singapore jackpot ticket is the most significant speculation risk you will ever take in your life, you should go for the HDB loan. However, if you want to possess more control over the variety of loan, you should consider a loan from a bank. Compare house loan interest rates and choose a mortgage loan that befits you.

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