Whether you should purchase a Resale HDB or BTO flat or even perhaps go straight into private condo, it depends on your immediate need & financial affordability.
In the case when it is not financially viable for you to invest straight into a private property, you might want to consider a Resale HDB than a BTO flat if you are a 1st Time buyer & cannot wait for the next 3 to 4 years for the BTO flat to be ready.
Here are the 7 benefits of buying a Resale HDB over BTO flat:
#1. Shorter waiting time for resale flats
You can move into a resale flat immediately after the sale is completed. The resale procedure typically takes under three months.
By contrast, the waiting time for a BTO flat is typically more than 2 years or even longer from the date of application.
#2. No need to ballot for resale units
Getting a BTO flat is largely a matter of luck. First of all, you need to successfully ballot for a flat in a development. When you have successfully been selected, your ability to pick a unit you like will depend on your queue number.
With resale flats, there is no balloting process. As long as you and the seller come to an agreement, you can buy the unit, provided of course that you satisfy HDB’s eligibility requirements.
#3. No income ceiling for resale flat buyers
Unlike BTO flats, which has a monthly household income ceiling limit ($14,000 for families, $21,000 for extended/multi-generation family flats and $7,000 for singles), there's no income ceiling limit for resale HDB flats.
#4. More locations to choose from
BTO flats tend to be launched in non-mature estates such as Punggol, Sengkang & Tengah etc, typically far from the city centre. While there are some BTO launches in mature estates, these are always highly sought-after and therefore difficult to successfully ballot for.
Resale flats give you the freedom to get a flat in the location you want, especially if you want to live closer to your parents.
#5. Resale flats are usually more spacious
New BTO flats tend to be smaller than older flats of the same type. Resale flats tend to be more spacious with bigger bedrooms.
#6. PRs can buy resale HDB flats
While BTO flats are only reserved for Singaporeans, PRs can buy resale HDB flats
#7. More housing grants for HDB resale flats (in addition to EHG)
With the new Enhanced CPF Housing Grant (EHG), the maximum grant amount that 1st Time BTO flat buyers can receive is $80,000.
However, 1st Time resale HDB flat buyers can receive even more grants compared to BTO flat buyers. In addition to the $80,000 grant amount from EHG, resale flat buyers are also eligible for $50,000 (Family Grant) and $30,000 (Proximity Housing Grant) in grants. This means the total grant amount that resale flat buyers can get is $160,000.
In the case when it is not financially viable for you to invest straight into a private property, you might want to consider a Resale HDB than a BTO flat if you are a 1st Time buyer & cannot wait for the next 3 to 4 years for the BTO flat to be ready.
Here are the 7 benefits of buying a Resale HDB over BTO flat:
#1. Shorter waiting time for resale flats
You can move into a resale flat immediately after the sale is completed. The resale procedure typically takes under three months.
By contrast, the waiting time for a BTO flat is typically more than 2 years or even longer from the date of application.
#2. No need to ballot for resale units
Getting a BTO flat is largely a matter of luck. First of all, you need to successfully ballot for a flat in a development. When you have successfully been selected, your ability to pick a unit you like will depend on your queue number.
With resale flats, there is no balloting process. As long as you and the seller come to an agreement, you can buy the unit, provided of course that you satisfy HDB’s eligibility requirements.
#3. No income ceiling for resale flat buyers
Unlike BTO flats, which has a monthly household income ceiling limit ($14,000 for families, $21,000 for extended/multi-generation family flats and $7,000 for singles), there's no income ceiling limit for resale HDB flats.
#4. More locations to choose from
BTO flats tend to be launched in non-mature estates such as Punggol, Sengkang & Tengah etc, typically far from the city centre. While there are some BTO launches in mature estates, these are always highly sought-after and therefore difficult to successfully ballot for.
Resale flats give you the freedom to get a flat in the location you want, especially if you want to live closer to your parents.
#5. Resale flats are usually more spacious
New BTO flats tend to be smaller than older flats of the same type. Resale flats tend to be more spacious with bigger bedrooms.
#6. PRs can buy resale HDB flats
While BTO flats are only reserved for Singaporeans, PRs can buy resale HDB flats
#7. More housing grants for HDB resale flats (in addition to EHG)
With the new Enhanced CPF Housing Grant (EHG), the maximum grant amount that 1st Time BTO flat buyers can receive is $80,000.
However, 1st Time resale HDB flat buyers can receive even more grants compared to BTO flat buyers. In addition to the $80,000 grant amount from EHG, resale flat buyers are also eligible for $50,000 (Family Grant) and $30,000 (Proximity Housing Grant) in grants. This means the total grant amount that resale flat buyers can get is $160,000.
Things to take note:
If you or any persons listed in the application owns an HDB flat, you must dispose of the HDB flat within 6 months of the resale flat purchase.
If you or any person listed in your resale flat application owns a private property either locally or overseas, you must dispose of all private properties before or within 6 months of the resale flat purchase.
If you own a private property, you are not eligible for a CPF Housing Grant or an HDB housing loan.
If you or any persons listed in the application owns an HDB flat, you must dispose of the HDB flat within 6 months of the resale flat purchase.
If you or any person listed in your resale flat application owns a private property either locally or overseas, you must dispose of all private properties before or within 6 months of the resale flat purchase.
If you own a private property, you are not eligible for a CPF Housing Grant or an HDB housing loan.