DISCLAIMER: This entry is only appealing to you if you're sitting on a fence, deciding if you should get a resale or BTO. It is not very pedas because my pregnancy hormones are raging at different things and just wish everyone's houses are just equally big. Other than that, this may be irrelevant/boring. But you can plan for your future too even if you don't have a significant other. No judging.
I have been on TeamBTO for awhile because for one, I thought that never in a million years would I be able to afford a resale house. Why? Because resale houses depend solely on market prices/owner's choice of price and then there was an era of COV (Cash Over Valuation). That is basically paying the seller a certain amount he/she wishes to get cash value out of their flat. However, with the market for resale houses doing poorly and still is, plus COV is long gone that makes resale an alternative option. HDB is now firm with the COV whereby they scrap the entire idea or most part of it, and call it a "deposit" where it is capped at $5,000 (will elaborate on the next entry).
So why the sudden change from BTO to resale? Especially when I have said from the start that Baobei and I have no rush since we both have rooms at our parents' place, although we will be residing more in Serangoon than Jurong.
1) Resale market is doing poorly.
This only means good news for buyers and not so good news for sellers, especially those whose location is not very appealing. Those "hot spots" can still pull in quite a price though. And yes, although BTO will be a wayyy cheaper option for a married couple who are both only 25 years old, let's think far and not be narrow-minded.
This was taken from Channel News Asia Singapore's FB page.
We are truly blessed for two reasons. We got our unit in Bishan at a great deal and Bishan still shows great potential if we decide to sell in the future.
2) House size.
I cannot emphasize greatly how important this is in a long run, especially for couples who plan to start/have/will want a family. Maybe you don't plan to have kids now or maybe young kids do not need a lot of space but things will be different in 10 years time. I guarantee it. If you have not read my logic behind this, I have blogged before HERE. So for us, we will take a 4A room flat over a 5 room BTO because I have lived to see BTO in 3 room, 4 room and 5 room. Let me tell you that the difference between 4 and 5 room is only the size of the living room. Because if you were to buy a 5 room BTO, you can choose to build in your "4th" room in the living room as a study room etc. But the kitchen, toilets and rooms are still tiny-sized. Don't get me started on the most important room; Master bedroom. I mean, I paid for the damn house, the least I could get is a huge room for myself. I don't really care if the living room is tiny because let's face it, I bought a house to house myself, not my guests. So if they think the living room is too tiny for them when they visit, then please don't come!
3) Facilities.
When we started looking at resale houses, we also looked at what the neighbourhood has to offer. This is very important because even kedai mama under the block makes a huge difference! Unlike BTO which is typically build on empty lands next to more empty lands which most empty lands in Singapore are suited in the ulu areas of the neighbourhood. Which means we don't know what kind of shops/schools/doctors/ etc are being offered at that point of time apart from the fine print which HDB promises. But for us, when we were haus hunting our Bishan kastle, the neighbourhood is already there. Which means we just have to take a look at what they have. We are lucky as there are THREE childcare centers that were walking distance from our block, a wet market, NTUC (24 hours), my family doctor (hahaha Mama says it is easier for me to take MC), pediatrician clinic (a bonus that we now have BabyRKM coming soon), Prima Deli (Baobei's highlight!) and many more things like Bishan's version of Rupini's too (threading and waxing). So when it comes to facilities, we get to decide if the price tag is worth paying for because they have already existed. I read up a year ago on Facebook about one of the BTO in Punggol was promised a childcare center under their BTO block but it was not build or still being promised that send people on a search for a the nearest childcare. No such nonsense for resale houses.
4) Location.
Again, we get to pick the location. Not location like Bishan or Ang Mo Kio or Yishun. But more of where our house is located at exactly. Is it near the bus stop? Walking distance to the MRT? For my unit, we are located in such a manner that it is 3 bus stops to Bishan MRT, 4 bus stops to Thomson and their good food (Marymount MRT) and about 6 bus stops to Ang Mo Kio MRT. So yay us! There are two different bus stops on two separate main roads connecting to our house, and it is just beside the multi-story carpark for people like us who go out exactly on time and cannot afford extra time to walk. Like I said previously, location plays a part especially if we rely highly on public transport. Although we have the family car for now, I don't see us having one once BabyRKM is older or once our baby-making factory is close. A second hand car for now, is worth paying for the convenience when I am pregnant and when BabyRKM arrives. But if not, it will be motorbikes for the parents and public with the baby. However I do note that some BTOs are located very near MRTs and are at prime locations/matured estates, but of course the price tag is a tad ridiculous. My cousin paid for a 4 room BTO at Boon Keng that cost him half a million. Mine only costs half a million after it is fully paid for!!! So for me, the size and the price tag just doesn't match. Very bullshit eh.
5) Cost of renovation.
People say the downside of resale is the renovation costs because hacking is a lot of $$$ as compared to building things on an entirely empty house. That is true. But it is also true that hacking is not as expensive as you think it is (get many quotations from contractors as possible). Some resale houses are already renovated nicely by the owners so that makes it a plus point! Just wash the whole house before moving in. For us, we came in with the mindset of redoing the whole house. We had that huge plan which of course we tucked it aside once we found about about BabyRKM. But we are very lucky that the house's condition is still good. The floor tiles are still nice. I can say that is even nicer and of better quality than what HDB is offering as part of the BTO package. The toilets for our house were newly renovated (less than 7 months) which means we just have to change the toilet seats. The only thing we had to do was kitchen cabinet although the flooring was chipped here and there but hey! It is okay for now. We can still make do. Oh, don't get it wrong. Some resale houses come in the worst condition but sellers are usually willing to let go at a dirt cheap price so you can use the money on renovation. The key is to point out with whatever that is terrible about the house structure. Say things like, "But you see the tiles here are coming off.," or "If I buy this hosue, then I have to renovated the whole flooring," which will most likely tilt the price to your favour. Anyway our whole kitchen cost us SGD9.3k which includes hacking, cooker hod etc and build in microwave, which will be a separate entry once the kitchen renovation is done and the painting is completed. Then you will understand why I love my house and it's amazing layout.
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The only TWO good things I can gather from buying BTO are:
1) You are the first owner.
There shouldn't be any worry of the past history of the house which usually sellers/agents will not inform you of. So this house is a clean slate and you create the first memory of this BTO.
2) Most who apply are young couples/families.
Which means to say you will get neighbours of your age which I think makes it pretty cool. Lucky us, my next door neighbour is a pretty young (late 20s, early 30s) couple with young kids (below 5) so it doesn't seem so bad. But apart from that, my other neighbours or people living in the flat itself are not very young anymore. Hahah so BabyRKM will have to make do with my friends' kids aje lah.
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There will be people who disagree with me or say I show-off because I bought a resale house, but trust me when I said some people don't realize that they can actually afford to buy a resale themselves. It is a lot of homework but if you want it, work it! Some will even say, "Smaller house, lesser to clean/maintain," but like I said to each of his/her own. Thinking ahead never kills especially when you have no idea how much houses will cost in the future. If it is cheaper than what I bought it for now then Alhamdulilah, lucky you. But if HDB makes things more complicated in the future or younger generation wants a bigger house, it can make selling your current 92sqm a difficult thing to do. For me, the only upgrade I want from my current house will either be mansionette or private house. But if not, this house will be with us for a long, long time. If we get bored of the house, renovate lor. Like what we plan in 5 years to come, In Shaa Allah!
Of course for most, BTO seems like the pocket friendly option for those who do not have the luxury to buy resale houses. But then again, you might just be lucky like us who managed to find something that fits the bill, within our budget. So do lots of homework before buying a BTO, especially with more and more complains of the quality HDB is producing at. Some cost cutting may cost you more in a long run (like taking a package with the flooring and toilet doors, and ending up changing/replacing because the quality suck balls and it does).
Oh, for those who are engaged and plan to buy resale, note that you need to produce your marriage cert within a month of key collection and not 6 months like BTO. There are some exceptions but you just need to double check with your HDB case manager. You will be surprised how fast it is to buy a resale flat. So if your wedding is less than 6 months, you can start resale haus hunting. But if not, wait okay. Unless you are willing to nikah (solemnize) earlier.
My next entry is how to know how much you can afford to pay for a house meaning your budget (for both BTO and resale) and the process of DIY-ing your own side of the paperwork without having to get an agent to do it (for resale only).
Yes, I miss baby updates too. But the next one will be fun as we hit third trimester this week (or have we already entered?)! Please keep us in your prayers as we have reached the final lap of our pregnancy journey. Alhamdulilah. Oh, I have created a page about BabyRKM's journey/updates which you can find on the left side under #kattkrownjr
Oh I also do plan to do an entry related to weddings but more to Malay weddings specifically. It is about how much is too little to give the bride&groom as duit salam and why do we give.
Til the next one, xo
