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Resale vs BTO HDB

BTO vs Resale HDB Dilemma

“Ai BTO mai”, apply for BTO, and then get married just before your BTO is ready. That’s what most Singaporean millennials envisioned their lives to pan out the moment they step out of poly/uni.

However, with COVID-19 and its knock-on impact on the waiting time for BTOs, young Singaporeans are now starting to rethink the traditional BTO-then-marriage route. After all, the waiting time is now 5-6 years, instead of the promised 4-5 years.

Should you still go down the traditional BTO-then-marriage route, or should you consider going for resale instead? In this Resale vs BTO HDB article, we list out some factors to help you consider for the BTO vs resale dilemma.

Check out the latest BTO launches here.

4 Factors To Help You Rethink The BTO/Resale Dilemma

  1. Waiting Time

The most obvious difference between BTO and resale is the waiting time. For BTOs, the average waiting time is 5-6 years from the moment you successfully get a ballot number from a BTO launch. In contrast, the waiting time for a resale flat is merely 8 weeks (yes, it’s weeks and not years). Even if you spend 1 year to look around for your dream resale flat, you will still be 4 years ahead of the BTO route.

But it is not just about the waiting time. There are repercussions with getting a BTO that is only built 5 years down the road.

For BTO, you will end up waiting 10 years before you can sell (including the minimum occupation period of 5 years). This will impact those HDB upgraders who want to enter into the condo space.

For resale, there’s no 5-year waiting period for the HDB to be built. This means that you can potentially earn some rental income from the get-go when you takeover your resale flat. Plus, those opting for the BTO route might even have to rent your own place while you wait for your BTO to be ready.

Verdict: Resale vs BTO HDB – Resale Win 

  1. Size

Another lesson that many of us learnt from COVID-19 is that we need our own personal space. Otherwise, it can really affect your mental health or your productivity.

In terms of space, resale flats offer a much bigger option compared to new BTO flats. On average, the difference is about a 1-room size. A 4-room resale flat is about the size of a new 5-room BTO flat. Thus, if you think that not having enough personal space is one of your pet peeves, perhaps you want to consider a resale instead of a BTO flat.

Verdict: Resale vs BTO HDB – Resale Win 

  1. Location

Location wise, there is a lot of uncertainty in the BTO route. That’s because the location that you can choose is very dependent on your ballot luck. If you are lucky enough to get ballot 1 out of 400, then you are guaranteed the best location. But not everyone is lucky enough to get such a good ballot number. Plus, there’s only one lucky couple who will get that. The rest will just have to choose from the remaining choices.

Compared to BTO, those who are keen on getting a resale flat can be reassured that you will have plenty of options for your home. You can choose a resale flat that has the amenities that you want. For example, you can buy a resale unit that is near to the MRT or one that puts you within 1km from the famous primary school for your child. There’s no uncertainty involved with getting a resale flat. What you see is what you get.

Verdict: Resale vs BTO HDB – Resale Win 

  1. Price

The only factor that BTO beats resale flats hands down is price. BTOs are about 20-40% cheaper than resale flats, depending on the estate and location. But there’s a reason for that. From longer waiting time to less choice flexibility, BTO flats make up for it with their lower selling price.

But resale flats are increasingly becoming more affordable. As the government tries to encourage homebuyers to opt for resale flats, they are giving out grants to those buying resale flats. This reduces the price gap between BTO flats and resale flats.

Verdict: Resale vs BTO HDB – BTO Win 

Having A Financing Headache? Get the lowest Home Loan Rate 

Think you have the answer for the BTO/Resale dilemma? Congratulations on moving to the next headache: Making sure that your finances are in place to afford the mortgage.

Luckily, Moneyline.SG is here to help you with that headache with our home loan comparison tool. Simply search for the most affordable home loan using our home loan comparison tool that will suit your financing needs.

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