BTO first timer: Co-Owner Vs Essential Occupier

The status from co-owner to essential occupier is most easily made before key collection. The hike in additional buyer's stamp duty (ABSD) recently makes it even more important for you to decide if you/partner should be co-owner or essential occupier during the purchase of your first flat. ABSD is a cost that will be incurred during the purchase of 2nd property and beyond.

Some points for you to consider before you make the decision:

🗒️ Do you have plans to purchase a 2nd property after the Minimum Occupation Period (MOP)?

🗒️ Are you and/or partner comfortable not having the legal right to the flat? (Occupier has no legal right to the flat even if contribution to the financing of the flat is made using cash)

🗒️Do you need to tap on both your CPF funds to finance the flat? (Occupier will not be allowed to use CPF to finance the flat)

🗒️Are you applying for any housing grants? (Makes a difference whether incomes are combined during assessment)

🗒️Are you financially ready to own 2 properties at the same time considering the fluidity of interest rates for bank loans? (Can be a hefty commitment if required to pay two housing loans at the same time when interest rates are on the rise)

These are considerations that I wished I knew before I bought my flat. Hopefully these will help you to make an informed decision during your home hunt.

Follow me on my post to journey with me as I reflect on the process of transforming our flat into our home 🌈.

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