{"id":9161,"date":"2017-02-21T03:25:27","date_gmt":"2017-02-20T19:25:27","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=9161"},"modified":"2022-07-01T04:06:08","modified_gmt":"2022-06-30T20:06:08","slug":"hdb-resale-flat-mass-market-condo","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/hdb-resale-flat-mass-market-condo\/","title":{"rendered":"HDB resale flat vs mass market condo: Which is better?"},"content":{"rendered":"
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\"Sure,
Sure, a HDB resale flat can’t compare to a mass market condo…but it does have financial benefits to own one<\/figcaption><\/figure>\n

There is an increasing number of “sandwiched” Singaporeans, who are faced with a dilemma: they earn too much to buy a BTO flat, but their finances would be stretched if they buy a condo. Most of these Singaporeans come down to two choices: purchase a pricier HDB resale flat in a mature district, or a mass market condo in a less built-up area. Here’s what to consider if you’re in such a situation:<\/span><\/p>\n

Understanding the price difference between a HDB resale flat and a mass market condo<\/b><\/h3>\n

In general, the most “sandwiched” group are those with a household income of between $12,000 to $16,000 per month. This group cannot buy BTO flats. But with the average condo costing up to $1.2 million, going private can be a serious strain on them. How bad is it? <\/span><\/p>\n

Well, let’s assume a typical condo price of $1.2 million. This comes to a maximum loan of $960,000, of which five percent must be in cash (remember there’s no HDB loan for private property. This includes Executive Condominiums. Unlike HDB loans, you <\/span>cannot pay the full downpayment in CPF funds<\/span><\/i>). <\/span><\/p>\n

After forking out the $60,000 minimum cash down, the monthly mortgage (at two percent per annum, on a 25 year loan tenure) is around $4,100 per month. <\/span><\/p>\n

By contrast, a loan for a $700,000 HDB resale flat, under the same terms, would cost around $2,400 per month; and minimum cash down is $35,000 (the numbers will change a little based on the Cash Over Valuation, but you get the picture). <\/span><\/p>\n

Going a little further, we can also factor in maintenance costs. Conservancy charges for flats tend to be two digit figures, with the most expensive ones generally reaching $70 to $80. However, a typical condo can have maintenance costs that go beyond $250.<\/span><\/p>\n

This price difference is the most important consideration. Even the more expensive HDB resale flats are <\/span>much<\/span><\/i> more affordable than the average condo. If you are currently strapped for cash, or if you are budgeting for your first child, private property may have to wait. <\/span><\/p>\n

Some other decisions to consider are:<\/span><\/p>\n