Resale HDB flats are those that had previously been owned by someone else. The MOP (Minimum Occupation Period) has been met, which is typically five years. By buying a resale HDB, you are assuming responsibility for the previous owner's property. Once the transaction is complete, you'll be able to pick up your keys.
In contrast to brand-new BTO flats, resale apartments do not include a new 99-year lease. If an apartment has been on the market for a long time, it has a shorter lease. If you're looking to buy a resale HDB in Singapore, you need to know how long the current lease is.
Because you have to remove or alter the changes made by the previous owner, the cost of remodeling a resale property is often higher than that of upgrading a BTO flat. So you have to find a bargain that gets you the best value.
Here are five traits that make a resale HDB an attractive option to buy or invest in.
Since PRs are unable to own BTO flats, their housing options are limited to private property, resale flats, or renting. Because not all permanent residents (PRs) have the same amount of money, purchasing a property for million dollars is typically out of the question.
Renting makes no sense from a financial perspective for a couple of reasons: first, it will cost more (the landlord will, of course, charge rental above the mortgage), and second, they will not be able to pass property to their offspring.
Because of this, the vast majority of PRs are likely to enter the resale flat market, which is one of the primary reasons why the resale market is expected to rebound more quickly than the private property market. When you consider the fact that a large number of Singaporeans like buying a resale HDB, it is easy to see why this market sector is more inclusive than BTO flats.
Real estate's first and most important rule is that location is crucial. Just five minutes away from Dhoby Ghaut, a dilapidated, run-down structure is going to be worth more than any new construction in Punggol.
People in Singapore are quite particular about where they choose to reside. Mature (developed) estates like Queenstown or Marine Parade are popular among Singaporeans. Specifically designated supermarkets, food stall areas, and train stations are high on our list of must-haves.
For the most part, new BTO apartments are not constructed in established neighbourhoods. They're located on the outskirts of town, in an area that won't be developed for many years.
Since most people take out long-term loans, they're more likely to pay the fee and obtain exactly what they want. That's a flat in the heart of the city, not a shack in the middle of nowhere
Up until 2014, the COV was the primary roadblock to selling apartments. It's the price as a percentage of the real value.
Preceding 2014, COV prices spiralled out of control, leading to resale flat prices that occasionally exceeded $1 million.
As of 2011, the average monetary outlay for a new vehicle was $36,000. (COV is not covered by the property loan). Many people retreated from the secondhand market as a result of this. However, as of 2014, new rules demand that the COV be kept secret. There is initially a discussion about the flat pricing, and then the COV is revealed. As of mid-2014, COV prices have plummeted to as low as zero.
In today's sluggish real estate market, the most desperate sellers will be eager to get rid of their homes. This shows that COV prices, which were formerly a major deterrent to buying a resale HDB, may no longer be an issue. That means HDB flats are once again back in the market.
It is common for BTO flats to be smaller than resale flats. Comparing BTOs with resale flats, the difference in size between five-room units might be substantial. For the most part, the most spacious flats may be found in older buildings without multi-story parking garages.
Balconies, for example, may be absent from contemporary condominiums. There is a garbage chute immediately in the kitchen of older resale flats, which is the most crucial of the three. Garbage disposal is a chore for inhabitants of new BTO flats. Some residents, particularly the less mobile, take this quite seriously (e.g. senior citizens or the handicapped).
In the end, location is all that matters. However, if given the choice, the majority of Singaporeans will choose the alternative that provides them with the most personal space.
BTO apartments are chosen from a catalogue and shown in a showroom, and construction takes two to three years. This is a two-pronged issue.
First and foremost, Singaporean property owners are wary of under-construction apartments following the issues with DBSS flats like Trellis. For the most important purchase of your life, it's not uncommon to choose a finished product because you don't know what it will look like.
You can easily check out the neighbours, the traffic noise, and so on when buying a resale HDB. You get exactly what you see.
Another issue is that newlyweds may not want to wait two or three years for a house of their own. Renting (a waste of money) or living with the in-laws is an option for the time being (a waste of sanity). A resale apartment might be yours in as little as three months after you make an offer.
Even though resale flats’ prices have recently surged, it appears that Singaporeans still prioritise traditional considerations like location, size, and convenience over the benefits of a newly renovated condo-type BTO flat. This is reflected in the recent spike in resale prices.
The demand for a resale HDB is already on the rise among Singaporeans, and when a resale flat has the above-mentioned traits, buying a resale HDB flat becomes a no-brainer.