Purpose of Buying
When considering whether to get an EC or a resale flat, an important thing to consider is your purpose: whether you intend to make that flat truly yours and stay in it for an extended period of time, or it is merely a stepping stone to more luxurious properties. Since ECs achieve privatised status after 10 years, selling your unit at a higher price will most likely be easier due to lower restrictions.
Resale flats cannot be sold to foreigners and Permanent Residents (PRs) need to wait 3 years before they can buy one. On the other hand, an EC will be just like a private condominium after 10 years, and can be sold at a higher price to foreigners and even corporate entities.
ECs are similar to that of private condominiums, and come with facilities such as a pool, gym, function room, tennis courts etc. Obviously, you will not get to enjoy such facilities in a HDB flat. So, ask yourself if these are important to your lifestyle. If you do not require such facilities, why spend the extra dollars every month on maintenance fees? Unless, of course, these extra dollars do not really matter to you.
Weighing Location and Cost
How much are you willing to afford and what are your concerns regarding location? Say you are willing to spend $700,000 on your flat, would you prefer a resale flat at a more mature and/or central area or a smaller EC flat at a less mature and/or central area? Once again, it is a matter of needs, wants, and considering what is important to you. Is it important for your flat to be of close proximity to the MRT station? What about shopping malls? How far from town are you willing to go? These are just some questions to ask yourself.
Ultimately, choosing a flat, and the type of flat comes to individual’s needs and of course, how much you are able to fork out. If you are tight on cash, getting an EC may not be that wise of an idea. Need help or advice? Contact Us and we will be more than willing to advise you!