I recently encountered a client who is the owner of an Executive Condominium (EC) that has already completed its Minimum Occupation Period (MOP). The common query among EC owners is whether they should consider selling their EC once it reaches the MOP.
To address this, it’s essential to delve into the underlying motivation for selling. What prompts the decision to part with the property? Typically, EC owners witness a rise in property value by the time the 5-year MOP is reached.
Allow me to share my personal journey in real estate. Initially, my husband and I contemplated obtaining a Built-To-Order (BTO) flat in Ang Mo Kio, as the neighbourhood held sentimental value for me. However, with BTO units priced over $500k and limited options due to our queue number (98/103), we reconsidered. Two weeks prior to our unit selection appointment at HDB Hub, the available units were unsuitable, prompting us to abandon our queue number and explore other avenues.
Upon the advice of our cousin, a real estate agent, we explored Executive Condominiums (ECs). Following thorough financial assessment and viewing various options in Punggol/Sengkang, we decided to purchase a 3-bedroom compact EC unit as our first matrimonial home. Subsequently, we embarked on the 5-year Minimum Occupation Period before considering our next steps.
By MOP, I’ve attained the RES license and was able to do some self-evaluation of our property portfolio and listed out the options, including selling and upsizing, decoupling for investment purposes, or continuing to reside in our current unit, we decided to sell. Utilizing part of the proceeds, we purchased a larger unit under a single name and invested in another property under a separate name through decoupling.
Similarly, some neighbours chose to sell, upgrading their living arrangements or investing in new properties, while others opted to retain their EC units for future opportunities. Ultimately, the decision hinges on individual priorities and aspirations in their real estate journey. It is important to make informed decisions aligned with personal goals, with trusted guidance throughout the process.
Cherlyn Leng.