Getting a HDB resale flat and what to look out for during renovations
Each country has unique housing traditions, and in Singapore, the public housing system shapes a distinctive real estate landscape. While securing a Built-to-Order (BTO) flat has become a traditional milestone for many young couples, it may not align with everyone’s needs or preferences.
If navigating the complexities of a BTO flat is challenging, purchasing a resale flat involves even more effort and careful research. To help you begin your journey in the resale market, here’s a helpful guide on what to consider when buying a resale flat and planning its renovation.
Pros of Buying a Resale Home
Buying a resale home can offer several advantages, depending on individual preferences and circumstances. Here are some pros associated with purchasing a resale home in Singapore:
- Minimal Restrictions: Unlike BTO flats, where only families and couples with at least one Singapore citizen can participate, resale flats allow ownership by two permanent residents.
- No Balloting Hassles: Acquiring the right resale HDB flat involves negotiations with the seller and meeting HDB’s eligibility criteria. While bidding wars may occur, there’s no need for balloting or queuing.
- Quicker Process: Resale home procedures typically wrap up in less than 3 months, a stark contrast to the potential 5-year waiting period for a BTO flat from the application date.
- Diverse Locations: Resale flats provide the flexibility to choose any location, irrespective of the launch sites for upcoming BTO flats.
- Spacious Layouts: Older resale HDB flats offer more generous floor plans, countering the trend of shrinking square footage in recent years.
Cons of Buying a Resale Home
Buying a resale home can offer several advantages, depending on individual preferences and circumstances. Here are some pros associated with purchasing a resale home in Singapore:
- Higher Initial Cost: Resale flats may have a higher initial cost compared to Built-to-Order (BTO) flats. The market value of the property, location and the age of the flat can contribute to a higher price.
- Renovation Costs: Older resale flats may require more extensive renovations to meet modern preferences and standards. Renovation costs can add a significant expense to the overall investment.
- Limited Customisation: Unlike purchasing a new BTO flat where you can customise the design from the start, resale flats come with existing layouts and structures. Customisation options may be limited and major changes could be more challenging.
- Limited Time for Decision-making: The process of acquiring a resale flat can move quickly, leaving less time for thorough consideration and decision-making compared to the longer waiting period for BTO flats.
- Potential Wear and Tear: Resale flats, especially those that are older, may have more wear and tear. Maintenance and repair costs could be higher and there might be hidden issues that only become apparent after purchase or even after moving in.
How To Buy a Resale Home
Buying a resale home can offer several advantages, depending on individual preferences and circumstances. Here are some pros associated with purchasing a resale home in Singapore:
- Background Check:
If you’re wondering what is a reasonable price for a resale HDB flat, determining this would involve diligent research as it can vary over time. A reliable method is to consult official HDB resources, such as recent transactions in the same block or nearby areas.
Utilise HDB Map Services for comprehensive information on any unit you are considering, simply input the address to access the data.
Focus on three key pieces of information: the remaining lease of the flat, resale prices of similar flats in the same block and considerations regarding ethnic group eligibility and the SPR (Singapore Permanent Resident) quota.
Additionally, consider the density of the block – how many units are available, and how many lifts are shared? This data, also available through HDB Map Services, can help you assess vertical mobility congestion, particularly crucial if you’re considering higher floors and wish to avoid lengthy wait times for the lift.
- Location:
The location stands as the paramount factor influencing the asking price of a property. Consequently, in listings for resale HDB flats, emphasis is consistently placed on the connectivity and desirability of the location.
It’s good to verify claims regarding proximity to transportation hubs, green spaces, amenities catering to the elderly, childcare facilities and other features. This can be achieved by personally exploring the neighbourhood.
Consulting the Urban Redevelopment Authority (URA) portal can provide insights into the future development plans for the location. Such information can be invaluable, offering details like potential obstructions to views from upcoming houses or the likelihood of noise pollution from nearby construction projects. With this knowledge, you can negotiate more effectively or plan renovations with greater foresight.
- Inherited Features:
Some features to inspect:
Finishes: Assess all surfaces – walls, floors and ceilings and ascertain their condition. Will you need to overlay or even hack and remove the existing tiles? Is the existing hardwood floor worth preserving and refinishing or is it time for a replacement?
Furniture: Some resale HDB flats include the previous owner’s furniture. Select which items align with your envisioned space. Removing bulky items can incur significant costs, so do request the owner to clear any unwanted pieces before vacating completely.
Fixtures: Reduce renovation expenses by retaining fixtures that are still functional, such as the heater, shower, taps and sinks.
Utilise a compass app to determine whether the flat directly faces east or west, which correlates with heightened heat exposure and may necessitate stronger air conditioning.
- Personal Vibe Check:
Occasionally, prospective buyers experience an immediate inclination to make an offer upon entering a property – the ambience simply feels right. It’s difficult to articulate precisely, but often it’s a result of thoughtful spatial design, ample natural light and airflow, which instinctively put us at ease.
However, not every resale flat passes the ambience test – some may feel cramped or have awkward layouts. Pay attention to existing beams and columns, as they determine the spatial configuration and may not be removable, especially if they’re structural.
Consider bringing someone experienced to viewings to assist with the atmosphere assessment. For those who prioritise Feng Shui, a knowledgeable practitioner can also provide valuable guidance during the process.
Consideration Factors Regarding Renovations
Before embarking on any renovation endeavour, it is crucial to evaluate the condition of each room and contemplate the desired aesthetic for your home – a particularly important step when dealing with resale properties. While minor renovations can enhance the visual appeal of your resale flat, envision the transformative potential of a comprehensive overhaul.
Should you opt for substantial renovation endeavours, enlisting the expertise of a professional interior designer or contractor, can ensure a seamless process. However, if you choose to take on the project independently, it is essential to consider several key factors to guarantee its success:
- Budget
Before diving into any renovation project, it is essential to establish a practical budget. Particularly with resale flats, there’s often a myriad of aspects within older apartments that require extensive alterations. Coupled with your personal interior design preferences and lifestyle requirements, these can significantly inflate the renovation expenses. Moreover, it’s always good to account for any unforeseen setbacks and devise a budget that reflects these potential challenges realistically.
- Damp-proofing
Ensuring proper damp-proofing is essential to prevent moisture infiltration into your walls and foundations. Failure to address this issue adequately can lead to significant problems such as mould growth and subsequent damage to your property. In resale flats, signs of dampness may manifest as ceiling leaks or external wall seepage, particularly in areas like bathrooms.
Conduct a thorough inspection of your flat for any cracks, pipe defects or damp spots, and promptly alert the workmen or contractors to these findings. This will enable them to implement the necessary measures to rectify the problem effectively.
- General Repairs & Miscellaneous Works
Depending on the renovation scope and budget, prioritise which aspects of your home require repair or alteration to align with your wants and needs. Ultimately, achieving a flawlessly executed renovation entails addressing even the smallest issues comprehensively.
- Painting
All of us aspire for our homes to exude a polished appearance and leave a lasting impression. One effective method to achieve this is through a good-quality paint job that harmonises seamlessly with the theme of the house. Given the expenses associated with renovations, it’s worth considering the impact a simple paint job can have on enhancing your home interior. Not only can it conceal minor cracks in walls and ceilings, but it also has the transformative ability to rejuvenate any space, potentially allowing you to reduce renovation expenditures significantly.
- Reconstruction
Allocate some time to evaluate your home’s condition and strategies accordingly to ensure efficient completion of the tasks. If you find yourself struggling to identify the necessary repairs and reconstructions, it’s advisable to enlist assistance from professionals.
Renovation Checklist
Opting for a resale property offers advantages such as the ability to assess its layout, available space and natural lighting. It also allows you to avoid unwelcome surprises like irregularly sized air-con ledges. However, refurbishing a resale home presents unique challenges, necessitating meticulous attention to detail due to its age-related wear and tear. If you’re contemplating renovating your recently acquired resale flat, here is a compiled, tailored checklist to assist you in the process.
- Priorities
If you are looking to only focus on the essentials, prioritise the refurbishment of your kitchen and bathrooms! While revamping every room might seem appealing, it’s crucial to prioritise functionality and budget constraints. The kitchen and bathrooms are the most frequently utilised areas in the home and are susceptible to wear and tear. They are particularly prone to water damage and mould, requiring regular upkeep. Furthermore, these spaces offer ample opportunity for personalisation following your preferences and needs.
- Hacking Works
Considering that the previous homeowner likely customised the home to their preferences, you may desire to demolish or alter walls and undertake redesigning. If you opt to change the layout by demolishing walls, now is the ideal time to do so. However, be prepared to allocate funds for this endeavour as demolishing walls incurs expenses.
- Tiling Works
A reliable method to rejuvenate outdated and worn-out spaces is by replacing the tiles. If you intend to completely remodel the house, it’s advisable to remove the existing walls and/or flooring before installing a new set of tiles or vinyl. This is advisable as the existing tiles can have deteriorated or developed cracks over the years.
- Air-conditioning System Rework
A prevalent issue in most households involves the air-conditioning ledges and vents. Depending on your renovation needs and financial constraints, you might consider replacing the existing air-conditioning insulation material and piping. Poor insulation material can lead to issues such as water seepage, resulting in future complications.
- Electrical Works
Resale flats can often harbour outdated and malfunctioning electrical systems, posing safety risks that necessitate attention. Defective wiring can potentially lead to hazardous situations such as house fires and power outages. Therefore, the primary measure to undertake when renovating your residence is to engage an electrician. Task them with a thorough inspection of all electrical wiring and rectify any issues to ensure the safety and functionality of your home.
- Plumbing Works
It’s a common reality that resale flats frequently feature bathrooms in poor condition. When renovating your home, one of the primary areas that demand focus is repairing all water pipes and fittings, including those in the bathrooms and kitchen sink. Many pipes may be obstructed with calcium deposits or experience leaks due to deterioration. Addressing these issues promptly and early will prevent future expenses and save you time.
- Windows and Grilles
Another area to examine could be the windows and grilles in the flat. The prior homeowners may have installed sliding, child or pet-friendly windows that are not aligned with your preferences. Additionally, HDB guidelines often specify requirements for window grilles. Hence, it’s imperative to install windows that complement your interior design and adhere to relevant regulations.
Renovation Costs
Undoubtedly, embarking on a renovation project demands significant time and financial commitment. On average, renovating a resale HDB flat takes approximately 2 weeks longer and costs 25-40% more than refurbishing a brand-new BTO flat.
This expense increase can be primarily attributed to two factors: the need to replace worn-out features and unexpected costs arising during the renovation process due to inherent defects of the home. Allocate about 10-20% of your resale renovation budget for these unforeseen expenses.
Renovating a resale flat may entail various unique costs and considerations that you should be mindful of:
- Permits and Approvals
Researching and obtaining the necessary permits for renovation should be prioritised early. Failure to secure these permits could result in penalties ranging from fines to the reversal of renovation works, incurring significant costs.
- Rubbish Removal
Renovating a resale flat typically generates more waste and debris compared to a BTO flat, particularly if extensive demolition is involved, such as removing door frames and old built-in carpentry. Ensure you budget for a disposal service accordingly.
- Temporary Accommodation
Consider your living arrangements during the renovation process. Some homeowners opt to renovate in stages and reside onsite, while others prefer arranging short-term, temporary lodging elsewhere. Keep in mind that potential delays in the renovation timeline could impact the cost of temporary accommodation.
- Carpentry Works
Allocate a substantial portion of your budget to carpentry works, encompassing custom projects such as kitchen cabinets, wardrobes and storage units, which typically makes up 30-50% of the total budget.
Though costs can only go up as time goes by, here are some rough estimates when embarking on your resale home renovation journey depending on the scope of works as of 2024:
- 3-Room Flat: $35,000 to $60,000
- 4-Room Flat: $40,000 to $80,000
- 5-Room Flat: $50,000 to $100,000
- Executive or Maisonette: $80,000 to $150,000
Remember also to allocate funds for essentials like loose furniture, appliances, toiletries and lighting, which can collectively amount to an additional $10,000 to $20,000.
Renovation Timeline
Determining the timeframe for a home renovation project hinges on several factors, including the flat’s size, the scope of work and whether it’s a resale home or not. The following breakdown shares some of the common renovation tasks and those that require more time:
Typical Renovation Tasks:
- Wall painting treatments
- Procuring and arranging loose furniture
- Fabrication and Installation of carpentry works
Tasks Requiring More Time:
- Hacking of walls to expand room space
- Flooring and false ceiling reworks
Tips to Keep In Mind
- HDB Renovation Regulations
When renovating a resale HDB flat, adherence to specific rules and legal obligations is paramount. Homeowners must adhere to HDB renovation guidelines and obtain necessary permits before initiating any alterations, regardless of their scale. Even if the HDB Home Improvement Programme (HIP) is underway, these guidelines must be followed. Undertaking renovations without proper authorisation constitutes an unauthorised project and no modifications can be made without any required permit. Failure to comply may result in the flat being restored to its original state and an imposition fine on the homeowners may be imposed.
Common Home Renovation Tasks that Require Specific Permits:
- Flooring and Wall Modifications: Any alterations to existing flooring and walls necessitate obtaining a permit in adherence to HDB renovation rules. For example, replacing old kitchen tiles during renovation requires the hacking of the previous flooring, prompting the need for a permit and strict adherence to guidelines. Additionally, structural walls within a flat cannot be dismantled without proper authorisation.
- Bathroom Overhaul: Redoing floor and wall tiles in an HDB bathroom is a meticulous undertaking that requires compliance with HDB renovation rules. According to these regulations, unless necessary, a minimum waiting period of three years is mandatory before undertaking such renovations. This interval allows for the stabilisation of the waterproofing membrane, ensuring the durability of the renovated structure.
- Storage Opportunities
Make the most of storage opportunities by incorporating shoe cabinets, utilising space under the bed and optimising wardrobe storage by customising the internal layout to your preference and needs.
- Timeless Design
Choose interior design styles like modern, contemporary, Japanese or Scandinavian, known for their timeless appeal and budget-friendly attributes. Collaborate with a reputable and dependable interior design company or contractors to ensure quality workmanship and seamless project management.
Also opt for low-maintenance materials in areas such as the kitchen and bathroom, to reduce the need for frequent upkeep and maintenance.
Closing Thoughts
Keep in mind that the journey of purchasing and renovating a resale flat is a multifaceted process that requires thorough planning and consideration at every step. By enlisting the expertise of professionals, conducting meticulous planning and staying well-informed throughout, you can ensure a successful and fulfilling experience!
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