The Government just announced a new grant called Enhanced CPF Housing Grant. This will replace the current Special Housing Grant and Additional Housing Grant. Finally, it is less confusing.
For new flats, the grants will be up to $80k and for resale flats, it will be up to $160k.
I wonder what will happen to the resale market during this period?
Will it go down?
All of us love new things. New flats have their own allure. New neighbourhood means new friends. Built-to-Order (BTO) flats are already subsidised, plus the additional grant makes it even more affordable. Higher demand for BTO means less demand for resale.
Will it go up?
The grant, the declining prices of resale flats and the ability to choose a “prime” location might push or stabilise the price of housing.
However, a resale flat, in my opinion, will be a better choice as you can “touch and feel” the place beforehand. You can choose the place you want to live in and the grant of up to $160k seems to be very generous.
An Executive Condominium (EC) would still be the best the three options — a subsidised private estate, which is 20% -30% lesser than current market rate. A million dollar private condo could cost only $700k for an EC. A massive saving of $300k!!!
Then again, we need to understand our financial situation. Buying something should not be solely based on emotions. If we can’t afford something right now, it is ok to walk away from it. But, keep working hard to achieve it and dream bigger. We only have two chances to buy from HDB. Dont waste it…
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