When to take profit when your EC reaches MOP?

As homeowner of a EC that has reached the MOP (Minimum Occupation Period), you may want to ask yourself an important question, should you sell your ECs (Executive Condominium) once they have reached their MOP given that they have risen in value or should you continue staying in your home.

EC owners who have reached their MOP (Minimum Occupation Period) of 5 years after their TOP (Temporary Occupational Period) can choose to sell their homes.

Below are the list of ECs who will reach their MOP in 2022.

Are there unprofitable ECs?

Developers who purchase GLS site for the purpose of developing EC are usually at a lower price than a land condo in the GLS (Government Land Sale) exercise, however they are subjected to additional rules by the Government. Having said that, is it a good time to sell or should they hold the property a little longer? The question is for how long. By this time, the first time owner would have been around 8 years since you first booked and made a downpayment for your EC home. You should have already made money from your EC purchase. The reason is that in land scarce Singapore  property prices would generally rise.

When is the best time?

Another question to ponder on is, will you be the first one to sell or wait for others to sell first, monitor the property prices then market the unit later in the hope of getting a higher price. One may want to note the first unit that sells will set a benchmark price for the whole of the EC development.

If you are the first owner, there are 2 ways to restructure your portfolio and extract your potential profit from your current property.
* Sell your EC which has rearched the MOP.
* Do a Gearing up Loan on your existing EC

These 2 methods will be covered in more depth in another article

If you are unsure which is the better option to restructure your portfolio, feel free to touch base with us and we will be glad to share with you more details. As Singapore overall inflation rises to 3.2% in October, highest in more than 8 years, the value of money will only erode in tandem. You may read more about this rise in Inflation in the Straits Times article on 23 Nov 2021.

Key Takeaways

There is never a good time to sell anything. If you sell high, you will likewise buy high. There is never an ideal case. It is just a case of if you have earned enough and would like to take profit from your EC.