Should I buy a BTO Flat or Resale HDB Flat as a First-time Home Buyer?
Choosing between a Build-To-Order (BTO) flat and a Resale HDB flat is one of the most common questions being asked in Singapore. As couples start to get married and move on to the next stage of their life, home ownership becomes a important consideration. A crucial decision for first-time homebuyers, the selection process involves considering various factors that can significantly impact your home ownership experience. So… Should you buy a BTO Flat or Resale HDB Flat as a First-time Home Buyer? We delve into some factors in detail to help you make an informed decision that aligns with your preferences and needs.
Eligibility Criteria
Before diving into the decision-making process, it's essential to determine your eligibility for both BTO and resale flats. This information can be obtained by submitting your HDB Flat Eligibility (HFE) letter. Understanding the eligibility criteria for each option sets the foundation for a smooth home-buying journey.
Price Comparison
One of the primary considerations is the cost of the property. Generally, BTO flats tend to be lowest in cost compared to resale units within the same geographical area as BTOs are heavily subsidized by the Government. Resale Flats are usually pricier as they are priced based on volume of market transactions, market trends, buyer demand and other factors. The higher the demand, the lesser the supply, the higher the prices. Analyzing your budget constraints and financial goals is crucial in making a decision that aligns with your financial well-being.
Housing Grants
First-time homebuyers may be eligible for CPF Housing Grants, which significantly impact the overall affordability of the property. BTO flat buyers can qualify for grants of up to $80,000, while those opting for resale HDB flats may be eligible for a grant amount up to $190,000, up from a previous cap of $160,000. Understanding the grant options available and how they align with your financial situation is integral to making a well-informed choice. If you choose to live near or with your parents, you might also be eligible for the Proximity Housing Grant if you live within 4km of your parent’s place.
Waiting Time
The timeline for acquiring your new home is also a critical factor. BTO flats typically have a longer waiting time, taking up to five years for completion. On the contrary, resale units offer the advantage of a more immediate occupancy. Do take note that the buying process of a Resale unit could take around 6months to 12 months depending on the unit that you are purchasing do to potentially longer submission days, extension period and other factors. Assessing your patience and urgency in acquiring a home is vital in this context. Speak to a real estate professional who would be able to advise on a case by case basis on waiting times. If you are going for a Resale HDB Flat, having a professional in the industry manage the timelines for you could save you a whole lot of time as well.
Size Considerations
The size of your future home is another crucial aspect. Older resale units generally offer a little more space compared to their BTO counterparts. Evaluating your space requirements and preferences for a comfortable living environment will guide you in choosing the most suitable option. But bigger doesn’t always mean better!
Location Options
Location also plays a pivotal role in your decision-making process. While BTO developments are limited to specific areas based on launch locations, resale flat buyers have a broader range of choices in the open market. Considering your lifestyle, proximity to amenities, and future plans is essential when deciding on the location of your new home.
Renovation Costs
The condition of the property and the associated renovation costs are crucial considerations. BTO flats are brand new with little done to it (unless you opt into Optional Component scheme) allowing for personalized customization. On the other hand, resale units may vary in their condition, ranging from “Move in Condition” to requiring extensive renovations. Assessing your willingness and budget for renovations is vital in determining the overall cost of ownership.
Essentially, the decision between a BTO and resale HDB flat involves a comprehensive analysis of various factors, from eligibility and budget considerations to size preferences and location priorities. By carefully weighing these factors, you can make a well-informed decision that aligns with your unique circumstances and preferences, ensuring a smooth transition into homeownership.
STILL NEED HELP?
Call Jboi for a free and non-obligatory consultation Session!
WhatsApp us +65 8923 1508 or Email us jboihomes@gmail.com
