Neat. Cozy. Visually appealing. Minimalist. Luxurious. Relaxing. Bespoke.
These are the terms that we usually hear when we talk about our homes. Or at least our ideal concept of it.
It has to have a neat visual representation. I have to have bespoke furniture. I want to get the most luxurious sofa money could buy (or my money, for that matter).
All good when you’re only planning for yourself and for a short period of time. But what about your present and future family? What about your status ten to twenty years from now? What then?
Suddenly, these terms just all become mere words if proper planning and careful study aren’t done.
And lest we forget, in word mapping for your home, you’ve forgotten the most important aspect to consider. And this is the all-important question that most home buyers should never, ever, forget to ask.
How much space do you really need?
That one-liner question is loaded with tons of considerations, ranging from necessities to preferences.
Will a 2-room BTO be enough? A 3-room BTO? How about A 4-room BTO? Or are you all in on getting a 5-room BTO?
As with all other things in life, we struggle with finding the perfect balance between two opposite poles of a spectrum.
At one end are our spatial needs, which are mostly determined by how many family members do we intend to have living with us, how many activities or tasks do we need to do at home, and how much money can we dish out.
On the other end are our dreams and aspirations about the house we want to have. A walk-in closet. A lanai with a view. A balcony overlooking Singapore ala Raffles Place.
So how can we find that spatial equilibrium?
And how will we know if a 2-room BTO or 3-room BTO will be enough? Or if we need to vie for the 4-room BTO or 5-room BTO?
But first…
Why a BTO?
Well, this is simply because BTOs are one of the least expensive housing. If you can endure the longer wait time to apply for one, then BTOs are the way to go.
What are the types of BTOs?
Basically, BTO flats are categorized by the number of rooms as represented by the floor plan. So they are either a two-room, three-room, four-room or five-room flat.
- 2-room BTO – about 36 to 45 square meters; mostly opted for by singles or unmarried individuals, or the elderly or senior citizens who either live alone or only with their spouse and are already satisfied living in a two-room flexi flat
- 3-room BTO – a layout that averages between 60 to 65 square meters, often selected by couples who plan to have a small family; mostly converted into an open floor plan for added space
- 4-room BTO – a 90 square meter space ideal for those who are just starting to grow their families; with the right size of furniture, it can appear larger and more spacious
- 5-room BTO – a “sprawling” 110 square meters or more, by far the largest BTO home Singapore can offer; likely to fit a study, living room and dining space; with this size, there are more renovation possibilities and you can be as creative as your resources will allow you.
Now, on to our considerations…
What are the important factors to keep in mind?
Basically, there are two essential, non-negotiable factors, and some nice-to-have-but-you-can-forego elements that you must consider when choosing the right BTO for you.
First is the actual number of people that you expect to live in your home. And in this case, the rule of thumb that more people equals more rooms and therefore equals more space is probably the best way to go at it.
Are you single but already have your future in mind? That’s well and good. Because there may be some who think only about their present and decide on the space they need based on what only they need.
But what if the future Mr. or Mrs. comes along? What then? You’ve got to keep in mind the five-year Minimum Occupancy Period (MOP) that prohibits you from divesting your current flat. Additionally, you won’t be allowed to purchase another home, regardless of the type.
Are you and your wife expecting any babies anytime soon? Have you talked about that? That will play a huge role in what type of BTO you will buy. Having three or more kids might require a 4-room BTO or a 5-room BTO.
Also, do you expect your or your spouse’s parents to live with you guys? Unlike in the West, we Asians have very strong family ties and it’s not unusual to have our parents living with us during their sunset years. Or are there other relatives that have been your guardians throughout your whole lives who will also be living with you when they grow old?
These are familial scenarios which will demand you to have sufficient space to accommodate them.
But then the second non-negotiable consideration comes in: your budget.
I love watching those real estate reality shows wherein the brokers help their clients find their dream house. There are a lot of oohs and ahs whenever a house is shown to them.
If only a deal can be made based on the number of gasps and wows from the client. However, in most cases the stumbling block or hindering factor is the price and if it’s way over the client’s budget.
Similarly, you have to consider your resources and how much you have and are planning to spend on your property.
Here’s a table of how much each type of property costs on the average.
Note: we have to make our own, then probably remove the one for studio type since we didn’t mention it here and focused only on the 2 to 5-room types.
Though we might prefer to buy larger BTO flats, everything will depend on our salary, how much we have saved, our eligibility for CPF and other grants, and our other financial considerations for the future.
Where we are in life also determines our financial capacity. When you’re at a younger age when you buy, you have limited earning power and thus have equally limited capital.
If you are newly married, you may have more combined income, but bear in mind that you also have combined expenses and debts incurred. So don’t be fooled by the double income mentality.
Now, after these two crucial factors, you can proceed with the less essential but highly practical considerations.
Circumstantial
- The type or nature of your work will impact the amount of residential space you need. Do you work from home and have an online-based business? Are you a freelancer who requires a separate workspace?
- How much privacy do you need? I don’t consider this a want; this is an actual need! We need that sense of peace to keep our sanity. Are you expecting family members to visit often? These factors could swing your decision from a 3-room BTO to a 4-room BTO.
- Maintenance is a must to keep your house top-notch. Are you willing to do all the extra cleaning and maintenance that comes with a 5-room BTO? If your answer is yes, then I tell you: the benefits far outweigh the troubles. Having all that extra space is such a sight to behold.
Aesthetic
- Is there a certain flow to your home? This isn’t about Feng Shui or anything like that (though whatever works for you, go for it), but there’s a practicality that comes with it. Can you move through your home with much ease? Or are there faults in your arrangement that you might have adhered to because you chose a 3-room BTO instead of a 5-room BTO? Cramming everything up in lesser space is a common solution but can be very troublesome as time goes by because it affects the flow and psychology of your space.
- On the other hand, wasted space can also be a source of tension. There might be a dead corner in your home that you just can’t do anything about even if you are willing to renovate.
Additional Reminders
Are flat sizes shrinking? Apparently, they are. Older public housing in Singapore came with 10% more floor area than the newer ones. So you may be able to score a resale 4-room BTO that might almost be as large as a 5-room BTO.
Also, you have to consider the Resale Levy which is an amount you must pay if you’re buying a second subsidized home from HBD. This is imposed to regulate government subsidies among first-time buyers and second-timers.
It goes without saying that selecting the right-sized BTO in a non-mature estate is the best choice for Singaporean couples. And in order to maximize this option, you must be able to set your priorities and know the stark difference between needs and wants.
There’s nothing wrong with dreaming of having an open floor plan 5-room BTO that houses all your essentials and luxuries. Or purchasing a large flat at the best location with the hope of selling it for a high price on the secondary market.
Those are achievable real estate goals. And by applying the REI Method, you can achieve the science of real estate in order to make your dreams a reality. Whatever the case may be, preparation is always key.
Want to know which BTO size best fits your needs? Connect with us and we’d be glad to walk you through your choices.
