Executive Condominium EC
What you Need to Know about Buying an Executive Condominium Property
If you are trying to find affordable housing in Singapore you may be considering an executive condo
property. These are often beautiful developments that feature many upscale amenities. You do need to keep in mind, however, that buying an executive condominium is very different than buying another type of condo/apartment or landed cluster house (strata terrace) property. Here is what you need to know.
What is an Executive Condominium?
An executive condominium (EC) development usually takes the form of a gated community. Inside, there are often many different facilities for the residents to use such as swimming pools, gyms, play grounds and function rooms. Some newer developments have a look and feel that is very close to a resort. In a particular development there may be units that are of differing styles and sizes and the development as a whole may look similar to other real estate developments in the past.
There are some differences between an executive development and a standard residential development. You may notice that the prices for the individual units are lower than they would be in other similar developments. This is because the land that the development sits on is usually subsidized by the government or by another specific group. This means that the developer was able to pay less for the land and was able to pass that savings on by lowering the cost of the finished units.
Do you qualify for one of these units?
Unlike other types of residential properties, you often need to meet specific criteria before you can buy into an executive condominium complex. This is because this type of property was created with the intention of providing affordable housing for individuals who may have an income that is too low for other, more traditional purchasing arrangements. You will likely need to disclose more financial information to buy this type of property than you may need to with other real estate purchases. Keep in mind that the financial qualifications concerning EC properties have changed recently so it may be worth looking into again even if you were not eligible to purchase one of these units in the past.
There are also rules about who can buy one of these residences. If you are a foreigner or permanent resident
(PR) status you cannot buy an EC property unless you are Singapore Citizen and form family nucleus that complies with HDB eligibility scheme.
If you are certain that this is the type of property that you want to purchase it is essential to work with an experienced real estate agent that has dealt with this kind of transaction before. They will be able to give you valuable guidance about choosing a unit, they may be able to help you determine your eligibility and will be able to help you navigate the deal-making process which can be overwhelming for some first-time home buyers.