Resale Flats vs BTO Flats: Which Should You Pick?

Resale Flats vs BTO Flats: Which Should You Pick?

Imagine this: you’re in the market for your first home and so you start searching for HDBs for sale in Singapore. You end up with two options: resale flats and buy-to-order (BTO) flats.

Now you’re wondering which one of the two is the best option. Both types of HDBs have their own pros and cons, so it’s important to be able to determine your criteria for what the perfect flat would entail and create a checklist of what you need.

Here’s a quick guide on how you can do so:

Set Up a Budget

Set up a budget

One of the first things you should check up on when buying a new home is your budget. Allot a modest amount and make your selected home fit it, not the other way around. Of course, there are ways to lighten the financial burden:

For more information on available grants for resale flats, click here.

In general, BTO flats are cheaper than resale flats by a significant margin. That’s because the former is often government subsidised, while the latter is more dependent on other external factors such as location, neighbourhood, and competition.

Time

Consider your time

One of the biggest differences between BTOs and resale flats is that the latter is already built, while BTOs aren’t. They may take up to 2-4 years to become livable, which makes them the better option only for those who aren’t in any rush to move.

Decide on Your Living Space

Decide on your living space

Because HDB developers place a high value on their designs, they have executed and refined them steadily over the years. And despite the fact that today’s units are smaller in size, they certainly do not lack in terms of area; they feel just as open as their earlier iterations because of efficient spacing.

That said, it’s imperative that you figure out how much space you’re going to need. If you’re aiming for something rather big then go for the old resale units. If you’re okay with something smaller, the newer units may fit you just as well. Otherwise, you could go BTO, as that would allow you more freedom in terms of catering to your specific needs.

Understand your lease

One of the best things about buying a BTO flat is that it comes with a full, fresh 99-year lease – perfect for those who are looking to maximize the unit’s value potential and long-term usage. On the other hand, resale flats come with shorter lease terms. As such, homes with lesser time left on their lease will see a substantial hit on the overall valuation.

Takeaway

So, when choosing between a BTO flat and a resale flat, it all comes down to you determining your needs and your situation. As long as you know how big you want your unit to be, you know how much you’re willing to spend, and how long you want to keep it for, then you’re well on your way to making the right choice.