What Should One Choose: Condo Or HDB flat?

Purchasing property is still a dream for many as the prices of the real estate are touching the sky. Still, with a majority of the resident population living in HDB flats in Singapore, there are many choices when it comes to public housing. If the buyer is willing to purchase a private property, such as a jade scape, a condominium unit, they should have the financial options ready before making a purchase.

Here are some of the important guide to look at before taking the plunge.

Set The Long Term Goals

It is necessary to prepare the long-term goals. Buyers should start thinking about what they want, then plan towards it, this may help them to choose between an HDB flat and a private condo unit like had escaped. For example, the plan should start by purchasing an HDB flat as a first home, before subsequently upgrading to a condominium.

Rules Of Engagement

It is vital to have the information about the current regulations that govern the eligibility to purchase either an HDB flat or a private condo like jadescape. The extra costs that are subjected should be kept in mind too. Here are some of the aspects to keep in mind.

Minimum Occupancy Period

When the buyer purchases a property, they must own it for a minimum of time and they are not allowed to sell the property during this period, except under special circumstances.

Stamp Duty Fees

The paperwork involved in a real estate transaction, including stamp duty on property purchase that the buyer has to pay, entails a fair amount of money getting spent.

Minimum Down Payment And Loan Financing

When the buyer is purchasing an HDB flat, they have the option to finance the amount with either an HDB concessionary loan or a bank loan. When purchasing private properties, it can only be financed by bank loans, with a down-payment of 20%.

Usage Of CPF Monies

The buyers need to finalize on how they are going to plan the mortgage, other than the down-payment.

Mortgage Service Ratio

Mortgage Service Ratio is the proportion of the monthly gross income that is spent on mortgage repayment. Debt obligation secured by the properties are also included in this.

Value Of Property In Future

It is a common belief from a capital appreciation angle that a property’s value will only go up in land-scarce Singapore. Compared to some other asset classes, a property can indeed hold value better. A minority of the resale flats with a short land lease remaining might provide better rental yields if they are in the rest of central region as compared to a private condo in a suburban location outside of the central region.

Take Other Needs Into Consideration?

Finances may take a back seat due to other important factors, for some home buyers. For example, some buyers want to buy a condo unit which is in the same estate as their parents so that they can take care of or visit them every day. Or in some cases, they might wish for a smaller place because their spouse does not plan for kids. Some buyers also desire a place which is near to their workplace.

Ranking and evaluating this all scenarios and after that, the buyers should make the decision wisely.

Conclusion

To conclude, there are many factors that the buyers should consider before deciding between an HDB flat or a private condo unit similar to jade scape condo. Also, they should work out whether their cash flow allows them to comfortably service the loan in the future.