HDB Resale Flat Vs BTO Flat

HDB Resale Flat Vs BTO

HDB Resale Flat Vs BTO Which one is better?

Getting your own HDB flat is an important milestone for many Singaporean families. When considering HDB housing, two popular options are resale flats and Build-To-Order (BTO) flats. But how do you choose between purchasing a resale HDB flat versus applying for a BTO flat? Here we’ll compare the pros and cons of HDB resale versus BTO flats across a few key factors.

What is an HDB Resale Flat?

HDB resale flats are previously owned flats that are put up for sale by their existing owners. Resale flats can be found across all HDB towns and estates in Singapore. When the owner of an HDB flat decides to sell their home, it is put on the resale market. HDB provides an online portal where you can browse listings of resale flats currently up for sale. The main advantage of resale flats is that they are ready to move in immediately after you complete the purchase. There is no waiting time. Resale flats also give buyers more options in terms of location, as you are not limited to new BTO launches.

What is a BTO Flat?

BTO stands for Build-To-Order, a housing scheme by HDB. Under the BTO system, HDB builds new flats only when there is demand. Potential buyers have to apply for a new BTO project launch. If the project is oversubscribed, balloting is conducted to determine which applicants get a flat.

The biggest draw of BTO flats is that they are brand new. Buyers of BTO flats can often select their preferred unit location and floor plan. However, the downside is applicants face uncertainty, as the balloting system does not guarantee you will get a flat. There is also a waiting time of around 3-5 years for BTO projects to be completed.

5 Factors to Consider

When choosing between a HDB resale flat and BTO, there are several important factors to weigh:

1. Eligibility

HDB sets certain eligibility conditions for both resale and BTO flats. For BTO, first-timer families get priority allocation, while resale flats have a Minimum Occupation Period. Make sure you meet the eligibility criteria before committing to a flat.

2. Price

In general, BTO flats are about 20% cheaper than comparable resale flats. Resale flat prices fluctuate with market conditions, while BTO pricing is largely standardized. However, resale flats may better match budgets for those who cannot afford long waiting times.

3. Renovation

Resale flats usually require home renovation work, which can cost $20,000 or more. With BTO flats, you get a brand new unit ready to move into after key collection. But some may prefer renovating a resale flat to their own taste.

4. Location

Resale flats offer a wide array of locations across Singapore’s estates. BTO project sites are limited to newer housing developments in non-mature estates. So resale opens up options in popular mature estates.

5. Waiting Time

As mentioned, BTO projects take 3-5 years to complete from application . Resale flats can be moved into immediately after resale completion. Shorter waiting periods make resale flats attractive for urgent housing needs.

In summary, HDB resale flats offer the advantage of immediate availability and flexibility in location choices. But they are generally more expensive than BTO flats and may require extensive renovation. BTO flats are new and cheaper, but come with long waiting times as well as uncertainty in the balloting system.

Consider your budget, eligibility status, location preferences, urgency of housing need, and willingness to renovate. This will guide you towards the HDB purchase option that best fits your situation. Finding the ideal HDB flat for your family requires balancing these key factors between resale and BTO flats.

Disclaimer: The content is intended for general informational purposes only. Doorvisual Pte Ltd does not guarantee the accuracy or suitability of the information provided, and we do not make any warranties, express or implied, regarding its fitness or applicability. While we strive for accuracy, reliability, and completeness at the time of writing, this information should not be solely relied upon for financial, investment, real estate, or legal decisions. It is advisable to seek guidance from a qualified professional who can consider your specific circumstances. We hold no responsibility for decisions made based on this information.

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