If you are a first time homebuyer in Singapore, this article is for you!
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HDB houses are public properties in Singapore and are built by an organization called the Housing and Development Board. They are a way for people to rent and buy residential buildings for a low price in comparison to general private properties. HDB houses are greatly in demand because of the many benefits of choosing this type of house. In fact, it is said that in 2020, 80% of Singapore’s residents live in HDB homes. So, what are some advantages of choosing to live in HDB housing?
HDB Flats are Cheaper to Rent/Buy
As stated above, HDB homes are more affordable than general properties on the market. Like most residential buildings, the prices of these resale houses differ depending on their size and location. Due to multiple factors, (one being a lack of supply because of the pandemic) the cost of HDB homes has risen. However, this type of home is still much cheaper for those with a lower income. Subsequently, there remains a high demand for these homes. If you are interested in looking at some of these properties, there is a variety of listings currently on the HDB resale portal. It’s worth noting that there are restrictions for foreigners who wish to buy HDB properties. However, those who intend on renting them have more freedom and can easily apply for affordable HDB properties with cheap rental fees.
Funding and Available Grants
Under the Housing Grant Scheme, first-time buyers can claim financial aid when looking for their first home. It’s certainly true that the Housing and Development Board is invested in helping people find a place to live in Singapore. Unfortunately, many people live in cramped conditions to save enough money to buy property independently. However, buying a home at a young age means that multiple government grants are available. Potential buyers on a low household income could be eligible for helpful grants of up to $160,000, depending on the type of property they need and how long the family will reside in it.
Cheaper to Renovate
Typically, HDB properties rarely require drastic renovations as they are often updated when you buy them. Buyers can request additional fittings and floors upon purchasing them, so repairs are seldomly needed for new flats. However, if owners wish to renovate their residence for resale purposes, the average cost of this is more affordable in comparison to private lots as less material and labor costs are necessary.
For those who buy HDB properties, capital gains are almost certain should they wish to sell in the future because HDB listings are always sold at a lower price than they’re worth when they are newly built. If the new buyers choose to sell, they must have lived there for at least five years before this is possible due to the MOP (Minimum Occupation Period). This can be somewhat bothersome, but waiting longer to sell or rent the home will probably result in higher profits.
Clean, Secure, and Safe
In HDB areas, you’ll find tight-knit, friendly communities. Neighbors respect and look out for each other making the areas a very safe and pleasant place to live. Understandably, CCTV is illegal to install outside your property but there are alternative means of security. Moreover, although outside CCTV isn’t permitted, it is legal for occupants to install these indoors so many are still equipped for burglaries.
Luckily, these neighborhoods usually have low crime rates; Bukit Timah, Bishan, and Marine Parade are listed as some of the safest HDB areas in Singapore. Additionally, HDB areas have a great reputation for cleanliness. Like most other countries, professional cleaners are frequently utilized in commune areas in multi-habited estates. These areas quickly become messy as they are used by multiple residents daily. Luckily, professional cleaners are very affordable and don’t have a heavy financial burden on inhabitants. If preferred, inhabitants can hire their own private cleaner – the average service cost is around $20-$25 per hour.
In HDB areas, there is a multitude of local amenities which makes life extremely convenient for inhabitants. These amenities may not be as private as condo facilities, but they certainly meet the needs of their many residents. From shops, gyms, playgrounds, and scenic parks, there is a plethora of things to do. In some places, they even have areas that can be used solely for senior citizens to use that are equipped with a kitchen, bathroom, and living room.
It’s undoubtedly beneficial to rent or consider purchasing HDB property, whether buyers wish to reside there or resell it. It’s advisable not to be hasty and instead look for the best prices, but with the increasing value of such properties, the chance of making a profitable investment is very likely. Overall, it’s clear that Singapore’s public housing has an outstanding reputation and is arguably one of the best housing systems in the world.