Nur S September 25 2021

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Pros and Cons of Build To Order (BTO) Flats

As an investment minded individual, having a BTO as your first home is a no brainer as when your BTO reaches the end of MOP (Minimum Occupation Period) in 5 years, you can make your first pot of gold by selling your place. However, as a family oriented individual, having a Resale flat is the ideal choice as you’d prefer for a bigger and more spacious home. With the current COVID-19 situation, couples would have to wait for a longer duration to move in to their first BTO due to the extended time of completion. With that, couples are beginning to switch their attentions to Resale flats thus jacking the prices. Hence, we are here today to share with you about the Pros and Cons of getting a BTO.

Pros of BTO Flats

1. Return of Investment (ROI)

For all you investment minded people, this will be the first thing in your house buying criteria as attaining a high ROI will be your priority. Selling your BTO after the 5 years Minimum Occupancy Period (MOP) is a guaranteed way of making money. In addition, if the property market is with you when your BTO reaches MOP, like in our current situation, then your ROI will be even higher making investors smile from ear to ear.

2. Affordability

A BTO flat is way cheaper than a HDB Resale flat. In addition, with the Enhanced CPF Housing Grant of up to $80,000, buying a BTO would be cheaper than as compared to a Resale. For example, a BTO in Woodlands would cost you about $300,000 while a Resale in Woodlands would cost you about $450,000. This simply shows that buying a BTO for all you first timers is simply more affordable than as compared to a Resale.

3. Renovation

With a BTO flat, not much renovation is needed as it’s basically a newly erected home. However, if you decided that you want to renovate the house to give it a personal touch, the cost will still not be as pocket damaging as renovating a Resale flat. This is simply because for BTO, the renovators are working with a “new canvas” while for Resale, the renovators will need to deconstruct the previous owners interior design before establishing yours.

4. Brand New

Being the the first owner of the house, you knew that no one else has stayed in it. So, you need not worry about loan shark or moneylender issues from the previous owner. 


Cons of BTO Flats

1. Time

Basically, it will take a longer time to get a BTO as you’ll have to ballot first and IF you get selected, then you’ll still have to wait 4 to 5 years for your BTO.

2. Size

The size of a BTO flat is nowhere near the size of a Resale flat. Thus, if you have a big family, you might want to consider all your options before buying a BTO. You’ll realize that most 4 room BTO units size are 92 sqm while a 4 room Resale flat are at 100 sqm.

3. Unknown neighbours

It remains to be seen who will be your neighbours next door. Can you get along well with them? Will they take up a lot of space along the corridor by placing pots of plants and junk items?

4. Temporary Accomodation

Unless you can stay with your parents, you may need to rent an apartment while waiting for the completion of BTO flat. Check the private rental transactions for condominiums, walk up apartments and landed properties.


To sum it up, if you’re in no rush to buy a house and don’t mind a smaller space as long as you get to make money at the end of the day, then BTO is the way to go! Otherwise, Resale would be a faster and more spacious house to get.