Home improvements

The Benefits of a BTO Property

A BTO property, otherwise known as a build-to-order property, is a property that is tailored to your individual needs and wants as a buyer. If you have exhausted the existing property market and are struggling to find your forever home, it can be a great option for homeowners on the lookout for something a little special. In today’s ever-fluctuating real estate market, a growing number of young professionals are finding it difficult to determine between a BTO property and a resale property. Continue reading to familiarise yourself with the benefits of a BTO property.

It can be cheaper

If you are looking to take your first step onto the property ladder but are on a budget, a BTO property could be the number one choice for you. A BTO property may even be cheaper than a resale flat within the same neighborhood or city. This is largely due to subsidised purchase prices. If you have your eye on a particular postcode but are unlikely to be able to afford the cost of an average home there, consider finding out whether or not a BTO property is a possibility for you. For example, a four-bedroom property within a sought-after location tends to sell for around $300,000 if built to order whilst the resale price of a similar property can fetch up to $410,000. As well as saving money on the initial purchase price of the property, you may also be able to save money on interest payments. This can end up saving you a considerable amount of money in the long run. 

It can have a 99-year lease

As with most HDB properties, BTO properties tend to benefit from a 99-year lease. With the vast majority of resale properties available with less than 70 years on their lease depending on when it was first purchased, it may run out before your tenancy comes to an end. A BTO property, on the other hand, can be a great investment for you now as well as into the future with your children given the opportunity to live mortgage-free for a number of decades as they fly the nest and start their own families. As of 2021, over 7% of properties in Malaysia are either nearing or have surpassed the 40-year mark of their 99-year lease. By 2068, the leases on 10% of all public housing will expire and prompt a resurgence of BTO properties. 

It benefits from lower renovation costs 

As a general rule, BTO properties cost less to renovate from the very onset. This is largely due to the fact that less money is required to remove any internal walls, replace tiles, or fit cabinets before installing your own. When it comes to purchasing a BTO property, you have a final say in each aspect of its interior design. You may also be able to benefit from the HDB’s Optional Component Scheme (OCS). This can allow you to supplement any basic features that are included in the price of your BTO property at costs below the market rate. Aside from lower renovation costs, a BTO property will also be equipped with solid timber doors throughout, entranceway ramps, several television and telephone outlets, porcelain or glazed ceramic tiles, and wide internal corridors. 

It may render you eligible for a housing grant 

In recent years, the government has introduced a number of grants that first-time buyers have been able to tap into during the process of searching for their forever homes. If you are eligible for a grant, it may benefit you to take full advantage of any savings you can make. As well as subsidized purchase prices, a BTO property may render you eligible for a housing grant. This may be in the form of an Additional CPF Housing Grant (AHG) of up to $40,000 or a Special CPF Housing Grant (SHG) of up to $40,000 for first-time buyers. The Additional CPF Housing Grant was designed to help lower and middle-income families that earn a maximum of $5,000 per month and are granted according to their monthly income. The Special CPF Housing Grant, on the other hand, was established to provide further assistance to lower and middle-income first-time buyers that earn up to $8,500 per month. To find out if you qualify, you must do your research ahead of time.

If you are looking to buy your first home and take your first step onto the property ladder, it may benefit you to consider a BTO property. With wide-reaching benefits for homeowners of all ages and financial situations, it has become the new way to purchase a property in Singapore. Purchasing a BTO property, it can be cheaper, it can have a 99-year lease, it benefits from lower renovation costs, and it may render you eligible for a housing grant. 

Hussnain Ali

www.whatsmagazine.com is emerging as a stellar platform covering the facts around the globe. Our first and foremost objective is to provide our readers with authentic and fruitful information happening in the world

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button