AskGuru Q&A Community

Hi,

Yes EC is a peculiar housing option where currently its subjected to both 30% MSR and 60% TDSR requirements. The max bank loan for a couple earning 12K/mth purchasing an new EC is approx 800K. For units above $1.1mil, its more likely the buyer is an HDB upgrader who has sales proceeds from the current HDB, or probably has quite a fair bit of savings to fund the downpayment.

Hence, this has pushed buyers towards purchasing a private condo, where for some cases, they can get a higher loan. There are also private condos where the prices are close to EC prices, hence you may be surprised to find a lot more options in the new launch market.

Thanks and may I understand your housing plans further so as to value-add? Hope to have the opportunity to work with you.

Warm regards
Ivan ERA
 97432395 
Ivanng10@gmail.com
Website: http://www.ivanng10.com/#!reviews/c11r1
(Client's Testimonials) Read More

Mr Yu,

I do understand your concerns, having had dealt in similar situations for a few clients at the time of their purchase. ECs are indeed subjected to harsher government measures which has impeded successful loan approvals.

As such, this pool of buyers have progressed their foresight into the private property market; where there lies less stringent regulations and higher chances of higher loan quantum approval. In all honesty, with the budget of $1.2m in this weak market sentiments, you can easily leverage on the situation and get yourself a 4-5BR unit condominium in matured estates for brand new under construction pty and even resale properties! Your choices are pretty varied. You just need to sieve and identify which property will best satisfy your requirements and expectations.

You may be very well better off with owning a private property at almost EC price as -
(1) No restrictions compared to EC
(2) Solely Private Status
(3) Higher scope of capital upswing and appreciation
(4) High rental yield - Private Condos are more sought after properties to rent than ECs.

These are just a few attributes to explain why setting your sights on the private property market instead of EC may be beneficial in the long run perspective; own stay and at the same time enjoy investment appreciation!

What we can do now is to sit down and discuss more on your expectations, objectives, requirements as well as understand your finances comprehensively. Then we can proceed to work out your financial cash projection and breakdown needed for the purchase. I will also share more insights on the market- providing up to date transaction caveats & price analysis of properties in the last few years v currently to identify and illustrate the trends.

Should you be keen on availing my consultation and services, do note that there is no agent fees involved and I will walk you through this whole tedious process of : explanation of procedure, shortlisting, negotiation, paperwork, establishing financial projections / application of loan, sharing of market insights, providing up to date transaction caveats & price analysis of properties as well as and handling all technical and legal matters at NO cost!

D Kumar
 +65 96659926 
ERA Associate Division Director
www.kumarrai.com

#1 team of ERA in Singapore, Asia Pacific International for 2014.

ERA 2015 Q1 Top Achievers (Top1%)
ERA Top Achievers 2013/14
ERA Multi-Million Dollar Club Award
2014 ERA Asia-Pacific Business Conference Elite Award

P Group
2015 April ERA Top Achievers
2015 February ERA Top Achievers
2014 Aug/Sept/3rd quarter/Dec/ overall 2014 ERA Top Achievers Read More

Good evening William,

It's true that IPA for EC purchase will be subject to both MSR and TDSR. This has been an issue for first time purchasers, same goes for a few of my friends.

Probably you can consider at new launches which have competitive prices to new EC.

If you need any assistance or advice in your property purchase, feel free to contact me. Cheers!

Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
Vice President (Agency)
R043025D
Property Avenue Pte Ltd
Estate Agent no. L3010650D
Blk 420 North Bridge Road #03-30 North Bridge Centre S188727

(M): +65 9111 5171 
(E): yt.lovelyhomes@gmail.com
(W):www.yttan.com
(W):www.propertyavenue.com.sg Read More

Hi William

noted your queries and interest to purchase an EC.

Below are my replies to your queries:

Qn 1)Since EC is under HDB ruling, and buyers are subjected to a salary cap of $12k, so isn't that very ridiculous and impossible to buy any EC house above $1.1m?
Ans1) The answer is yes, if you are looking at 80% loan. But the answer becomes no, if you have sufficient cash to downpay for you new big EC unit.
Which is why for the newly launched ECs, we will start to see developers build smaller size outfits to offset quantums to enable $12k income ceiling cap to be more applicable

Qn 2) As informed by the ocbc's banker, EC is subjected to MSR and TDSR ruling? IS this information true?
Ans2) The answer is yes. But MSR will be the more difficult to cross and it does not take into consideration your car loan.
So unless your car loan is a very huge installment per month, TDSR is unlikely to be used for MSR calculation.

Do feel free to contact the undersigned for more EC queries and information.

Thank you

Andrew Ngauw
 8188 8887 
andrew.ngauw@gps.com.sg
www.sgECsales.com Read More