Invest in Executive Condo – Rivercove Residences
The next ec to be launched will be Rivercove Residences at Anchorvale Lane. Rivercove Residences developer expect a high demand for this ec following the success of the launch of Hundred Palms Residences.
There are loads of posts mentioning the gaps of Personal Condominium and Executive Condominium and why one is much better than another.
And we’ve got readers who inquired:” Everybody is saying Executive Condominium is a fantastic purchase. However, is EC really great for us (or you) separately?”
With that question in your mind and consent from our customer, Rachel, we Are sharing with one of the analytical procedure of analyzing if Executive Condominium is more acceptable for Rachel, and how we intend to accomplish her aims of moving into a larger space and eventually owning a 2nd property.
Hopefully, There’ll be a few good pointers within this informative article that You are able to use to check if Executive Condominium is more acceptable for you.
She’s looking to move to a larger house (i.e. more chambers) for her Growing family in a year. Together with her HDB paid off, she’s deciding if she must buy a private condo, move in the larger private condominium and rent out her HDB. Or, she must simply purchase an Executive Condominium. She plans to stay in Northern Singapore because she expects to minimise disruptions for her children’ studies.
Financially, She’s able to Buy a property value around SGD 1,000,000 and expects to possess a minimum of two possessions before she retires. Like many buyers, she expects to have an adequate advantage for this property buy in 5 years’ time.
By Purchasing an Executive Condominium, Rachel could earn a possible “paper profit” of about SGD 180,000. We’ll go over this “paper profit” in information in the next section.
By buying an Executive Condominium, in comparison to “Purchase Private Condominium then rent out the HDB 4 space”, Rachel will be sitting on an extra gain of about SGD 90,000. (For “Purchase Private Condo afterward Rent HDB”, there’s an estimated rental revenue of SGD 90,000. That the Executive Condominium is going to probably be on par with the worth of personal condo in five years’ time. This relies on the research by Orangetee that reveals the cost gap between a personal condo and executive condo is roughly 9% following MOP and 5 percent following privatisation. And this cost difference is shut up as a brand new development generally controls a greater price.
The worth of this recently bought Executive Condominium may be Further boosted by the conclusion of the forthcoming Woodlands South station. Depending on the analysis of properties nearby Circle Line by three researchers in NUS, it had been found that the worthiness of non-landed private land rises by roughly 6.3 percent from the opening of this new railroad station that’s within 600 meters.
Aside from sitting on a comfy profit, by buying an Executive Condominium, after meeting her MOP interval, Rachel will have the ability to unlock the value of her Executive Condominium through equity duration loan in a desirable time to buy her 2nd personal property.
If she’s taken the option of Purchasing a personal property and leasing Her out HDB, she might face problems in cashing her out HDB. And it might not be worth it to unlock the value of her personal property as unlike Executive Condominium; the personal property is funded from scratch.
So, by Purchasing the executive condo, it generates a much better Chance for Rachel to attain her dream of possessing two personal possessions few years in the future.
We do expect that the preceding case study provides you with a great Summary of the thought process you need to go through before making your choice to buy your next house.
However, here are a Few of the factors that you may consider on your assessment/planning:
Your goal of buy,
Your fiscal position now and maybe couple of years in the future,
Worth of your current property today and likely few years later on,
Your strategy in another 5, ten decades,
Location of the house you’re trying to buy.