Buying a BTO in Singapore: a home to call our own

As announced back in 2013, Roy and I took a step forward in planning for our future by applying for a Build-To-Order (BTO) flat. Fast-forward to 3 years later, we have already collected the keys to our new place and renovations are currently underway! We will be moving in by the end of 2016 and absolutely cannot wait to share with you guys how our new nest is gonna look like.

But before that, I would like to share why we decided to get a BTO and the determining factors which led us to choose that particular BTO project.

Why a BTO?

The main reason why we wanted to get a BTO was because we hoped to get a house that was at a price we could afford. Back then, I was still in my last year of university. We knew that we wanted to get a place of our own but our finances were tough on us, or at least it was for me since I hadn’t gotten a job yet. Also, we calculated our finances for the next few years and decided we probably would not have enough money in our CPF to afford more.

And that was when we started to research and read up more about BTO online. We spent countless nights looking at forums and websites, trying to digest all advice given before coming to a decision. I totally understand how it feels like to get lost in all those housing terms and loan jargon. T_T

One thing we realized was that we could afford for an Additional CPF Housing Grant aka AHG since our income was within the grant ceiling.

How the grants can help:

Back in early 2013, we could qualify for only the AHG and it was a good $30,000 that could help supplement the payment of our BTO. Now, most applicants can also qualify for the enhanced Special CPF Housing Grant (SHG), if you apply for a BTO flat in a non-mature estate like we did, and have a combined income of $8,500 and below! Depending on your income level, you may qualify for both the AHG and SHG at the same time. That means, if we were to apply today with an average monthly income of $2,500 (just like back then), then we could have enjoyed $70,000 of grant in total. That’s more than double of what we got back in 2013 leh?!!! Imagine how much couples can save today with that amount of grants.

Our BTO was priced at $333,000 in total (after opting in for floor tiles — read more below), and the AHG helped to offset $30,000. That meant our balance for the flat was $303,000. It was such a great help or I might have to pay the monthly installment for an additional 3 years. That’s 3 years off the load!! We could use this amount of money we saved for our home renovation and furniture.

How we chose our BTO:

1) Pricing: As mentioned earlier, we were looking at an affordable flat that would not stretch our expenses too much. We wanted something that could fit within our means. I don’t earn a sky-high salary so I won’t want to spend a huge chunk of my money on my flat when I can save the money for my future children. Our BTO area in the Northeast of Singapore started from $165,000 on average for a 3-room flat, $268,000 for a 4-room flat and $334,000 for a 5-room flat, before grants. Roy and I were looking at around $300,000. The grants provided by the government would help a lot in this aspect.

With the AHG grant that we got, our house cost us $303,000 which is just nice for our initial budget. The total pricing worked out to $328,000 (initial price) – $30,000 (AHG) + $5000 (opt-in floor tiles) = $303, 000.

We even managed to get a high floor unit of our choice and within our budget!! Best thing ever!

2) Location: We wanted a location that was near our office since we spend most of our time there (it was Toa Payoh in 2013, and MacPherson now in 2016. Still within the area!), and not too far away from town but is still kind to our pockets.

Okay so I just did a search on a transportation app to show you the price difference in transportation fees (via taxi or private car hire) between my BTO flat and my current maternal house.

A ride from my maternal home in the North to Ion Orchard is $18-27 via taxi and $18 via private car

vs.

A ride from my BTO to Ion Orchard is $12-$18 via taxi and $12 via private car.

The time taken from my BTO to reach town is 24mins via train while it takes 40 minutes to reach town from my maternal home. That’s half the time saved!

Although a non-mature estate, the amenities within my new BTO home are perfect for us! There is a park right behind our BTO and I foresee Roy and myself spending lots of time there exercising or walking our dog, Peanut. Also, there is a food court below my block, which is what I need!!!! Best part of it all? We have a 24-hour mini mart!

20 minutes

3) Size of unit: Since we were looking at the price range of $300,000 – $320,000, a 3-room or 4-room flat would best fit our budget. I spent 20 years of my life in a 4-room flat and I think that’s a comfortable size for a family of 4-6. A 3-room would be a bit too small for us if we were to have kids next time and when our parents come over to visit.

After considering all the above factors, the timing came nicely for us as we matched our requirements to the available BTOs that were released for application. We went ahead to apply and got a nice queue number. The day of our home selection in mid-2013 came and we got our desired top floor unit at the price of $328,000. Even with the opt-in tiles, the AHG helped with the overall cost and we got exactly what we wanted – a 4-room flat within our budget range.

Now that we have gotten our keys and are having the renovation done (also trying not to burst our budget), I just can’t wait to show you guys how our place looks like!!!! I can finally do a house tour, room tour, and have lots of light to take photos and videos!!

Roy and I are so glad we applied for the BTO 3 years back, allowing us some time to save up and now everything is falling nicely into place as we prepare for our wedding in 2017. We would have a nice home to move in by then and will be looking forward to start our new phase of lives together at our love nest. Most importantly, given that our BTO was within our budget (with the help of the AHG), we now have more money to spare for our wedding and home renovation. For those who are keen in finding out more about the HDB grants, click here for more information. 🙂

xoxo,