Ebook 2e (english with watermark, no bleed v2)
Transcript of Ebook 2e (english with watermark, no bleed v2)
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December 2020
ReasonsReasons33 why it is a No-Brainer to buy
Executive CondosExecutive Condos
EC!
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1 Executive Condominiums (ECs)Have Good Price Appreciation
Capitalise on Your CitizenshipPrivileged Status
Ideal Starting Point for YourAsset Progression Path
2
3
C O N T e n t s
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condominiumsexecutive
GoodPric$Appreciation
have
reason 1
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2
Physicallyindistinguishablefrom condominiums but priced15% to 20%lower
2
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Source: hdb.gov.sg
can sell todifferent targetgroups after fulfilling5 to 10-yearminimumoccupationperiod (MOP)
3
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after 5-year mopcan sell to
SingaporeCitizens
PermanentResidents
SingaporeCitizens
PermanentResidents
Foreigners
after 10-year mopcan sell to
4
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5
more marginfor price
appreciation
on par with comparablecondominiums
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couple a
4RM Unit2020: $1,130,000
4RM Unit2012: $842,350
after 5-year m
op
case studytwin waterfalls (EC)
Launched 2012, T.O.P. in 2015
Note: Based on actual caveats lodged.Source: Urban Redevelopment Authority
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$287,650
executive condosthis is how
performcan
r e a l ly ? !
profit
for 5 years?After Staying in Twin Waterfalls
Note: Before deducting any costs.
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couple b
4RM Unit2015: $930,000
4RM Unit2002: $456,939
after 10-year m
op
case studythe esparis (EC)
Launched 2002, T.O.P. in 2005
Note: Based on actual caveats lodged.Source: Urban Redevelopment Authority
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$473,000
executive condosthis is how
performcan
r e a l ly ? !
profit
for 10 years?After Staying in The Esparis
9Note: Before deducting any costs.
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limited supplyof executive condos
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Completed Non-Landed Private Homesand Executive Condominiums as of 2Q 2020
301,296
33,465
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Non-Landed Private Homes Executive Condominiums
No.
of c
ompl
eted
uni
ts
Source: Urban Redevelopment Authority
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Upcoming Supply of Private Homes andExecutive Condominiums Over The Next Few Years
limited supply
as of 3Q 2020, ECs only make up
7.5% of private homesexpected to t.o.p.
over the next few years
of executive condos
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
4Q2020 2021 2022 2023 2024 >2024
No.
of u
nits
Private Residential Units Executive Condominiums
Source: Urban Redevelopment Authority
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on yourcapitalise
privilegedstatus
citizenship
reason 2
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singapore citizenswith householdincome not exceeding $16,000qualify to buynew executive condominiums Source: hdb.gov.sg
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you are eligible to buy new ecs
if you fall under the following schemes
public scheme
orphans scheme
joint singles scheme
Fiancé/Fiancée Scheme
Notes:At least 1 other applicant must be a Singapore Citizen or Singapore Permanent Resident. All singles must be Singapore Citizens of at least 35 years old if applying under the Joint Singles Scheme.
Source: hdb.gov.sg
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enjoyfamily grantof up to $30,000or half-housinggrantof up to $15,000 Source: hdb.gov.sg
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Source: iras.gov.sgABSD - Additional Buyer’s Stamp Duty
absd is notpayable for existinghdb owners
new executivecondominiums
upgrading to
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* If you meet certain income requirements
banks may loan you up to 75%* if you have an
loanexisting hdb
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reason 3
starting pointideal
ASSETPROGRESSIONPATH
for your
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executivecondominiumsare hybrid properties thatconvert frompublic housing toprivate condominiumsover the first5 to 10 years
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Due to itsfavourableentry price, manybuyers still choose Executive condominiums even though theycan afford privatecondominiums
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is yourhouseholdincomemore than $14,000 but $16,000or less?
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if
then you arenot eligible
to buy bto flats
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how aboutresale hdb
flats?
but is that agood option,
or are ECs better?
yes!
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prices of resale hdb flats have beentrending downwards since 2Q 2013
on the other hand, ec prices have beentrending upwards...
70
80
90
100
110
120
130
140
150
160
HDB
Resa
le P
rice
Inde
x
HDB Resale Price Index
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Source: Housing Development Board, Urban Redevelopment Authority
HDB Resale Price Index
Price Trend of Executive Condominiums
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
Med
ian
Pric
e ($
psf)
New Sale Resale
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4RM Unit2019: $410,000
4RM Unit2019: $911,800
4RM Unit
Resale HDB (Tampines)
2011: $709,000
4RM Unit2011: $381,000
after 8 years
profit $29,000
after 5-year mop
profit $202,000
couple c
New EC (Arc at Tampines)couple d
case studyResale hdb vs new ec (arc at tampines)
Note: Based on actual caveats lodged. Profits before deducting any costs. Arc at Tampines launched in 2011 and T.O.P. in 2014. Source: Housing Development Board, Urban Redevelopment Authority
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$29,000
$202,000vs
why not choose a homegrowththat has more
potential
y o u d e c i d e
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how aboutprivate
condominiums
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ECs have moreaffordable entry price
ECs enjoy deferredpayment scheme (dps)
thus can buy bigger unit
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condominiumshave strongprice upside.however,
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case studynew ec vs new condo
comparing deferred payment to progressive payment
T.O.P. - Temporary Occupation Permit is a permit that allows homeowners to occupy the building temporarily when the key requirements are met before obtaining the Certificate of Statutory Completion (C.S.C.)
Notes:S&P Agreement - Sales & Purchase Agreement
Assume EC: $800,000 Assume Condo: $800,000
New launch (uncompleted) New launch (uncompleted)
% of purchase fees payable
Deferred payment
% of purchase fees payable
Progressive payment
Grant of Option 5% $40,000 5% $40,000
Signing S&P agreement 15% $120,000 15% $120,000
Stamp Duty - $18,600 - $18,600
Progressive Payments - - 40% $320,000
Miscellaneous Fees - $3,000 - $3,000
Funds paid before T.O.P. in 3 years - $181,600 - $501,600
Deferred amount for 3 years $320,000
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you can
your $320,000until t.o.p. if
you buyexecutive
condominiums!
defer
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implications
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when buying ecs viadeferred payment scheme, you:
pay 20% upfront anddon’t need to payremaining until t.o.p.
have lower cashoutlay over a certainperiod before t.o.p.
can buy bigger ec unitas you have ample timeto grow your cash
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conclusion
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wouldn’t it be
an asset with higher growth potential?
better to sit on
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why not
on your citizenship priviledged status when youcan?
capitalise
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do you agreethat makingthe right choicein asset progression couldturn out to bethe best decisionof your life?
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would it be better
by yourselfor leverage onERA’s wealth ofexpertise?
to plan
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era’s
will help youplan and finda property withfinancialprudency
trusted advisors
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ask era
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Disclaimer The information contained in this document is for general information purposes only and does not have regard to the specific investment objectives, financial situation and the particular needs of any recipient hereof. This report is prepared by Research & Consultancy Department of ERA Realty Network Pte Ltd (“ERA”). This report may not be published, circulated, reproduced or distributed in whole or in part by any recipient of this report to any other person or parties without the prior written permission of ERA. The information, views or opinions contained in this document (“Information”) has been obtained or derived from sources believed by ERA to be reliable. However, ERA is not responsible for and makes no representation as to the accuracy or completeness of such sources or the Information and ERA accepts no liability whatsoever for any loss or damage arising from the use of or reliance in whole or in part on the Information. ERA and its connected persons may have issued other reports expressing views different from the Information and all views expressed in all reports of ERA and its connected persons are subject to change without notice. ERA reserves the right to act upon or use the Information at any time, including before its publication herein. The recipient should not treat the contents of this document as advice relating to legal, taxation or investment matters. Any person or party interested in further pursuing the matters contained herein are advised to make their own independent investigations and verification of the Information and any other information such persons or parties may consider to be relevant or appropriate in the circumstances. This document does not, nor is it intended to, constitute an offer or a solicitation to purchase or sell any asset or property, or to enter into any legal relations, nor an advice or a recommendation with respect to such asset or property.
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