Buying Executive Condo (Blossom) in Bukit Panjang

[kakashi78]

Hi Dennis Sifu,

I wish to seek your guidance as my wife and I are considering buying the new launch of this EC in coming July. We are first timer (have tried 5 times in BTO till combined income exceed 8k) and we are buying this for as our first home and not for investing. The price of this EC is selling $680 to $700 psf approximatly. However, after reading many of your articles mentioning property prices reaching its peak, we are starting to worry about property crash.

Is it a ridiculous price of $680 to $700 for a EC which is not situated in a good location? Or should we just wait first? Apologies for asking silly questions. Appreciate your advice. Thank you

[Dennis Ng]

Hi Dennis Sifu,

I wish to seek your guidance as my wife and I are considering buying the new launch of this EC in coming July. We are first timer (have tried 5 times in BTO till combined income exceed 8k) and we are buying this for as our first home and not for investing. The price of this EC is selling $680 to $700 psf approximatly. However, after reading many of your articles mentioning property prices reaching its peak, we are starting to worry about property crash.

Is it a ridiculous price of $680 to $700 for a EC which is not situated in a good location? Or should we just wait first? Apologies for asking silly questions. Appreciate your advice. Thank you

Hi kakashi78,
I think the downside is about S$550 psf for EC at such a location.

[kakashi78]

Hi Dennis Sifu,

I wish to seek your guidance as my wife and I are considering buying the new launch of this EC in coming July. We are first timer (have tried 5 times in BTO till combined income exceed 8k) and we are buying this for as our first home and not for investing. The price of this EC is selling $680 to $700 psf approximatly. However, after reading many of your articles mentioning property prices reaching its peak, we are starting to worry about property crash.

Is it a ridiculous price of $680 to $700 for a EC which is not situated in a good location? Or should we just wait first? Apologies for asking silly questions. Appreciate your advice. Thank you

Hi kakashi78,
I think the downside is about S$550 psf for EC at such a location.

Hi Dennis Sifu,

Thanks for your reply. In your opinion, is EC consider worth buying for home stay? Or new HDB BTO higher capital appreciation compare to EC?

Thanks

[Dennis Ng]

Hi Dennis Sifu,

Thanks for your reply. In your opinion, is EC consider worth buying for home stay? Or new HDB BTO higher capital appreciation compare to EC?

Thanks

Hi kakashi78,
buying a home to stay, you're NOT looking at making money. How to make money becos if you sell high, you also buy high.

The main thing to consider is can you comfortably afford the monthly instalment. Standby enough Cash or CPF to pay for at least 6 months to 12 months of instalment so that should you lose your income, you can still continue to pay your instalment promptly.

When people say how much wealth they have, they do NOT even include the value of their Home.

[jfoo2]

Just to interject, I am a HDB owner now.

Since this question is on staying in private housing, may I know what are type of cost when living in a condo besides the maintenance fees and normal utilities charges?

Also, how does one estimate the yearly property tax to be paid? So am I right to say that there are 3 main expenses to look out for?

a) Monthly loan installment
b) Condo Maintenance
c) Property tax (What's the rough guide like?)

Any others?

[woonty]

Hi Dennis Sifu,

I wish to seek your guidance as my wife and I are considering buying the new launch of this EC in coming July. We are first timer (have tried 5 times in BTO till combined income exceed 8k) and we are buying this for as our first home and not for investing. The price of this EC is selling $680 to $700 psf approximatly. However, after reading many of your articles mentioning property prices reaching its peak, we are starting to worry about property crash.

Is it a ridiculous price of $680 to $700 for a EC which is not situated in a good location? Or should we just wait first? Apologies for asking silly questions. Appreciate your advice. Thank you

Hi kakashi78,
I think the downside is about S$550 psf for EC at such a location.

Hi Dennis Sifu,

Thanks for your reply. In your opinion, is EC consider worth buying for home stay? Or new HDB BTO higher capital appreciation compare to EC?

Thanks

Hi kakashi78

Then you will be taking on the much higher debt for "consumption" which is an opportunity cost since it will cannibalise your investment capital

Agree with Dennis even if we manage to sell high, we still need to buy another at high price (if we want to stay at the same area) unless we rent or live under the bridge or at the seaside, haha

Imagine for someone who has bought a 3 room HDB flat 30+ years ago at $19K (not typo-error) sell today at $300K+ will have to buy around this price or higher

So for your own stay, you've to consider & sometime may have to bite the bullet to make your joint decision

[Dennis Ng]

Just to interject, I am a HDB owner now.

Since this question is on staying in private housing, may I know what are type of cost when living in a condo besides the maintenance fees and normal utilities charges?

Also, how does one estimate the yearly property tax to be paid? So am I right to say that there are 3 main expenses to look out for?

a) Monthly loan installment
b) Condo Maintenance
c) Property tax (What's the rough guide like?)

Any others?

Hi jfoo2,
for owner-occupied property, the property tax calculations is as follows:

http://www.iras.gov.sg/irasHome/page04.aspx?id=2378

Condo maintenance typically is S$200 to S$300.

[jfoo2]

Hi Dennis,

Thanks. Can I know what is the average yearly premiums when it comes to home insurance for a condo such as the EC or a 3 bedroom pte condo in the surban areas?

I am not buying a condo, just trying to see the kind of expenses one would need to budget if one wants to upgrade from HDB to a private housing.

Thanks

[thomaslee]

I share my personal view.
I stay at EC for 12 years. I brought at $550k+ and now the market selling price is about $850k+. If i sell now, i will have profit gain but if i get back a condo with the same size as my current house, I don't think $850k is enough. I personally felt that current EC price is too high, don't forget EC is tight down by HDB rules cannot sell as you like.
On the other hand, as developer want to make more money, the EC space is also getting smaller, the unit area is small, overall area also smaller. If you are buying for staying, a point to consider.
EC or condo have some rules and regulation to follow, sometime i may find staying in HDB is better.
Market is getting crazy now, Hyundai 1.6l car selling at $100k+! DBSS flat selling $780k+...


上帝要你灭亡, 必先让你疯狂!

better be aware....

[Dennis Ng]

Hi Dennis,

Thanks. Can I know what is the average yearly premiums when it comes to home insurance for a condo such as the EC or a 3 bedroom pte condo in the surban areas?

I am not buying a condo, just trying to see the kind of expenses one would need to budget if one wants to upgrade from HDB to a private housing.

Thanks

Hi jfoo2,
insurance there are Fire Insurance and Home Content Insurance, typical insurance premiums for a year would be S$100 to S$200 a year, nothing much.

[kakashi78]

I share my personal view.
I stay at EC for 12 years. I brought at $550k+ and now the market selling price is about $850k+. If i sell now, i will have profit gain but if i get back a condo with the same size as my current house, I don't think $850k is enough. I personally felt that current EC price is too high, don't forget EC is tight down by HDB rules cannot sell as you like.
On the other hand, as developer want to make more money, the EC space is also getting smaller, the unit area is small, overall area also smaller. If you are buying for staying, a point to consider.
EC or condo have some rules and regulation to follow, sometime i may find staying in HDB is better.
Market is getting crazy now, Hyundai 1.6l car selling at $100k+! DBSS flat selling $780k+...

Hi thomaslee,

Just wonder have you thought of selling your EC and get a resale flat? But I'm not sure will this way earn a handsome profit though?



上帝要你灭亡, 必先让你疯狂!

better be aware....

Hi thomaslee,

Just wonder have you thought of selling your EC and get a resale flat? But I'm not sure will this way earn a handsome profit though?

[jfoo2]

Good that you bought an EC and has profit gains of almost $300k. At least you have an option to downgrade to HDB.

For a typical HDB owner, there is no other option except to downsize or rent if want to profit in such a situation.

[thomaslee]

I do not consider resale flat bcs most owner asking for high price. What i plan to do is to build up my fund thru investment and get ready to go in to get my 2nd house during the market downtrend. Currently renting out the EC and stay with parents.

[andy chan]

That's a good decision on renting out the EC.
Good rental and it helps to pay up the mortage of your place.
I am sure you have left over from the rental to either invest or save for your second house.

[Ax]

Dennis,

A question.. for EC, I understand we cannot take HDB loan... can only take up bank loan..

however, for bank housing loans, from what I understand, the interest rate will not be flat at 2.6% like the HDB housing loan...

Right now, we are having record low interest rates.. however such low interest rates wont prevail forever.. so how do we actually calculate how much money we need for monthly installment if we are going to take a loan of 30 yrs? average 3-4% interest?