BTO or Resale Flat?

by Laura Lim

Credits: CPF Board

Credits: CPF Board

You are to purchase your first home, but not sure to get a Build-to-Order(BTO) or a Resale Flat? These are some factors you can consider before purchasing:

Waiting Time3 to 4  years waiting time for the project to be built.After exercise the option to purchase, would take around 3-4 months where you receive keys to the flat.
Size of FlatNew BTO flats are usually smaller in size.The older resale flats are much more larger in size.
AmenitiesUsually do not have amenities nearby for newly built flats, might need to wait out a few more years.You can find amenities conveniently in matured estate flats.
Cost of FlatThe cost of a BTO flat is usually cheaper than resale flats, depending on the estate that the project will be.

There is a Additional Housing Grant available for first timer couples, up to $40k, and also, a Special Housing Grant if you and your spouse’s total income is less than $8,500.
The cost of a Resale Flat is priced at a market rate of the apartments in that area from time to time.

There is a grant of up to $50k:
1. Buying 2- to 4-room Resale: SC/SC $50k, SC/SPR $40k
2. Buying 5-room or Bigger Resale Flat: SC/SC $50k, SC/SPR $30k

You can also qualify for the Special Housing Grant if you and your spouse’s total income is less than $12,000.
Renovation CostsNew flats are unfurnished, unless you opt for the optional scheme by HDB (payable by CPF). However, as the new flats do not have any floorings, sanitary or cabinets, you are able to save on the hacking costs.You can select a resale flat furnished in good condition, to save costs  and time from renovating again. If you want to re-renovate the whole flat to your ideal living design, you would need to spend more on tearing down the current design and to redo the whole place again. Also, old flats tend to come with defects over time.

We suggest if you go for a Build-to-Order if you are not in a hurry, unless you are ineligible for one. Not only paying less, but also you’ll get a fresh tenure duration of 99 years.

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