How To Select The Right Singapore Property HDB Flat For You
Most young families in Singapore buy an HDB flat as their first property as it is cheaper versus personal housing, and government contributions are available for their purchase and financing. More than 80% of Singaporeans live in HDB flats, and more than 90% of them own the home they live in.
To buy an HDB flat, you want to meet numerous eligibility requirements, including the possession of a Singapore citizenship or Permanent Residence. Also note that you'll be restricted by specific circumstances after you purchase them, including a Minimum Occupation Period of 5 years before you can sell it, buy private property, or rent the whole residence out (please visit www.hdb.gov.sg for more information).
Once you have checked that you're suitable and came to the decision that buying an HDB flat is your best choice, the right HDB flat for you will depend on your: 1) budget 2) desired location 3) gross monthly household income 4) timing need and 5) the size/number of bedrooms you need.
In general resale lofts are way more costly than new residences in the same spot, plus you have got to top up the Money Over Valuation (the median COV was $30,000 in the second quarter of 2010). But if your gross monthly household income is greater than $10,000, then you have to buy a resale flat. Also if you want a place to live in urgently and are not in a position to wait the 3 to 4 years a new flat sometimes takes to get assembled under the Build To Order (BTO) scheme, you will have to purchase a resale flat. Otherwise, you can look at purchasing a new flat.
Earnings eligibility to purchase new HDB flats
If you choose to buy a new flat, the type of flat you should purchase is also impacted by your gross monthly household income (the sum of the earnings your folks makes).
If your gross monthly household income doesn’t surpass $2,000, you are able to purchase a new 2-room flat. 2-room studios are generally less than 500 sq. feet and include a master bedroom, kitchen, living area and storeroom. They are intended for lower income homes. They’re the personal housing equivalent of a one bedroom residence.
If your gross household earnings doesn’t surpass $3,000, you are able to get a new 3-room flat in a non-mature estate. The floor area of new 3-room terraces range from 646 to 700 square feet and they come with one main bedroom, one common bedroom, a kitchen, living area, common bathroom and storeroom. They are the personal housing equivalent of a two bedroom apartment.
If your gross household revenue is between $3,000-$8,000 you can look at 4-room, 5-room and executive lofts.
4-room residences are sometimes less than 1000 sq. feet in size, and have an excellent bedroom, 2 common bedrooms, a kitchen, living area and storeroom. They're the non-public housing equivalent of a 3 bedroom apartment.
5-room flats are around 1200 sq. feet and have an excellent bedroom, 2 common bedrooms, kitchen, another living and dining area, and storeroom. They are meant to offer a bigger living space for extended families of 4-5 members. They're the non-public housing equivalent of a bigger 3 bedroom flat.
Executive residences are usually around 1400 square feet in size, and have an excellent bedroom, 2 common bedrooms, a kitchen, separate living and dining area, storeroom, and space for a study room. Some executive residences come with a balcony as well. They're the personal housing equivalent of a 3 1 or 4 bedroom apartment.
If your gross household surpasses $8,000 but is less than $10,000, you can look at Design, Build and Sell Scheme (DBSS) flats and Executive Condos.
Design, Build and Sell Scheme (DBSS) lofts are built by non-public developers who have got to bid for the land, design and construct the terraces. They sometimes come with minimal finishings and the exteriors look more like personal housing but without the facilities. The HDB provides housing loan and conveyancing services to eligible consumers.
Executive Condominiums are a hybrid between public and private housing. They were introduced by the HDB to cater to young graduate and pro Singaporeans who wanted better quality housing but could not afford private property. They are built by private developers and have condominium facilities. But they also have restrictions like the Mininum. Occupation Period of 5 years before they can be sold, and from Year 6 to 10 can only be sold to customers who meet HDB’s suitability necessities. From the 11th year all limitations are lifted and they can be bought and sold readily, even by foreigners.
Hope that you enjoyed reading this Singapore property market article!
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