Buying a property in Singapore can be a difficult process, especially for first-time homebuyers. In addition to the country’s strict mortgage guidelines and stringent land policies that only allow homeowners to purchase one of every type of residential property within a given neighborhood, there are also certain geographic constraints that make it difficult to purchase a home if you don’t already live nearby.
As such, most new homebuyers will need to wait at least six months before they’re eligible to apply for their Home Ownership Scheme (HOS) grant or buy another piece of real estate.
If you want to buy a condo in Singapore but are waiting for the right opportunity, this article is going to explain some different ways you can get an edge over your competitors so that you don’t miss out on buying your next house when the time comes.
Can i buy a condo while waiting for BTO?
Once you’ve booked your BTO, you’ll need to wait an MOP period of time before you’re allowed to purchase any private residential property.
Additionally, you’ll be subject to the 5-year MOP upon key collection for your BTO.
Buy a BTO or existing HDB
Remember that when you buy a Build-to-Order (BTO) unit, resale HDB flat or new executive condominium (EC), you need to consider the five-year MOP. This is the minimum occupancy period during which you’re not allowed to sell or rent the flat out.
Apart from the inflexibility of this, also remember that a lot can happen within five years. For instance, there might be changes in the family nucleus (e.g. your family is growing and you need more space), or a job loss which results in the inability to repay the monthly mortgage instalments.
Buying a HDB BTO is the best investment you can make as it can provide you with a 10-15 years of excellent returns and also gives you the safety to secure your future with a stable, comfortable, and well-maintained home. HDB BTOs are currently sold out, the number of BTOs available will be announced in the future. HDB BTOs are flexible and you can upgrade to a new HDB flat at any time.
Learn about the new Launch of Housing and Development Board (HDB) flats
The HDB is the Singaporean government-owned company that’s in charge of housing development. The HDB has recently announced that it will be launching a new type of property, called “Launch of Housing and Development Board (HDB) flats.”
These are affordable condos that are meant for first-time buyers or those who need to break into the market. These new flats will be available for purchase at $115,000, which is half of the price of an average condo in Singapore. So if you’re looking to buy a condo close to where you work, these new flats should be on your radar!
Build your own home
The easiest way to purchase a home when you’re waiting for the HOS is to build your own. There are a few different ways to do this, but one of the most popular is through self-building. In this method, you can hire an architect and contractor to help you design and build your home on your own land without paying a cent in developer fees or having to rely on financing.
In fact, if you have enough land, the whole process will cost you less than $500,000.
If you can afford the time and energy required by self-building, it’s a great option because it gives you more creative control over your project.
Just make sure that if you decide to go with self-building, be aware of some of the legal restrictions that need to be met before you start building.
For instance, according to the Urban Redevelopment Authority (URA), any dwelling built on private land needs planning permission from URA or other statutory authorities before construction can begin.
Rent until you’re ready to buy
If you want to buy a condo in Singapore and are waiting to be eligible for a HOS grant, it’s possible to rent out your property until you’re ready.
Doing this allows you to live in your unit while still getting the income from renting it out. In fact, if you plan on buying another property soon, this may be the best time to rent out your current home.
However, there are a few considerations when renting out your home during this period.
First, make sure that the potential tenant is aware of any potential downsides of the arrangement (negatives such as the risk of having their own landlord).
Additionally, ensure that they understand that they can only stay in the property if they continue to pay rent. If they fail to do so, it could result in a legal issue that could cause significant problems down the line.
Summing up
There are a few things to keep in mind before you decide to buy a condo that are specific to the Singaporean real estate market. The first thing you should know is that there’s a lot of demand for residential property in Singapore. This means that it’s hard for even newly-built condos to find buyers.
So, if you want to get ahead of the competition and purchase your dream home, make sure it’s new.
You should also keep in mind the different types of properties available for sale – condos, apartments, and houses – and which one might be more likely to sell in your desired timeframe.
Whether you want something near your current workplace or would rather live in a more spacious condo with an amazing view, it pays off to do some research before purchasing a piece of property.
