Do you live in Singapore and is thinking of buying a new home? Are you a local Singaporean with much access to HDB grants? Well, if you are in the above situation, surely you will be thinking of buying BTO vs resale Singapore flats. And I understand it can be a burdensome pain to be making decisions like these.
The question of whether BTO vs resale Singapore government public houses is always lingering in the minds of ordinary Singaporeans. This comes so especially when these local people are newly married or have just set up a family not too long ago.
When deciding whether to buy a BTO or resale flat, there are few factors that come into play. Let us explore what factors are most important:
Criteria For Eligibility For BTO Vs Resale Flat Singapore
Probably the most difficult criteria for Singaporeans who have done well in their careers and are marrying later in life. The current monthly income limit for a BTO flat is $14,000. If you and your spouse earn more than this, you will not be eligible for a BTO flat and will have to purchase a resale flat.
At the time of application, you must be at least 21 years old. Applicants who are under 21 but over 18 years old can apply for a BTO under the Fiancé/Fiancée Scheme with written consent from the applicant's parents or guardians.
You will not be eligible to apply for a new BTO flat if you currently own other residential properties, either locally or abroad, or if you have sold them within the last 30 months. In addition, applicants must have only purchased one HDB, DBSS (Design, Build and Sell Scheme), or EC in the past. This is because Singaporeans are only eligible for two government-subsidized flats.
Waiting Period Of Singapore HDB Flat
The average waiting time for a BTO flat to be built is 4.1 years, with a range of 2.4 to 5.3 years. In contrast, there is no waiting period if you buy a resale flat because it has already been built.
You can reduce your waiting time for BTO flats by applying through a Sales of Balance flat (SBF) or Re-Offer of Balance flat (ROF) exercise. Units available during an SBF or ROF launch are previously offered BTO flats that are now available for selection again because 1) the homeowners who selected the flats have chosen to give it up, or 2) these flats were never selected by applicants in the previous exercise. Open Booking flats are also an option, but they are usually snapped up quickly when they become available.
Because they have yet to marry, some future homeowners, particularly those who apply under the Fiancé/Fiancée scheme, may be content to wait for their keys. Others who are married and have children may be less inclined to wait.
Price Of BTO Vs Resale HDB
Another factor to consider is of course the price of the HDB flat type. Generally, BTO are cheaper than resale flats. However, the price comparison can also vary according to the location and attributes.
So, a BTO flat in Bukit Merah which is closer to central Singapore may be considered more expensive than a resale flat in Hougang. For more info on BTO flats, please refer to https://en.wikipedia.org/wiki/Build_to_order_(HDB)
