In some countries of the world, there is a property development system in place known as the ‘build-to-order’ system. This system is in place in various areas of the world, including the city-state of Singapore. It’s a proven system that works, but the question is: why are these flats constantly increasing in popularity?
For anyone considering a move abroad to a country like Singapore, it is important to understand why build-to-order flats can be such a fantastic accommodation choice and one that is worth considering. There is the option of getting a brand new flat or choosing to purchase a flat that is being resold on the open market – but who in their right mind would pick an old flat over a brand new one?
BTO flats are increasing in popularity, and it’s easy to see why. Below we have outlined some of the reasons why HDB BTO flats are becoming more and more popular in places like Singapore. Read on to get a good idea of why BTO flats are such a popular choice these days.
Optimal home layout
A lot of flats are designed to be compact, which is ideal for certain people and situations. However, the issue is that not everyone wants a compact flat. Then there is the fact that when it comes to the layout of a flat, everyone tends to have different tastes. While some people prefer open plan living, others like their home to have closed off, separate spaces. A lot of flats have tiny kitchens joined to living rooms and cramped hallways between bedrooms and bathrooms.
However, when it comes to BTO flats, the design and layout is completely down to the people who will be living there, meaning that these flats can be created to fit each person’s individual needs, within reason, of course. When it comes to achieving an optimal home layout, a flat that has already been designed and built is never going to offer that, as it will have been built to suit someone else’s specifications. But by opting for a built-to-order flat, it is possible to have a home designed that is a perfect fit for the needs of the people living there.
In Singapore, and in other countries that use the BTO system, flats start out with a 99-year lease. This means that most older flats have less time left on their lease, which makes opting for newer flats a better investment option. The issue is that if you buy a flat with just 70 years left on its lease, in 20 years, it would only have 50 years left on its lease, and so it’s valued would begin to drop. However, by opting for a newly built flat, it will come with a 99-year lease, this means that it will hold its value, and can be passed down to your children, should you choose to do so.
Property tends to be an expensive investment to make, and one that it can take years to save up to be able to afford. That is why, when it comes to purchasing a flat, opting for the best option, that will give you and your family the most security possible. The fact is that going for a BTO flat that comes with a longer lease is the best option, because of the security it will give you and your family. Plus, when you opt for a BTO flat, you can design it to be a perfect fit for yours’ and your family’s needs, like any good home should be.
Easier to renovate
As a rule of thumb, BTO flats tend to be easier and cheaper to renovate and do up that older properties. This is because of the design features used, as well as the fact that more modern building methods have been used, ensuring that renovation is as easy as it can possibly be. It’s important to think about these things when choosing the type of property to invest in, as although they may not seem important now, one day they will be, and the last thing that you want to do is regret the decision that you made in terms of the property that you purchased.
Renovating is never an easy process, that’s a given, but the newer the property that you are working on, the easier it tends to be. The fact is that when it comes to selling up or revamping your home, one of the most important things is that changing up the look and feel of the place is fairly easy to do. The last thing that you want is a process that is stressful and wrought with problems, which is why making the right choice regarding your home is so important.
In Singapore, BTO flats are priced by HBD, which means that often they tend to be cheaper than older properties. For example, a four bedroom flat that is built-to-order costs around $300,000 whereas a ready built property of the same size tends to cost around $410,000. Aside from the fact that BTO properties come with a much lower price tag, there is also the fact that mortgage costs will be lower as the amount borrowed is lower, and thus there is less interest to pay.
In the long-term, these price differences can add up to a lot. That’s why it is so important to consider all of the options when buying a flat. The fact is that BTO flats are becoming more and more popular, especially with buyers who are on a budget, and it’s easy to see why that is. Buying in this economy is no easy task, which is why opting for property that comes at the lowest price is so important.
There are various property purchasing options to choose from in Singapore and across the wider world, but built-to-order flats can be a great option for a range of reasons. It is never easy to choose a property option, that’s for sure, it’s just a case of taking the time to think things through.