We often come across this question – Should we sell our EC ( executive condominium) after 5 years?
Introduction to Executive Condominium (EC)
Executive Condominium were introduced as a public-private hybrid housing with the aim of providing private housing catering to the sandwiched income group at affordable prices.
Like Condominiums, Executive Condos are constructed, designed and sold by private developers.
Its usually comes with full condominium facilities and is physically indistinguishable from private condominiums in terms of physical and design outlook
Ec prices had also increased more than 50% since 2013
So is it worth selling your EC today?
Unfortunately there is no one answer that fits all owners.
But we can discuss on a few factors and see if its worth selling your home today.
Table of Contents
Price chart for recent MOP EC (Executive Condominium)
Lets take a look at the price trend for Bellewoods EC and Sol Acres EC.
Bellewoods EC have increased 49.81% and Sol Acres EC have increase 45.74% since launched.
Owners are sitting on a $220k to $500k capital gain right now!
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Sell your EC and maximize your profits
You can sell your EC today and secure the capital gain.
And explore the following options.
Sell EC and buy Condominium
Executive Condominium are usually located at (OCR) outside of central region and you may not find it convenient traveling to your children school or workplace.
You can take this opportunity to maximize profits and move to a condominium, in a location of your choice.
You can also consider upgrading to a bigger size unit or invest in a condominium with higher chances of appreciation.
Overall Condo prices have also increase 24.87% since 2020.
Let’s do a quick financial calculation – an average three bedroom EC at Bellewoods (1,184 sqft) that was purchased at $850K, could fetch about $1.4M to $1.45M in today’s market – you can then use the capital gains of $500K to $600K towards your next purchase without topping up cash!
Sell EC and buy a HDB
This is worth considering if you prefer a stress-free lifestyle – you can choose to cash out your capital gains to buy a HDB.
You may lower your commitment towards monthly housing loan or even fully paid the HDB.
This is an option for owners who are thinking of having lower monthly commitment while taking a longer-break from their stressful work environment.
*Do note that there is a 15 month wait out period for owners that is below 55 years old before you can purchase a HDB.
Sell EC (Executive Condominium) and buy 2 condominiums
Sell one buy two concept – you can also consider maximizing your investment returns for the next 5 to 8 years by buying 2 properties – usually wife and husband buying under separate ownership to avoid paying (ABSD) Additional Buyer Stamp Duty.
One private property will be your home, while the other will be an investment home choice to generate passive rental income or capital gains.
This will require in-depth financial calculations and planning for both owners and when done correctly, there is a good chance that no cash top-up is needed – sales profits will be sufficient from the sale of your EC.
However much home-work and research has to be done as different properties and developments have different returns.
Choices are made closely with Future Development plans, Master Plan announcements and Transport Development.
Decoupling or Part purchase of EC (Executive Condominium) and buy another private property
This is similar to Sell one Buy two concept but instead of selling your EC and buying two private properties, this is where either owner buys over the whole share of the property.
This is sometimes referred to as Decoupling as well.
The reason for doing so – one owner’s name can be freed-up to purchase another property without having to pay (ABSD).
This will require in-depth financial calculation and planning for both owners to gauge the feasibility.
Conclusion
As you can see, there is no winner decision that fits all.
Property investment decision making is a team effort – consisting of mortgage specialist and property consultant for professional advise and elimination of blind spots on the best property investment options available to you.
It is crucial that your decision is an informed one.
Bonus for our readers
Are you an executive condo owner in Singapore who’s approaching the end of the 5-year minimum occupation period or wonder what to do next?
You may be wondering whether it’s the right time to sell your property.
We will help you make an informed decision.
From analyzing the current market conditions to understanding your unique financial goals, we will provide you with the insights you need to determine whether selling your executive condo is the right move for you.
Applying is a breeze – just hit that shiny “Schedule” button.
Who should apply?
First-time EC buyers who are trying to decide whether to sell their property after the minimum occupation period (MOP) of 5 years.
Existing EC homeowners who are considering upgrading to a private property or downsizing to a smaller unit.
Property investors who are interested in the EC market and want to know whether to hold or sell their EC unit after 5 years.
Real estate agents who want to advise their clients on the pros and cons of selling an EC after 5 years.
We have successfully helped more than 513 homeowners just like you since 2010