Time to discuss ECs! Are they still affordable? Are they worth the purchase? Can you buy an EC now and how?
Discussion on ECs
It's getting harder and harder to purchase an EC, as evidenced from the demand in the market and price movements. For 95% of the units bought, people are still earning money with EC, provided you avoid the levies, pick a unit with regular pricing, good facing, not excessively high prices like penthouse etc.
Is there a problem with the market, such as North Gaia not doing well?
The reason for that is not purely because of location as brought up by many observers, it's important to consider the realities of affordability, price and loans.
Demand for EC and affordability
Calculations of loans for EC
Age | Combined income | loan (rounded off) |
35 | $14k | $935,000 |
40 | $14k | $840,000 |
45 | $14k | $725,000 |
Example of someone at 45 years old, with a loan amount of $725,000.
Size of 3 bedder | Price psf | Total Price | Downpayment | |
Previously | 1000sq ft | $1150 psf | $1,150,000 | $425,000 |
Currently | 1000 sq ft | $1280 psf | $1,280,000 | $555,000 |
| Size of 4 bedder | Price psf | Total Price | Downpayment |
Previously | 1250 sq ft | $1150 psf | $1,437,000 | $712,000 |
Currently | 1250 sq ft | $1280 psf | $1,600,000 | $875,000 |
Due to the price quantum change, the jump in prices has been significant, with another $100k+ of downpayment required. The loan amount has been the same while prices have increased on average, hence the requirement of a higher cash downpayment has directly led to a softened demand for new ECs.
Interest in buying ECs
For those that are interested in purchasing or investing in ECs, note that for E-App, it would only be open on the day of launch.
There are no charges from Aaron for a pre-consultation assessment of the affordability of purchasing an EC for you. The purchase of an EC requires significant planning and mathematical calculations, so be sure to get that down long before the time comes, so you will not be in for a shock in the end.
Watch how Aaron brings you through the current situation of purchasing an EC! What's more, check out the free affordability assessment he provides for those interested in an EC.