All You Need To Know About Executive Condominiums in Singapore

The government of Singapore has done a considerable amount for the people of the Singapore who cannot afford the private homes developed by the many private developers. Through their housing authority in the form of the Housing and Development Board or the HDB, citizens of Singapore have access to the many HDB flats and apartments at exclusively cheap and inexpensive prices. Buying a HDB apartment, however, includes a long list of restrictions that restrain the availability to only those people who have a monthly income ceiling of $12,000.

On the other hand, there are many people who earn more than $12,000 on a monthly basis, and yet not enough to be able to afford the expensive private housing units like condominiums, villas, etc. These people fall under the category which is commonly referred to as the “Sandwiched” population of Singapore. For such people, the HDB has come up with a program that will also help them find homes for their families.

What are executive condominiums?

Executive condominiums or ECs, as they are commonly known, are a form of hybrid homes for the “sandwiched” Singaporean population. These properties are quite similar to private condominiums in the types of housing units or facilities and features on offer. In fact, they are also developed and sold by private developers. However, the entire thing is managed under the supervision of the HDB. Developers receive a number of subsidies and grants when developing these properties. Hence, they are able to sell the properties to these people at much reduced prices, thus allowing these people to afford private homes.

Who is eligible to purchase an EC in Singapore?

In order to be eligible to purchase an executive condominium in properties like the Signature at Yishun EC Singapore, a person must not have a monthly family income in excess of $14,000. Moreover, they must be a part of a family nucleus comprising of spouses, children, parents, etc. Moreover, if an applicant has previously owned or currently owns a HDB property, they must at least complete the Minimum Occupancy Period of 5 before applying for a second property. in case they have sold the previous property, they must wait for an additional 30 months after the sale of the property before applying for the second property.

Financing options for ECs in Singapore

In order to purchase an executive condominium in a property like the Signature at Yishun, the buyer must pay the down payment of 20 percent of total value in cash. This payment must be made upfront, whereas the buyer can obtain a bank loan to finance the remaining 80 percent of the total value of the property.

All You Need To Know About ROI on a Commercial Property

If you are thinking about making a real estate investment on a commercial property, you might have the highly profitable Return-On-Investments or ROI in your mind as the primary motivator for your investment decision. Sure, commercial real estate investments offer greater returns than residential property investments. You must, however, also consider the various flipsides to such investments, as these factors will impact the ROI at end of the day!

Commercial properties offer greater rental yields

When compared to residential properties in Singapore, commercial properties offer much greater rental income. In fact, according to a majority of experts, rental income through commercial properties can increase the annual income of a person by approximately 5 percent. In case of commercial properties in the business hub of the city or the CBD or Central Business Districts, this figure rises to approximately 7 percent.

On the contrary, rental incomes through residential properties increase the annual income of a person by only a meager 2-3 percent. Hence, commercial real estate is certainly a better choice when it comes to rental yields.

Commercial properties are more expensive and require more maintenance

Commercial properties do offer greater rental yields, but they also cost much more than residential properties. Traditionally, the price-per-square-foot for commercial properties is less than that of residential properties. However, when the leasehold period is brought under consideration, it can clearly be seen that residential properties are much cheaper. Residential properties usually have a leasehold period of 99 years or above, whereas their commercial counterparts have a leasehold period of 30-60 years.

This means that you can own the residential property for at least 99 years, but the ownership period of the commercial unit would be a meager 30 to 60 years. Hence, you would be automatically paying more money to own the commercial unit you purchase in complexes like the Tai Seng Point. Moreover, commercial units also require more maintenance due to the extensive use of the property for business purposes. The maintenance required would usually depend on the kind of business conducted in the premises, but the cost of maintenance is always more in case of commercial units.

Taxes are less when it comes to commercial real estate

Residential property purchases and sale involve a lot of taxes to be paid by the seller as well as the buyer. Commercial units, on the other hand, do not require many taxes to be paid. Commercial units are free from Additional Buyer’s Stamp Duty (ABSD) and Seller’s Stamp Duty (SSD) for buyers and seller respectively. Buyers only have to pay a property tax, which amounts to approximately 10 percent of the total value of the property, but this amount can also be claimed as a refund in case the owner fails to find a tenant or fails to put the property to any money-making use.

Hence, as an investor, you must be aware of all these factors when purchasing a commercial unit in properties like the Tai Seng Point Singapore. This will help you to calculate you ROI better.

Top Reasons Why You Should Invest In a Commercial Property NOW!!

In case you have stacked up a considerable amount of money, and are looking for profitable areas to invest, you should seriously consider making an investment on a commercial property in Singapore. One of the most basic reasons behind this notion is the large amounts of capital returns which are almost a guarantee when it comes to commercial property investments. Moreover, commercial properties also offer greater rental incomes than any other forms of properties, regardless of the location of the property.

You might wonder whether the commercial property investment market is as easy as a walk around the park. Well, it definitely is not regardless of what the so called “experts” might say. The real estate market of Singapore is a fragile one with extensive instability, which often causes property values to depreciate without any notice. Hence, you need to play the game safely and by the rules if you are to ensure profitable returns on your investment.

Discussed here are a few intriguing reasons as to why you should go hands down on commercial property investments.

• Commercial properties have become affordable: Previously, buyers had to purchase an entire building or compilation of commercial properties if they had any desires of investing in commercial properties. Today, however, you can simply invest on segments of a large building like the Tai Seng Point, and own the commercial space. There will be other commercial units as well in the same building, and they will have other owners, but you will still have value for the unit you purchase.
• Payable taxes have come down significantly: Certain taxes like the Additional Buyers Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) are not applicable for buyers and sellers of commercial properties respectively. Hence, you do not have to pay these taxes when buying or selling a commercial property.
• Rental incomes should help to cover mortgage payments: If you are able to buy a commercial property in properties like the Tai Seng Point Singapore in the proper value, you can pay off your loan mortgages using the rental income that you make. Hence, you might not have to pay from your own pockets to finance the purchase.
• Property values should be stable in the long run: Singapore is emerging as a regional business hub for numerous companies. Many companies have already set up headquarters in the city, while others are also looking to set up base here. Hence, property values in the city should hold up pretty well in the long run.

What Are The Benefits Of Making An Investment On An EC?

Real estate property investments have become some of the most profitable investments, albeit a long-term one, offering great ROIs or return on investments. Almost all major cities around the globe have witnessed an upward rise in the real estate industry, and the city-state of Singapore is no different. There are a variety of real estate properties to choose from when looking for the ideal property to make an investment.

There is one type of property, in particular, that offers great investment potential for the real estate property investors of Singapore- Executive Condominiums. However, it is important to understand every little aspect about executive condominiums, also known as ECs, and their implications on the investments before making an attempt to invest on them.

What are executive condominiums?

Executive condominiums are private condo units sold to Singaporean residents at greatly reduced prices. The facilities and features of ECs are similar to private condominiums, but the ECs are only sold to those citizens of Singapore who are not eligible for HDB properties, and do not have adequate money to afford private condominiums. Hence, ECs are the answer to the rising demand for affordable homes among the public of the city. These properties can only be purchased by the citizens of the city. Foreigners are not eligible to purchase these homes.

Why are ECs considered as good investments?

There are a number of reasons why ECs are considered to be good investments.

• There are a number of financial advantages of buying ECs. Executive condominiums like the Signature at Yishun can be purchased by those people or families that have a gross monthly income of $12,000 to $14,000. Families with $12,000 as their gross monthly income can obtain a grant of up to $30,000 on their purchase, whereas families with $13,000 as their gross monthly income can obtain a grant of up to $20,000 on their purchase. Families with $14,000 as their gross monthly income can obtain a grant of up to $10,000 on their purchase. Moreover, people can also utilize the CPF savings to finance their EC purchase.
• There are various banks in Singapore that help people to finance their EC purchases. Buyers can obtain a loan of approximately 80% of the total value of the property, which can then be repaid in timely mortgages over a period of up to 30 years.
• Executive condominiums like the Signature at Yishun EC have a Minimum Occupancy Period of 5 or 10 years before they can be sold to a Singapore citizen or a foreigner respectively. Once the MOP is over, occupants can sell the property at the price of private condominiums and incur humongous profits.

Hence, there are numerous financial benefits of making an investment on ECs. The only flip side is that the property cannot be leased or sold during the MOP, and buyers would have to occupy the property during that period.

Important Things to Know While Purchasing a Condo Unitas an Investment

Making an investment in order to reap profits by selling the entity at the proper time is a way of earning money for many people in the world. Commodities such as gold, silver, steel, etc. are most preferred for making the investments. There is, however, a commodity that can offer far better returns than the ones mentioned here- real estate properties. Properties like condominiums in some of the most happening projects are often considered ideal for making investments.

The best aspect of real estate investments is that they are mostly safe investments that guarantee profitable returns. In fact, real estate investments are much safer than stock market investments as the stock market is an ever-fluctuating one. Condominiums are also ideal because they enjoy tremendous capital appreciation over time, and on sale, can rake up large sums of profits for the investors. Moreover, till the time the condominium is sold off to garner the profits, the investor can lease the property to a tenant and make a stable income through rents. All this while, the property will still belong to the investor.

No other commodity in the investment market offers such money-making options for the investors. The only problem lies in the fact that in order to make the most amounts of profits, an investor would likely have to hold onto the condo unit for a minimum period of 3-5 years. Capital appreciation in real estate does take some time, but the rates of appreciation are often manifolds. By the time the person decides to sell off the condo unit, the value of the property might also double or even triple. Hence, investments on condo units in properties like the Thomson Impressions condo can certainly be of tremendous help to a person in making millions in profits.

Another great aspect of real estate investment is that unlike stock investments, there are ways in which the chances and the amounts of profits incurred can be enhanced. If a person invests in gold, steel or foreign exchange, there are little or no ways to impact the increase in the way the stock appreciate or depreciate. The investors would simply have to wait for the value of the stocks to rise, during which time they would sell off the property at a profit. In case the values of the stocks fail to rise, the investor would have to sell off the commodities at a loss. Condominium properties, on the contrary, offer plenty of ways to impact the appreciation in the value.

An investor can increase the chances or rate of value appreciation by making meaningful modifications their condo unit in properties like the Thomson Impressions. These modifications would impact the value of the property at the time of sale, and ensure that the investors are able to make greater profits. Hence, real estate properties, condominium units in particular, offer great investment options for people who look to make profitable returns on their investments.

Manage Your Finances Better! Get a Bank Loan for Your Condo Purchase

If you are thinking about abandoning your condominium purchase as you do not have the cash to finance the purchase, you might not have to do that anymore. There are a number of ways in which you can obtain substantial aid in the condominium purchase and buy thee home of your dreams. These processes will help you to save considerable sum of money and also help you to pay the property price without having to make much compromises on your other expenses.

You must, however, realize that a property purchase involves large sums of money, and unless you have a humongous bank balance or other forms of savings, you must be prepared to make minor compromises in your regular expenses. This will help you to counter the impacts of the property purchase. After all, if you fail to pay up for the property, you might end up losing the property. Moreover, you must also ensure that you save a certain sum of money so that you are able to pay the taxes associated with the property in time. Hence, it is of critical importance to manage your finances well if you wish to purchase a condominium property without much hassle.

One of the best practices to receive sufficient aid during the purchase is to obtain a bank loan to finance the purchase. There are a number of banks that offer highly attractive loan packages to aspirant property buyers. These packages come with plenty of benefits and very low interest rates. Bank loans also help to pay as much as 80 percent of the total value of the condo unit in properties like the Thomson Impressions, thus reducing the financial burden of buyers by a great extent. Such loan tenures often extend for as long as 30 years, thus giving buyers adequate time to pay off the loan though small monthly premiums. Paying off the loan well-in-advance can also help the debtor to obtain exclusive offers.

Another great option of saving money is to book a property at the time of launch. During launches of properties like the Thomson Impressions condo, developers offer exciting money-saving offers. Moreover, property prices are sure to rise as time roll, and the same property is sure to have an increased value at the time of completion. Booking during a property launch will help the buyer avoid having to pay an increased amount for the condo unit.

Hence, managing your finances properly will not only help you to purchase the condo unit of your choice, but also help you to save considerable sums of money that can be put to better use at a later stage.

Is It Worth Buying An Executive Condominium In Singapore?

The housing authority of Singapore, Housing and Development Board or HDB, have constructed a large number of HDB flats, apartments and small houses for the citizens of the country. There are, however, a number of regulations and limitations that apply to the people buying these homes. Moreover, not everybody is allowed to buy these homes. People who exceed the gross monthly income of $10,000 are not allowed to buy these homes.

The government of Singapore has also prepared a set of homes for these groups of people, who earn more than $10,000, but not enough to afford the private homes in the city. These homes are known as executive condominiums, and are also known to many as ECs. ECs are a form of hybrid homes for the sandwiched section of the Singaporean population in the manner that they are constructed, developed and sold by private constructors and developers, but managed and sold on behalf of the HDB. These units are only sold to Singaporean citizens and foreigners are deemed ineligible to purchase these properties.

One of the finest aspects of ECs is that since they are developed by private developers and contractors, they offer facilities which are quite similar to those offered by other private condominiums in the city. Hence, people who buy ECs in properties like the Signature at Yishun can enjoy similar facilities. Moreover, they can do so without having to pay the high costs of the private condominium units as ECs are available for purchase at subsidized rates. Developers receive substantial subsidies in regards to the development of EC establishments, and hence, they are able to sell these units at a much cheaper price than private condo units.

Hence, if you are thinking about buying an executive condominium in order to make it your home, you can certainly go through with your plan. It will help you to buy a home of comfortable living conditions for your family in a city like Singapore. You must, however, understand that these properties are not good purchases in case you have rental income in mind. You cannot lease out or sell your property within the Minimum Occupancy Period (MOP), which is at least 5 years when you are selling to a local citizen and 10 years in case you are selling to a foreigner.

EC projects like the Signature at Yishun EC still make great investments as you will receive great capital appreciation once the property is privatized, and you can incur great profits in the end. Moreover, they will make a great home with luxurious living conditions for your family.

Different Types of Commercial Properties to Be Found In Singapore

There is a lot of potential in commercial properties in a city like Singapore, but before discussing and analyzing the potential in such investments, it is important to understand the different types of commercial properties that are available in the city. This will help in the determination of the ideal commercial properties to make an investment on.

According to the Urban Redevelopment Authority of Singapore, or the URA, properties used for shopping centers, office blocks, commercial banks, schools, entertainments blocks, cinemas, food centers and restaurants, market places, retail stores and many others can be classified as commercial properties. Mixed commercial developments such as building that have retail stores as well as office units are also included in this category. There are 4 different types of commercial properties in Singapore. They are:

1. Office Spaces

Buildings accommodating offices are categorized under offices. This also includes Small Office Home Office (SOHO). Investments on office spaces offer great rental yields and the income is pretty stable. Moreover, the lease terms are usually for long period of time and the capital appreciation in the future are also great. These factors make office spaces great investment options. It is, however, important to remember that properties in prime business districts in the city can attract high prices, but they also offer greater returns.

2. Retail

Properties that fall under retail include shopping malls and food and beverages outlets like restaurants among others. Investments on retail spaces such as the Tai Seng Point should be made on the basis of the human traffic in the area as retail businesses depend heavily on the human traffic in the area. Hence, scope of capital appreciation and rental yield is huge for properties in the right location. Another factor that impacts commercial property investment is the supply and demand. Scarce supply accompanied by high demand can literally convert the property into a gold mine for the investors.

This is the reason why such properties like the Tai Seng Point Singapore enjoy such great demand.

3. Shop-houses

These properties generally comprise of small shops in the 1^st floors of residential and office buildings. These properties are mainly occupied by people who run small businesses from their shops. These properties have lower rental yield and capital appreciation in comparison to the others.

4. Industrial properties

Industrial properties are great investment options as they have great returns to offer to investors. They cannot be used to incur rental incomes, but offer great capital appreciation. Moreover, these properties are also supreme for conducting small and large businesses and industries.

Some Critical Information for First-Time Buyers of ECs in Singapore

If you are considering the purchase of an executive condominium in the city of Singapore as your first HDB property, there are a number of critical aspects that you must be aware of. Executive condominiums are not only great housing options for first-time home buyers, but also great investment options as buyers can obtain great returns once the property is privatized after the minimum occupancy period.

What is the minimum occupancy period of ECs in Singapore?

The minimum occupancy period is five years in case the property is being sold to another Singaporean citizen. In case of selling to foreign citizens, the minimum occupancy period becomes 10 years. When in the minimum occupancy period, the property and the property owners are subjected to a number of HDB rules and guidelines. Once the minimum occupancy period is over, the owners can list their property in the resale market and sell their properties at the current rates.

What special priorities are available to first-time buyers of ECs?

If you are a first-time buyer of an HDB property, there are a number of priorities that you can enjoy. For example, whenever a new executive condominium project is being launched, the developers are supposed to reserve at least 70 percent of the total available units for first-time buyers. Hence, there are greater chances that you might obtain a property during the sale if you are a first-time buyer. Moreover, first-timers are also eligible for a number of grants and tax exemptions that are not available for people who are in the market to buy their second HDB property.

What are the loan options for Executive Condominium purchases?

Buyers of executive condominiums like the Signature at Yishun can apply for HDB loans as ECs are not categorized under HDB properties. They are semi-HDB properties as they are developed by private contractors, but managed by the HDB. Hence, buyers can obtain bank loans to finance their EC purchase. In order to obtain a bank loan for an EC purchase, you have to ensure that the mortgage premium for one month does not exceed 30 percent of your gross monthly income. Moreover, people with less or no liabilities such as personal loans, car loans, credit card loans, etc. will be in a better position to obtain a bank loan for their EC purchase.

Executive condominiums make great homes as they offer great facilities and a luxurious lifestyle at much cheaper prices than private residences. Hence, they make fine homes in a beautiful city like Singapore.

Critical Information You Need To Know About Commercial Property Loans?

If you have made up your mind to make an investment on a commercial property in the city-state of Singapore, you should be aware of the fact that such properties in the city accompany very high price tags. Hence, you would definitely find it very difficult to finance the entire purchase on your own. Now, investing on one such property as part of a corporation can certainly be a great idea as your partners can also bring some financial contributions to the table.

The thing with corporations is that the profits would also be divided according to the share of investments made. Hence, if you are planning to finance the entire purchase on your own, a bank loan can go a long way in providing you some much needed assistance with your endeavor. There are, however, a number of things that you must first know before you look for a bank loan to finance your commercial property purchase in Singapore. Some of this critical information has been discussed below. This will help you to opt for the best bank loan to fund your purchase.

• Banks in Singapore offer loans amounting to a maximum of 80 percent of the total value of the property. This means that you have to pay the remaining 20 percent of the total price of the property on your own. This is usually the down-payment amount.
• You cannot utilize your Central Provident Fund or CPF to pay the down-payment for the commercial property purchase. The amount has to be paid in cash and upfront when acquiring the property.
• The maximum tenure of loans for commercial property purchases can be 30 years.
• Bank loans for commercial property purchases have higher interest rates than the loans obtained for the purchase of residential properties.
• The loan percent depends on whether you are purchasing the property in complexes like the Tai Seng Point Singapore for your own use or for rental yields. For properties that are meant as investments rather than for owner occupation will also be subjected to a number of strict criteria by most, if not all, banks in Singapore.
• In case the commercial property fails to generate the desired revenue at any point in time during the loan tenure, you have to pay the loan repayment premiums out of your own pockets.

Hence, you need to have a strong business plan ready, regardless of whether you intend to use the property for your own business or you have other plans for your investment. This will hold you in good stead and improve your chances of getting the loan approved significantly.