When we talk about gaining substantial wealth and switching into a luxurious life instantly, most of you may associate that with striking the lottery or jackpot.
But these ways are entirely reliant on the element of luck, which is not the topic for today.
Fortunately, there are some proven ways to make a lot of money in Singapore – primarily through the sale of a property.
If you live in Singapore, you might have heard of people becoming overnight millionaires from an ‘en bloc’ sales.
However, is it truly that easy to become an “en bloc millionaire”? After all, if it were that simple, most of us would be millionaires.
So, what does en bloc entail for you?
How does it work?
What is the process like?
Could you potentially become the overnight millionaire that most Singaporeans desire to be?
Let’s find out in the sections below where we discuss the things you need to know about en bloc in Singapore!
What Does ‘En Bloc’ Mean?
To provide some background, ‘en bloc’ is a French term that means “all together” or “collectively.”
But, in Singapore, ‘en bloc’ is often referred to as a collective sale of extensive housing development to a buyer.
En bloc happens when most of the homeowners in the same development are interested in selling their property to a buyer at the same time.
The buyer may be a property developer or the government.
How Do En Bloc Sales Differ From Normal Resale Property?
For starters, en bloc sales are different in terms of who is buying and selling, and the amount of money you’re getting compared to the typical sale of Penrose by CDL
There are a few simple differences;
In the case of a typical resale, we are talking about selling or buying only one unit.
However, in the case of an en bloc sales, it’s about selling an entire development.
The typical resale transaction involves two parties; the owner of the unit and another individual.
But, for an en bloc sales, it involves a large number of transactions between the group of development owners and a property developer or the government.
A typical resale of a property takes little time to process. The deal can be completed as soon as both buyer and seller agree to a specific price.
On the other hand, an en bloc sales take a longer time (usually up to two years) to attain closure.
This is because it’s not easy to get everybody to compromise as some of the owners may not feel like selling.
Last but not least, for a typical resale, the owner may or may not be profiting as his property is subjected to prevailing market value – and is highly depending on the time of entry.
But, in the case of an en bloc sales, these development owners are almost guaranteed to make a profit as these properties are often sold at a much higher price compared to normal market value. (Reasons will be discussed below)
Readmore: Things You Need to Know About Property Auctions in Singapore