What are the real pitfalls of buying a resale HDB versus waiting 4 years for a BTO?

We chose resale in Bishan in 2022 and I'll be honest, the cash outlay shocked us even though we knew the theory. The flat was above valuation so we forked out about 40k cash-over-valuation on top of the 20% downpayment, and CPF cannot be used for COV, must be hard cash. Then came the renovation for an older unit, we spent 55k because the wiring and toilets were original 1990s and had to be redone. But the flip side is we moved in within 3 months, no waiting, and we got a big flat near an MRT that no new BTO in that area will ever match. If you have the cash buffer and want to start life now, resale is worth the premium, just don't underestimate the cash-heavy first year.

Emotional pitfall nobody mentions, the BTO ballot itself. We applied four times and kept getting bad queue numbers for the estates we wanted, each cycle is months of hope then disappointment. After two years of failing to ballot we gave up and went resale anyway, having wasted that time. If you're set on a popular mature estate, your BTO chances there are brutal, so be realistic, either apply for non-mature towns where you'll actually get a unit, or just go resale from the start.

One thing people forget for resale, the loan and the remaining lease. If the flat is older, say 40 years left, banks and even HDB loan may limit how much you can borrow and how much CPF you can use, because of the lease-buying restrictions. My friend nearly kena caught when his dream older flat couldn't get full financing and he had to top up huge cash. Always check the remaining lease against your age, the rule is the lease should cover you and your spouse till at least 95, otherwise your CPF usage gets capped.

We went BTO and waited, and the wait was actually fine, but the hidden pitfall was the timeline slipping. Our project was delayed almost a year due to construction issues, so our 4 years became closer to 5, and we were stuck living with in-laws longer than planned which tested the marriage a bit ha. Financially though it was the right call, our BTO price was maybe 40% below comparable resale, and the paper gain at MOP is significant. If you can tahan staying with parents and your relationship is solid, the BTO subsidy is basically the best financial head-start Singapore gives you.