A lot of people usually assume that if person is buying an Executive Condominium (EC), they are rich. This isn’t true and as a matter of fact by the time one makes the down payment and completes all the instalments, they are left with nothing. ECs are a class of flats that cater for poor people with a higher class i.e. those people who can afford to stay in better places than the public housing units but can’t also afford to own a private property. Rivercove Residences EC by Hoi Hup Realty might be an excellent investment choice as it has upside potential compared to other ECs located around in Sengkang and Punggol area.

Getting Rivercove Residences or a HDB BTO Flat

Unlike the BTO flats, ECs are normally built by private developers. The EC flats often start as subsidized housing units before they are turned into private housing after 10 years. To understand this better, here are four main differences of EC Flats compared to BTO flats. 1. ECs Have No HDB Concessionary Loan When buying an EC, one needs a bank loan which covers approximately 80 percent of the total costs. 15 percent can be covered by your CPF and grants. This means that ECs have an absolute minimum down payment cash of 5 percent. Also With the recent imposition of 30 percent Mortgage Servicing Ratio, it’s now difficult to buy an EC. On top of getting an 80 percent loan cover for your home valuation, you are only allowed to use 30 percent of your monthly income to service the loan. Apart from a bank loan, a BTO flat buyer has the option of using the HDB Concessionary loan.

Rivercove Residences EC located at Anchorvale Lane

This is why BTO flats buyers can have $0 in cash down-payment and still be able to fully service the 10 percent down payment from their CPFs if they wish. 2. Very Few ECs are in Mature Estates Most ECs have been built in estates that haven’t matured.EC developers have not considered convenience issues and maybe they assume that if one can afford an EC then they can also afford a vehicle. And while the estates can mature after some years, most people are currently looking for places where they can live comfortably. 3. EC Re-sale Rules Start from the 11th Year The major difference between BTO flats and ECs are the re-sale rules.

Rivercove Residences Sengkang

Starting from their 6th to the 10th year, ECs are usually sold just like the regular re-sale flats but from the 11th year, these properties now go fully private and they can be sold to companies and foreigners. This is beneficial because the market range of prospective buyers is widened hence chances of great capital gains. But the disadvantage of it is that when buying an EC resale after the 11th year, you will no longer be able to receive any housing grants. 4. Unpredictable Re-Sale Value ECs are comparatively new properties but their resale value is less predictable. Can they be sold for the same value like private condominiums? An EC can be sold with the same market value as private condominium because they are built by private developers and they have the same facilities and quality of finishing as private condos. On the other hand, it might be still difficult because based on the mindset of the property market, most people still believe that ECs are one level lower than the private condos.