A good reason to buy an executive condo
THINKING of buying an executive condominium (EC)?
There is good reason to do so: The return on investment (ROI) from the sale of an EC after the five-year minimum occupation period is higher than that of a private condominium in the vicinity.
This is because starting prices of ECs at launch stage are 20 to 25 per cent lower than those of condominiums, leading to a greater return during sale, explained Eugene Lim, key executive officer of ERA Realty Network.
"Studies have shown that, when the time comes, you can sell ECs at a price almost (that of) private condos in the same area," he told My Paper.
Mr Lim, who will be speaking at a My Paper Advance seminar on Aug 17, will also discuss the Urban Redevelopment Authority's Master Plan 2014.
One area where more ECs are popping up is Anchorvale in Sengkang, he added.
Mr Lim has been in the real-estate industry for 23 years.
While the ROI for an EC might be attractive, it is important for would-be buyers not to get themselves burdened with too many loans, warned another expert.
Home owners should understand their mandatory cash commitment and loan limit when applying to purchase new property, said Kenny Tan, head of channel strategy and business alliance at OCBC Bank.
Mr Tan will discuss several things during the seminar, including the total debt servicing ratio - which shows what portion of income is used to service loan commitments - and obtaining a loan to finance your EC purchase.
There will be two other speakers at the seminar, which will be held at the SPH News Centre Auditorium in Toa Payoh from 2pm to 5pm.
Nicholas Mak, the executive director of SLP International, will touch on the outlook for the EC property market and price trends of ECs, among other things.
Anthony Lim, managing director of Anthony Lim Corporation, will look at the use of Central Provident Fund money for purchase and stamp duties, as well as the obligations of purchasers and developers.
Visit pbp.sph.com.sg/mpadv for registration and more details. There is a registration fee of $5, which includes light refreshments and a goodie bag.