If you’re a Singaporean citizen or permanent resident, you may be interested in purchasing a resale executive condominium (EC). A resale EC is a type of property that is sold in the open market after the Minimum Occupation Period (MOP) of five years. It’s an affordable option for those who want to upgrade from an HDB flat to a private property. However, there are eligibility criteria that you need to meet before you can buy a resale EC.
To be eligible to purchase a resale EC, you must be a Singaporean citizen, a Singapore permanent resident, a foreigner, or a corporate entity. You must also be at least 21 years old at the time of purchasing the property. If you’re buying a resale EC after the 10th year, you don’t need to form a family nucleus to do so. However, you must be a Singaporean citizen, a Singapore permanent resident, a foreigner, or a corporate entity to be eligible.
Before you buy a resale EC, it’s important to understand the eligibility criteria and the financial aspects and procedures involved. This article will provide you with an overview of the eligibility criteria for resale ECs in Singapore and the financial aspects and procedures involved in purchasing one. We’ll also answer some frequently asked questions about resale ECs to help you make an informed decision.
Key Takeaways
- To be eligible to purchase a resale EC, you must be a Singaporean citizen, a Singapore permanent resident, a foreigner, or a corporate entity.
- You must be at least 21 years old at the time of purchasing the property.
- This article will provide you with an overview of the eligibility criteria and the financial aspects and procedures involved in purchasing a resale EC.
Eligibility Criteria for Resale ECs in Singapore
If you are looking to buy a resale EC in Singapore, there are certain eligibility criteria that you must meet. This section will outline the basic eligibility requirements, family nucleus and citizenship conditions, as well as income thresholds and property ownership rules.
Basic Eligibility Requirements
To be eligible to buy a resale EC in Singapore, you must be at least 21 years old at the time of purchasing the property. Additionally, you must be either a Singapore citizen, a Singapore permanent resident, or a foreigner. If you are a foreigner, you must obtain approval from the Singapore Land Authority before purchasing the property.
Family Nucleus and Citizenship Conditions
If you are a Singapore citizen or a Singapore permanent resident, you must form a family nucleus to be eligible to purchase a resale EC. The family nucleus can consist of you, your spouse, your parents, and/or your children. Unmarried individuals, widowed individuals, divorced individuals, and individuals with legal custody of children are also eligible to form a family nucleus to purchase a resale EC.
Income Thresholds and Property Ownership Rules
To be eligible to purchase a resale EC, your average gross monthly household income must not exceed $16,000. Additionally, you must not own any other property, whether it is a private residential property or an HDB flat. If you have previously bought a DBSS flat or an EC from a developer, you must wait for 30 months from the date of disposal before you can apply to buy a resale EC. If you have previously bought a resale flat with CPF Housing Grant, you must wait for 30 months before you can apply to buy a resale EC. If you have previously bought a resale flat without CPF Housing Grant, you must wait for 15 months before you can apply to buy a resale EC.
In summary, to be eligible to buy a resale EC in Singapore, you must meet certain basic eligibility requirements, form a family nucleus if you are a Singapore citizen or a Singapore permanent resident, and meet certain income thresholds and property ownership rules. By meeting these criteria, you can take advantage of the attractive pricing and comparable features of resale ECs in Singapore compared to private condominiums.
Financial Aspects and Procedures
CPF Grants and Housing Loans
When purchasing a resale Executive Condominium (EC), you can apply for a CPF Housing Grant of up to $30,000. This grant can be used to offset the purchase price of the EC. Additionally, you can apply for a housing loan from a bank or the Housing & Development Board (HDB). The loan amount is subject to the Total Debt Servicing Ratio (TDSR), which takes into account your monthly income and expenses.
Application and Buying Process
To buy a resale EC, you must first check your eligibility. The eligibility conditions include meeting the 5-year Minimum Occupation Period (MOP) and fulfilling the income ceiling requirement. The MOP starts from the date of issuance of Temporary Occupation Permit (TOP) in respect of each EC. After checking your eligibility, you can submit an application for the EC unit during the sales launch. Once your application is successful, you will receive the outcome of your application and can proceed to book the EC unit. You will then need to sign the Sale and Purchase Agreement and pay an Option Fee, typically 5% of the purchase price. The remaining downpayment can be paid through the Progressive Payment Scheme.
After Purchase Considerations
After purchasing the resale EC, you will need to pay stamp fees and collect the keys to the EC unit. If you are a first-time buyer, you may be eligible for a stamp duty remission. Additionally, you will need to consider the resale levy if you have previously received a CPF Housing Grant or bought a new EC. This levy is payable to HDB and can range from $15,000 to $55,000 depending on the type of EC and when it was bought. It is important to note that resale ECs are considered as private properties after the 5-year MOP, and are subject to the same rules and regulations as private properties.
Overall, buying a resale EC in Singapore requires careful consideration of your finances and eligibility. By understanding the CPF grants, housing loans, and buying procedures, you can make an informed decision and successfully purchase your dream property.
Frequently Asked Questions
Who qualifies to purchase a resale executive condominium in Singapore?
If you’re a Singapore Citizen (SC), Singapore Permanent Resident (SPR), foreigner or corporate entity, you’re eligible to purchase a resale EC in Singapore. However, if you’re a foreigner or corporate entity, you must seek approval from the Land Dealings Approval Unit (LDAU) before purchasing a resale EC.
What’s the income cap for acquiring a resale EC in this vibrant city?
The income ceiling for buying a resale EC in Singapore is $16,000 per month. This means that your total household income cannot exceed $16,000 per month to be eligible to purchase a resale EC.
Can sprightly singles under 35 get their hands on a resale EC?
Yes, singles who are at least 35 years old can purchase a resale EC in Singapore. However, they must be Singapore Citizens and meet the prevailing eligibility criteria.
How much dough should you be making to snag a resale EC?
To purchase a resale EC, you must meet the prevailing income and citizenship eligibility criteria. The income ceiling for buying a resale EC is $16,000 per month.
Is it possible for a solo Permanent Resident to invest in a resale EC?
Yes, Permanent Residents (PRs) are eligible to purchase a resale EC in Singapore. However, they must form a family nucleus with a Singapore Citizen spouse or another PR to be eligible.
What are the Minimum Occupation Period requirements for resale ECs?
The Minimum Occupation Period (MOP) for resale ECs is five years. This means that you must occupy the unit for at least five years before you can sell it in the open market. After the MOP, you can sell your resale EC to Singapore Citizens, Singapore Permanent Residents or foreigners.
Remember to keep these requirements in mind when considering purchasing a resale EC in Singapore. With the right qualifications, you can find your dream home in this vibrant city.